September, 29 2005
Steel Prices likely to come down in 2006: Tata Steel
Tata Steel said on Wednesday that steel prices are likely to see an upward trend during this fiscal but will come down from next financial year due to expected increase in supplies. "Steel prices could rise slightly during the rest of the year and would come down marginally in the next fiscal," Tata Steel MD Mr B Muthuraman told reporters at the sidelines of a CII seminar in New Delhi.
Mr Muthuraman said iron ore production is expected to rise from next financial year, as result of which steel supplies would also increase in the domestic market.
Indian government machinery faces closure today
Leading trade unions AITUC, CITU, HMS, UTUC (LS), UTUC and AICCTU have given the strike call, particularly against the disinvestment of public sector undertakings PSUs.
Agitators have threatened rail rokos in many places across the country.
Kerala and West Bengal, red bastions both, are likely to be the hardest hit.
Many state governments including Karnataka, Andhra Pradesh and the Union Territory of Chandigarh have warned employees against joining the strike, but public sector units workers have vowed to make the strike a success.
Chhattisgarh government has declared the strike unconstitutional
Working in nationalized banks and public sector steel mills are likely to get effected
China seeks Indian iron ore to tame 2006 prices
Chinese steel mills are in India seeking long term iron ore contracts, which might help tame possible 2006 price increases from the world's top miners. Traders and industry officials said mills in China, the world's top steel producer, were desperate to keep 2006 ore price hikes as low as possible as domestic steel prices were sinking almost daily because of overproduction.
High spot Indian iron ore prices, triggered by demand from China, helped global ore miners achieve a staggering 71.5 per cent price hike in the benchmark price this year.
India, China's number two iron ore supplier after Australia, sells most cargoes via spot deals and Indian suppliers were not keen on term contracts to benefit from high spot prices. Still Chinese buyers hoped to reach an agreement on quality as the first step.
The meetings in India came after some banks, including UBS and Macquarie, forecast a 10-15 per cent price increase in the benchmark iron ore price next year. Macquarie argued that spot Indian ore prices were still commanding premiums of $8 a tonne over delivered Brazilian ore in China and premiums of $22 over Australian contract ore. It also said global steel prices were recovering.
Mr Raman Madhok quits JSW
JSW CEO and joint MD Mr Raman Madhok has quit to take over as CEO of Dubai based Trade Line, a part of Saif Al Gghurair group, as per a report in The Economic Times. He is expected to be with JSW till November
Mr Madhok is reported to have praised the working culture in JSW and the spirit of professionalism installed by Mr Sajjan Jindal
Tata Steel forms task force for Jharkhand project
Tata Steel today announced a task force to initiate and complete all preliminary work related to its new 12 million tonne-steel plant in Jharkhand.
The task force, led by Tata Steel Principal Executive Officer Mr Partha Sengupta, will look into matters like finalizing the site for the plant, securing raw material and ensuring all infrastructure support.
Tata Steel has zeroed down on Manoharpur in the state for the plant. It is also expanding its existing plant at Jamshedpur from five million tonnes to 10 million tonnes. For the new steel plant and expansion of its existing plant, Tata Steel will invest Rs 53,000 crore.
Alloy steel prices to rise as per Indian ASAP
Due to a positive trend in demand and a renewed upward movement in prices of raw materials such as melting scrap, iron ore and other inputs, alloy steel prices are slated for an increase in the near future, the Alloy Steel Producers Association ASAP said.
Alloy steel recorded a growth rate of over 10 per cent from 1.88 mt to 2.12 mt during the period 2004 -2005. The alloy steels cater mainly to the automotive and the general engineering sectors. With the advent of the festive season from October, the demand for consumer durables like cars, refrigerators, washing machines, etc. is expected to register a substantial growth. Consequently, the alloy industry that caters to the automotive sector will also receive an impetus for renewed growth, it added.
The automobile industry is growing at 15 per cent a year, whereas the auto component segment is doing even better with an annual growth of 20 per cent. India is also emerging as a global hub for the outsourcing of auto components that will further augur the demand for the alloy steel industry.
Considering the renewed upsurge in the consuming industries, alloy steel producers are gearing up to enhance their production capacity by way of optimum utilization of the existing equipment as well as through brown and green field expansion plans to meet the growing demand for alloy steel
Cr and Mn down for India
Production of both chromite and manganese ore was down in India during July, but that of copper concentrate was on the rise, latest figures from the Ministry of Mines & Minerals has shown.
India produced 273,000 tonnes of chromite, which represents a decline of 12.7% from the same month last year. Manganese ore output of 166,000 tonnes was down by 10.5% year on year.
Lead concentrate production fell by 8.1%, to 7,000 tonnes, while that of zinc concentrate dipped by 5.5%, to 73,000 tonnes. Output of bauxite and iron ore was also below July 2004.
Domestic copper concentrate production of 12,000 tonnes was up by 14.3% year on year, with magnesite and gold also on the rise.
Bharat Forge, M&M arm in race for US cos auto parts business
A host of Indian auto component majors are believed to be considering a bid for the light vehicle aftermarket business of the US based ArvinMeritor. Industry sources say that Bharat Forge, Mahindra & Mahindras MSAT (Mahindra Systems & Automotive Technologies) may be in the fray to buy this business, which is said to be worth about $800m.
ArvinMeritor is a tier-I auto component supplier with sales of about $8bn in 04. ArvinMeritors LVA business group supplies exhaust systems, filters, ride and motion control products to retailers, distributors and all major car companies around the world with facilities in seven countries.
But both Bharat Forge & MSAT have denied any such developments
Usha Martin shareholders approve issue of GDRs, Warrants
Specialty Steel and wire rope producer Usha Martin Ltd today obtained shareholders nod to raise money through GDR & FCCBs and preferential convertible warrants to fund expansion plans. The company will issue GDR/FCCBs up to Rs 110 crore ($ 25 million) with the green shoe option of 20 per cent and 58 lakh convertible warrants priced at Rs 153 for a share of Rs five each to the parties of promoters' group and associates.
The funds will be leveraged to expand steel capacity to half a million tons, kick start the iron ore and coal mining operations at Jharkhand by December, 2005 and strengthen the wire rope business. Chairman Mr Jhawar said the company will finalize its greenfield investment of around $ 4-5 million for 10,000 tons capacity in US by October. The facility will meet the wire rope demand in US.
He also informed representatives of Austrian company Joh Pengg will visit next month for talks for the proposed automotive wire processing venture with Usha Martin in India.
Final negotiations on Tata investment in Bangladesh from Oct 2
The final negotiation of the government with the Indian industrial giant Tata Group on the proposed US$ 2.5 billion investment in Bangladesh will begin from October 2. As per their proposal, the Tata Group will set up a fertiliser factory, a steel plant and a 1000-megawatt coal-fired power plant in the country. The development and operation of a coal mine is also included in their investment plan.
Sources in the Board of Investment said this would be the final round of negotiation, likely to continue for nearly one month, to arrive at a final decision.
The sources said that four critical issues would dominate the final round negotiation. These are fiscal incentive to Tata investment, gas security and gas price, tariff for purchase of electricity from Tata power plant and the methodology of coal mining in Barapukuria.
CVRD to increase iron ore shipments to Japan next year
CVRD will increase its shipments of iron ore to Japan next year as the Brazilian mining giant prioritizes long-term deals with major clients such as Japanese steelmakers as per a statement from Mr Roger Agnelli CEO of CVRD. But he stopped short of giving any specific forecasts, with more than six months before next year's contracts take effect in April.
It is "a little bit early to talk about price" for next year, Mr Agnelli said. But Japanese steelmakers "will continue to lead the price negotiations" in Asia even as China's robust steel consumption continues to drive up prices of natural resources.
In this year's negotiations, CVRD pushed through a 71.5% price increase with major steelmakers including Japan's Nippon Steel Corp and JFE Holdings Inc.
Global iron ore demand is growing faster than CVRD can raise its output, Mr Agnelli said. The tight supplies may prompt CVRD to lead another round of bullish negotiations with Japanese steel manufacturers for 2006. "I don't see any major change in the market next year," Mr Agnelli said.
CVRD, which aims to increase its annual output of iron ore to 300 million tons by the end of 2007, plans to supply 275 million tons to Japan from 2005 to 2017.
POSCO & shipbuilders on collision course due to low priced Chinese SBQ plates
Korean shipbuilders and POSCO are on a collision course over the price of steel sheets used for building ships with the low priced Chinese products set to make a foray into the Korean market.
The Korea Shipbuilders Association KSA has said that Koreas major shipbuilders, including Hyundai Heavy Industries and Samsung Heavy Industries, are considering increasing steel imports from China to cut costs. Korean shipbuilders are diversifying sources of import to reduce uncertainties amid rising steel prices a KSA official said.
Hyundai Heavy said it will increase Chinese steel imports from the current 10 percent to 15-20 percent. Samsung Heavy also decided to increase Chinese steel imports by solidifying partnerships with Chinese steel makers.
Daewoo Shipbuilding and Marine Engineering, which has not used Chinese steel, are also in talks with Chinese steel firms to import their products, the KSA said.
The moves are likely to be a serious setback to POSCO, already suffering dwindling profits due to overheated competition with Chinese rivals. Last week, the firm said it will lower prices of 11 steel products sold here by up to 70,000 won per metric ton as inventories are piling up due to supplies from China.
Having built 14.76 million tons of ships or 37 percent of production worldwide last year, Korean shipbuilders are now beefing up construction of high-value-added vessels such as the liquefied natural gas carriers priced over $200 million, 10,000 TEU (20-foot equivalent unit) container ships and floating production storage and offloading vessels that involve high-end technologies.
A stable supply of premium steel products, including thick plates, heat-treated materials and steel used in low temperatures, are necessary as they are required for building such vessels.
Battle for Erdemir Bidders looking for additional funds
Tensions continue to increase with the six firms and consortiums that submitted proposals for auction of Erdemir on October 3 due to a near hundred percent increase in Erdemirs value resulting in financial difficulties and deviations from earlier estimates. Firms and consortiums in search of credit from domestic and international banks have begun to conduct meetings almost daily.
An official from Eregli Joint Enterprise Group confirmed that they have demanded resources from domestic and international banks. We had expected the price to be $2-2.5 billion dollars. Doubling of the price has placed us in a difficult situation. We determined a price already. We cannot offer more, another official said.
Erdemir shares trading on the Istanbul Stock Exchange were up 18 percent following the unexpectedly high offer for another state-run petroleum industry, TUPRAS to increase Erdemirs market value by $546 million to a total of $3.459 billion,
A cash payment for Erdemir is preferred but if the winning firm or consortium chooses to make payments by installments, 50 percent of the total price will be paid in cash and the remainder will be paid in installments over two years, 25 percent for each payment.
On the other hand, submission of bids, has negatively effected the share value by 4.1 percent
US commission reviews duties for cut to length plate steel
The US International Trade Commission heard testimony as part of a mandatory five-year review of duty orders from Indiana legislators and Mittal Steel executives, urging the commission to maintain import taxes on certain countries that produce cut to length plate steel.
In 2000, the Commerce Department imposed duties on plate steel from France, India, Indonesia, Italy, Japan and Korea after it determined companies in those countries were selling plate in the US at prices below fair value and that some were also benefiting from government subsidies.
The duties helped reduce imports from the six countries by approximately 90 percent, from more than 1.1 million tons seven years ago to approximately 110,000 tons annually between 2000 and 2004.
The only objection to maintaining the orders was submitted by a French firm that said its line-pipe plate should not fall into the same category as the other types covered by the 2000 action. A representative from Florida-based Berg Steel Pipe Corp. supported the French firm's claim, saying U.S. mills are unable to supply his company with the line-pipe plate it needs.
The ITC is expected to reach a decision in November.
Thai G Steel in high speed caster venture with JSP
G Steel Plc, Thailands leading hot-rolled coil producer, has agreed to set up a joint venture with JP Steel Plantech JSP of Japan to develop the world's fastest slab castor production facility.
Mr Somsak Leeswadtrakul, G Steel's president and CEO said that by linking up with JSP, the world's leading manufacturer of steel machinery, G Steel's standard of production would improve worldwide. "The joint venture not only benefits Thailand's steel industry, but also the worldwide steel industry, as the technology of JSP will help boost steel manufacturing capacity by about 30-40%," he said.
The facility, to cost US$10 million, will be completed in 12 months.
Mr Nobuyuki Hoshika, executive vice president of JSP, said his company had considered many steel manufacturers across the globe to take part in this research and development project and selected G Steel because of its high-quality manufacturing standard, human resources and long expertise in the steel business.
"The patent of the jointly developed technology will be registered in various countries under the name JSP-G Steel High Speed Caster and the technology will be sold to steel makers worldwide," he said.
POSCO to host IISI meet in Seoul in next week
POSCO has announced that it will host the annual four day International Iron & Steel Institute IISI conference of global steelmakers in Seoul during next week, where almost 400 global steel players who members of IISI are likely to take part and discuss issues ranging from raw materials, energy, trade issues and human resources to the development of new technologies.
Participating representatives of member companies will elect the new IISI officers, approve new membership and present accounting reports at the general meeting on Oct. 2. Participating officials will visit POSCO's four mills in Pohang and Gwangyang on Oct. 6.
It is the second time, since 1988, that POSCO, Korea's No. 1 steelmaker, has hosted the annual IISI conference.
Some of the prominent members, who are likely to attend the conference, include POSCO chairman Mr Lee Ku-taek, Nippon Steel Corp president Mr Akio Mimura, BlueScope Steel Co president Mr Kirby Adams, Arcelor SA president Mr Guy Dolle and Mittal Steel chairman Mr LN Mittal
The IISI, established in 1967, consists of 185 steel companies, associations or federations of steelmakers, in 55 countries. Raw steel producers of at least 2 million short tons per annum are given regular membership.
Mittal Steel completes acquisition of 36.67% of Hunan Valin
Mittal Steel Company NV has today announced that it has received final approval relating to its acquisition of 36.67% of Hunan Valin Steel Tube & Wire Company (Hunan Valin) for a total consideration of US$338 million. All conditions precedent have been met and the transaction has now closed. The transfer of shares is expected to take place over the next few days.
Hunan Valin is one of the largest steelmakers in China with annual steel production capacity of 8.5 million tons. It is listed on the Shenzhen Stock Exchange.
Mr LN Mittal, Chairman and CEO of Mittal Steel said This is a key strategic transaction for Mittal Steel as it marks our first step into China, the worlds fastest growing steel market. We are very much looking forward to our collaboration with Hunan Valin, and are confident that we can help the company further improve on its market position by providing marketing, procurement and technological knowledge and expertise.
Leaked molten steel kills 3, injures 5 in Liaoning
Three workers were killed and at least five were injured in a molten steel leaking accident that occurred Tuesday in a Jinzhou steel plant, in northeast China's Liaoning Province, according to the local government.
At about 10. a.m., molten steel leaked from steel making furnace in the plant. Three workers by the furnace were killed on spot, and at least other five workers were burnt to different degrees.
A member with the accident investigation team told local press that a preliminary probe found that personnel violated the work safety operation manual, and the plant has flaws in work safety management.
The plant is reportedly a branch of a Tangshan steel company. The workshop, too, was borrowed from the local steel company
Vietnamese steel producers gear up for red hot 2006
The Ministry of Industry MoI has forecasted that Viet Nam will consume 7.5 million tonnes of finished steel next year, an increase of 15 per cent from last year, as a result of the large number of projects slated for 2006.
The ministry said local producers are projected to produce 3.8 million tonnes of finished steel, of which 3.5 million tonnes will be sold in the country, an increase of 14 per cent over 2005 figures. Approximately 3.7 million tonnes, is expected to be imported next year to compensate for the shortage.
The MoI predicted the sector will produce 1.3 million tonnes of semis, a major input material for industrial steel production, and will import an additional 2.1 million tonnes.
A Viet Nam Steel Association report revealed Vietnamese steel-makers produced 1.5 million tonnes of steel in the first seven months of the year, up by 20 per cent from the same period last year.
Malaysian steel makers face difficulties on high scrap prices and low demand
Industry sources say that most Malaysian steel makers of construction grade steel such as billets and rebars were only operating at off-peak hours or even shutting down production at certain plants, similar to the situation last seen during the financial crisis in 1998-99.
A steel maker is reported to have said that steel mills are increasingly facing significant profit margins squeeze due to weak consumption of construction-grade steel, as scrap prices globally have rebounded from its low in May-June while selling prices remain weak as millers are unable to pass on the higher scrap cost under the present soft market conditions.
Scrap prices accounted for about 70% of steel makers production cost and the prices of imported scraps have increased to between US$240 (RM904.16) and US$260 per tonne CNF level from a low US$200 tonne CNF five months ago while prices of local scraps rose to about RM800 per tonne from below RM700 per tonne.
The long-awaited revival of the construction sector has yet to be seen and is now beginning to take its toll on almost all long steel product manufacturers nationwide with far-reaching consequences if outlook does not improve from the present doldrums.
Thai steel makers seek government position on FDI in steel industry
Local steel industries are to confer with the Iron and Steel Institute of Thailand, under the Industry Ministry to ask for the government to clarify its stance on foreign investment in steel production following a report that the government might allow China's fourth largest steel maker Shougang Corporation (also known as Capital Steel) to set up an integrated steel plant here as they are concerned that too much production capacity would harm domestic steel producers.
It is reported that Shougang wants to invest in an integrated steel plant producing steel products ranging from hot metal, slab, and rolled products, for both domestic use and export, with production capacity of about 3-4 million tonnes a year.
Mr Wanchai Kunanantakul, president of Siam Steel Group, a major producer of steel products, said Shougang's investment plan would benefit domestic industries that remain dependent on imported steel products, such as automotive and furniture manufacture.
The Board of Investment (BoI) has already approved two iron smelting projects, one owned by G Steel, controlled by Somsak Leesawatrakul, and the second by the Sahaviriya Group.
Singapore Sembawang Kimtrans Signs MoU with Amsteel Mills
Singapore-based Sembawang Kimtrans Ltd has announced that it has signed a MoU with Malaysia's Amsteel Mills Sdn Bhd. to form a joint venture for providing marine logistics services in that country. Amsteel, a unit of Lion Industries Corp Bhd will hold the majority stake in the joint venture, Sembawang Kimtrans said in a statement.
The venture will use tugs, barges and floating cranes to transport steel scrap and iron ore from deep sea ports in the Malacca Straits through Sungai Langat to Ansteel's steel mill in Banting in Selangor state
Low steel demand stifles pallet production in US
A softening of the domestic steel market over the first half of 2005 has caught up to the Iron Range taconite industry in US. The restart of furnace No. 5 at Cleveland-Cliffs' Northshore Mining Co. in Silver Bay is being delayed, and agglomerating line at US Steel's Minntac Mine in Mountain Iron will be shut down as taconite plant owners move to balance iron ore pellet production with demand.
"As previously discussed, due to recent softening in the domestic steel market, Cliffs has reduced its 2005 sales forecast by approximately 1.5 million tons," said Dana Byrne, a Cleveland-Cliffs spokesman. "Therefore, Cliffs does not need the additional capacity from Furnace 5 at this time, and has elected to delay the announced restart of Furnace 5."
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In addition, U.S. Steel's Minntac Mine on Saturday will shut down its Line 3 pellet-producing line due to a lack of concentrate, said John Armstrong, a US Steel spokesman. The shutdown would also help US Steel match pellet inventory to customer demand, he said.
NEMIs TSM mine to start production in Q4
NEMI Northern Energy & Mining Inc NEMI is expecting production from its Trend Small Mine to commence on schedule in the 4th quarter of 2005. The TSM initial production rate is targeted at 60,000 tonnes per month.
Significant progress has been made in the construction of Load out Facility, Re-installation of rail from Mile 70 of the Tumbler Ridge Branch Line, Minesite and Plant Construction and Rail and Port Agreements
NEMI has appointed ITOCHU Corporation, a Japanese trading company, as its exclusive marketing agent in certain key markets, and is now working with ITOCHU to optimize the allocation of NEMI's metallurgical coal within the international steel industry. In addition to its role as marketing agent, ITOCHU has entered into a Heads of Agreement for the sale and purchase of coal with NEMI to purchase certain guaranteed tonnages of NEMI's coal product over a five year period.
NEMI is also in the process of finalizing a series of formal Coal Purchase Agreements with a number of international buyers. The weighted average price of TSM coal product to be delivered in the Coal Year ending March 31, 2006, is between US$115-120 per tonne FOB loading port.
NEMI Northern Energy and Mining Inc. is a western Canadian based coal company with strategically located metallurgical coal properties in northeast British Columbia. The Company owns a 100 % interest in the Trend Property located near the town of Tumbler Ridge. NEMI also has a 50 % interest in the Belcourt Saxon Limited Partnership that covers over 50,000 hectares of known and highly prospective coal bearing land in northeast British Columbia.
Global Steel Philippines to start offering total product range
THE country's largest steel manufacturer said Wednesday it could supply the all steel products following rehabilitation of plant's 60 inch roll grinding machine, which had been mothballed since National Steel closed down five years ago. It will enable the plant to process steel with better accuracy and finish," as per Global Steel Philippines president Mr Sushant Das
Before the machine was repaired, the plant had only two working roll grinders for 28-inch and 36-inch diameter rolls.
Global Steel supplies domestic and regional markets with hot rolled plates, hot rolled coils, cold rolled full hard coils, and cold rolled annealed coils.
It is reported that now the plant was making cold rolled light gauge steel measuring 0.17 millimeters and thinner, and would start production of tinplates before year end.
The company plans to launch soon cold-rolled steel for use as panels, computer casings, appliances, furniture, and automobile fuel tanks.
It also plans to start making full-hard, cold-rolled substrate of aluminum zinc alloy coating called galvalume, which is used as roofing material
China to Build Pipeline to Border
A private Chinese company plans to build the country's first oil pipeline to Russia, state media said Wednesday, underscoring growing Chinese interest in tapping Siberian petroleum resources.
The planned 30-kilometer project would link railway lines between Heihe in northeast China's Heilongjiang province and the eastern Siberian city of Blagoveshchensk, China Daily said.
The line is to be built by Heihe-based Xinghe Industries in cooperation with the Lanta Oil Co. of Moscow at a cost of 520 million yuan ($64 million), the newspaper said.
It is expected to begin operations in September 2006 with an annual capacity of 3 million tons (21 million barrels), increasing to 5 million tons by 2008.
The new pipeline project is the latest Chinese attempt to quench its growing appetite for hydrocarbon fuels to power fast-paced economic growth
Brazil August iron ore exports rise 4.5%
Brazilian mining companies saw iron ore export volume increase 4.5% in August compared with the same month a year ago, according to the latest data from mining trade group Sindicato Nacional da Industria da Extracao do Ferro e Metais Basicos, or Sinferbase.
Brazilian mining companies shipped 19.372 million metric tons of iron ore in August, up from 18.533 million tons in August 2004, Sinferbase said. For the first eight months of the year, exports climbed 10.3% to 143.715 million tons compared with the same 2004 period.
Companhia Vale do Rio Doce (RIO), or CVRD, was Brazil's leading iron ore exporter in August. The company shipped 14.192 million metric tons in August, up 2.7% from August 2004. CVRD accounted for 73.3% of iron ore exports in August. So far in 2005, CVRD has increased iron ore exports 8.8% to 107.135 million metric tons compared with the same period of 2004.
However, domestic iron ore sales dipped 3.2% in August compared with the same month a year ago, reflecting a decline in Brazil's crude steel output. In 2005, domestic steelmakers have reduced production because of slack demand and high inventories at distributors. Domestic sales reached 3.248 million metric tons of iron ore in August, down from 3.357 million tons in August 2004, Sinferbase said. For the year, domestic sales were down 5.4% to 24.447 million tons compared with 2004.
Iron ore pellet exports also declined in August on maintenance shutdowns at several pellet plants. Shipments of pellets, prized for their efficient use in blast furnaces, dropped 18.2% in August to 3.107 million metric tons compared with 3.799 million tons in August 2004, according to Sinferbase. For the year to date through August, pellet deliveries were off 4.3% to 28.755 million tons.
Mississippi lawmakers work to scale down SteelCorr incentives
Legislators started moving swiftly Tuesday to reduce the state's incentive package for a steel mill being developed in Lowndes County. Separate but similar bills that passed the House Ways and Means Committee and the full Senate would reduce the state-backed loan to SteelCorr from $75 million to $60 million.
When the steel manufacturer announced in March that it planned to develop a plant in Mississippi, the state agreed to provide a $75 million contingent loan for backing up a loan that SteelCorr would acquire through private lenders.
An additional $94 million of capital has been added to the project, further strengthening the state's position. It also adds a stipulation that one-half of any management bonuses will be escrowed until the $60 million is repaid to the state, said MDA executive director Leland Speed.
Romanian Artrom Slatina exports 80% of its output
Artrom Slatina Company exports approximately 80 percent of its output of non-soldered, carbon and alloy steel pipes. Among the most important foreign markets for Artrom products there are several European countries, such as Germany, Austria, Belgium, the Netherlands, Luxemburg, Sweden, Norway, Denmark and Great Britain, but also the United States, Canada and the United Arab Emirates.
In the recent years, the exports followed a significant upward trend from 37.6 million euros worth in 2004 to about 35.8 million euros in H1:05.
Artrom posted a gross profit in H1:5 equivalent to 2.4 million euros, at a turnover of approximately 53.7 million euros, following a pipe sales jump, and also due to a raised added value to the products.
Profits derived from exploitation were diminished by financial losses of approximately 1.7 million euros as a consequence of dollar and euro unfavorable exchange fluctuations.
Artrom Slatina was set up in 1984 and was privatised in 1999, the main share package being taken over by Staro, Austria. In 2001 it was sold to Sinara Handel GMbH from Koln, member of a Russian group TMK.
Steel Technologies expects poor results for Q4
Steel Technologies Inchas announced that the Company expects results for the fourth quarter ending September 30, 2005, to reflect lower-than-anticipated shipments and further margin compression. The July-August seasonal softness was more pronounced due to excess inventory throughout the supply chain. As a result, the Company expects shipments to be 5% below the projections stated in its July conference call. In addition, during the quarter, the Company experienced the margin impact of utilizing higher-cost material in a declining-price environment, although this trend began to reverse late in the quarter.
For the three months ending September 30, 2005, the Company expects to report sales of approximately $200 million, and tons shipped for the fourth quarter are expected to total approximately 250,000 tons.
Steel Technologies produces precision flat rolled steel for customers in a variety of steel consuming industries including automotive, appliance, lawn and garden, agriculture, office equipment and railcar industries. The Company has 20 facilities, including its joint-venture operations, located throughout the United States and Mexico.
NLMK declares interim dividend
The shareholders of OAO Novolipetsk Iron & Steel Works NLMK have approved the payment of interim dividend for the first half of 2005 to an aggregate of 5.99 billion rubles at the rate of 1 ruble per ordinary share at par value of 1 ruble at the Extraordinary Meeting held on September 26, 2005.
For the year 2004 NLMK trebled dividend payment 10.8 billion rubles on the basis of 1.8 ruble per share at par value of 1 ruble.
As of July 1, 2005 the Company's main shareholders were Silener Management Ltd (18.98%), Castella Investments Limited (15.94%), Merobel Investments Limited (14.7%), Ultimex Trading Limited (18.15%), Veft Enterprises Limited (16.31%), Radley Enterprises Limited (8.23%), as well as Z "LKB Invest" (7.52%).
ICG seeks $300 million in IPO
International Coal Group, a mining firm controlled by Mr Wilbur Ross, has announced its plans to raise $300 million in its initial public offering. UBS Investment Bank and Lehman Brothers are underwriters of the IPO, which will consist of 20 million shares, plus an additional 3 million share over allotment, the company said in a regulatory filing.
Ross, who specializes in scooping up distressed industries like steel, auto parts and textiles, is combining Anker Coal and CoalQuest under the International Coal Group name.
New Sideremporiki company in Bulgaria
The northern Greek firm Sideremporiki Makedonias SIDMA SE and Packer Plada Ltd, which occupies a leading place in the sector of steel manufacturing and trade in Israel, founded a new company in Bulgaria.
The SID PAC Bulgaria SA share capital is 200,000 euros and soon will reach approximately 1,300,000 euros. This sum will be used to partially finance the creation of a high tech steel service centers for steel processing & distribution and a sales network in Bulgaria.
According to the SIDMA SA management, SID-PAC Bulgaria SA was founded to further expand its activities by exploiting the opportunities emerging in Balkan states.
SUEK transferred Falkon-Leasing to its fixed assets
Siberian Coal Energy Company SUEK has transferred Leasing Company Falkon-Leasing to its fixed assets. Falkon-Leasing enters the number of enterprises acquired last year by SUEK in the block of assets of Kemerovo region. The Company is principally engaged in leasing deliveries of mining equipment.
Siberian Coal Energy Company is the major coal group in Russia. The company supplies nearly 30% of coal to the domestic market and around 20% of export. SUEK is the only coal company in Russia which has entered the top ten global coal producers.
Siberian Coal Energy Company has its affiliates and subsidiaries in Krasnoyarsk, Khabarovsk and Primorsky Territories, Irkutsk, Chita and Kemerovo regions, Buryatia and Khakassia, with the total number of employees exceeding 45 thousand.
