September, 14 2005
CPI leader attacks POSCO MoU
The semblance of a tussle between the BJP and BJD leaders over the Posco deal in Orissa is nothing but a fight over the sharing of commission money, CPI leader Mr D Raja alleged here today while demanding that the deal be scrapped. Mr Raja said that his party would put pressure on the Central government to cancel the MoU signed between the Orissa government and Posco for establishing a steel plant in the state.
Orissa is not going to benefit from the Posco deal in any way, instead the port planned by the Korean major near the existing Paradip Port and the use of water from the Hirakund reservoir would destroy the port and the irrigation prospects, he contended.
He alleged that Posco deal is nothing but a move by the BJD-BJP government in the state to put the ore deposit of the state at the hands of the multinational company at an abysmal low rate for exploitation.
Indian ferro alloy producers seek changes in mining policy
Hit by shortage of good quality ore, Indian Ferro Alloy Producers have sought changes in iron ore export and mining policies.
The Government must privatize the blocks for exploration, as being done in the oil and gas sector, IFAPA Chairman P Roy said adding that urgent attention have to be given to the high power cost faced by the industry rendering it uncompetitive.
Mr Roy said they would soon be submitting a pre-budget memorandum to the government seeking special incentives for captive power plants, availability of Railway wagons at subsidized rates and improving the connectivity.
SteelRx Launches e-coal trade platform
Close on the heels of Coal Junction from Metal Junction, SteelRx has announced launching of CoalRx as an e trading platform for buying and selling of coal. The Government of India has already cleared the policy of e-auction of coal for the non-core sectors and the small consumers so that availability of coal is made to them at the right prices.
The CoalRx platform would be initially available to domestic coal companies for selling coal to the non-core sector consumers but there are plans to sell imported coal through the platform to the small consumers for whom otherwise getting access to such variety is an arduous task. The main objective of CoalRx would be to establish best mechanisms for coal trade through modern, efficient and transparent means.
According to Mr YPS Suri, CEO of SteelRx, We are happy to extend our experience and knowledge of best practices in e-trade to the coal sector after successfully implementing it in the steel sector. As in steel, we are sure that the coal sector will immensely benefit through this initiative of ours.
SteelRx Corporation is a leading, neutral, B2B e-commerce company, which launched e-buy and sells of steel through the Internet in June 2000 and today has also evolved into a leading information supplier in the steel domain.
In July, 2005 SteelRx was acquired by the countrys largest non captive producers of low ash metallurgical coke, Gujarat NRE Coke Group.
Shah Alloys board okays Rs18bn expansion project
SAL Steel Ltd has announced that its Board of Directors has approved the expansion project of around Rs18bn at the existing site at Gandhidham by adding additional 2 phases of Phase III & Phase IV in the existing project.
The Board has proposed for adding One Million Ton of Steel Melting capacity under this expansion project
China steel imports of 17.5 million ton down by 21% in 7 Months
According to the statistics of custom, 17.5 million ton Steel Products imported in first 7 month, down 21% from last year. 180 million ton iron ore imported, up 32.9%
TopIron ore prices to remain near records in 2006, JPMorgan
Iron ore prices may stay at records next year as global demand continues to outstrip supply of the steelmaking raw material, JPMorgan Chase & Co. said, reversing its previous forecast of a 5 percent drop in rates.
Higher steel output in China, the world's biggest iron ore consumer, will make up for slowing demand for the raw material from North America, Europe and Japan, Jon Bergtheil, a metal and mining strategist at JPMorgan, said
Iron ore contract prices charged by BHP, CVRD and Rio, jumped 71.5 percent from April 1 this year on demand from China, which has doubled steel output since 2001.
Spot prices of Indian-origin iron ore have risen 36 percent to $74 a metric ton at the end of August from the year's low in July
Wheeling-Pittsburgh Steel Corporation announces surcharge
Wheeling-Pittsburgh Steel Corporation today announced it is implementing a raw materials surcharge of $75 per ton on shipments of all steel products, as well as the continuation of a motor carrier fuel surcharge. The raw materials surcharge is effective Sunday, Sept. 18, 2005.
Mr Steve Sorvold, VP Commercial said that "The surcharge reflects significant increases in our costs for scrap, natural gas and transportation, which were already increasing and have risen dramatically since the disruptions caused by Hurricane Katrina
Wheeling-Pittsburgh is a steel company engaged in the making, processing and fabrication of steel and steel products using both integrated and electric arc furnace technology. The Company's products include hot rolled and cold rolled sheet and coated products such as galvanized, pre-painted and tin mill sheet.
Mechel Looks at Flat Steel
Mechel Steel, a steelmaker whose shares in the United States have gained more than 30 percent this year, will decide by the end of the year whether to add steel used for cars and household appliances to its range of products.
"We're looking at the project and different aspects of it," communications director Irina Ostryakova said by telephone from Moscow on Thursday, declining to give details.
Mechel until now has focused exclusively on so-called long steel products, used for the construction industry. Adding flat steel would help it compete for customers at a time when larger rivals such as Mittal and Arcelor are cutting output to shore up prices.
Fire to cost BlueScope about $50m
Australia's largest steelmaker BlueScope Steel says the recent fire at its Western Port steel plant in Victoria could cost the company as much as $50 million. The fire broke out in the electrical control room of the hot strip mill on August 22 and the steelmaker has estimated it will take three months to complete repair work. BlueScope said $15 million of this would be accounted for as capital expenditure.
"It is expected that the total cost, incorporating both the cost of repairing damaged equipment and the impact on product mix and margin, will be in the order of $45 million to $50 million," the company said.
The company said it was making progress in its efforts to find alternative feedstock to allow metallic coating and painting operations at Western Port to continue.
TMK raised pipe sales 9.5% for January-August 2005.
JSC Pipe Metallurgical Company TMK shipped 1.86 million tones of pipe products in January-August, an increase of 9.5 percent from the same period last year. It has produced 1.28 million tones of steel for pipe shell, up 2.3 percent
The pipe deliveries in August raised 16 percent versus the same period a year ago up to 242,000 tones, the steel smelting climbed 8 percent to reach 1.28 million tones.
TMK is the biggest manufacturer of pipe products in Russia
ThyssenKrupp Services invests further in Eastern European growth
ThyssenKrupp Services has started its own materials warehousing business in Ukraine with the establishment of ThyssenKrupp Materials Ukraine TOV, Kiev possibly in cooperation with a Ukrainian partner. In the start-up phase, the focus will be on stainless steels. Plans are in place to expand business in the near future to include the full range, from carbon steel and tubes to nonferrous metals.
According to ThyssenKrupp Services Executive Board member Joachim Limberg, "the Ukrainian economy is growing faster than average. We believe the country provides a good market for our proven concept of supplying "materials from a single source". It is important for us to build up a strong partnership in Ukraine. In the next three years we aim to achieve sales of 20 million euros and employ up to 100 people."
Eastern Europe is an attractive growth market for ThyssenKrupp Services, which already has companies in Hungary, Poland, the Czech Republic and Russia generating sales well in excess of 400 million euros and employing over 1,000 people. Negotiations on joint ventures are currently in progress in several other countries.
The Ukrainian market has to date been served via imports from Poland. With annual sales of 250 million and 600 employees, Polish subsidiary ThyssenKrupp Energostal S.A is ThyssenKrupp Services' biggest Eastern European Company. A nationwide sales and warehouse network has been established in Poland, and a major new central warehouse is currently being built near Katowice.
NLMK production declined in January-July
Novolipetsk Iron & Steel Works declined production of primary output in January-July 2005. The production of coke reduced to 2.21 million tones from 2.56 million tones, the cast iron output decreased to 4.39 million tones from 5.23 million tones, the steel production to 4.74 million tones from 5.37 million tones, finished steel output lowered to 4.45 million tones from 5.06 million tones a year ago.
At the same time, the profit from realization rose to 71.33 billion rubles from 67.09 billion rubles, while pretax profit fell to 30.62 billion rubles vs. 33.09 billion last year.
Novolipetsk Iron & Steel Works, the third by size metallurgical works in Russia, is specialized in the manufacture of flat products of wide assortment
Australia's Portman H1 profit surges on iron ore prices
Western Australian iron ore miner Portman Ltd, which became part of US Group Cleveland Cliffs following A$ 675 million takeover has announced a 139% jump in the net profits during H1 to A$ 41.08 million. The boost in the profits has been on account of 71.5% price rise of iron ore which took effect on April 1.
The company has produced 3.9 mln metric tons of iron ore in the first half with 2.7 mln tons coming from its flagship Koolyanobbing mine in Western Australia, which is being expanded to eight million tons annually at cost of A$ 75.3 million by the first quarter of calendar 2006.
Portman said demand for iron ore is strong and it expects to sell all available production.
R&D program may cut pipeline costs by 50%
The Intermediary Technology Institute (ITI) for Energy in Aberdeen, Scotland, launched an R&D program that is expected to cut on and offshore pipeline costs by up to half. Successful development of the new pipeline technology would enable Scottish businesses to have access to a world-leading technology with significant sales potential in a number of global markets. Current annual global expenditure on oil and gas pipelines is between $15 and $20 billion.
Traditionally, the oil and gas industry has specified steel or steel alloys for its pipelines. Engineering improvements in metallurgy, design and construction of pipelines has led to the introduction of high-cost alloys to meet the challenges facing this industry. The ability to significantly reduce pipe wall thickness, and therefore weight and material costs, while maintaining strength, allows wide application of the technology.
ITI Energy is behind a $5.5 million project to develop a low-cost, lightweight, high strength pipeline technology capable of being manufactured on site in a continuous process. The resulting technology is expected to have a range of key energy applications, including onshore and offshore pipelines for the oil & gas industry.
The R&D project and the associated commercial development, which will be based in Scotland, involve collaboration between ITI Energy and Helical Pipelines Ltd. Discussions are ongoing with a number of Scotland-based companies that will be contributing R&D expertise to the project.
Rexam Packaging converts to Aluminium beverage cans
Rexam, the global consumer packaging group and leading beverage can maker, has decided to convert beverage can plant in Berlin from steel to aluminium. The conversion is a direct response to Germanys planned introduction of a nationwide return system for one-way containers in May 2006.
The conversion of the Berlin plant will start in January 2006 and will be completed by the end of the second quarter. Following the conversion, production at the plant will increase from two to three lines. The approximate cost of the project is 24m Euros
The favorable economics of the aluminium can in a deposit system combined with its strong environmental track record are key drivers behind the move. Aluminium cans are 100% recyclable and can be brought to the recycling process again and again without deterioration.
The tin plate makers may like to take note of this development
Construction of coke battery starts in Shahrud Iran
A metallurgy coke processing and supply plant capable of producing 250,000 tons per year will be set up in Shahrud, Iran. The complex encompassing a 50 hectare area will be built 12 kilometers southwest of this northern city.
Construction of the plant has been made possible through the sale of stocks worth 175 billion rials to the public as well as investments by domestic banks
Small coal miners set to benefit from Ingwe initiative
The South African coal arm of global resources group BHP Billiton, Ingwe Collieries, has called for proposals from potential suppliers of additional coal to its coal processing plants, as recent de bottlenecking has resulted in additional capacity at certain plants at Koornfontein mine, Optimum colliery, Eikeboom colliery, Middelburg mine, Douglas colliery and the Rietspruit Plan
The company supplies coal to the domestic as well as exports thermal steam coal markets, with 30 million tons of Ingwe's current 56 million ton per year production sold to State owned power utility Eskom and the remaining 26 million tons a year exported.
Ingwe intends to use the opportunity to assist with the development of smaller resources close to its current operations. Ingwe will offer empowerment opportunities to smaller operations by assisting with the beneficiation of the coal mined.
This approach is in line with the Mineral and Petroleum Resources Development Act (MPRDA), which governs the industry, and the associated Mining Charter, and their promotion of local beneficiation of resources and the development of small and medium-sized enterprises.
Ethiopian KOSPI bags 67 million Birr contract
Kombolcha Steel Products Industry PLC KOSPI, a MIDROC Group Companies has won a new contract to manufacture and deliver its products worth 67 million birr from Ethiopian Electric Power Corporation. According to this agreement, KOSPI will produce 30,000 steel electric poles with accessories, to be completed in a years time.
KOSPI, a private limited company owned by Sheikh Mohammed Hussein Ali Alamoudi, opened its first factory in Kombolcha in South Wollo region, about 380 km from Addis Ababa) in July 1999 , with an initial investment capital of 75 million birr to produce corrugated sheets, special ribbed sheets and plain sheets for roofing, wall cladding and related construction activities. It expanded the product range recently, with investment of 30 million birr, to add steel structures that can be used to construct buildings, bridges, fluid tanks, steel poles and towers for electric power transmission and communication.
Tamco Steel purchases new cranes from Morris
Morris Material Handling has announced that TAMCO Steel, Rancho Cucamonga, Calif., has signed a contract for two 200-ton overhead cranes for its hot metal charge and ladle service. The cranes will replace two cranes, and enable the company to increase steel production through reduced downtime and faster speeds.
Each crane will have three hoists, a 200-ton main hoist for the hot metal ladle, a 60-ton auxiliary hoist for pouring, and a 25-ton maintenance hoist. The main hoist and 60-ton aux. hoist will be provided with DC variable voltage control. The 25-ton aux. hoist, bridge and trolley motions will be provided with P&H Smartorque (R) AC adjustable frequency controls. All controls will be mounted in an air conditioned, walk-in control house.
Included in this turnkey operation is the removal and disposal of the existing cranes, the installation of the new cranes and an operator and maintenance training package provided by the P&H Institute. Manufacturing and engineering for this order will be completed at Morris' facilities in Wisconsin and Ohio, with field installation by Morris' national installation crew. Shipment is scheduled for July 2006
