October, 14 2005
SAIL starts Chiria development plan
SAIL has given its nod to Indian Iron and Steel Company IISCOs proposed plans to establish a mining township in the Manoharpur area of West Singhbhum district of the state as a part of corporate plan to modernize Chiriya mines at a cost of nearly Rs 1,900 crore under which the production of iron ore in Chiriya mines would be increased from one million ton to seven million tons.
It is understood that IISCO has already applied to the land department of West Singhbhum district administration to provide it with about 1,012 acres for its modernization program at Chiriya mines and a major part of the land would be used to set up of the mining township.
This shall be the fourth mining town that would be come up in mineral rich West Singhbhum district. The other mining towns are TATAs Noamundi and SAILs Kiriburu & Gua.
Chinese steel companies look to set up offices in India
A large number of Chinese companies have begun discussions with Indian mining companies to set up JV companies as they want a more permanent set up here to secure quality and quantity of iron ore, currently dependent on unreliable supplies from Indian exporters. A large delegation had visited India recently and held discussions with several Indian mining companies at their meeting in Goa in this regard
At present only Sino Steel has a set up in India but now it is learnt that several Chinese companies including China Minmetals Corporation, Shuicheng Iron & Steel Group, Sinom HK Ltd, Zhejiang Metals and Materials, Xiamen International and RGL Group are also planning to set up permanent Indian offices
Besides erratic iron ore supplies, there is also a fear among Chinese mineral importers that India might completely stop exports of good quality iron ore due to increasing pressure from domestic industry to conserve iron ore
China has imported about 59 million tonne of iron ore from India during 2004-05, up by more than 40% over 2003-04, which constitutes about 25% of total Chinese iron ore imports of about 200 million tonne and over 70% Indias total iron ore exports
Monnet Ispat to acquire mine in Africa
Monnet Ispat Ltd has decided to move beyond Indian shores and acquire mines abroad. The company is in an advanced stage of negotiations with an African company for acquiring a manganese ore mine in Africa. It is reported in a daily that the company is planning a 100% of a manganese ore mine with an estimated reserve of around 18 million tonnes. Sources have reported that the company is also contemplating setting up of a ferro-manganese unit in Africa as power, the costliest input, is very cheap there
The company's plan to acquire manganese mines in Europe earlier this year did not take off, though the company had had talks with many players in the field.
Acquisition of manganese ore mines is part of the company's backward integration process. The company manufactures sponge iron and steel. Earlier, as part of backward integration, the company had started producing coal from its own mine thereby saving substantially on input costs.
The company's ongoing expansion plan for adding five lakh tonne capacity at its Raigad plant would go on stream this fiscal and would add substantially to its total turnover, sources said.
BHEL bags Rs 82 cr orders from Jindal
Bharat Heavy Electrical Ltd BHEL has bagged orders totaling Rs 82 cr from Jindal group companies to supply transformers.
Jindal Stainless Ltd JSL has placed an order to supply transformers for their 250 MW power plant in Orissa to be completed within eight months
Jindal Power Ltd JSPL has placed an order for its 500 MW power plant in Chhatisgarh to be completed in a tight schedule by April 2007 and also for supply of generator transformers to Raigarh unit by July 2006.
The equipment for all the projects will be manufactured and supplied by BHEL's Bhopal and Jhansi facilities
SKF to explore sourcing of bearing quality steel from Indian Mills
SKF India is exploring sourcing of bearing quality steel for its ball bearing manufacturing facility from Indian steel companies to take cost advantage against previous dependence on imports. It is reported that SKF has placed orders for this steel with Mukund, which has begun supply of 70 to 80 tonne per month to SKF and expects to increase the volumes to 250 tonne by January 2006
Industry sources have estimated the demand for bearing quality steel at about 1000MT per month, with almost 400MT being consumed by SKF
SKF India is a market leader in the bearings market with a market share of 40-50%. Acknowledging the boom in manufacturing and the auto industry, SKF has lined up an investment of Rs 110 crore to expand its ball bearing manufacturing capacity to 100 million units from the existing 74 million units. The companys taper roller bearing capacity will be expanded to 8.5 million units from the existing six million units. In addition, it will set up a greenfield unit to manufacture cylindrical roller bearings in Pune.
Kumba splits BEE Newco formed
After months of discussion and strategizing, Anglo American and its subsidiary, Kumba Resources, have finally agreed on terms for a proposed black empowerment transaction. Kumba minorities still need to vote.
The crux of the deal is that Kumba will be split into two entities, one, exclusively an iron-ore play, Kumba Iron Ore, and the other a 58% black-owned entity that has yet to be named with a value, according to the announcement, of R16 billion.
Anglo American will take a 49% direct stake and a 53% effective stake in the Iron Ore business from its 17% holding in the empowerment entity.
In its turn, Kumba Iron Ore, with a 74% stake in Sishen Iron Ore, will be unbundled to existing Kumba shareholders, who will also receive shares in the empowerment entity.
Kumba Resources existing shareholders will hold shares in both listed companies in proportion to their existing shareholdings in Kumba Resources prior to various steps required to implement the transaction, said the announcement.
Besides a 20% stake in Sishen, the empowerment company will also be given the option to acquire all of Anglos heavy mineral assets, Namakwa Sands and also a 26% stake in its Black Mountain and Gamsberg zinc assets, if the deal is implemented.
It will also buy all the shares in black-empowered Eyesizwe Coal, South Africas fourth largest coal producer, which was created some years back by Anglo and BHP Billiton. Eyesizwe will then use that money to buy a 55% stake in the empowerment holding company.
Kumba will be making a R1.8 billion share buy-back offer to existing shareholders. The empowerment consortium will raise R9.2 billion funds through the issue of debt and equity.
To buy stakes in Eyesizwe, Namakwa Sands and the zinc assets, Kumba will need R3.9 billion. This will come from debt and the share subscription by the empowerment holding company.
The deal requires regulatory approvals, shareholder votes and a due diligence process that will probably take about 3 months. In a conference call, management said the deal would probably be concluded in the first half of 2006.
The shareholder vote will require some resolutions with a 75% majority to be voted. Anglo owns 66% of Kumba.
The empowerment grouping is very diverse and will include womens groups, employees and other broadly-based groups.
Voestalpine announces price increase in 2006
Mr Wolfgang Eder, head of Voestalpine has announced on Wednesday that the company plans to raise steel prices in the coming year.
We will be raising prices considerably on long-term contracts with customers in the automobile and home appliance industries, said Mr Eder, but would not quote any figures.
Industry insiders expect double-digit hikes in some areas of steel production, but are unsure what effect the added costs will have on end products such as cars and appliances.
Voestalpine is heading towards a record business year, with projected sales of well over six billion euros and an operating profit in the area of last years 553 million euros.
Innovative ideas compete for the Swedish Steel Prize for 2005
The Swedish Steel Prize is an international design prize founded by the steelmaker SSAB Tunnpl. Four companies have been nominated for this years prize, which will be presented this year on 16 November in Stockholm. The nominations this year are characterized by innovation which will undoubtedly become of great significance in different market areas.
The four entries nominated for this year's award have put benefits of materials with better properties to good use and are each trail-blazer in their respective fields. The four products nominated for the 2005 Prize are
1) Cargo Modul Trading of Sweden has used the properties of advanced high strength steels for its lightweight, strong and impact resistant containers. The material used, the good design and the efficient production methods employed, together with the styling that reduces aerodynamic drag, together result in containers with great environmental and economic benefits to the manufacturer, owner and haulers.
2) DURA Automotive Body & Glass Systems GmbH of Germany has succeeded practically using the technique of combining core material with ultra high strength steel facing. By using a roll formed closed profile provided with a suitable internal reinforcement, the load carrying capacity of the individual beam is increased. This enables the opportunities offered by ultra high strength steel to be used to produce very light structures with high energy absorbing capacity, combined with profitable and efficient production.
3) Hardi-Evrard SA of France has developed a competitive, self-propelled sprayer in the agricultural machinery sector. The company combines extra high strength steel, laser cutting and riveting with a resilient chassis design. This enables the product to withstand the fatigue stresses that occur when the long spray booms begin to oscillate, while also enabling the chassis weight to be substantially reduced.
4) Shape Corp of USA has used unique design and production methods for manufacturing bumpers. They are based on several forming methods and the combination of various types of ultra high strength steels to create a closed profile of varying cross-section. The company has thus developed its bumper system still further and can offer the automotive industry several ways to optimize the combination of crashworthiness, weight and cost for a variety of car models.
In addition to the four entries that have been nominated for the Prize, the jury has also decided to award an honorable mention to the Portuguese company VN Atomoveis SA for a platform for light trucks. The company, which is a pioneer in its field, has boldly used the enormous opportunities offered by advanced high strength steels in combination with modern design and production methods. The result is a very competitive concept for tipper platforms for light trucks.
The Swedish Steel Prize is the international design prize awarded annually with the aim of highlighting design solutions and ideas that employ high strength steels. SSAB Tunnpl founded the Prize seven years ago as a way of inspiring new design thinking around the world. Lower weight, higher strength, improved properties and lower environmental impact are just some of the benefits that can be achieved by using the materials.
SSAB Swedish Steel is Scandinavia's largest steel manufacturer and is one of the world's leading manufacturers of high-tensile steel. The product range within the steel sector is limited to sheet and heavy plate. The steel sheet production is operated within SSAB Tunnpl and the heavy-plate operations within SSAB Oxelund. The number of employees is 9,400 and the total crude steel production amounts to 4.1 million tonnes. Annual sales are about SEK 25 billion.
US government to amend Byrd amendment
Giving in to continuous pressure from a number of countries the US administration has taken another step towards doing away with the controversial Byrd amendment which allows the government to distribute anti dumping duties collected from imports to firms which filed the dumping cases. The US administration has filed an amendment to the appropriations legislation in the US Senate prohibiting the distribution of such funds unless it is consistent with US WTO obligations.
The WTO had declared the Byrd amendment, formally known as the Continued Dumping and Subsidy Offset Act (CDSOA) 2000, inconsistent with its provisions way back in January 2003. The decision was taken following protests from a group of 11 countries including India, EU, Australia, Japan, Canada, Brazil and Chile.
Since the US did not take any concrete measure to repeal or amend the legislation, the WTO, in November 2004, gave permission to the trading partners to apply an initial $150 million in trade sanctions. In May this year, the EU and Canada imposed sanctions against the US as a retaliatory measure. Japan followed suit in September.
In the US, the sectors benefiting from the Byrd amendment included ball bearing steel and other metal sectors and according to an estimate made by the EU, the US has doled out more than $1 billion of subsidies to industry under the Act in the last five years
Race for Kryvorizhstal - Evraz drops out
Russian steel major Evraz has announced that it would not participate in the privatization of Ukraine's top steelmaker Kryvorizhstal as this deal would not meet its criteria to generate returns.
Evraz said it would continue to focus on greenfield and brownfield investments in its mining assets, further acquisition of downstream assets, as well as return driven capital expenditures primarily in Russia.
SA SS tube mills file for antidumping
SA SS pipe and tubing manufacturing industry, which includes Barloworld Stainless, Fischer Stainless Steel Tubing, Jaguar Stainless Steel Tube and Pipe, Mpumatech Stainless Tube and Stainsol Tube, with the support of the South African Stainless Steel Development Association SASSDA have recently lodged an application with the authorities alleging dumping of SS tubes and pipes imported from China, India and Malaysia into South Africa
The application, which has been gazetted under Notice 890 of 2005 and published in the Government Gazette, June 10, 2005, has been lodged with and is currently under investigation by the International Trade Administration Commission ITAC, which is reported to be considering provisional payment, which is a temporary antidumping duty while the investigation continues.
In the application, Barloworld Stainless, on behalf of the affected producers, alleges that South African-based manufacturers cannot compete with the dumped low prices of imports of these products, and that the regional industry is suffering material injury.
This move has elicited a vigorous response from a group of local importers, referring to themselves as the Response Group. The Response Group claims to represent 70% of the companies that import the product range under investigation, which includes stainless-steel pipes and tubes within the size range of 12 mm OD to 160 mm OD with a wall thickness of 1 mm up to a maximum of 6 mm.
The total tonnage being imported into South Africa in 2004 was 2,014 tons, according to the South African Revenue Service Statistics, which represents 1% of the yearly production in these Asian countries. In the seven months to July 2005 the imports were 1,838 tons, which represents an increase of 56% on annualized basis
Ukraines SCM to bid for Pakistan Steel Mills
Mr Rinat Akhmetovs System Capital Management SCM has handed EoI to Pakistani Privatization Ministry for participation in privatization tender of Pakistan Steel Mills
The forthcoming tender for Pakistans only integrated steel mill has attracted attention of several local and foreign investors and companies from Pakistan, Iran, Saudi Arabia, Russia, Ukraine, Kuwait, Switzerland, Czech and others are reported to have shown interest to participate in privatization process
MORE to supply EAF lime injection to North Star BlueScope
Italian MORE srl has bagged a new contract to supply North Star BlueScope Steel with a complete pneumatic lime transportation & injection system for its twin shell & twin shaft 195 MT EAF. North Star BlueScope is situated at Delta, OH, producing 2 million tons per year of HRC.
The contract include supply of 4 MOLI dispensers for pneumatic transport of 'Dololime' and 'HiCal' from storage silos to "day bins" inside the melt shop, 3 MOLI dispensers for pneumatic injection of 'Dololime' and 'HiCal'from from the day bins to the EAFs and 4 LimeJet multi functional burner & injection units installed on the EAF shell.
The contract also covers engineering of pipelines and the electrical and automation systems that integrate the pneumatic systems to the existing PLC/HMI. Start up of the equipment is scheduled for the 1st quarter 2006.
MORE of Gemona del Friuli Italy has reported that it has installed lime pneumatic transportation & injection systems for 15 EAF around the world.
Princess Royal opens new facility at Coruss CES
Corus has unveiled its 90 million investment in its specialist steels plant at Rotherham which produces steel as a part of Corus' restructuring of its South Yorkshire engineering steel operations. The restructuring program includes investments designed to keep CES at the cutting edge of manufacturing technology, with a highly competitive position amongst its European rivals.
The new facility at Corus Engineering Steels CES was officially opened by The Princess Royal. The Princess last visited the site in 1989, when she officially opened the 76m Aldwarke bloom caster investments and back in 1976 she also opened the Thrybergh bar mill.
CES is one of the largest producers of engineering steels in Europe and has an annual turnover of 600m with manufacturing facilities at Rotherham, Stocksbridge North West of Sheffield and Wednesbury in the West Midlands.
A total of 1.1 million tonnes of engineering steels are produced annually on the Rotherham site, from two large electric arc furnaces. The molten steel is subsequently cast and then later reheated and rolled to steel billets and bars in a wide range of specifications, shapes and dimensions.
It exports more than half its product mainly to Europe, North America and China where it is used in the automotive industry for engines, gearboxes and suspension of cars and trucks and in the oil and gas industry and for power station turbines.
Race for Kryvorizhstal US Steel likely to bid
US Steel Corp is expected to be one of 10 companies bidding for majority ownership of Ukraine's Kryvorizhstal steel mill, according to a Wall Street Journal report.
US Steel spokesman Mr John Armstrong declined comment on the report.
Ukrainian government has refused to identify the bidders
Romanian government wins Resita lawsuit against Noble Ventures
The International Court of Arbitration at the World Bank in Washington decided in favor of Romania in a lawsuit filed by an American company Noble Ventures for compensation amounting to $353 millions, after the cancellation of Resita Iron and Steel Plant privatization.
The request of Noble Ventures regarding the payment of $ 353 million was rejected by ICA and the company obtained nothing in this lawsuit. Mr Cornel Popa, one of the lawyers for Romanian state, said the Romanian state will only pay the taxes, lawyers fees and other due expenses as an order was issued for splitting the costs
He mentioned that, theoretically, the American company can ask for the annulment of the International Court of Arbitrations decision, invoking infringement of the procedural rights. Until now, no objections of these types were raised,
The Noble Ventures Company in 2000 has purchased from the State a package of 94.4 per cent of the CSR shares, the total value of the transaction, including investments, reached $ 85.25 million. The privatization contract became null in December 2002, on the basis of one of the documents stipulation which mentioned that the privatization is to be cancelled if the investor does not pay two successive installments.
Mechel announces production cut for steel & increase for coal
Russian metals and mining company Mechel has announced dropping of plans to increase steel output after falling international prices persuaded it to concentrate on increasing coal output.
Mechel Company will produce 6 million tons of steel this year, the same as in 2004, instead of increasing output by 5 percent as planned as per Mechel CEO Vladimir Iorich
However Mechel plans to increase coal output 25 percent to 20 million tons per year by 2010
New Colombian DeBar maker to start up in Q1 2006
A new Colombian steelmaker Comsisa, costing $40 million, in Tocancip Cundinamarca, 47km north of Colombian capital Bogot is expected to commence production of reinforcing bars in March 2006
Comsisa will start operations by producing concrete reinforcing bars with a capacity of 10,000 MT per month, which amounts to 12.5% market share of Debars of the total Colombian market size of 80,000 MT per month. The company aims to expand production to 16,500 MT per month in two years.
Comsisa was created by companies that have more than 20 years experience in Colombia's steel sector, including Aceros Boyac Procesos and the Saber group. Consortium Aceros BoyacProcesos controls 50% of the steelmaker and the Saber group the remaining half.
Evraz H1 profit increases as domestic sales goes up
Steelmaker Evraz said first half profit rose 10% as domestic sales surged. Net income advanced to $ 729 million from $ 660.7 million YOY
Evraz announced that its revenue rose 27% to $ 3.63 billion
The earnings are the first Evraz has reported half yearly under International Financial Reporting Standards IFRS.
SA Columbus takes initiatives for increase of SS in domestic use
Columbus Stainless, the lone producer of SS in SA, is focusing on needs of domestic market as exports are severely affected by global market slowdown.
CEO Mr Dave Martin explains that the reasons for this market slowdown are multiple. Firstly, because the production of SS has increased by over 8% during the last 12 months, compared to end-user demand growing at a long-term trend of 5%, a stock-build position of over 700 000 tons, mainly in Asia, has resulted. Secondly, SS prices have risen due to the increasing cost of raw materials and firm demand. Thirdly, economic activity in Europe has been slow in the third quarter, which has resulted in EU producers looking for outlets in Asia. Finally, the current market slowdown has been the result of new steelmaking facilities coming on stream in China, which have to ramp up the new equipment and convert the product into sales.
Columbus remains committed to the domestic market by supporting the growth of the local manufacturing industry and implementing local initiatives to enhance skills within the SS sector. Local initiatives are supported by majority share holder Spanish Acerinox.
Columbus has aligned with key industry associations, including the Southern African Stainless Steel Development Association SASSDA, the Catalytic Converter Interest Group CCIG, the South African Tank Container Association SATCA and the Southern African Stainless Steel Fabricators Association SASSFA.
As a member of these industry forums and in its capacity as Africas sole SS producer, Columbus interacts closely with government departments, project houses and large industrial groups to facilitate increased use of stainless steel. The latest initiative in this regard is the collaboration between Columbus and the Department of Trade and Industry to increase investment in local industries using stainless steel. The areas that are getting intense focus are the architecture, building and construction sectors, particularly targeting the infrastructure-spend programs announced by government.
Vietnamese steel industry worries about dependence on imports
Vietnamese Industry Ministry has reported that the country will have to import between 1.5 and 2 million tonnes of used steel to meet the industry's demand for raw materials for 2006 in spite of 122% increase in production to 1.9 million tonnes over 2005 as several new facilities for billet making are scheduled to start production in 2006
Except the Thai Nguyen Steel Factory in, which produces billets from iron ore with an annual capacity of 240,000 tonnes, all other Vietnamese steel factories depend on scrap to make steel. This has exhausted the domestic supply of used steel and driven steel factories to largely depend on the world's resources.
Foundation laid for China's largest coal tar project
It is reported in a Chinese daily that a foundation was laid for a coal tar project with an annual processing capacity of 300,000 tonnes coal tar by a JV of Shandong Zhenxing Coking Co Ltd and Japanese JFE Chemical Co.
The project is undertaken at a total investment of 2 billion Yuan in three phases to produce crude carbolic acid and coal tar with annual sales income reaching 2 billion Yuan and profit payments and tax turnover of 300 million Yuan. With an investment of 400 million Yuan, the first phase project is scheduled to go into operation in next October
Making full use of the opulent coal tar resources in Shandong Province with the adoption of the world's advanced technologies, equipment and management, the joint venture will produce and deal with market needed series coal products, including light oil, carbolic oil, crude carbolic acid, industrial naphthalene, wash oil and carbon black oil.
JFE Steel Corporation was ranked No 4 in the world's iron and steel industry in 2004. Shandong Zhenxing Coking Co Ltd, a state enterprise, is ranked the sixth place among the 10 best coking plants in the country.
Ukrainian coal miners protest for increase in state financing
Thousands of Ukrainian miners rallied Oct. 13 in the eastern city of Donetsk, calling for an increase in state financing for the coal industry. Waving flags and chanting "Government - turn your gaze on miners," several thousand representatives of different Ukrainian mines and political parties demanded the government pay attention to the needs of miners.
In August, President Mr Viktor Yushchenko announced his plans to reshape the industry to make it safer. But miners said they've seen no results. And while Mr Yushchenko's government has paid back wages owed to miners, authorities did so by forcing mines to take out loans to cover the bills
"Now we have to return the loans with interest," a trade union leader said. Next year's state budget envisages 4 billion hryvnas ($800 million; 670 million euros) for the coal industry, miners said, complaining the figure is too low.
Ukraine has some of the world's most dangerous mines, due to outdated equipment and poor safety standards. Since the 1991 Soviet collapse, nearly 4,300 miners have been killed in mining accidents
CVRD will not change bid for Canico
CVRD will not change its offer to take over Canico Resource despite recommendations from Canico's board that shareholders reject the move, CVRD said in a statement. "The decision is in the hands of Canico's stakeholders and we believe this is the best offer for them," the statement said.
Canico's board said earlier this week CVRD's offer to purchase all outstanding Canico shares was financially inadequate from the point of view of Canico shareholders.
The Canadian junior is primarily focused on developing the US$1.1bn On Puma nickel-laterite project in Brazil's Parstate.
Ukraine's Kharkov region looks to set up new steel plant
The regional government of Kharkov in the Ukraine is planning to build a medium sized steel plant and has begun a tender process for foreign investors to help with the construction.
It is planned that the plant will use local resources with regards to iron ore and it will produce around 220, 000 tonnes per year of square billets in the beginning and the second phase development will involve the adding of high grade product capability. The plant will produce rolled products that will be supplied to the local construction industry.
Chun Yuan Steel to set up electrical steel plant in Qingdao
Chun Yuan Steel Co has started construction of its electrical steel plant in Qingdao, China this August in response to the booming demand of electrical steel from appliance major Haier located nearby at an investment of $ 18 million.
The plant will mainly process EI core, stator and rotor laminated silicon steel. It's designed annual capacity is 30,000 tons, and it will be completed by the first half of 2006.
EWK's changes name to become Swiss Steel International
The new name for the North American distribution operations of the steel production mill Edelstahl-Witten-Krefeld GmbH (EWK), effective October 1, is Swiss Steel International NA. Formerly known as ThyssenKrupp Specialty Steels NA, the distributor underwent the change in identity as a result of the sale last May of EWK and its international sales subsidiaries to Swiss Steel AG of Emmenbruecke, Switzerland.
The integration of EWK into Swiss Steel will create the worlds largest steel production, distribution, and processing company for long products, according to Mr Tony Elfstrom, president and CEO of Swiss Steel International. Elfstrom reiterated that the sales and marketing team would not change, nor would the source and mixture of products. Our tool steels will still be produced by EWK in Germany, and we will continue to provide nonferrous tooling materials supplied through our distribution partners Alimex, Alcan, and Brush Wellman. Plus, our Heat Treatment Division will continue to provide the highest-quality vacuum heat treatment, metallurgical lab services, and technical support.
The new group will have 7,500 employees worldwide and a total steel production capacity of 2.5 million metric tons, with annual sales of $4.1 billion.
Swiss Steel International NA has operations in Cleveland, Chicago, Detroit, and Minneapolis in the United States and Toronto and Windsor in Canada. Swiss Steel AG is a globally active steel group owned by the Schmolz & Bickenbach Group of Dsseldorf, Germany, with branches on every inhabited continent.
Brazilian Real's appreciation could impact casting exports
Brazil's stronger real currency against the US dollar could negatively affect the foundry industry's long term sales agreements and hinder its export business as per Brazilian foundry association ABIFA president Mr Luiz Carlos Koch. "We expected this year's result to be affected by our currency appreciation, but the numbers show that it has not happened yet," added Koch.
Exports are still strong despite the higher real. "Companies have become more competitive despite the problems, meaning there was room to enhance the sector's competitiveness." "Some commodity items had their prices lowered in US dollars, resulting in a cost reduction from primary sources to foundry companies," Koch said.
Foundry contracts are usually established over the long term. If contracts are broken, fines are imposed and future deals can suffer. "Some companies have to maintain exports even when dealing with losses," he said, adding the companies are "still expecting a change from the current situation."
In future contracts price adjustment in euros or US dollars could be required, which would results in tougher competition in the sector, said Koch. A forecast for 2006 exports can only be provided by year-end 2005 after analysis of the real-dollar appreciation trend.
The real is currently worth around 44 US cents, compared to 35 cents at the end of last year.
Evraz Group to raise capital outlay in 2005
Evraz Group intends to raise capital investments up to $ 600 million in 2005 as compared to $ 400 million last year as per Mr Pavel Tatyanin Financial Director of Evraz. $ 420 million will be forwarded in steel sector and $ 180 million in mining area. Overall investments of the Group will rather lower as against 2005 due to the reduction of capital outlay in steel sector whereas capital investments in mining sector are to grow.
Evraz Group is one of the biggest companies of Russian steel and mining sector comprising of Niznetagilsky, West-Siberian and Novokuznetsky Iron & Steel Works as well as Nakhodkinsky Trade Seaport in addition to several mining assets. It produced 12.23 million tonnes of hot metal in 2004 recording revenue of $ 2.84 billion and profits of $ 508.87 million
Anglos Coal forms alliance with TSJV for up gradation
Anglo Coal Australia has formed an alliance with Thiess Sedgman Joint Venture TSJV to execute the $ 346 million Dawson project. The Dawson Alliance is responsible for the upgrade of the mines coal handling and processing capability, which will see the coal handling and processing capacity at the Dawson mine increase from 7 million ton per annum to 12 million ton per annum
The alliance is responsible for the design, construction and commissioning of a new coal handling and processing plant at the mine, which will include six fully automated stacker reclaimer machines on the raw and product coal stockpiles.
The raw coal system will accept coal from three separate mine sources delivered by an overland conveyor system, with the CHPP processing at 2000tph in two stage mode and up to 3400tph in single stage mode. The plant contains dense medium cyclones, spirals and flotation circuits.
The product coal will then be loaded via high capacity automated reclaimers to a new rail load out facility. In addition to the design and construction of the CHPP, the alliance has also been awarded the bulk earthworks contract. Located 140km south west of Gladstone, the Dawson coal mine is operated by Anglo Coal Australia.
The project is scheduled for completion in May 2007
VINASHIN bags several shipbuilding contracts
The Viet Nam Shipbuilding Industry Corporation VINASHIN has signed a contract to build seven more 53,000 tonne ships for export to UK to take the total tally for 53,000 tonne cargo vessels for UK clients to 17. In addition, Vinashin has received orders to build 14 cargo ships with capacities ranging from 8,700 -34,000 tonnes for British, Japanese and German customers.
The Pha Rung Shipyard Company, under VINASHIN has also signed a contract to build five ships for the Forturne Marine Company of the Republic of Korea. The contract is Vinashin's first contract to export ships to the RoK.
To meet its customers increasing demands, Vinashin has upgraded its Nam Trieu, Bach Dang and Pha Rung shipyards to enable them to build ships with capacities ranging from 30,000-70,000 tonnes. In particular, the corporation has invested in building the Dung Quat shipyard in central Quang Ngai province to construct 100,000-200,000-tonne oil tankers.
It has cooperated with partners from the Republic of Korean, Denmark, Singapore, Japan, and Taiwan to set up joint venture companies to design ships and produce boilers, containers and other equipment for the shipbuilding industry.
Mittal Steel SA to host contractor briefing ahead of CAPEX rollout
Mittal Steel SA will host a contractors briefing in Johannesburg before the end of the year in a bid to inform current and potential suppliers about the resources it might need for its Rand 8 billion, three year capital expenditure program. No date has been set for the gathering, but regional initiatives have already been initiated in a bid to put potential suppliers in contact with the steel giants procurement managers.
The CAPEX program is set to last until 2008 and will involve a variety of asset replacement projects and upgrading of existing facilities and is additional to already under commissioning environmental projects.
Mittal Steel SA CEO Mr Davinder Chugh says that the conference will allow its procurement managers a chance to interact and talk to potential suppliers and gain insights into how they can help local contractors fulfill the groups requirements.
Mittal Steel SA came in for heavy criticism last year, when it let its Rand 455 million coke project in Newcastle, Kwazulu Natal, to a Chinese led consortium, Citic Acre, which also brought in expatriate technical skills.
SA Steloy foundry adds spun cast SS by acquisition
South Africas SS foundry, Steloy Castings has become a major player for supply of castings to the petrochemical industry worldwide, especially after its recent acquisition of one of the few SS spun casting plant in the world
Steloy Castings has, over the last twenty years, established a strong record in the supply of static SS castings to the petrochemical industry from its foundries in Krugersdorp and Bronkhorstspruit. It supplies supporting elements, such as tube sheets, hangers, brackets, tube supports, and side wall supports, as well as bends into the local market, Asia, Europe, the UK and the US and its client list includes Foster Wheeler, Selas Linde, Scomark, ExxonMobil, Sasol, Natref and Caltex
In order to supply the refining and downstream industries with a full spectrum of cast product, both static and spun, Steloy recently acquired South Africas only SS spun casting plant. With the demand for spun-cast tubes substantially higher than the requirement for static castings, the group expects this to be a strong growth area in future.
Malaysian Perwaja to resolve debts by mid 2006
Perwaja group expects to be able to resolve debts amounting to RM665 million before rival Kinsteel Bhd comes in as its biggest shareholder by June next year. Kinsteel is not expected to assume any liabilities.
Mr Abu Sahid executive chairman of Maju Holdings Sdn Bhd, which took over Perwaja from the Government in 1996 with plans to turn around the company and has announced that both Parwaja and Kinsteel have agreed to look at this debt and resolve it with creditors and lenders amicably before the completion of this transaction
Of the Perwaja groups debt, RM438 million is owed to external creditors and RM217 million are bank borrowings. Mr Abu Sahid said We believe this amount can be resolved as the combined assets of Perwaja and its Gurun assets are valued at more than RM2.4 billion
Kinsteel has recently announced that it will acquire a 51 per cent stake in Perwaja and its assets in Gurun from Maju in a deal worth RM297.6 million, to be satisfied by cash and stock. By June next year, Maju will be left with a 49 per cent stake in Perwaja. Maju will also take up a 28 per cent stake in Kinsteel, thus becoming its second-largest shareholder after the Kin Kee group.
PAV Republic withdraws IPO registration
PAV Republic Inc on Thursday withdrew its initial public offering registration with the Securities and Exchange Commission. PAV Republic filed its IPO in November 2004 and had planned to sell up to $115 million in common stock and list its shares on the NASDAQ
TopIron ore shipments fall in Great lakes
Iron ore shipments across the Great Lakes and St Lawrence Seaway headed for Great Lakes basin steel mills declined 3.8% in July compared with a year ago. July shipments were 6.4 million tons, according to the Cleveland-based Lake Carriers' Association.
Iron ore shipments on the Great Lakes and St Lawrence Seaway totaled 29 million tons YTD up to July, a 9% decrease compared with 2004.
Reduced shipments are a result of lower operating capacity at North American steel mills, where capacity utilization rates have been at about 85 percent compared with about 95 percent a year ago.
UMW to acquire stake in Montague unit
UMW Holdings Bhd announced that its wholly owned subsidiary UMW Petropipe (L) Ltd has signed a MoU with Montague Holdings Int Pty Ltd to acquire a 60% stake in Montagues subsidiary PFP Holdings Pty Ltd to enable UMW Petropipe and Montague to co-operate and assist each other in their businesses in the Asia Pacific region and Australasia.
Australia-based PFP manufactures bi metal steel tubular under the brand name CLADTEK and supplies piping, valves and pressure vessel components to the power generation, chemical processing, petrochemical and oil and gas industries throughout the Asia Pacific region and Australasia.
Katsinas workers demand payment of salaries
Employees of the ailing Nigerian Katsina Steel Rolling Company embarked on a peaceful demonstration to protest the non-payment of their salaries totaling more than N250 million and presented a SOS Letter to Governor Mr Umaru Yaradua of Katsina State
Chairman of the Iron and Steel Senior Staff Association of Nigeria, Mr Ahmed Bawa, said the workers were last paid in March which has resulted in sever hardship for them and asked the governor to rescue the workers
The steel mill stopped rolling more than two years ago and is currently facing liquidation threat from the Federal Government.
Baffinland provides Mary River iron ore project update
Baffinland Iron Mines Corporation has provided an up date regarding the Company's 2005 programs on its wholly owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada.
Over the next six months Baffinland expects to have a steady flow of technical data and other relevant information concerning the advancement of the Mary River Project. This technical information will include several batches of assay and metallurgical test work results that will be primary inputs for a new resource calculation at Deposit No. 1.
