September, 25 2005
Indian hot metal production to be doubled says Steel Minister
During a visit to SAILs steel Visvesvaraya Iron and Steel Limited VISL, Union Minister for Fertilisers, Chemicals and Steel Mr Ram Vilas Paswan said that India plans to achieve the production of 65 million tonnes of crude steel by the end of 2012 and further enhance it to 110 million tonnes as against current levels of 38 million tonnes per year
He added under the corporate plan, SAIL has earmarked Rs 300 crore for Visvesvaraya Iron and Steel Plant to set up a bloom caster, a turbo blower and oxygen plant and a coke plant. It aims at doubling its performance by 2012 as per its corporate plan, he said. The plan envisages the increase of present hot metal production of 167,900 tonnes to 334,000 tonnes, crude steel from 167,000 tonnes to 232,363 tonnes and saleable steel from 101,799 tonnes to 260,423 tonnes.
He said at present, SAIL was facing the scarcity of coke and iron ore.
The Chief Minister of Karnataka would be apprised of this and will be requested to sign a fresh lease to carry out mining of iron ore on 116 hectares of land at Chickanayakanahalli in Tumkur district.
Coal India going ahead with overseas mining block acquisition
Coal India Ltd (CIL) has announced that it was going ahead with its plan of acquiring mining blocks overseas to source coking coal through its proposed subsidiary Coal Videsh.
"We are currently finalising the roadmap for foreign acquisition and things will be clear after September 28," CIL Chairman Mr Sashi Kumar told reporters here.
The CIL Board has approved the incorporation of 'Coal Videsh'. CIL sources said that Memorandum of Association for Coal Videsh had been drafted and it was lying with the Ministry of Coal.
The company has plans to float an overseas subsidiary to mine coal abroad and bring it to India to supplement domestic supply.
Indian exports to China grow 56% in 5 yrs
The absence of a formal bilateral free trade agreement FTA with China notwithstanding, Indias exports to China have grown at an average annual rate of 56% in the five year period 2000-01 to 2004-05. Imports from China, too, have grown at an impressive rate of 40% during this period.
However, a large chunk of the rapid growth has been due to the export of just one item iron ore.
According to a report by the National Council for Applied Economic Research NCAER, though trade between the two countries has been growing rapidly, there may be sectors with still higher potential, particularly in the area of trade in services.
CIL suggests ways to bridge local demand supply gap
Coal India Limited CIL Chairman Mr Sashi Kumar has expressed concern at the increasing gap between demand and supply of coal and suggested the country to look for alternative sources of energy to overcome the crisis.
Speaking at a national seminar on how to bridge this gap, Kumar said though the recent coal inventory of India, up to a depth of 1200 metre assessed, shamed the country still possessed a deposit of 248 billion tonnes of coal, including 93 billion tonnes of proven category, improper management of demand led to the present imbalance.
As per the assessment done in January by CIL, though the total demand for coal in India was likely to go up from nearly 445 million tonnes this year to about 1147 million tonnes by 2025, there should not be any problem of supply) because of the huge reserves, Mr Kumar said.
Referring to reports of acute problems in supply of coal to the country's 31 major power plants which had threatened to shut down generation following non-receipt of nine million tonnes of coal, the CIL chairman said through proper management of distribution of coal the situation in all but five of them had been revived so far.
Ukraine imposes Euro 30 per ton duty on scrap export to Moldova
Ukraine's government will shortly exclude steel scrap export from the free trade regime with Moldova, imposing an export duty of EUR30 a ton, according to a Ukrainian economy ministry official. The move comes because Moldova illegally re-exports Ukrainian scrap to the world market, the official said.
Ukrainian scrap is supposed to be supplied duty free to the Rybnitsa steel smelter in Moldova, but the official said Ukraine had discovered that Moldova re-exports scrap to third countries.
There has been re-export, there is no doubt of it. It's a black hole and we intend to stop it. Most of the scrap never reached Rybnitsa. By exporting over 600,000 tons of scrap a year duty-free to Moldova we've created a strong competitor on the world scrap market, the official added.
Ukraine produced 16.15 million metric tons of scrap in 2004. Domestic consumption was 13.7 million tons, with 2.45 million tons exported. The largest receivers were Turkey with 1.34 million tons, followed by Moldova with 665,700 tons and Egypt with 307,000 tons.
Moldova imported 665.7 thousand tons of the Ukrainian scrap in 2004 that is by $124 million or 1.14 times more than in 2003 and 2 times more than in 2002. Scrap export to Moldova, stimulated by the absence of export duty, doubled between 2002 and 2004.
Battle for Erdemir Partners determined
The deadline for partnership applications for Erdemir privatization tender has ended and some of the firms that qualified earlier, and were allowed form consortiums have announced joining hands to Privatization Administration.
Two Turkish consortiums, Turkish Union of Chambers and Commodity Exchanges TOBB, Ankara and Bursa Chambers of Commerce and the Fiba Holding have joined the Eregli Joint Enterprise Group, for bidding in the tender
Meanwhile, Nurol Limak Ozaltin Joint Enterprise Group went for partnership with Russian Severstal.
It is also reported that Koc Holding may not participate in the tender.
Firms or consortiums that will compete in Erdemir privatization tender now are
1. Arcelor (Luxembourg)
2. Azovstal-Metinvest Joint Entrepreneurship Group (Ukraine)
3. Corus Group (Britain)
4. Mittal Steel (Netherlands)
5. Posco (South Korea)
6. Severstal (Russian Federation) and Nurol-Limak-Ozaltın-Alcohol Marketing Joint Entrepreneurship Group (Turkey) combine
7. LebGoK-Oskol Joint Entrepreneurship Group (Russian Federation)
8. Oyak (Turkey)
9. Zorlu Holding (Turkey)
10. Koc Holding Joint Stock Compnay,
11. NLMK and Stell Corporation (Russia),
12. Eregli Joint Enterprise Group (Kibar Holding, Yildirim Dis Ticaret, Borusan Holding, Toscelik, İCDAS, Tezcan Galvanizli Yapi, Turkon Holding, Diler Holding, TOBB, Ankara Chamber of Commerce, Bursa Chamber of Commerce and Industry, Fiba Holding)
Arcelors Laiwu immediate acquisition unlikely
Negotiations between Arcelor and China's Laiwu Steel have seen little progress since acquisitions plans were quashed by the government's new steel industry development policy, according to an Arcelor official."The negotiations are ongoing. There is no practical progress so far," Mr Dirk Matthys, Executive VP of China Arcelor, told local press
Even though Arcelor is still in negotiations with the Laiwu Iron and Steel Group, a leading construction steel maker in China located in Shandong Province, about acquiring shares, an industry expert says an immediate takeover of Laiwu Steel is unlikely and suggests Arcelor should revise its plans.
Arcelor originally planned to take over Laiwu Steel by buying a 51.6% stake of the company for RMB 2 bln (USD 246.61 mln). However, when the Steel Industry Development Policy came out in July, negotiations slowed, because Arcelor has had to rethink its plans to comply with the new policy that bans overseas companies from taking control of domestic steel companies.
"An immediate and direct take over of Laiwu Steel is unlikely in the near future. Arcelor can take a detour by taking a limited part of Laiwu Steel as the first step and enlarge its interests in the company step by step," said Mr Li Xinchuang, the VP of the China Metallurgical Industry Planning and Research Institute, who took part in creating the Steel Industry Development Policy.
Pak Tajik JV for import of billets through land route
A Pakistani trading company has formed Pak-CIS Joint Venture PCJV, with a China-Tajik Metal company of Tajikistan, for import of steel billets from Tajikistan through the Heratan Kabul Peshawar land route
Mr Khawaja Arsalan, Director of Pak-CIS Joint Venture (PCJV) said that this would ensure delivery of billets within 3-4 days from Tajikistan to Peshawar
China-Tajik Metal, a leading Tajik steel production concern currently running at 10 per cent capacity following some technical problems. "We will not only provide them technical assistance under the transfer of technology clause of the agreement to help them utilise 100 per cent capacity but also buy their whole production," Mr Khawaja Arsalan said.
PCJV had already established its office in Dushanbe and it is expected that things would be through as the agreement had been co-guaranteed by the respective governments.
Ansteel building a new steel complex in Liaonong
Anshan Iron & Steel Group Co (Ansteel) is building a new iron & steel complex in Northeast China's Liaoning Province, with production capacity of 5.2 million tonnes of iron, 5 million tonnes of steel and 4.6 million tonnes of rolled steel, with an investment of more than 16 billion yuan (US$2 billion). All the machinery and equipment used by the district are made in China with its own intellectual property rights.
It is learned that the first converter and a continuous caster have already been put into production and the construction of a sintering unit, a reheating furnace, hot rolling mill, a cold rolling tandem mills and other major facilities will be completed and put into production next month.
The steel making facilities include two 260 ton converters, a RH-TB vacuum refining installation, two refining furnaces and two slab continuous casters.
For the steel rolling system, the group will build a 2,150 mm continuous hot rolling mill with an annual production capacity of 4.87 million tons and a 2,130 mm tandem cold rolling mill with an annual production capacity of 2.13 million tons and a 1,450 mm tandem cold rolling mill with an annual production capacity of 1 million tons and a galvanizing line
The complex will produce both long products and high grade flat products
Unrest in the Chinese Manganese Delta
The environmental administrations in southeastern Guizhou, Hunan and Chongqing recently formed a joint police task force to battle manganese pollution in the area known as the "Manganese Delta" of China, where villagers have already attacked smelters to combat the waste. The police pollution action will continue until the end of December 2005, so local authorities can make sure that the waste discharged by the manganese smelters have reached national environmental standards, according to Director Mr Li, in charge of the supervisor department under Guizhou Environment Protection Bureau.
Since 2000, the smelters located in the drainage areas of Qingshui River, including around 20 electrolytic manganese plants and many zinc, molybdenum, vanadium processing firms, have discharged waste into the river, causing calculus and cancer diseases in the neighboring villages, according to the Chinese media.
Mr Li said about 45 manganese smelters located in the "Manganese Delta" are mostly privately owned. The wastewater discharged by the smelters has polluted the drainage area of Qingshui River (Clean Water River), a major source of local water for the local environment.
Since the owners of the smelters have ties with the local governments, the local environmental administrations have been unable to strictly police the pollution, the local press had reported. However, recently the villagers living in drainage area of Qingshui River united together. During the spring and summer of this year, more than 200 molybdenum and vanadium smelters were broken into and burned by the self-organized villagers, the Chinese media reported.
Arcelor included in the Dow Jones Sustainability Index
Arcelor has been included in the Dow Jones Sustainability Index (DJSI) World, one of the most important and recognized global indexes tracking the performances of the leading sustainable development-driven companies worldwide.
Arcelor has been recognized for its best of industry environmental performances and for its economic and social performances that exceed the average of the steel sector. DJSI sees Arcelor as a solid performer in terms of environmental management and reporting, in terms of quality of the information provided to the investors and enterprise risk management, and last but not least in terms of human capital development, social reporting and social standards for its suppliers.
Arcelor is, together with Dofasco and Posco, one of the three steelmakers selected in this index composed of the 250 best sustainable development performers worldwide.
With the inclusion in the DJSI, Arcelor is now part of all the major existing sustainable development indices and ratings. The Group is already included in the FTSE4Good Index Europe, the Global 100 Most Sustainable Corporations in the World, Ethibel's Sustainability Index and Investment Register, and Vigeo's Advanced Sustainable Performance Index.
Arcelor is a leading player of the global steel industry. With a turnover of 30 billion euros in 2004, the company holds leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company - number one steel producer in Europe and Latin America - ambitions to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers. Arcelor employs 95,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labour relations and social responsibility
World Steel Dynamics sees a bright future for steel industry
Profits for the world's biggest steel companies will stay at their current high levels for most of next year, according to a leading steel consultancy in a projection that contrasts with gloomy statements about the industry from some large steelmakers in recent weeks.
According to US based World Steel Dynamics, next year's average earnings before interest, tax, depreciation and amortisation for large steel producers outside China will be $140 per tonne of steel, the same as the expected figure for 2005, which is itself up 14 per cent from the $123 a tonne of last year.
Ukraines new PM Mr Yekhanurov a steel plant man
The Ukrainian Parliament has confirmed Mr Yuri Yekhanurov as Prime Minister. Mr Yekhanurov has promised that the priority of the new government is a stabilization of the economy and the creation of conditions for continuing growth.
On April 1, 2005 president Mr Yushchenko appointed Mr Yuri Yekhanurov the governor of Dnipropetrovsk, and on September 8 appointed him the acting prime minister.
Mr Yekhanurov began his career in 1967 at Kyivmiskbud No. 4 steel manufacturing plant, where he went from being a master to being the plants director. Thereafter, he headed various trust before becoming minister in 1994
Mr Yekhanurov is known for his dedication to the idea of structural reform and is considered fathre of privatization. If he can bring order to reprivatization, where Ms Yulia Tymoshenko made a considerable number of errors, it will have a positive impact on the economy and on the lives of a large section of the population
Mittal Steel drops 30 million claim against Cork steel mill
Mittal International, a holding company owned by Mittal, withdrew the claim of 30 million against the defunct Irish Ispat factory in Cork after reaching an agreement with the liquidator of Irish Ispat, Mr Ray Jackson of KPMG after a series of meetings between Mittal International and Jackson.
The claim related to money that Mittal had invested in the firm, formerly Irish Steel, between the time he bought it from the state in 1996 and its closure in 2001.
The firm's unsecured creditors, including its 450 former employees, are now set to receive a higher dividend on their debts.
Jeddah rebar plant to increase capacity to 300,000 MT
Al-Ittifaq Steel Products has announced that it plans to increase the capacity of its rebar facility in JJeddah, Al-Ittifaq 2, previously known as Al Aziza Steel Company which was purchased by them earlier this year to 300,000MT per year
As a part of the new investments, a new 60MT per hour electric furnace and new stands are being installed to raise the capacity of this mill to 25,000 MT per month from the present level of 10,000MT per month. Production is expected to restart in November 2005
Al-Ittifaq is presently supplying rebars to the Saudi Western province from their Dammam plant, which produces almost 80,000MT of rebars and 35,000 MT of wire rod per month
Delphi CEO announces layoffs in some plants
Delphi Corp employees should expect plant closings and the end of jobs banks as the auto supplier reorganizes, chairman and CEO Steve Miller said Friday. "The fact is, we are out of money," Miller said. The company lost nearly $750 million US in the first half of this year.
Delphi is in the midst of restructuring talks with its former parent and largest customer, General Motors Corp., and the United Auto Workers union. If those talks fail, Miller has said Delphi could file for bankruptcy before Oct. 17, when the U.S. bankruptcy laws get stricter.
Detroit-based GM spun off Delphi in 1999 but still accounts for half its business. The world's largest automaker bought $14 billion in parts last year from Delphi, which is based in nearby Troy.
Delphi has 25,000 UAW-represented workers who make GM wages of $27 an hour. By comparison, hourly workers at rival supplier Visteon Corp. will make an average of $17 per hour once Visteon completes a restructuring plan with former parent Ford Motor Co.
Stelco moves forward with restructuring plan
Stelco Inc has announced that it has satisfied the preliminary conditions under the restructuring agreement entered into between the Company and the Province of Ontario earlier this week and it maintains the positive momentum towards a successful restructuring.
Stelco has also announced that it has reached agreement with Tricap Management Limited for the provision of two financing facilities, subject to Court approval.
The original conditions under the restructuring agreement had also called for the entering into of a corporate issues agreement between the Company and the USW relating to certain Stelco governance issues. The parties subsequently agreed not to pursue such an agreement.
The Company also announced that the Court has extended the stay period until October 4, 2005.
One more accident reported in Chinese coal mine
Three miners remain missing in a collapse taking place in a coal mine situated in the suburbs of Huaibei City, east China's Anhui Province.
Information from Anhui Provincial Bureau of Coal Mine Safety said the cave-in happened around 2:40AM on Thursday at Daihe Coal Mine of Huaibei Coal Mining Group Co Ltd, burying five miners then working in the coal mine shaft. Rescuers found two of the miners trapped in the mishap around 1:40 on Friday.
Rescue operation is still going on and the cause of the accident is under investigation
Universal Stainless & Alloy Products announces surcharge
Universal Stainless & Alloy Products Inc has announced that it is instituting an energy surcharge effective with shipments on October 1, 2005. The surcharge, which only covers natural gas at this time, is necessitated by the unprecedented rise in natural gas prices.
The surcharge amount will be published monthly on a per pound basis. It will be calculated on a per ton basis using the monthly closing settlement price of the NYMEX Natural Gas Contract, as reported in Platts Gas Daily. A trigger price of $6.60 per MCF of natural gas and a multiplier of 5.5 will be used to determine the surcharge.
Mr Dudley J Merchant, VP of sales and marketing, commented, "We are taking this step in the face of highly volatile energy markets. The addition of this surcharge will assist us in continuing to deliver on our commitment to reinvest in our specialty steel operations and lower our manufacturing costs to more effectively serve our customers."
Universal Stainless & Alloy Products Inc, headquartered in Bridgeville, manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel, and certain other alloyed steels. The company's products are sold to original equipment manufacturers, service centers, forgers, re-rollers, and wire drawers.
