October, 12 2005
Government plans to revive HEC
The Board for Reconstruction of Public Sector Enterprises BRPSE has recommended a Rs 100-crore bridge loan for reviving Heavy Engineering Corporation HEC in addition to the proposal for writing off loans amounting to Rs 1,100 crore to the PSU. The revival package had been formulated keeping in mind the intended investment of steel companies.
The revival package is expected to be financed by the transfer of nearly 3,000 acres of surplus land. The land belongs to the Jharkhand government and HEC had taken it on lease. By transferring 1,000 acres of land to the Jharkhand government, dues up to Rs 500 crore will be settled with the state electricity board. The self-financing scheme, involving the sale of HECs assets to the Jharkhand government, will generate Rs 330 crore. Of this, Rs 155 crore will be extended to the State Bank of India.
The plan will be implemented by January 1, 2006. It is projected that HEC will start making profits up to Rs 6 crore by January 2007, after the sale of supplies worth Rs 300 crore.
The PSU, which started production in 1964, has in its 41 years of existence made profits only in three years. In 2004-05, its accumulated losses stood at Rs 12,687 crore, and its net sales were Rs 170.26 crore. At current rates, investment of up to Rs 20,000 crore would be required for setting up a facility like HEC.
Tata Steel not to pursue Millennium Steel deal
According to reports in Indian dailies, Tata Steels deal with Thailand-based, Millennium Steel is not being taken forward.
Millennium Steel Plc clarified that it was not the source of news reports that Tata Steel is seeking to buy a 39.9 percent stake in the company.
It was reported in some news dailies that Tata Steel was looking at this two million tonne per annum wire rod manufacturer, as a potential takeover target. However the report did not cite any officials from Tata Steel or Cement Thai Holding which owns Millennium steel
Karnataka government approves JSW expansion project
The high level committee of the Karnataka government has cleared 24 mega projects involving investments of Rs 24,893 crore.
The committee has granted permission for JSWs Vijayanagar unit to augment its capacity from 3.8 MTPA to 8 MTPA by pumping in investments to the tune of Rs 10,912 crore in two phases
Usha Martin reports 72% jump in net profit
Usha Martin has reported a 72 per cent jump in net profit for the quarter ended September 30. The companys profit after tax rose to Rs 14.85 crore from Rs 8.63 crore posted in the same period last year.
Net sales dropped 6 per cent at Rs 293.35 crore against Rs 312.15 crore a year ago. The company has reported a 67 per cent rise in profit before-tax at Rs 43.99 crore against Rs 26.35 crore in the same period last year. Profit after tax increased 72 per cent to Rs 28.08 crore from Rs 16.78 crore a year ago. Net sales dipped to Rs 559.39 crore against Rs 567.60 crore in the corresponding previous period.
Usha Martin, which produces special steels, has started its own iron ore mining recently and has also chalked out a Rs 462 core expansion plan.
Bangladesh government to build gas pipeline for TATA
It is reported that Bangladesh government has agreed in principle to construct a 30 km pipeline for supplying gas from city gate point of Chittagong to the proposed site of the fertiliser factory at Bashkhali in a tripartite negotiating meeting of Petrobangla, Tata Group and the Asian Development Bank (ADB). The ADB will finance the proposed gas pipeline project, whose cost is yet to be determined.
TATA had expressed dissatisfaction over the governments response and said it would be forced to look for investment opportunities elsewhere if Dhaka does not come out with favorable contracts.
The steel plant site is yet to be finalized. TATAs have submitted an investment proposal worth $3 billion in April 2005 and have been negotiating fiscal incentives on the investment, gas security, gas price and tariff for purchase of power produced by the companys plant.
ONGC & Mittal Steel launches two JV companies
ONGC and Mittal Steel signed two agreements formally launching the joint ventures ONGC Mittal Energy Ltd (OMEL) and ONGC Mittal Energy Services Ltd (OMESL).
Equity for each of the joint venture is 50 million US dollars. ONGC Videsh Ltd (in case of OMEL) and ONGC (in case of OMESL) will hold 49.98 per cent stake, and Mittal investment SARL will hold 48.02 per cent stake. The balance will be held by SBI caps.
OMESL will be headed by Mr S K Sharma, while the CEO of OMEL is expected to join shortly
TATA group awarded the ''Maple Leaf International Award, 2005''
Mr Prashant Kumar and Mr Shiva Prakash Rao won the ''Maple Leaf International Award, 2005'' for their paper Best practices in global supply management - what are the bench-marks in Bejing. The Tata duo went past a number of competitors from 30 countries including the United Kingdom, Hong Kong, China and other compatriots from India.
Mr Kumar works with procurement division of Tata Steel, while Mr Rao is in Tata Consultancy Services.
The ''Maple Leaf'' is awarded by International Federation of Purchasing and Supply Management through a competition amongst authors who write actual and future oriented papers concerning purchasing and supply management profession and its development
Representing 43 purchasing and materials management associations and over 150,000 purchasing professionals around the globe, the International Federation of Purchasing and Supply Management is a pioneering organization promoting purchasing excellence
Inco & Falconbridge create mega Nickel company in $12.5 bl merger
Two of Canada's mining industry icons, Inco and Falconbridge, have announced a $12.5 billion friendly merger plan to create one of the world's biggest metals producers. The blockbuster deal marrying the two longtime Canadian miners also makes a foreign takeover of either Canadian company less likely in an increasingly competitive and consolidating industry. Inco has agreed to pay nearly $11 billion in cash and stock for Falconbridge Ltd
The merged company, which will employ about 25,000 people globally, including 14,000 from Falconbridge, and will become the world's biggest nickel producer and its fifth-largest copper producer. The combined company would have nickel production greater than Norilsk Nickel of Russia, currently the world leader, as well as significant copper, zinc and aluminum production brought by Falconbridge.
While a combined Inco-Falconbridge would have a stock value of about $21 billion, it would still rank far behind BHP Billiton of Australia and Rio Tinto PLC, the world's two biggest and most valuable mining companies.
Falconbridge, one of the world's top miners and smelters of copper and nickel, has operations in Sudbury, Quebec, the Dominican Republic, Norway and elsewhere. The miner combined with its former parent Noranda Inc. earlier this year into a bigger company after the Brascan investment firm, Noranda's former parent, disposed of its stake and merged the two companies.
Inco, which has a history dating back to the turn of the century, has long been one of Canada's most recognized international miners. Formerly known as International Nickel Co., the company has major operations in Sudbury and Thompson, Man. as well as Voisey's Bay, NL. Internationally, its main operations are in Indonesia and Goro in the South Pacific island of New Caledonia.
Inco CEO Mr Scott Hand would be CEO of combined company and Falconbridge CEO Mr Derek Pannell would be the president.
POSCO profit rises by 4.9% in 3 years
POSCO, worlds fifth largest steelmaker, announced that its third quarter profit rose 4.9%, the smallest increase in three years, as the cost of iron ore and coal climbed to a record.
Net income rose to 1.06 trillion won ($1.02 billion) in the three months ended on September 30 from 1.01 trillion won in 2004, which is the smallest gain since the second quarter of 2002 when profit fell.
EU to raise quotas for Russian steel
Russia's Economic Development and Trade Ministry is seeking to sign an agreement in the near future with the European Union to raise quotas on exports of Russian steel to the EU, a senior ministry official said Tuesday.
Mr Maxim Medvedkov, director of the ministry's department for trade negotiations, said the ministry had already requested that the EU set dates for the signing of the agreement that has been under discussion since late 2004.
The new agreement is designed to raise EU quotas on Russian steel from the current 1.8 million metric tons to 2.2 million tons in 2006 and to 2.3 million tons in 2007.
Demand supply for seamless tubes balanced in China
The supply and demand of seamless steel tubes will be basically balanced in China and the market prices of the tubes will remain stable, said industry insiders. Most distributors hold the optimistic view that the market demand and sales of seamless steel tubes will not decline before the end of this month. However, all the dealers consider that the market prices of seamless steel tubes will neither fall nor hike in a big margin in the year.
In the first seven months of this year, China produced 5.7 million tons of seamless steel tubes, up 21.5 per cent YOY. During the same period, the country imported 0.38 million tons and exported 0.76 million tons of seamless steel tubes, down 7.36 per cent and up 123 per cent year-on-year respectively.
In the Jan-July period, the total supply of seamless steel tubes available on domestic market stood at 5.3 million tons, while the accumulated consumption of seamless steel tubes on domestic market reached 5.3 million tons, up 11.65 per cent YOY.
The above figures show that the supply and demand of seamless steel tubes on domestic market in the first seven month of the year were basically balanced. Compared with the same period of last year, the growth of production registered is 9.9 percentage points higher than the consumption growth.
Industrial insiders note that with the picking up of common seamless steel tube market and the falling of export prices for petroleum casing pipes, those steel mills, which produce casing pipes, will turn to the production of common seamless steel tubes. Therefore, total supply of common seamless steel tubes on domestic market would increase in the coming months.
High court allows Evraz takeover of Vitkovice Steel
The Czech High Court has announced that it had released a transfer of shares in state run steelworks Vitkovice Steel to Russia's EvrazHolding. Mr Petr Angyalossy, spokesman for the court, said the court cancelled an injunction banning the government's vehicle Osinek from handling Vitkovice shares.
The government picked Evraz as the buyer of its 99 percent share in Vitkovice Steel in July.
A Czech regional court issued the injunction in early August after Vitkovice's
former creditor MP Consult filed a complaint about the way the government erased Vitkovice's debts four years ago. MP Consult complained about the fact that Osinek, which bought Vitkovice in March 2002, was a company related to Vitkovice's then-shareholder.
Osinek's owner, the National Property Fund, controlled 67 percent of Vitkovice, the parent company of a holding sheltering Vitkovice Steel.
Osinek said the court verdict proved that the lawsuit was absurd. "The High Court's stance also makes it absolutely clear that the lawsuit cannot interfere with the company's legal status in any way," Osinek spokeswoman Ms Eva Kijonkova told press
"This decision will enable us to complete the transaction in the nearest future so that we could begin to implement our business plan and work on the integration of both companies and above all on further economic development of Vitkovice Steel," said Crest Communications, Evraz's publicity agent.
National Property Fund spokeswoman Ms Petra Krainova said the sale must be approved by the European Commission, and added she expected the transaction to be completed in November.
EvrazHolding has offered CZK 7.05 billion for the government's stake. The transaction, approved by the Czech antitrust office, was signed in early September.
China factor may send iron prices lower CISA
Iron ore prices may dip next year since China, the world's biggest consumer of the steelmaking raw material, posted slower steel output growth and supplies expanded, the China Iron and Steel Association CISA said.
"Global steel output, excluding the Chinese market, is stagnant and China is one key factor determining iron ore prices," the association said in a report on its Website yesterday. "China will witness a clear reduction in steel output growth next year after years of overheated expansion and measures were enacted to cool the sector."
The country took several steps including cutting tax rebates on steel exports since April to rein in growing steel output. Some steelmakers cut output due to reduced profit margins.
China's ore import growth will sit at 40 million to 50 million tons next year. The global supply growth is expected to be 62 million tons. "That means a balance between global iron ore supply and demand, or even an iron ore oversupply," the association said.
Kuzbassrazrezugol raises coal output 1.9%.
Russias coal major Kuzbassrazrezugol produced 29.924 million tonnes of coal for the nine months, up 1.9% from 29.371 million tonnes during the same period last year. However the production of coking coal was down by 18.4% to 2.868 million tonnes from 3.941 million tonnes last year
From the beginning of the year, the company delivered 28.883 million tonnes of coal to consumers, down 0.1% from 28.906 million tonnes during January - September last year
In September Kuzbassrazrezugol produced 3.513 million tonnes of coal, including 310.4 thousand tonnes of coking coal.
Kuzbassrazrezugol was incorporated in April 2003 by OAO Holding Company Kuzbassrazrezugol, Kuzbasstrans and two offshore companies affiliated with shareholders of HC Kuzbassrazrezugol.
Japans iron ore imports up
Japans iron ore imports amounted to 12.3 million tons in August. This represents a 28.1 percent increase compared to 9.6 million tons imported in July.
For the first eight months of 2005, Japan imported 89.6 million tons of iron ore, up 1 percent year on year.
Japan imported 56.2 million tons of iron ore from Australia during the January-August 2005 period, down 1 percent from a year earlier.
Japans iron ore imports from Brazil rose 11 percent to 19.3 million tons in the first eight months. On the other hand, Japans iron ore imports from India fell 11 percent to 7.9 million tons.
Ternium plans listing in NYSE
Ternium, the second-biggest steelmaker in Latin America, is planning a stock market listing that could see it valued at $5bn. The planned IPO of the company, which was formed recently in a three-way merger, is expected to involve the sale of a minority stake via a listing on the New York Stock Exchange. Mr Rocca told press that he was considering listing Ternium but no timetable had yet been fixed. It is an intention but we have no particular plans as yet,
Ternium is based in Buenos Aires and is controlled by Techint, a private company with roots in Italy. Techints chief executive is Mr Paolo Rocca, whose family owns the company. Ternium was formed through a link-up between three companies Siderar of Argentina, Hylsamex of Mexico and Sidor of Venezuela with the catalyst being a $2.4bn acquisition by Siderar of Hylsamex, previously part of Mexicos Alfa industrial holding group.
Under the likely share issue, Usiminas, a Brazilian steelmaker and a minority shareholder in Ternium, would probably continue to hold a stake.
Ternium is likely to produce 8m-9m tonnes of steel this year, with much of that being exported to the US. It is expected to be the second-biggest producer in Latin America after Arcelor Brazil
Auto manufactures look toward dual phase steel
Automakers are looking to increase use of high strength dual phase steel to reduce weight of automobiles. Dual phase steel combines two crystalline structures, ferrite and martensite, to give it great strength found in high-strength alloy steels, and an ease of formability that alloy steels such as boron steel dont have.
Automakers are jumping to use dual-phase steel. The material is already being used by Ford Motor Co., General Motors Corps. (GM), DaimlerChrysler and other manufacturers because of its cost and crashworthiness
US Steel, a manufacturer of DP-600, has reported that dual-phase steel has a higher yield to tensile ratio as compared to conventional high-strength, low-alloy (HSLA) steels. This results in a higher capacity to manage vehicle crash energy. Because dual-phase steel bends without breaking it can provide a great deal of strength and crash resistance.
Most of the DP-600 is appearing in rocker panels, B pillars, side panels and front panels.
Japanese steel makers welcome conclusion to CR dumping Case
Japanese steelmakers are happy that after many years of litigation and appeals by US steelmakers to two different courts, that Japanese cold rolled sheet has been found to be fairly traded, according to Mr Hidenori Tazawa, Chairman, Japan Steel Information Center. "We hope that as a result of this experience US steelmakers will refrain from seeking unjustified import restrictions in the future Mr Tazawa said
The International Trade Commission originally found "no injury" in a 2002 case and then U.S. steelmakers appealed to the Court of International Trade and the Court of Appeals. The last opportunity for appeal to the U.S. Supreme Court expired on October 5, 2005.
In its original decision, the ITC found that imposition of additional antidumping duties on top of Section 201 tariffs would have been in violation of the remedial nature of the antidumping statute.
German crude steel output down 9% in September
German crude steel production in first nine months fell by 7% pct YOY to 3.32 mln tonnes, while pig iron output declined 6.8% to 2.16 mln tonnes, the Federal Statistics Office said.
On a month-on-month basis, crude steel production fell 9.0 pct in September, while pig iron production declined 6.3 pct, the office said.
Mittal Steel may invest $235 million in Mexico plant
It is reported that Mittal Steel plans to invest $235m, over the next three years, in its steel mills in Mexico. The money would be spent on diversifying products and boosting energy efficiency at its plant in the western state of Michoacan as per operations director Mr Josde Jesus Fernandez
Mittal Steel's Lazaro Cardenas plant manufactures slabs and has an annual production capacity of 4m tonnes. Mr Fernandez said the company planned to build a finished products plant and was exploring potential iron ore deposits. Mr Fernandez added the planned investment depended on profits and prices of natural gas and electricity.
Titan Receives Merger Offer
Steel wheel and tire maker Titan International In has announced that it has received a merger offer from One Equity Partners LLC, an affiliate of financial services firm JPMorgan Chase & Co for $18 per share of Titan stock.
Titan International currently has about 19.4 million shares outstanding.
The offer is subject to reaching a definitive agreement, as well as usual closing conditions and board and stockholder approvals, Titan said.
Fortescue secures native title for Pilbara iron ore project
Australia's Fortescue Metals Group Ltd announced that it has secured definitive native title land access for its estimated A$2.3 billion iron ore project in Western Australia's Pilbara region. The agreement follows a writ lodged by the Pilbara Native Title Service in August on behalf of indigenous claimants to overturn a previous deal signed between Fortescue and the Nyiyaparli people on the grounds the claimants didn't fully understand the deal.
Without providing terms of the new arrangement, Fortescue and the Pilbara Native Title Service said in a joint statement Wednesday that the project is now clear to proceed from a native title perspective. The three native title claimant groups, including the Nyiyaparli, have executed land access agreements with Fortescue covering all the mines, port and rail of the project area, according to the statement.
Last week Fortescue upgraded its indicated resources at the iron ore project to 1.4 billion metric tons, up 70% on the previous estimate, ahead of a delayed mine feasibility study now expected later this month. Despite the delay and the project's pending financing arrangements, Fortescue still plans to start mining 45 million tons of ore a year from 2007 to take advantage of surging Chinese steel demand, which has driven up iron ore prices.
TMK pipe shipments up 11 percent in the first 9 months
Russian pipe maker TMK saw a 11.2 percent increase in pipe shipments for the first nine months of the year. The worlds biggest pipe producer shipped a total of 2.1 million tons of pipe for the period from January to September this year.
TMK controls 44 percent of Russia's pipe market and 8 percent to the global market. Recent years domestic demands from Russian oil companies and the growing exportation help them to become the global leader in pipes industry.
China's coal price falls slightly in September
According to figures from China's Ministry of Commerce, the coal price fell slightly on the domestic market in September.
The average price of bituminous coal stood at RMB 334/ton (USD 41.23/ton) in mid-September, down by 3.2% compared with the end of August. The average price of anthracite came to RMB 369/ton (USD 45.56/ ton), a decline of 1.9% compared with the end of August.
According to the Ministry, the recent drop in coal prices can be attributed to the slump in demand from large-scale coal consumers. In addition, the summer coal consumption peak is over, while the winter peak has yet to arrive.
OneSteel awards Project Magnets grinding mill to Outokumpu
OneSteels Project Magnet has awarded a large ball mill contract to Outokumpu Technology. The ball mill will process magnetite iron ore as part of the overall project, which should generate up to $1.5bn in new revenue over its life.
The contract for the 7500kW mill follows OneSteels decision in April to commercialize its magnetite resource in South Australia and to upgrade the Whyalla Steelworks at a cost of $325m. The mill, driven by two 3750kW wound rotor induction motors and two conventional pinions, will be installed at the Iron Duke mine site near Whyalla from where OneSteel will generate magnetite ore in concentrated form.
Outokumpu Technology grinding manager Mr Oskar Gustavson says the new rubber lined ball mill will provide the high reliability needed to optimize production.
Outokumpu will work with Thiess to deliver the mill by mid 2006.
Pine Valley commissions coal preparation plant
Pine Valley Mining Corporation has announced that it commenced commissioning of the Willow Creek coal preparation plant on Monday October 10, 2005. The coal preparation plant will provide the Willow Creek Coal Mine with the capability of producing coking coal in addition to the low volatile pulverized coal injection PCI coal it currently produces. The coal preparation plant will also provide greater flexibility in producing a range of Coking and PCI coal products by targeting ash levels that differentiate its coal from competitors in the market.
The Company expects to commence mining its coking coal seams in late October and anticipates shipping trial cargoes of this coal to prospective long term customers over the next few months.
Pine Valley is completing the installation of coal mining, crushing, preparation and handling facilities that will support an annual mine production capacity of 2.2 million tonnes of product coal or greater. The coal preparation plant has an output capacity above that level and is designed such that additional increases can be achieved if appropriate. The Company expects the coal preparation plant to be operating at its design coal feed rate of 450 tonnes per hour by the end of October.
Steel carrying ship capsizes off Taiwan coast
A vessel carrying steel products from Japan bound for Vietnam has sunk off Taiwans north coast on Saturday. The 1,500-tonne vessel Midas-1 docked at Taiwans Keelung port to be refueled before continuing its voyage to Vietnam.
The exact content of the Midas-1 is unsure as some reports say it was carrying H-sections and others saying it had rebars onboard.
The vessel capsized shortly after the refueling stop in Keelung. It was possible that tidal waves and bad weather was responsible for the accident.
Severstal reports first half results
Russias Severstal, a leading integrated steelmaker known for its flat products, released on consolidated financial results for the first half of 2005.
The results, based upon international accounting standards (IAS), show that Severstals sales grew 51 percent year on year, from $2.72 billion to 4.12 billion, in the first half. However, cost of goods sold rose at a slightly higher 56 percent, from $1.68 billion to $2.62 billion.
The Russian steelmaker posted a net profit of $741 million for the first half of 2005, up 35 percent year on year.
Turkish opposition welcomes OYAKs acquisition of Erdemir
Turkish main opposition party the Peoples Republican Party CHP, which had severely criticized the TUPRAS and Turk Telekom privatizations, has positively responded to the sale of Erdemir to the Armed Forces Pension Fund OYAK.
As the public is surprised by the CHPs attitude on the matter, the party dismissed the assessment of acting contradictory.
Their different stance had nothing to do with OYAK, CHP Parliamentary Group Deputy President Ali Topuz maintained. We would not have objected if another national firm had bought Erdemir.
CVRD receives BBB S&P rating
CVRD has informed that Standard & Poor's Ratings Services S&P, one of the largest and most prestigious rating agencies in the world, assigned its "BBB" local and foreign currency corporate credit ratings to CVRD.
According to S&P's rating scale, BBB qualifies the Company as a moderate credit risk issuer, without speculative elements, corresponding to investment grade. This is the first time that S&P awards a Brazilian company a rating superior to the country sovereign rating.
According to S&P, these ratings reflect the Company's solid business profile, sustained primarily by a low-cost base and leading global position in the steady iron ore market, a robust financial profile with moderate debt levels relative to cash generation, and favorable revenues and EBITDA growth prospects coming from the Company's diversification strategy.
Mr Roger Agnelli, CVRD's CEO, said "We see this event with satisfaction since it reinforces the recognition of right strategic guidelines, the prudence on the business execution, and the long-term investments focused on shareholder value creation. At CVRD we are all very happy with this accomplishment."
S&P is the third rating agency to assign an investment grade rating to CVRD, consolidating the market perception of CVRD's credit quality.
Joint venture to be named Magnum Coal
A coal producing joint venture between Arch Coal Inc. and ArcLight Capital Partners LLC will be called the Magnum Coal Co the companies have announced. Under the agreement, St. Louis-based Arch will hold a 37.5 percent ownership stake in the new company, while ArcLight will have a 62.5 percent stake.
Arch plans to combine four of its mines with four others run by ArcLight-controlled Trout Coal Holdings LLC of Beaver, W. Va. The eight southern West Virginia mines sold about 22 million tons of coal last year and hold about 600 million tons of recoverable reserves. The mines being shifted to the new company include Arch's Hobet 21 and Samples facilities, which have ranked among the top producing surface mines in West Virginia, the nation's second-largest coal producer after Wyoming.
Arch will retain four active coal mines in West Virginia and Virginia that last year sold about 12 million tons. The company will also continue to develop mining operations at its Mountain Laurel and Spruce complexes in Logan County, W. Va.
Aramco to order 20,000 tons of steel pipes from Japan
Saudi Arabia oil company Aramco will purchase 20,000 tons steel pipes for laying pipelines from Japan.
Aramco issued an international public bidding this summer. In the coming 5 years, the quantity will be raised to 1 million tons. The main products are UO steel pipes, seamless pipes and steel pipes for configuration.
CVRD considering to switch to CFR pricing for next year
CVRD is looking to change their prices from FOB to CFR. According to company CEO Mr Roger Agnelli, it is still too early to forecast next years price, but in order to be more competitive in the Asian market they are planning to make the switch.
Currently, between 90 and 92 percent of shipments exported uses FOB, resulting in a lack of competitiveness in Asia.
Al Nimr Steel to double its capacity in UAE
Al Nimr Steel Trading, a Tiger Group subsidiary, which specializes in stock and supply of structural steel, is currently implementing a major expansion program to double its annual supply to more than 150,000 metric tonnes a year. Mr. Lokesh Manwani of Nimr Steel Trading, said that "The expansion program, will help us provide full range of structural steel at a better price and service to our overseas customers and the companies in the Free Zone "
The capacity expansion will enable the company establish itself as a major player in the region and will lead to supply to more projects locally and the overseas apart from the ongoing ones. The company has a good track record and the necessary expertise in supplying to projects such as industrial structures, medium and high-rise buildings, towers, hangars and pre-engineered structures etc.
The company also owns a Tube Mill for rolling MS Pipes and Tubes and also trade in HR Coils. Al Nimr Steel Trading LLC is among the foremost suppliers of a comprehensive range of steel products required in the construction, steel fabrication, ship building, and the oil & gas industries in the entire Middle East and North African region including Iran, Pakistan and India.
Pakistan government likely to be set up a Steel Board
Ministry of Industries, Production, and Special Initiatives is likely to set up a steel board to address the problems of the industry under the new steel policy
Sources said that government is articulating the steel policy in the suggestions of the respective stakeholder and has constituted a committee to seek proposals from them to finalize the draft of the new steel policy that would be presented before the federal cabinet for final approval.
Government would encourage foreign investment in steel manufacturing sector to meet present and future demand of steel and engineering industries and therefore it was introducing a steel policy that would result in facilitating the steel manufacturing.
Sources maintained that government had chalked out a comprehensive strategy for the development of the steel and engineering sector and steel policy was part of this strategy.
Nucor announces price changes for rebars
Nucor has reduced prices for bars by $20/net ton ($22.05/metric ton), effective today (October 10, 2005).
Nucor also informed SteelOrbis that the raw material surcharge is now $63/nt ($69.45/mt), down from $113/nt ($124.56/mt).
Nucor has increased base prices by $30/nt ($33.07/mt) to make the effective price decrease for customers $20/net ton.
Belon finalizes tender for Listvyazhnaya equipment
OJSC Belon, a leader in Russia's coal sector, has completed a tender for production and supply of equipment, including jigging machines and a centrifuge, for its Listvyazhnaya concentrating mill.
KHD Humboldt Wedag Gmb. H., Germany, an international leader in the production of industrial equipment, won the tender.
XiangSteel completes plate project
Chinas Hunan province-based XiangSteel recently finished construction on its 20-month long heavy plate project.
The company has begun producing its first heavy plate of 38 m width and 120 mm thickness at the new plant. Completion of the project increases XiangSteels capacity to 5 million tons per annum.
Sinopec Selects Invensys for pipeline SCADA System in China
Invensys Process Systems has been selected to provide advanced SCADA (Supervisory Control and Data Acquisition) for the Yanjiang Oil Pipeline, the longest crude oil pipeline in China. The new automation project is based on the I/A Series SCADA Master Station from Foxboro and includes SCD5200 RTUs from Foxboro and InTouch human machine interface (HMI) software from Wonderware.
Sinopec Pipeline Storage and Transportation Company, Ltd., (Sinopec PSTC) will use the SCADA solution for remote data monitoring and control to support a range of dynamic applications. These include alarm processing, leak detection, hydraulic analysis, pump station monitoring, throughput analysis and related applications along the 808-mile (1,300-KM) pipeline. The new digital controls will help the pipeline safely and efficiently meet the growing crude oil supply needs for six other Sinopec refining, petrochemical and fertilizer companies located along the Yangtze River in eastern China.
Sinopec Pipeline Storage and Transport Company (Sinopec PSTC) specializes in oil and gas storage and long-distance pipeline transportation. As a branch of China Petroleum and Chemical Corporation (Sinopec), the company links most Sinopec plants with upstream and downstream facilities through its 15 pipelines and supporting oil storage farms, located throughout the seven provinces of eastern China.
The Invensys Group is made up of five businesses Process Systems, APV, Eurotherm, Rail Systems and Controls. Invensys Process Systems, a business unit of Invensys plc, provides products, services and solutions for the automation and optimization of industrial assets worldwide. In addition to its rapidly expanding Global Solutions group, Invensys Process Systems includes industry-leading brands such as Foxboro, Triconex, SimSci-Esscor, Wonderware, and Avantis, whose products are installed in more than 100,000 plants across the world.
General Steel Holdings retains KCSA Public Relations
General Steel Holdings Inc, a leading manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles, announced today that it has retained New York based KCSA Public Relations Worldwide to provide investor and public relations services for the company.
General Steel Holdings Inc and its subsidiary, Tianjin Da Qiu Zhuang Sheet Metal Co Ltd, a People's Republic of China limited liability corporation, is a manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles. Since 1998, it has expanded its operations to six production lines capable of processing 250,000 tons of 0.7-2.0 mm hot-rolled carbon steel sheets per year, making the company the largest producer in its product category in China, with a 40% market share of all steel sheets used in the production of agricultural vehicles in China.
It has recently announced joint venture with Bautou Iron and Steel Company, one of the leading steel producers in China
XiangSteel commissions new plate mill to reach 5 million tons
XiangSteel has completed the construction of their new heavy plate project and has produced first plate last week
The company now has an annual capacity of 5 million tons.
US estimates Delphi owes pension funds $10.8 billion
Pensions at bankrupt auto parts supplier Delphi Corp are under funded by an estimated $10.8 billion, the federal agency that insures corporate retirement accounts said on Tuesday. Should Delphi decide to terminate its pension obligations during Chapter 11, the Pension Benefit Guaranty Corp. said it would cover less than half of the shortfall, $4.1 billion.
Underfunding is the difference between plan assets and what a company has promised in benefits. Delphi pension assets are roughly $9 billion, the agency said.
The deficit cited by the PBGC is sharply higher than the Delphi's latest figure of $4.3 billion at the end of 2004 because the government calculates what it would cost the company to cover the difference with private insurance.
Delphi, the largest domestic parts supplier, filed the biggest bankruptcy petition in U.S. automotive history on Saturday in New York. The company has been hurt by high wage and benefit costs and market share losses at GM that lowered demand for its parts.
SDI and employees contribute $100,000 to Katrina fund
Steel Dynamics Inc has announced that the company and its employees are donating more than $100,000 to benefit the people displaced by Hurricane Katrina. This contribution is being made to the Red Cross Hurricane Katrina Fund.
Soon after Hurricane Katrina struck the gulf states SDI employees responded with a coordinated effort to raise funds to help victims of the hurricane, in addition to the personal contributions employees were making through their churches and other organizations.
It is very gratifying to see SDI employees stepping up to help other Americans in need," said Mr Keith Busse, President and CEO of Steel Dynamics. Thousands of people in the gulf states face a very difficult challenge rebuilding and returning their lives to normalcy. We trust that our contribution will be of assistance to speed their recovery
Puda Coal announces opening of new coal washerey
Puda Coal Inc a leading supplier of China's high grade metallurgical coking coal, announced today that Puda Resources Group Co Ltd, an affiliate of Puda, opened a new coal cleaning facility in Shanxi Province that will have an annual clean coking coal output capacity of 1.1 million metric tons.
This new facility has begun trial production and will start formal production in late October 2005.
Puda will purchase the new coal washing facility and coal washing equipment from Puda Group for a cost of $5.8 million. The purchase of this facility is part of Puda's strategic growth plan to increase annual processing capacity from today's 500,000 metric tons to 2.7 million metric tons by early 2006, making Puda, in the belief of management, the largest cleaned coking coal supplier in terms of capacity and one of the lowest cost coking coal producers in Shanxi Province, which provides 20-25% of China's coal output and supplies nearly 50% of China's coke.
Severstal sets up Severstal US holdings LLC to construct SeverCorr
Severstal and structures representing interests of Russian Company have set up Severstal US holdings LLC to construct steel works SeverCorr in the United States.
On September 28, the Company became the owner of 59.95 percent of authorized capital (19.9 percent of ordinary shares) of new company incorporated in Michigan. SeverCorr LLC is headed by ex CEO of Nucor Corp Mr John Correnty being a partner of Severstal in the project.
Severstal and its affiliated persons have already invested US$80 million in the project. The total cost of construction is US$880 million. The works, the opening of which is scheduled for the third quarter of 2007, will produce 1.5 million tones of steel per annum and will be located close to works of BMW, Nissan, Hyundai, Mercedes-Benz and other automobile giants.
KfW Bank and General Electric Capital also act investors of the project with US$227 million and US$440 million respectively.
Yuscos Guangzhou branch to build stainless processing mill
Yuscos branch in Guangzhou is planning to build a stainless processing mill. This mill will do cutting and surface processing work. The mill is still planning the buying of machinery to set up the producing line.
The construction process is expected to last about one year. The mill will be set up in one of the following cities of Zhangjiagang, Changshu, Jiangyin, Wuxi, Nanjing, Hangzhou or Ningbo.
With the new mill the company plans to improve service to the clients in the increasing stainless market. Therefore, they will have a better understanding on the Eastern China market and have a better advantage to adjust the product structure.
LISCO announces a stainless plant in Eastern China
Lianzhong Iron & Steel Company LISCO, a major stainless steelmaker in Guangzhou in southern Chinas Guangdong province, plans to build a stainless steel processing plant in eastern China.
The plant will focus on cutting, edging and surfacing of stainless steel products. LISCO will also receive products from other steelmakers for further processing at the plant.
No location has been chosen for the plant, but the company is considering Zhangjiagang, Changshu, Jiangyin, Wuxi, Nanjing, Hangzhou and Ningbo.
