August, 04 2005
SAILs Bhilai Steel Plant GM shot dead
SAILs Bhilai Steel Plant General Manager Radheshyam Agrawal was shot dead by unidentified persons at his residence in Nehru Nagar locality of the steel city last night, police said today.
Mr Agrawal, who was GM In-charge of Shops, was alone at his residence at Nehru Nagar at the time of shooting and assailants pumped 4 bullets when he answered the door bell killing him instantly. His neighbors saw two persons fleeing the spot.
Police has ruled out robbery as a motive and apprehends that there were industrial links to the murder
The murder has shocked the 35,000-strong staff of the Bhilai Steel Plant. The murder refreshed memories of the brutal killing in Bhilai of trade union leader Shankar Guha Niyogi by contract killers in 1991 after his prolonged rift with local business houses.
Domestic steel price correction
Is sounds funny that when international prices are finally on the rebound, Indian producers are offering reductions and saying that these are being given to be in line with international price levels.
HRC prices which had dropped from $ 600 to $ 380 CFR are now at $ 420 CFR levels. Billets which had dropped from $ 450 CFR to $ 330 CFR have gone back to $ 370 CFR levels . Indian Galvanized coils which had gone down to $ 570 CFR Chinese port have recovered to $ 660 CFR levels. Indian HRC export prices have gone from $ 400 CFR to $ 460 CFR levels in the last three weeks!
So it really seems irrational that why Indian producers are reducing prices now when the international market is firming up.
But as the international price levels are always the booking prices, where as the domestic prices are for the month, and there is always a lag of 45 to 60 days between the order booking and physical arrival at Indian port in case of imports, the rational behind the price reduction by Indian Steel mills is correct. In fact the three step price reduction undertaken is in line with the gradual reduction in international prices since March.
The Indian steel mills price strategy is largely based on the landed import parity price for arrivals and by undertaking this approach even though their sales volumes reduced in last two months, the realizations have been slightly higher.
Posco denies links with International Watch
Facing political opposition for its Rs 52,000 crore integrated steel project in Orissa, Korean giant Posco today said that it had no links with US-based NGO International Watch which announced a $5 million fund for rehabilitating tribals affected by the proposed project.
A day after International Watch announced setting up of the Rs 22 crore Tribal Rehabilitation Fund to ensure proper and humane rehabilitation, Poscos chief India representative SM Doh said, We have nothing to do with International Watch.
Tatas still to resolve land, gas issues in Dhaka
India's Tata Group is yet to resolve some key issues like land and gas supplies related to its planned $2.5 billion investment in Bangladesh for setting up steel, power and fertiliser plants.
The date for the third round of talks, originally scheduled for July, is yet to be fixed. The price negotiations will not only include the price of gas and coal supplies but also the power purchase price as the Tatas have proposed supplying half the 1,000-MW power plant capacity to the national power grid while utilising the remaining for a 2.4-million-tonne steel plant.
For a one million-tonne urea fertiliser plant, the Tata Group is negotiating for a coalmine to set up a captive power plant. So far the negotiations have been on course and are expected to conclude by November end.
Among the sites being considered by the Tatas for their power and steel plant is Barapukaria in western Bangladesh close to Darjeeling, while Shangu Valley, about 50 km from Chittagong, is proposed for the fertiliser plant.
Though the negotiations are expected to be hard, informed sources in Bangladesh feel there is considerable keenness to have the Tatas and other foreign investors come in to step up power generations and create employment.
Refractories seek core industry status
Faced with growing problem of coal supply, refractories across the country are seeking core industry, which have a yearly turnover of around Rs 1,700 crore, status from the Government citing its vital role for proper operation of furnaces in steel and some other industries.
"We have approached the Union Government for granting core industry status to refractories, which are closely connected to the operation of furnaces in steel, cement, aluminium industries etc," Indian Refractory Maker's Association (IRMA), Chairman, Mr U C Deveshwar said.
He said that since September last year the refractory industry had been facing a growing problem of coal supplies and since April Eastern Coalfields Ltd had started supplying run-of-mine (ROM) coal to non-core sector
consumers including refractories. The ROM coal consisted mainly of dust and small fractions of 5-10 mm, which could not be used in kilns for the production of refractories.
Nepals GI pipe export to India plunges by 40pc
Export of GI pipe, one of the leading Nepali exportable commodities to India, plunged by 40 percent in 2004-05 due to adjustment in customs duty effect by the Indian government.
During the year, Nepal exported a total of 23,886 tons of GI pipe worth Rs 890.47 million to India as against 41,033 tons worth Rs 1.43 billion in 2003-04. Nepali GI pipe is mainly consumed in Delhi, Uttar Pradesh, Madhya Pradesh, Assam and Rajasthan in India.
Owing to unfavorable tariff structure, Bhagwati and Hulas Steel have already stopped exporting the pipe, while Rajesh Metal, Jagadamba and Mainawati Steel still continue to do so.
Concerned exporters said that the Nepali exports suffered the setback after the prices of HR Coil, the raw material, shot up in the international market and India adopted a flexible import policy which made Nepali exports lose competitiveness.
The Indian government had adjusted the import tariff for HR Coil to stabilize the prices for local industries. It reduced the customs duty for the coil to 5 percent from previous 30 percent in the last fiscal year.
The manufacturers here even demanded the government to withdraw export tax on the product and allow import of raw material against the bank guarantee.
Govt considering 100% FDI in captive coal mining
As per existing policy Private Indian companies setting up or operating power projects as well as coal or lignite mines for captive consumption have been allowed foreign equity up to 100 per cent but companies engaged in exploration or mining of coal and lignite for captive consumption for production of iron, steel and cement are allowed foreign equity up to 74 per cent.
A proposal to enhance foreign equity participation up to 100 per cent in case of such private companies from the existing 74 per cent is under consideration of the Government.
e-trading in coal likely
The government will decide whether to adopt e-auction for coal after studying results of e-auctions conducted on trial basis by coal companies.
Minister of State for Coal Dasari Narayan Rao today said e-auction was introduced because consumers of coal, who could not get linkage, were being forced to buy coal from the black market.
By the year-end, we will come to know if e-auction is good, he said in reply to a question in the Lok Sabha. Rao admitted that certain power plants were facing difficulties because of coal shortage.
CIL Plans technological up gradation
Public sector Coal India Limited has planned for technological upgradation of its coal mines.
At present there are 305 underground mines, out of which 96 are fully mechanized and 209 mines have both manual and mechanized working. Of these, 80 mines are proposed for mechanization during the Xth Plan period and the remaining in the subsequent Five Year Plan. In opencast mines, almost the entire coal production is mechanized. Thrust is being given for higher degree of mechanization in opencast mines with bigger size of heavy earth moving machineries.
In addition CIL is undertaking replacing the worn out equipment with higher size fleet to reduce the cost of operation and maintenance, introduction of Surface Miner to a greater extent in opencast mines eliminating drilling and blasting operation and increasing the machine availability & utilisation percentage to improve productivity of machines increase productivity in its mines.
Praxair India Signs Contract with Hospet Steels
Praxair India, a leading industrial gases company in India, today announced the winning of an important contract from Hospet Steels for the supply of oxygen.
Under the long-term, 15-year agreement, Praxair India will build, own and operate a state-of-the-art cryogenic air separation plant with a capacity of 400 metric tons per day (MTPD). The plant will also include associated liquefaction equipment to meet the growing needs of the market for oxygen, nitrogen and argon in South India.
Hospet Steels Ltd. is an entity formed through a strategic alliance between Mukand Ltd. and Kalyani Steels Ltd. for establishment, operation and maintenance of the steel plant at Hospet.
Praxair, Inc. is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2004 sales of $6.6 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings.
Erdemir and İsdemir GMs resign in a new twist to privatization saga
The general managers of soon-to-be-privatized Ereğli Iron and Steelworks T.A.Ş. (Erdemir) and its largest subsidiary, İsdemir, resigned on Tuesday amid controversy surrounding the sale of Turkey's biggest, and well-managed, steel mills.
Both Erdemir General Manager Kerim Dervişoğlu and İsdemir General Manager Atamer Giyici submitted their resignations on July 25 to their respective boards, with the news made public Tuesday.
The resignations brought out into the open both general managers' opposition to the privatization of Erdemir. Even though Erdemir Chairman Recai Berber said both general managers cited health as the reason for stepping down as they were considering leaving for some time and the resignations are not connected to Erdemir's privatization.
Turkey's Privatization Administration (#304;B) had announced 13 short-listed bidders on July 15 for the tender of the steelmaker scheduled on September 26.
Prime Minister Recep Tayyip Erdoğan, in a speech on July 14, criticized both Erdemir and İsdemir, saying they lacked the latest technology and that past governments used the companies to give their cronies and supporters jobs.
Erdoğan said the steel mills were dirty inside and vowed to sell off all state enterprises.
The privatization process is opposed by an unlikely coalition of trade unions and Turkish firms who claim foreign steel giants like Mittal or Alcelor want to buy a profitable Turkish company cheaply, only to mismanage it and sell steel they produce elsewhere to Turkey.
An all-Turkish consortium of 23 companies under the leadership of the Turkish Union of Chambers and Commodities Exchanges (TOBB) is among the bidders, with a mission to keep Erdemir under Turkish control.
Rio Tinto 1st-Half Profit Rises 34 Percent to Record
Rio Tinto Group, the world's third- largest mining company, said first-half profit rose 34 percent to a record as output and prices for iron ore and metals increased.
Net income rose to $2.2 billion in the six months ended June 30, from $1.6 billion a year earlier. Higher commodity prices for raw materials increased underlying earnings by $1 billion. Sales rose 44 percent to $8.7 billion.
Chairman Paul Skinner said demand in China, which accounted for 13 percent of first-half sales, remains strong, inventories are low and that markets will be tight in the short-to-medium term.
Rio's iron ore output rose 16 percent in the first half of the year, compared with the previous period, as benchmark annual prices rose 71.5 percent to a record from April 1.
Coking coal, another steelmaking ingredients, also posted a 120 percent gain in prices due to surging demand from China. Rio's coking coal output rose 17 percent in the half.
Rio is China's biggest supplier of iron ore, accounting for one quarter of imports. China's steelmakers increased imports of iron ore by 34 percent in the first half of the year. China accounted for 9 percent of Rio's sales in the first half of 2004.
Evraz Group says key units see strong profits growth
Evraz Group SA says its key units saw strong profit growth while others were hit by softer steel prices in an interim report for the six months to June 30.
The net profits rose at At OAO Nizhny Tagil Iron and Steel Plant (NTMK) from 9.13 billion roubles ($320 millions) from 5.55 billion roubles ($193 millions) , OAO Kachkanarsky Mining and Metallurgical Complex (KGOK) 307 pct to 4.49 billion roubles ($157 millions) and OAO Vysokogorsky Mining and Metallurgical Complex (VGOK) 312 pct to 724 million roubles ($25 millions)
But the profits shrunk at OAO Evraz Ruda which suffered an operating loss of 135 million roubles ($4.7 millions) in the first half to June, down from a profit of 163 million roubles ($5.7 millions) , OAO West Siberian Iron and Steel Plant (ZapSib) by 57 pct to 2.77 billion roubles ($972 millions) and OAO Novokuznetsk Iron and Steel Plant (NKMK) 14.3 pct drop in net profit to 2 billion roubles ($720 millions)
The steel production and mining group, with operations mainly in Russia, said alongside a four-fold increase in profits, its mining operations had benefited from raw material prices with strong top-line and bottom-line growth at subsidiaries Kachkanarsky Mining and Metallurgical and Vysokogorsky Mining and Metallurgical plus a strong profit growth at the Nizhny Tagil Iron.
A company statement said there was a weaker performance at its West Siberian Iron and Steel Plant and Nizhny Tagil Iron and Steel Plant due to softening of the steel prices and higher raw material prices.
It added the West Siberian Iron and Steel Plant encountered a seasonal decline in sales of construction steel during the first quarter of 2005 as well as a decrease in export of semi-finished products during the second quarter. It also experienced rising raw material prices leading to reduced profitability.
The group's Novokuznetsk Iron and Steel Plant achieved a substantial increase in revenues during the first half, but rising raw materials prices led to a slight decline in profits.
Canadian Algoma Steel not for sale
Algoma Steel Inc. said on Wednesday it decided to take itself off the market, opting instead to declare a special dividend to its shareholders.
The company said its net profit for the three months ended June 30 was C$64.7 million ($53 million) down from a profit of C$78.0 million ($64 million) in the year-before period.
Lower steel prices and higher costs for iron ore, coal, alloy and scrap combined to nibble away at Algoma's profit, but the company said higher contract prices helped offset softer steel prices during the first half of 2005.
Revenue in the second quarter rose 12 percent to C$494.6 million ($407 million) as steel shipments rose 3.6 percent to 563,000 tons
At the company's annual meeting in May, Turcotte said Algoma had a healthy cash balance and would need a couple more months to decide whether to make an acquisition or put itself up for sale as a way of boosting shareholder value.
But while Algoma said it is no longer pursuing a potential suitor, its longer-term strategy will consider a sale, merger or investment in the business if the opportunity arises.
Looking ahead, Algoma said softer steel prices are expected to lower its third-quarter earnings. It also said selling prices will bottom sometime in the third quarter.
Iron ore imports in Qingdao port stands the world top
According to the latest statistics released by Ministry of Communications, the national imports of iron ore in the first six month this year stood at 132.71 billion tons.
Among the total imports, iron ore imports in Qingdao port yielded 24.01 million tons, accounting for 18 percent of the nation's total, and occupying the top position among the world's major ports.
EU warns Czech, Polish steel sectors on aid
The European Commission warned Wednesday that it could order failing Czech and Polish steel companies to pay back government subsidies if they don't become viable businesses by December 2006. Some steel firms in both countries are still underperforming, despite exceptionally favorable conditions on the steel market, the EU head office said.
The Czech Republic and Poland have a temporary exemption from strict European Union rules on funding restructuring efforts in the industry as they joined European Union on May 1, 2004 only
Most Czech and Polish steel companies benefited from export growth and increased domestic sales in 2004. Demand in the EU for finished steel products increased by 7 percent in 2004.
The Commission said delays in the restructuring process meant some firms "may fail to achieve viability" by the end of next year, despite growing demand and higher prices for steel. Cost-cutting efforts need to continue, it said.
SA Kumba earnings soar 258%
Kumba Resources on Wednesday announced a 258% increase in basic attributable earnings per share to 315c from 88c for the six months ended June 30.
Revenue increased to R5.286bn ($829 Million) from R4.333bn ($672 Million) in the previous comparative half-year period.
During the half year Kumba produced 15.511 million tons of iron ore, up 15.212 million tons from before. Iron ore sales totalled 15.416 million tons, made up of 10.603 million tons of exports and 4.813 million tons sold into the domestic market, up from 15.283 million tons in the previous comparative period.
Total coal production was 9.946 million tons, up from 9.309 million tons previously, while sales of coal were 10.055 million tons, up from 9.496 million tons before.
The mining group attributed the increase in earnings to a number of factors including higher commodity prices across all business segments.
Other factors include strong market demand and the ongoing realisation of the benefits of the business improvement programme in respect of the revenue enhancement and cost savings initiatives, which more than offset the stronger rand.
Xstrata says more violence hits ferrochrome strike
The world's biggest ferrochrome producer Xstrata said it was seeking a court order to keep striking South African workers from intimidating employees after several incidents of violence.
Workers at Xstrata's Rustenburg ferrochrome plant went on strike on Friday in a dispute over wages. On Monday several striking workers were injured after company security guards fired teargas at protesters.
About half of the plant's 1,500 employees have not shown up for work, but it was unclear how many were participating in the strike and how many were afraid to show up, said Etienne du Preez, manager of corporate affairs at Xstrata Chrome.
Violence has continued in recent days with petrol bombs thrown at vehicles, although none have exploded, and a worker's house was burnt down, he added.
Swiss-based Xstrata has said the strike would have only a modest impact since output was recently trimmed back temporarily. Last month the company said ferrochrome output would probably be flat this year as it closes some furnaces for maintenance and keeps other shut due to low market demand.
Xstrata reported attributable, saleable ferrochrome production of 1.225 million tonnes in 2004. South Africa is the biggest producing nation of ferrochrome, an alloy used as an anti-corrosive agent in stainless steel.
Russia and Ukraine to sign pipes supply agreement
Russia and Ukraine might sign an agreement in September that would set up regulations on bilateral pipe supplies targeting the equal share and growth rate of Russian and Ukrainian pipes supplies, along with the banning of anti-dumping measures during the term of the agreement.
The Economic Development and Trade Ministry is currently conducting an anti-dumping investigation into imports of small- and middle-diameter pipes along with an investigation into protective measures on big-diameter pipes. Both investigations are scheduled to be finished in November and may lead to the imposition of protective import duties or export quotas.
Russia imports big-diameter pipes not only from Ukraine, but also from Japan, Turkey, Italy and Germany. Although pipe imports from Ukraine remained at the same level in general, the imports of stainless steel pipes grew by 10 %.
Shougang to move steel and iron operations out of Beijing
Shougang Group, which has long been decried as the capital's worst polluter with chimneys belching out thick clouds of smoke, moves its steel and iron operations out of Beijing .
The Beijing Shougang Group, China's fourth largest steel maker, will relocate all of its steel and iron plants to neighbouring Hebei Province by 2010. It plans to build a new steel base near Tangshan with an expected annual production capacity of 8 million tons.
Shougang Group, also known as the Capital Iron and Steel Group, is planning to develop non-steel-making operations such as real estate and mechanical and electrical industries on part of the vacated site.
Russian Anti Monopoly questions iron ore producers about pricing
The Federal Anti Monopoly Service (FAS) of the Russian Federation sent letters to the largest producers of iron ore with questions about pricing for the raw materials from 2003 to the first six months of 2005. In other words, the anti-monopoly service had a suspicion that the consolidation level of the local iron ore market is extremely high
The FAS officers asked questions of MSP and Lebedinsk Smelting Plant (LSP) that is controlled by the enterprises of Alisher Usmanov and his Gasprominvestholding, and also smelting plants that belong to Seversal-Group, Mechel and Evrazholding.
FAS insists that its interests to the iron ore market was not provoked by complaints of the black metallurgy enterprises to each other but the market participants think that the letters were initiated either by Magnitogorsk Metallurgy Plant (MMP) or the company Metalloinvest, which supervises Mikhailovsk Smelting Plant (MSP).
The companies are supposed to provide answers before Aug. 15.
SA may reverse anti dumping Russian CR
Russian steel producers Joint Stock Company Severstal and Novolipetsk Iron & Steel Corporation have asked governments International Trade Administration Commission to reverse the imposition of antidumping duties on cold rolled steel imported from Russia for the sake of their reputations.
Pretoria-based international trade consultant Francois Dubbelman said yesterday that the removal of the duties, of between 27,4% and 76,1%, was unlikely to lead to an increase in Russian steel imports to SA because of the demand for steel in other parts of the world and as these companies are already exporting large volumes of steel to markets such as China, Canada and the US
Earlier this year, the companies lodged an application in terms of the Anti-Dumping Regulations, requesting the commission to investigate whether the Southern African Customs Union (Sacu) would suffer material injury if the antidumping duties were removed. The commission said the investigation would consider the period between January 1 2002 and December 31 last year
The commissions predecessor introduced the duties in December 2002 after local steel producer Iscor, now called Mittal Steel SA, complained that dumped Russian steel was damaging SAs industry.
South African steel importers Clyde Steel, Repinter SA , Steelnanks Merchants and the South African Capital Equipment Export Council support Russian move.
Canadian Harris Steel reports higher Q2 profit
Harris Steel Group Inc. reported a 3.4 percent increase in second-quarter profit on Wednesday as demand in its reinforcing products segment remained strong.
Harris Steel said its net profit was C$17.56 million ($14 million) for the three months ended June 30, compared with a profit of C$16.98 million ($ 13.9 million) , in the same period last year. Revenue was C$252 million ($207 million), up nearly 42 percent from C$178 million ($146 million) last year
The company, which makes reinforced steel bar, wire mesh and industrial flooring products, also said it expects continued strength for the rest of 2005 barring an unexpected and dramatic shift in steel prices.
Metallurg Holdings to Explore Financing Alternatives
Metallurg Holdings, Inc. announced today that it has commenced discussions with Morgan Stanley to explore financing alternatives aimed at restructuring its long term, interest bearing obligations.
Metallurg supplies and produces specialty metals, alloys, metal-based chemicals and powders. The Company operates through subsidiaries in the United States, United Kingdom and Brazil. Metallurg markets its products to manufacturers of steel, aluminum, super alloys, hard facing materials, electronics and fiber optics and other metal-consuming industries.
Gerdau Ameristeel Reports for Quarter
Gerdau Ameristeel Corp. reported net income of $74.3 million on net sales of $961.1 million for the quarter ended June 30, 2005, compared to a net income of $105.5 million on net sales of $733.8 million for the same time last year.
For the six months ended June 30, Gerdau Ameristeel reported net income of $152.9 million on net sales of $2 billion, compared to a net income of $127.0 million on net sales of $1.4 billion for the same time last year.
Excluding joint ventures, the company shipped 1.6 million tons of finished steel in the three months ended June 30, 2005, an increase of 23.3 percent over the second quarter of 2004.
Mill manufacturing costs were $231 per ton in the second quarter of 2005 compared to $192 per ton in the second quarter of 2004 reflecting increased yield costs due to higher scrap prices, higher energy and other raw material prices, and the stronger Canadian dollar. Fabricated steel prices increased $142 per ton compared to the second quarter of the prior year.
Excluding joint ventures, the company shipped 3.2 million tons of finished steel in the six months ended June 30, 2005, an increase of 21.1 percent over the six months ended June 30, 2004.
Excel Maritime reports results for Q2
Excel Maritime Carriers Ltd an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, announced today its un-audited results for the second quarter 2005 and the first half of 2005 ended June 30th
.
Total revenues for the second quarter 2005 amounted to $31.9 million, an increase of 138% when compared to the $13.4 million earned during the second quarter of 2004.
Net income amounted to $14.6 million versus $8.6 million in the second quarter of 2004, an increase of 70%. The second quarter results include a profit of $1.7 million realized from the sale of the M/V "Lucky Lady."
Chinese Manganese mines tie-up for CITIC Resources
CITIC Resources Holdings, a plywood maker turned energy and base metals producer, will set up an 800 million yuan ($98 million) venture that will control China's largest manganese mines, the company said.
CITIC Resources will pay 300 million yuan ($37 million) in cash through a subsidiary for a 60 percent stake in CITIC Dameng Mining Industries.The venture will mine and process the metal, which is used in stainless steel production and has a wide range of other industrial uses.
Partner Guangxi Dameng Manganese Industrial, with a 40 percent stake, will contribute mining rights, operational assets and liabilities of manganese mines in southern Guangxi Zhuang Autonomous Region, equity interests in some other mines in the region, land-use rights and other assets.
The joint venture has the potential of enabling the company to become the controller of the largest manganese mines in China and the holding company of one of the largest manufacturers and suppliers of manganese products in the world,'' it said.
Angang Steel aims for first in sale of nontradable shares
Angang New Steel, a publicly traded unit of China's second-biggest steel maker, may begin the sale of nontradable shares in two months, a move that will probably make it the first Hong Kong-listed firm to join the country's state-share reform scheme.
The central government launched a trial scheme early May to allow state-owned shares to be publicly traded in four A-share listed companies. The scheme expanded to another 42 firms in June, including Baoshan Iron & Steel and China Yangtze Power.
None of the 46 companies is traded in Hong Kong,
ZSMK reported financial results for the first half of 2005
JSC West-Siberian Iron & Steel Works (ZSMK, Kemerovo region) announced revenue of 29.94 billion rubles ($1.051 billions) for the first half of 2005, up 19.5 percent from the same period a year ago.
Company's net income lowered 57 percent to come to 2,77 billion rubles ($97 millions), EvrazHolding reported.
Gross profit reduced by 39.7 percent to total 6.15 billion rubles ($215 millions) , operating profit fell 48.6 percent to make up 4,52 billion rubles ($158 millions).
Nizhny Tagil Iron & Steel Works net 64.3% up
JSC Nizhny Tagil Iron & Steel Works (Sverdlovsk region) reported revenue of 41,1 billion rubles ($1.442 billions) for the first half of 2005, up 61.4 percent from the same period a year ago. Company's net income rose 64.3 percent up to 9,13 billion rubles ($320 millions), EvrazHolding informed.
Company's gross profit for an accounting period climbed 40.3 percent to reach 13,04 billion rubles ($457 millions), operating profit widened 43.3 percent up to 11,5 billion rubles ($403 millions).
Novokuznetsk Iron & Steel Works reports 14.3% fall in net income
JSC Novokuznetsk Iron & Steel Works reported revenue of 22,98 billion rubles ($806 millions) for the first half of 2005, up 51.5 percent from the same period last year. At the same time, Company's net income fell 14.3 percent to come to 2 billion rubles ($70 millions), EvrazHolding said.
Gross profit rose 1.3 percent to reach 4.03 billion rubles ($141 millions), operating profit reduced by 3.1 percent to 3.16 billion rubles ($110 millions).
Russian privatization behind schedule
The Kremlin is upset over the progress of privatization in the first half of this as only 22 federal unitary enterprises were privatized in the first half of 2005, out of the 1,453 scheduled for this year's privatization and only 114 state-owned stakes were sold of the 1,493 stakes in joint stock companies that the government had planned to sell which is only 7.7 % of the total amount of enterprises slated
27.6 billion rubles, or about $1 billion, were added to the budget from sales, including 22 billion rubles ($770 million) from the sale of Magnitogorsk Integrated Iron and Steel Works.
The differences among the Russian Federal Property Agency, the Russian Federal Property Fund and the Ministry of Economic Development and Trade on the procedure of selling federal property have been responsible for the shortfall.
Earle M. Jorgensen 1Q Profit Soars
Steel distributor Earle M. Jorgensen said Wednesday that first-quarter profit almost doubled as a modest increase in volume helped mitigate declining steel prices.
Quarterly income rose to $22.6 million from $11.7 million a year ago. Revenue totaled $444 million, a gain of 23 percent from $361.6 million a year earlier. Overall volume expanded 3.1 percent to 201,000 tons shipped from 195,000 last year, the company said.
President and Chief Executive Maurice S. Nelson Jr. said while the company's revenue increased last quarter, its gross margin has come under pressure from falling steel prices.
NLMK declined steel output for the first half of 2005
JSC Novolipetsk Iron & Steel Works produced 4,09 million toes of steel for January-June 2005, down 11 percent from the same period a year ago.
The production of cast iron reduced by 15 percent to come to 3,82 million tones, the finished steel output fell 11 percent to total 3,85 million tones, agglomerate output dropped 10 percent to 6,23 million tones. The production of coke for the first half of 2005 decreased by 12 percent to 1,92 thousand tones.
Novolipetsk Iron & Steel Works is the third by size metallurgical works in Russia specialized in the production of sheet products of wide assortment.
CVRD Plans to keep Iron Ore mine rights at CSN
Cia. Vale do Rio Doce, the world's largest iron-ore producer, will keep its right to sell excess production from steelmaker Cia. Siderurgica Nacional's iron-ore mine, Vale Chief Executive Roger Agnelli said.
Vale, subject to an antitrust probe of its power over the iron-ore industry, has no plans to voluntarily shed a 20-year concession to sell any of CSN's unused ore.
CSN, Brazil's third largest steelmaker, wants to end Vale's rights at the Casa de Pedra mine as part of an $800 million expansion plan.
Tracy-damaged iron ore mine set for reopening
A Perth-based iron ore explorer says it hopes to reopen the Francis Creek mine next year. The mine was closed in 1974 after it was damaged by Cyclone Tracy, but the company hopes to use new technology to reach the ore that is left in the ground.
Territory Iron will spend almost $4 million this year drilling a 20 square kilometre area at Pine Creek, 150 kilometres south of Darwin.
The managing director, Doug Stewart, says the results of drilling from the last two months are very positive. "We're pretty lucky in a lot of ways in that this had been drilled before way back in the late 60s and 74 so we knew where we were going to drill and our expectations were that we would be finding more than 60 per cent iron mineralisation in there and that's exactly what this drilling is showing us," he said.
