September, 15 2005
Reliance Industries invites bids for supply of API steel
Reliance Industries Limited, has invited three separate bids for supply of Plates, HR coils and Pipes either Spiral or longitudinal SAW in API 5L X60 to X80 for laying a pipe line project.
API 5L Plates are required in thickness ranging 12.9mm to 28.6mm in width range of 2759mm to 2808mm in grades X60 / X65 / X70 suitable for fabrication of 36 inch diameter LSAW line pipes or 15.1mm to 33.4mm in width range of 3695mm to 3752mm in grades X65 / X70 / X80 suitable for fabrication of 48 inch diameter LSAW line pipes
API 5L HR Coils are required in thickness ranging 12.9mm to 28.6mm in width range of 1100mm to 1350mm in grades X60 / X65 / X70 suitable for fabrication of 36 inch diameter HSAW line pipes or 15.1mm to 33.4mm in width range of 1500mm to 1750mm in grades X65 / X70 / X80 suitable for fabrication of 48 inch diameter HSAW line pipes
API 5L Line Pipes LSAW / HSAW are required in 36 inch diameter having wall thickness range of 12.9mm to 28.6mm in grades X60 / X65 / X70 or 48 inch diameter having wall thickness range of 15.1mm to 33.4mm in grades X65 / X70 / X80, bare or 3LPE coated and internally epoxy lined
The last date for submission of bid is October 13th and RIL is likely to evaluate the most cost effective route to lay the pipeline based on the bids received.
Reliance is Indias largest private sector company with a turnover of $17 billion having diverse business interests
RK Dang recommends open policy for chrome ore
The 12-member committee headed by R K Dang has recommended to the steel ministry to advise the Orissa government to de reserve and throw open to competent recce permit (RP) and prospecting license (PL) to applicants in view of the urgent need to augment known national reserves of chrome ore.
The sector should be opened in accordance with the scheme of preferences and the Mining and Minerals Development and Regulation Act, 1957 and after retaining areas which Orissa Mining Corporation (OMC) would like to utilize under a time bound mining plan within five years. The state government should identify all other areas kept reserved for OMC, both in Sukinda valley and elsewhere in the state.
The Dang committee further suggested that export of chrome ore, other than concentrates produced by beneficiation of low grade ore below 38 per cent Cr2 03 to be stopped and existing contracts terminated, under force majeur or appropriate clauses by March 31, 2006.
The committee said government should consider levy of graded export duties on all exports of chrome including concentrates, if at all permitted.
Rising power tariffs hit Indian ferro alloy producers
The Indian Ferro Alloy Producers Association IFAPA has urged the government to extend tax sops and other fiscal benefits to industry to help it become cost competitive
The Rs 5,000 crore industry, which supplies main intermediates for manufacture of all kinds of steel, is facing huge cost escalation on account of high power tariff, preventing it from becoming globally competitive. Power contributes 50-70% of the total cost of production of the ferro alloy industry. Power tariffs in the country have shot up substantially, making the alloy industry uncompetitive. Therefore we have urged the government to provide incentives for setting up captive power plants, said Chairman of IFAPA Mr Roy
Besides, IFAPA has also urged that the government extends duty-free status even for met coke as is the case with blast furnace coke. Mr Roy said that industry would make an important contribution in the growth of steel industry in the country and therefore there is a need to make it more competitive. While ferro alloys are not yet imported in the country, there are fears that in the next six months to a year, declining international prices may open the doors for imports.
To protect against this, the industry has also sought increase in import duty from 10% to 15% immediately. It has also sought release of leased chrome ore mining areas from the public sector, with mining being opened for all the private players.
PSL raises $40 millions for CAPEX
India's largest steel pipe maker, PSL Ltd has announced listing of $40 million worth of five year convertible bond on the Singapore Stock Exchange
PSL said funds raised from the issue will be used to expand capacity in its steel pipe production and to modernize of its various coating plants.
Neepaz Metallic Adhunik Metallic to start today
The first phase of the mini steel plant of Neepaz Metallic, rechristened Adhunik Metallic, will be inaugurated by chief minister, Mr Naveen Patnaik today.
Neepaz is the largest sponge iron unit in the district with a capacity of 400 tons per day. After the completion of the expansion projects the plant will achieve the status of fully integrated mini steel plant. The plant will now have a mini blast furnace, steel melting shop and a sintering plant. The expansion has added another kiln to the existing capacity of four kilns, which will enhance the daily production target to 500 tons.
The plant which, in past, was subject to many controversies for reasons like pollution, land grabbing or laying the pipeline for the plant may face local employment is the new point of controversy.
China steel production to remain solid says Macquarie analyst
China's steel production will remain robust over the next five years as there is still plenty of growth potential for steel demand in China with the demand driven by continued urbanization and industrial growth and historically high prices will be sustained, Macquarie Bank senior commodities analyst Mr Jim Lennon said
Mr Lennon said that while the current frenetic pace of growth in China is unsustainable and a correction of China's growth is possible in a year. Mr Lennon forecast that present steel production growth in China of 27 pct YOY will slow down
Mr Lennon expects China's steel output in 2005 to be 345 mln metric tons or 30 pct of the world production of 1.129 billion tons. He said China's output will continue to grow to 516 mln tons in 2010, or 37 pct of forecast world demand of 1.389 billion tons
Mr Lennon said China is now a modest net steel exporter but recent decisions by the Chinese government to address over-capacity may drive China back to being a net importer of steel, possibly within two years
Ukrainian crisis triggered by ferro manganese
It is reported in local press that a move by the Renova Group to take control of the world's largest ferro manganese plant in the Ukraine was the trigger for last week's dismissal of the Ukrainian prime minister and her cabinet by President Mr Victor Yushchenko. Renova's bid to take control of the production of ferro manganese in Ukraine is in addition to their recent effort in South Africa to win a license to explore, mine and produce ferro manganese in the Kalahari region and at Coega.
Mr Yushchenko said that he had acted to replace Prime Minister Ms Yulia Timoshenko on September 8 because of Ms Timoshenko's intervention to block the private sale of the Nikopol ferroalloys plant. "High officials started directing events in favor of corporate interests; then crises appeared," Yushchenko claimed. "It was the last straw. I decided firmly that the decision most of all should be the following: Everybody should get lost."
Omitted from the public statements, but acknowledged by Ukrainian and Russian politicians, was the fact that one of the principal beneficiaries of these actions was a partnership between Russian metal magnates Mr Vekselberg, who owns Renova and also controls the SUAL and Mr Alexander Abramov, who controls the Evraz steel group. Together, they had sought to take control of Nikopol, the world's largest producer of manganese alloys for steel, by buying the disputed control shares from Mr Victor Pinchuk.
Mr Abramov and Mr Vekselberg have been lobbying for their Nikopol deal for months and seem to have secured the president's personal agreement to allow the Russian takeover of the Nikopol plant. But when the Ukrainian high commercial court ruled to disallow Mr Pinchuk's acquisition of the shares, and Timoshenko endorsed the re nationalization, thereby blocking the Russian plan, Mr Abramov reportedly accused Yushchenko of being unreliable, possibly too weak politically in Kiev to honor his word.
Pakistan Government invites EOI for PSM
The Privatization Commission has invited qualified strategic investors to submit Expressions of Interest for acquiring 51-74% equity stake in the Pakistan Steel Mills together with management control on an as is where is basis, latest by October 8. A consortium led by the Citigroup Global Markets Limited is advising the PC on the sale.
The interested parties have been asked to provide information along with EOI including the name of the company / group and their background information, audited financial statements for the preceding three years and details of ownership / group structure.
Upon receiving the EoIs and non-refundable processing fee of $5,000- or Pak rupees 300,000/- request for statement of qualification will be dispatched to the interested investors immediately.
The PSMC is the countrys largest and only integrated steel manufacturing plant, with an annual designed production capacity of 1.1 million tonnes. The PSMC complex includes coke oven batteries, a sintering plant, blast furnaces, steel converters, bloom and slab casters, billet mill, hot and cold rolling mills, galvanizing unit and 165MW of own power generation units, supported by various other ancillary units.
USW Pipe producers protesting against imports from China
American pipe workers and seven producers of standard pipe will be joined by members of Congress, steel suppliers and customers to stop an unfair surge of China pipe imports at a public hearing before the International Trade Commission
According to the petition filed under a special provision of trade law, China imports of standard pipe have surged from 9,000 tons in 2002 to 266,000 tons in 2004 and nearly 200,000 tons in the first half of this year. China pipe prices are less than the cost of raw materials. The impact on U.S. pipe makers has caused shipment levels to plummet, layoffs and wage reductions for domestic pipe workers.
Standard pipe is used to convey water, steam and gases in plumbing, air conditioning and heating, building fire sprinklers, sign posts, fence, auto and other applications.
SA Government may direct steel mills to remove import parity pricing
South African Trade and Industry Minister Mandisi Mpahlwa informed press about a possible phasing out of import parity pricing, an increasingly controversial pricing method used by steel maker Mittal Steel SA and chemicals producer Sasol, among other raw material makers, to cut the cost of steel and other raw materials made in SA.
We are focusing on reducing input costs by addressing import- parity pricing and exploring a developmental, administered pricing model, he said.
Government launched a study into the effects of import parity pricing last year. Prices of steel in SA are very, very high, and this has a knock-on effect on the prices of other products, he said yesterday.
Mpahlwa said negotiations between his department and Mittal Steel SA about a proposed new pricing model for South African customers had not yet been concluded.
Dual phase CR sheet for auto bodies from ThyssenKrupp
The Auto Division of ThyssenKrupp Stahl AG has investigated the possibility of using advanced high strength steels for exposed automotive body panels. Large outer skin panels offer great potential for weight reduction by using higher strength steels of lesser sheet thicknesses and by reducing component stiffness. The company designed a door outer panel weighing twelve percent less than a production benchmark yet offering 20 percent higher stiffness.
The material used for this panel was the dual phase steel DPK 30/50 with a strength of 500 mega Pascals, significantly higher than the 300 to 400 mega Pascals of today's commonly used outer skin steels of 0.48 millimeters thickness as against normally used 0.7 millimeters thickness
ThyssenKrupps TAKO' mill in Duisburg Beeckerwerth, one of world's most advanced cold rolling mill, is capable of rolling 0.3mm in widths of 1000-204mm cold rolled coils high strength grade of steel with excellent surface quality which is essential for outer skin parts.
To compensate for the loss of stiffness associated with such low thicknesses, the ThyssenKrupp Stahl concept provides for a latticed backing of narrow steel and foamed polymer strips. The strips are some 2.5 millimeters thick and 30 millimeters wide. The 0.48 millimeter thick steel strips serve as a support for the polymer foam. The structure is attached to the inside of the formed panel by adhesive bonding.
Ukraine confirms Kryvorizhstal sale on October 24
Ukraine will auction off its largest steel plant Kryvorizhstal on October 24 as planned despite the sacking of the government that ordered its sale, Ukraine's Property Fund head has announced
The fund has previously said six companies wanted to bid for 93.02 percent of Kryvorizhstal, which has annual production capacity of 7 million tonnes.
Potential bidders in the $2 billion sale include Mittal Steel, Arcelor, Evraz Group and Severstal
Kryvorizhstal's sale in June 2004 to a consortium, with close links to the previous authorities, at a price below other offers was termed by Mr Yushchenko as a theft and he has promised to sell the company at a new tender in a fair and transparent way. The mill was controlled by Mr Victor Pinchuk and another tycoon Mr Rinat Akhmetov, but a Ukrainian court ruled that its privatization was marred by numerous violations. Mr Pinchuk still has an appeal before Ukraine's High Court and the European Court of Human Rights.
Now Mr Viktor Pinchuk has called for out-of-court compromises to end the disputes over the sale. "To carry out another tender, I will not say this lightly, it is adventurism," Pinchuk said. "The property is ours. No serious investors could in principle participate in the sale of such a property." He said he was willing to reach an agreement to pay additional funds, "and if there were normal conditions, we would theoretically say 'OK' and end all court actions."
Nippon Steel bags construction orders in Thailand and Indonesia
Nippon Steel has received an order for a construction project that covers design, procurement, production, installment and trial operation for three natural gas development platforms, weighing about 5,500 tons in total and undersea 22 km long pipeline to be built in Siam Bay, Thailand, from PTT Exploration and Production Public Company of Thailand.
PT Nippon Steel Construction Indonesia, Nippon Steel's subsidiary in Indonesia, has also won a construction order from Total E&P Indonesia as well, in which it will deal with all work ranging from design and procurement to production, installment and trial operation for three natural gas development platforms in the Sisi and Bubi fields in Indonesia.
Mine explosion kills nine in Iran
An explosion took place in a coal mine in the city of Zarand occurred at 100 meters underground, killing all the nine miners who were working at this level
A local official said the explosion might have been caused by a leakage of methane gas from a hole in the mine's wall and an official investigation into the incident would be conducted.
Noble Group may buy two Indonesian coal mines
Noble Group Ltd may buy coal mines in Indonesia as the Hong Kong-based commodities supplier seeks to accelerate its investment in the Southeast Asian country, Chief Executive Richard Elman said. Elman, 65, armed with $641 million of cash as of June 30, is searching for investments in Indonesia to add to stakes the company owns in a group of mines in Kalimantan, on the island of Borneo.
Buying coal mines that supply fuel for electricity generators would mark a change in direction for the company, which has previously bought stakes in mines to guarantee production for its coal supply business.
Noble, who supplied 10 percent of China's iron ore imports last year, is adding new businesses to grab a larger share of trade in raw materials.
Singapore Natsteel not proceeding with acquisitions
Singapore's Natsteel Ltd has decided not to proceed with acquisitions it was evaluating and may return more cash to shareholders. In a statement to the Singapore Exchange, Natsteel's board of directors said it has directed management to consider other growth opportunities for the company. The board may also consider "rationalizing" some non-core business units to "facilitate the distribution of both capital and reserves and maximize the return of cash to shareholders."
Natsteel sold its core steel and related businesses in seven countries to TATA Steel for $285 million in August last year. The company planned to use the cash to expand its construction and chemicals businesses.
The company has distributed S$224 million to shareholders in its current financial year, which represents about 49% of the cash it received from the sale of its steel business. Cash reserves are currently about S$444 million.
Green light for Bangladesh coal mine
Coal miner Asia Energy has indicated that it has obtained environmental clearance for its open-pit coal-mine at Phulbari, in Northwest Bangladesh.
The Department of Environment of the Government of Bangladesh formally notified the company's Dhaka based subsidiary, Asia Energy Corporation Bangladesh, that it has approved the environmental impact assessment (EIA) report for the project and awarded it environmental clearance.
In the final stage of the approval process, Asia Energy plans to submit a Scheme of Development to the government in early October. This will detail plans for mining the 572 million ton compliant resource at Phulbari and for transporting the coal to national and international markets.
US Steel appoints Mr George Thompson as General Manager
United States Steel Corporation has announced the appointment of Mr George H. Thompson to the position of GM service centers, electrical, agricultural and industrial equipment. Mr Thompson will be responsible for marketing and sales to US Steel's service center, electrical, agricultural and industrial equipment customers and will report to Mr Joseph R. Scherrbaum, VP Sales
Mr Thompson began his career in 1987 as a management associate in the tubular products division most recently served as Director Sales, tubular products.
Corus offered mine license for Margam West Reserves
The Coal Authority yesterday offered steel giant Corus a conditional underground license together with an exploration license and option for lease for the Margam West coal reserves. It is expected Corus will now undertake a feasibility study to determine the viability of an underground mine.
Corus estimates that Margam West contains 36 million tonnes of coking coal. If mined, it would be used in its batteries. Incidentally, Corus has recently invested 50m in refurbishing its Morfa Coke Ovens.
Chinas car production grows 46.3 pct
China's car industry grew 16 percent year on year in August, with car production soaring 46.3 percent, according to statistics released by the National Bureau of Statistics on Wednesday.
Relatively rapid growth of between 21.1 percent to 29.2 percent was registered for the industrial added value of the ferrous metals mining industry, non-metal mining industry, ferrous metals smelting and pressing industry, timber and bamboo manufacturing industry, textiles, farm produce processing, and other industries.
The output of raw coal increased by 12.1 percent and iron ore, crude steel and steel products grew by 27.6 percent, 26.8 percent and 27.6 percent respectively
Port of New Orleans resumes operations
The Port of New Orleans, shut down for more than two weeks because of Hurricane Katrina, is slowly resuming operations. The first commercial cargo ship arrived Tuesday evening and officials hope to return the port to its normal schedule within six months.
This is the fifth largest port in the United States. Closed since August 27, the facility is now partially open for business.
