September, 17 2005
Seven companies bid for GAILs Dahej Uran pipeline project
Gas Authority of India Limited GAIL has received seven bids for the Rs 973 crore Dahej Uran Pipe Line DUPL project as the deadline for submission of bids ended yesterday from three foreign and four Indian companies
The Indian companies are Jindal Saw Ltd, Welspun Gujarat Stahl Rohren Ltd, Man Industries Ltd and PSL Ltd. The foreign companies are Leman Commodities SA of Switzerland, Sumitomo of Japan and Liaoyang Steel Company Ltd of China
Steel plates or hot rolled steel coils used for pipe manufacturing can be sourced either from Indian or overseas bidder, whoever meets the criteria stipulated in the tender. The bid document has an indicative list of steel suppliers include seven most reputed international steel plate manufacturers Thyssen Krupp, Mannesmann Salzgitter Roehrenwerke, Dillinger Huette, Ilva, Azovstahl, POSCO and Voest Alpine. Some of the Indian steel companies can also be a potential source for the supply of rolled coils for the project. Tractebel S.A. of Belgium is the project management consultant for the project
SAIL to up coal imports 43% in 6 years
Steel Authority of India Limited SAIL is planning to increase coking coal imports by 43 per cent over the next six years as it needs more steel-making ingredients to raise output and meet demand.
Mr KK Khanna Director Technical said at the Coaltrans conference in Brisbane that SAIL would need to import 15 million tons of coking coal for the year ending March 2012, compared with 10.5 million tons for the year ending March 2006. He added that Indian coking coal, apart from being high in ash, also has inferior coking properties and it calls for blending with better quality of imported coking coal to meet the technological requirement for producing steel economically.''
Steel Authority gets about 24 per cent of its coking coal domestically, and the rest is imported mainly from Australia. Last years surge in steel demand triggered a price rise of coal and lesser supplies from the Australian suppliers against contracts at lower prices resulting in acute shortages at SAIL.
To overcome the situation SAIL purchased coal from some US mines on spot basis. To reduce dependence on Australian sources, SAIL tried to invoke interest of coal suppliers from other parts by inviting Expression of Interest few months back. It is understood that almost all the applications received, 26 in number, have been found unsuitable.
This is likely to result in over dependence on a single source Australia for one of the most critical raw material for SAIL, especially in view of increased demands to take care of expansions. The Australian suppliers should have by now learnt that SAIL is sticking to old fashioned way of buying only medium volatile coal, rather than switching to buying a mix of low, medium and high volatile coals and adopt practice of blending to achieve desired medium volatile coal, which is practiced by almost all steel mills worldwide. This may having a negative effect for SAIL on the long term negotiations with Australians, which are likely to start soon
Pak restrains local steel industry from acquiring Indian tech
Apparently unhappy over its steel industrialists placing huge import orders for iron ore machinery, Pakistan has restrained local steel industry from acquiring technology from India and instead directed them to explore possibilities of getting the required technique from China.
Pakistan government concerns followed placement of 102 million dollar worth of orders by a 16-member Pakistani delegation, which recently visited India and signed a memorandum of understanding with their Indian counterparts.
The industrialist, who attended the meeting, claimed the ministry's concern was based on quality as India's iron ore production relied on old techniques compared to China, Russia and Brazil. "The ministry has suggested to us to explore Chinese steel industry to acquire technology. The ministry did not deny us NOC to sign business deals with the Indian industry but it does not prefer to have Indian technology," an industrialist said.
BHEL looks for ancillaries in North
Bharat Heavy Electricals Ltd's Tiruchi unit, which produces boilers for power plants, wants to look for ancillaries in northern India as per the unit chief Dr V. Gopalakrishnan
He said that units in the North were not yet able to match prices of the Tiruchi units, but BHEL Tiruchi finds the saving in logistics costs and transportation time in the proposal. Often, the basic raw material, steel, has to be shipped from one of the SAIL plants all the way to Tiruchi and finished products all the way back if the customer is from the North
BHEL expects its workload to increase from two lakh tonnes of steel last year to 7.5 lakh tonnes by 2011-12. While plant capacity would be raised only marginally, "massive outsourcing" and on-site fabrication are two routes BHEL would take to achieve the higher workload. Tiruchi ancillaries have their hands full, not only with orders from BHEL, but also from other boiler manufacturers such as Ansaldo, Cethar and Thermax and from the windmills industry. Tiruchi is turning out to be the hub of windmill tower manufacturing.
Mittal Steel announces European price rises for 4th quarter 2005
Mittal Steel has announced price rises for Mittal Steel Europe for the fourth quarter 2005.
Effective for October deliveries, prices for flat rolled strip products will increase by EUR25 35 per ton depending on market and product.
Battle for Erdemir Countdown begins
The countdown has begun for the privatization of Erdemir as many local and foreigner companies will begin a cutthroat competition on 26 September 2005 to purchase it. Those living in the town of Eregli, ranging from housewives to Erdemir workers, from civil society organizations to the city locals, are reported to have been divided into two over the sale
Local tradesmen, whose economy was based on Erdemir, want immediate completion of the privatization. While some tradesmen are concerned about the uncertainty, others oppose the sale saying, "Erdemir is a profitable industry and very significant for Turkey."
While some of the Erdemir workers support privatization, some oppose the sale because of their fear of dismissal and as the company ended last year with a profit
Chairman of the Eregli Chamber of Commerce and Industry Ahmet Dikoglu is against the block sale of iron and steel factories. They aimed to buy Erdemir by joining Eregli Joint Entrepreneurship Group
Erdemir's, Turkeys only flat producer, has raised its steel production from 2.86 million tonnes in 1999 to 3.616 million tonnes in 2004
Stainless steel growth slows in first half of the year
According to the International Stainless Steel Forum, world stainless steel production reached 12.9 million metric tons over the first half of the year, an increase of 5.5 % compared to the first half of last year.
The stainless steel production grew by 13.4 % to 6.5 million metric in Asia driven by 54% growth in China and 10% in India. Western Europe / Africa region produced 4.9 million metric tons of crude stainless steel in the first half of 2005, a decrease of 0.4 % on the same period of 2004. production in the first half of 2004 production was affected by strikes at two major stainless steel mills.
The Americas region also saw stainless steel production drop by 2.2 % to 1.5 million metric tons. Production in the Central and Eastern Europe region also declined by 24.7% to 118,000 metric tons, mainly due to a sharp decline in production in Russia.
Portman confident about iron ore prices
With world steel demand being driven by a growing Chinese economy, the outlook for iron prices is positive, helping drive the company's prospects, said Perth based Mr Richard Mehan, who became MD of Portman in April after Cleveland Cliffs Inc. snared more than 80% control. "I'm not expecting a price rise but it's possible there will be one the Japanese economy looks in good shape and China continues to grow," Mr Mehan said. "You may not see the exponential growth of the last two to three years" in Chinese steel demand, but it is still on the strong side, he added.
Led by BHP Billiton and Rio Tinto Plc, iron ore producers won a 71.5% hike in prices from Asian steel mills for the year that started April 1, 2005, spurring strong investor interest in shares with exposure to the raw material.
BHP and Rio Tinto are also bullish on Chinese growth and iron ore demand. Rio Tinto chairman Mr Paul Skinner said recently after visiting Chinese steel mills that there is less concern about short-term economic hiccups in the country and those customers are particularly eager to secure long-term supply.
BHP chief executive Mr Chip Goodyear said late August that emerging world economies such as China remained "buoyant", leading to an above-trend global growth rate this year that will underpin commodity demand.
Guangdong to shut down all coal mines
Coal mining will soon cease to exist as an industry in South China's Guangdong Province as Guangdong provincial authorities ordered the closure of all coal mines following a disaster that killed more than 100 miners last month. Guangdong authorities thus decided to cease operations at 141 mines, which will join the 112 facilities already shut down because they lacked appropriate safety certificates.
Guangdong officials said the province will set aside a special fund to compensate mines for being closed and help miners to transfer their jobs, sources said. It will also try to stabilize the price of coal by buying coal from other provinces and regions.
The decision came as the State Administration of Work Safety prepares to send a huge supervision force to make sure more than 7,000 unsafe coalmines nationwide meet national safety standards. In Beijing, Mr Li Yizhong, director of the State Administration of Work Safety, said up to one-third of China's mines could be shut down permanently after the nationwide inspection.
Mr Goodyear sees more upside for iron-ore prices in 2006
Resources giant BHP Billiton believes there is still price pressure on the upside for the ferrous mineral despite the fact that the 2005 contract-price settlement came in 71,5% higher year-on-year. Speaking in Johannesburg, CEO Chip Goodyear suggested that the negotiations were set to be as exciting as any in the last 25 years, particularly as China and Japan seek to assert their respective authority over the process.
Iron-ore is showing strong demand, with China now being the largest iron-ore importer, having overtaken the Japanese, Goodyear said, pointing out that last year the Chinese imported more than 200-million tons and by the middle of 2005 had breached the 150-million-ton level.
Spot prices for iron-ore in China have continued to rise and are currently about $65/t, as compared to $50/t contract prices. Goodyear stressed that the gap between the two selling prices would not close entirely, but said there was potential to close the margin.
Next year will be as exciting as any for several years. Firstly, the Japanese are very protective of their position as the historic negotiator of prices; secondly, the Chinese feel that it is their turn to dominate given that they are the largest importer. Governments are also sensitized to this issue; the media interest is high . . . and, finally, the producers are growing their production rapidly and they want to find a home for their product.
Chinas demand may spur zinc prices to all time high
Prices of zinc may rise to their highest in 15 years within the next 12 months as China uses more of the metal to galvanize steel, said Zhuzhou Smelter Import and Export Co, the countrys biggest producer
Zinc delivery in three months on the London Metal Exchange has risen 38% in the last 12 months, as China, the worlds biggest producer, exports less of the metal to satisfy increasing domestic demand. Prices may breach the $1,670 a tonne seen in 1997 within one year, Wang Jianjun, managing director of Hunan-based Zhuzhou Smelter, said on Friday in Hong Kong.
Morgan to revamp Changwon wire rod mill in South Korea
Morgan Construction Co. has bagged an order to revamp a wire rod outlet on a combination mill at Changwon Specialty Steel Ltd., in Changwon, South Korea. According to Mr Mark Shore, Morgans VP Rolling Mill Sales and Proposals "The order, which is for the full supply of mechanical, electrical and fluid systems and equipment, includes a reducing/sizing mill with quick change feature, water box, rollerized turndown, pinch roll, laying head, and Morgans temperature-control system."
Changwon is one of South Koreas top producers of stainless long products.
The revamp is designed to increase the mills output by 30,000 to 35,000 tons per year, according to Morgan, and to improve the quality and tolerance of the mills products to 0.1 mm for all size ranges from 5.5 to 16 mm, and to 17.5 mm in the future. Equipment installation is expected to be complete in May 2006.
Finlands Metehe developed new coated steel sheet
Finnish Metehe, a manufacturer of coated steel sheet products, has developed a new kind of coated facade sheet, and a production line for the manufacturing of the sheets. The company spent approximately EUR 1mn on the development of the new sheet.
According to Metehe's MD Mr Seppo Jskelnen, the new thin steel sheet is unique in the world, and has been well received by designers and constructors.
Metehe's MTH Concertto steel panel is large, easy to install and transport, and is also suited for curved surfaces. Metehe has applied for a patent for the production technique, and the product has been granted utility model protection in the EU countries. A line of products will be developed around the MTH Concertto sheet.
In 2004, Metehe had net sales of EUR 6.3mn, up by 17% from 2003.
Taiwan company given approval for steel plant in Vietnam
Vietnam has given approval to a Taiwan company to build a $US650 million stainless steel factory in Ba Ria Vung Tau province.
A provincial investment official says Chien Shing Stainless Steel Company is investing in the project in a bid to cash in on Vietnam's growing steel industry.
The factory will produce 720,000 tonnes of hot and cold-rolled steel per year, with 80 per cent of the output earmarked for export
Tailored strips direct from coil from ThyssenKrupp
ThyssenKrupp Tailored Strips offer new perspectives to manufacturers of steel profiles or other formed parts. Seat rails, seat backrests, exhaust components and wheel rims could in the future all be manufactured from steel strips which are adapted from the outset to the stresses in the finished part.
ThyssenKrupp Tailored Blanks GmbH supplies ThyssenKrupp Tailored Strips in coils of up to 15 metric tons. A unique line developed by ThyssenKrupp Tailored Blanks joins steels of different thickness, grade or coating by an uninterrupted laser weld several hundred meters long.
Steel profiles are formed by running slit steel strip through a profiling line with several roller sets arranged in sequence. The roller sets bend the steel strip step by step to the cross section required for its later use.
ThyssenKrupp Tailored Strips can be made from steels of different thickness or strength, allowing the production of profiles which are ideally adapted to the actual stresses in the finished part. This eliminates the need for the subsequent reinforcement of highly stressed areas and allows customers to dispense with complete production steps.
ThyssenKrupp Tailored Blanks GmbH is a subsidiary of ThyssenKrupp Stahl AG. The two companies are world market leaders in tailored blanks, which were originally invented by the then Thyssen Stahl AG in the 1980s. In the meantime, an entire product family has been developed including both ThyssenKrupp Tailored Strips and Thyssen Tailored Tubes, laser-welded tubes used in automotive body production.
Russian industrial output up 3.7% in eight months
Russia's industrial output grew by 3.7% in January-August 2005 as compared to the first eight months of 2004 and by 3.4% in August 2005, the Federal Service for State Statistics said Friday.
The mineral extraction and manufacturing grew by 1.2% and 5.7% respectively in January-August 2005, while the production and distribution of power, natural gas, and water increased by 2.1%. In August, mineral extraction fell by 1.2% but positive dynamics were reflected in manufacturing (1.5%) and in power, natural gas, and water production (3%).
The production of coal grew by 3.2% to 188 million metric tons, oil - by 2.2% (310 million metric tons), and natural gas - by 0.5% (418 billion cubic meters). However, the production of iron ore and apatite concentrate fell by 3.9% and 0.6% respectively (62.3 million and 2.8 million metric tons) in January-August 2005.
Japan Aug crude steel output falls 1.7 % YOY
Output of crude steel in August fell 1.7 pct from a year earlier to 9.23 mln tons, the second consecutive month of decline, the Japan Iron and Steel Federation said.
Crude steel production of blast furnace operators rose 0.4 pct from the previous year to 7.12 mln tons in August, the sixth straight monthly increase, while output at electric furnace operators dropped 8.4 pct to 2.11 mln tons, marking the seventh straight month of decline.
From January to August, crude steel production reached 75.39 mln tons, up 0.8 pct over the corresponding period in the previous year.
Eureka Mining starts Moly mining in Kazakhstan
Eureka Mining Plc has announced that waste stripping and ore mining at the Shorskoye Molybdenum Project in north-eastern Kazakhstan has commenced and mine site facilities, including crushing plant and camp, is in operation. First concentrate production from the 500,000 tonne per annum project is scheduled for Q1 2006. Mine infrastructure completed, including crushing and permanent camp has been completed and mining has commenced
The Project, located 90 kilometers south-west of Semipalatinsk in north-eastern Kazakhstan, is a molybdenum deposit with a JORC categorized resource of more than 20 million tonnes of ore at 0.10 per cent. molybdenum and 0.06 per cent. copper. The Company has identified a high grade zone of 3.1 million tonnes of ore at greater than 0.20 per cent. molybdenum.
To take full use of these advantages, Eureka has, as previously reported, entered into a joint venture with KazAtomProm, Kazakhstans largest state owned Resource Company. Under the terms of the joint venture, Eureka has 15 years access to KazAtomProms Stepnogorsk industrial and plant facilities and associated infrastructure on a walk in basis with minimal capital required for plant modifications. In return, KazAtomProm will have a 50% interest in the joint venture company.
Mr Elmquist appointed CTO of Cleveland Cliffs
Cleveland Cliffs Inc has announced the appointment of Mr Steven A Elmquist to Vice President and Chief Technical Officer. In addition, effective today, he has also been elected an officer of the Corporation.
Mr Elmquist, 55, has been employed by Cliffs since 1990 and has progressed through a number of technical and operating roles with increasing responsibility Formerly Assistant General Manager at Cliffs' Hibbing and Northshore operations, Mr Elmquist also served as General Manager of Cliffs' reduced iron operation in Trinidad. Most recently, he has been overseeing Cliffs' technical services function.
Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is the largest
producer of iron ore pellets in North America and sells the majority of its
pellets to integrated steel companies in the United States and Canada.
Cleveland-Cliffs Inc operates a total of six iron ore mines located in
Michigan, Minnesota and Eastern Canada. The Company is majority owner of
Portman Limited, the third-largest iron ore mining company in Australia,
serving the Asian iron ore markets with direct-shipping fines and lump ore.
Zimbabwe to take stake in mines
Zimbabwe's leader Mr Robert Mugabe has announced that his government will take a stake in privately operated mining enterprises in the mineral-rich southern African nation, but he does not intend to nationalize the industry as he has commercial farmland.
Mr Mugabe said his government would take a share in private mining enterprises because it wants Zimbabweans to benefit from their own natural resources. And he expects companies currently mining there, including the multinational Anglo American, to understand that desire. "What we intend to do is for the state to have a stake in the production of some of our minerals - gold, platinum, diamonds," he said. "We are behind countries like Botswana and Namibia ..." Zimbabwe has also signed several agreements for state-owned Chinese companies for mining under joint ventures with the government, he said.
Zimbabwe mines coal, chromium ore, asbestos, gold, nickel, copper, iron ore, vanadium, lithium, tin and platinum group metals as well as diamonds, emeralds and semiprecious stones.
US reviewing duties on cement, lumber and steel post Katrina
The Bush administration is weighing the possibility of suspending duties on Mexican cement, Canadian lumber and foreign steel in order to aid in the rebuilding of U.S. Gulf Coast cities following Hurricane Katrina, in order to help lower costs for construction materials and boost trade.
The US has levied duties averaging 55 percent on Mexican cement since 1990 and is currently taxing construction lumber from Canada at a rate of about 21 percent.
Ivanhoe announces 70 million tonnes of coal in Mongolia
Ivanhoe Mines' President Mr John Macken announced today that the company has received an initial resource estimate for its Nariin Sukhait Coal Project in southern Mongolia. The project contains initial measured plus indicated coal resources of approximately 72 million tonnes, with an additional inferred coal resource of approximately 26 million tonnes. These resources, which were discovered and delineated in only seven months of drilling this year, are considered to be of immediate interest as surface open-pit deposits that are amenable to near-term production for potential buyers in Chinese markets.
The Nariin Sukhait coal field consists of very thick multiple seams, with
individual seam thicknesses up to 60 meters. Initial coal-quality testing ranks the Nariin Sukhait coal as high-volatile bituminous under ASTM standards. The Nariin Sukhait Coal Project is located approximately 40 kilometers north of the Mongolia-China border and the shipping terminus for a newly constructed, 450-kilometre Chinese rail line that is expected to be operational into the border area by the end of this year.
Ivanhoe's Nariin Sukhait Property is adjacent to, and surrounds, the MAK
Nariin Sukhait Mine, operated by the MAK-Qin Hua Mongolian/Chinese joint
venture. The MAK Mine, which has been supplying high-rank, low-ash, and low-sulphur coal to Chinese consumers since 2003, has a reported production capacity of two million tonnes per year of thermal and blend-coking coal from two operating open-pits.
Ivanhoe has a 100% interest in the Oyu Tolgoi gold and copper project in Mongolia and owns or controls exploration rights covering approximately 134,000 square kilometers in central and southern Mongolia, where additional copper-gold and coal discoveries have been made. Ivanhoe produces LME grade a copper from its Monywa joint venture in Myanmar.
Mittal Steel Point Lisas workers threaten shutdown
Workers of Mittal Steel Point Lisas Ltd have threatened to down tools next week if company officials do not stick to their collective agreement.
The workers, who are members of the Steel Workers Trade Union of Trinidad and Tobago, began protesting on Wednesday for what they claimed was "rightfully ours by law". They said their Health and Safety Department was inefficient and that there was a manpower shortage.
According to a recently concluded agreement, the company promised to begin updating the pension and medical plans, but there has been no progress since May, the union said. "They were supposed to begin an immediate job evaluation exercise, but that too is not being done," said SWUTT's president general Lex Lovell.
Company officials said they will meet the workers' representative today to discuss the issues, in the hope of ironing out all problems that could lead to protests or shutdown.
Australia studies further expansion of Gladstone Coal Port
Australia's Queensland state is studying a $307 million expansion of the world's fifth-largest coal export port amid rising demand in Asia.
The Central Queensland Ports Authority may build another coal terminal at the Port of Gladstone, with an initial capacity of 20 million tons, said Mr Leo Zussino, the port authority's CEO. The proposed terminal at Wiggins Island may eventually have 70 million tons of capacity, he said. Construction could start from July 2007, with the terminal operational by December 2009, should a decision be taken to build the Wiggins Island terminal, Zussino said.
The Queensland government is already expanding capacity at Gladstone port to more than 70 million tons a year by 2010, from the 43.5 million tons it handled for the year ended June 30.
Surging coal demand driven by China's consumption has caused congestion at ports and on railways in Australia, the world's biggest exporter of the minerals.
