October, 15 2005
HC stays tenders for drinking water project using ductile pipes
The Kerala High Court today stayed finalization of tenders for the purchase of ductile iron pipes for implementation of the Japan-aided drinking water project in the State by issuing an interim order on a writ petition filed by Jindal Strips Ltd, Chennai.
The Kerala Water Authority KWA has entered into an agreement with Electro Steel Castings Ltd, Kolkata for buying ductile iron pipes. The petitioners said the tender conditions had been relaxed to favor the Kolkata based company and so it was illegal and arbitrary.
ACE company to set up crane manufacturing plant in Haryana
Spurred by the demand for mobile cranes and other construction equipment in India's booming economy, Action Construction Equipment Ltd ACE, the leading mobile and tower crane manufacturer in the country, is setting up a new unit to manufacture loaders, building platforms and fixed tower cranes at Palwal in Haryana.
ACE Director Mr S Agarwal said the cost of the new project, slated for completion by March 2007, would be around Rs 300 crore. The project is to be completed in two phases. In the first phase, scheduled to be implemented by June next year, ACE will have the installed capacity to manufacture a minimum of 50 loaders per month.
Mr Agarwal said the size of mobile crane market in India is currently around 2,200 and is expected to go up to 3,500 by the end of the year. ''But we are very optimistic about the steel and chemicals sectors which are on the upswing. Then, there is also the National Highways and airport sector which can be very lucrative for our company,'' he said.
The clientele base of ACE includes Reliance, Grasim, Bharti Shipyard, Indian Oil Corporation, NHPC, the Defense Ministry, Chennai Port, Paradeep Port, Coal India Ltd, Oswald Chemicals, ACC, Gammon India and Gujarat Ambuja Cement.
SAL Steel commences commercial production Gandhidham
SAL Steel Ltd has partly commenced commercial production of sponge iron unit and rolling mill, with effect from October 11, 2005, of its steel project at Gandhidham in Kutch
TopArcelor sees 2005 results better than 2004
Arcelor CEO Mr Guy Dolle, speaking to journalists, said the steel producer's results in 2005 will be 'considerably better' than in 2004.
He also said that after considerable discussions with Laiwu, he believes Arcelor has an agreement in principle to acquire part of the Chinese steelmaker.
Dolle gave no indication of the size of the Laiwu stake Arcelor is seeking, or when a firm agreement might be reached, but he noted that regulations prohibit foreign steel companies from taking majority stakes in Chinese steel makers. Agreements with Chinese central and provincial authorities are also needed for the transaction, Dolle said.
CCCMC estimates drop in iron ore price in 2006
According to the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters CCCMC, international iron ore prices may begin declining in 2006 due to expanding global ore productivity. It is estimated that global iron ore production would have increased by 55 million tons year on year by the end of 2005.
CCCMC officials visited India during the latter part of September to meet with their Indian counterparts. During their meetings, it was understood that global iron ore and steel prices would drop in 2006 in the international and Chinese markets as iron ore productivity continues to expand. Therefore, Indian miners hope to sign long-term supply contracts with China steel enterprises to secure their own interests.
CCCMC indicated that while the price of iron ore reached its historical peak in 2005, the market has since become oversupplied and a price drop is therefore inevitable in 2006.
China has been the largest iron ore importer in the world, with 2004s import quantity totaling 208 million tons and accounting for one third of global seaborne trade volume. In the first nine months of this year, Chinas iron ore import has reached 200 million tons, up 31.7 percent year on year. The estimated quantity for the whole year is predicted to be 240 million tons, a more than 15 percent increase compared to 2004.
Race for Kryvorizhstal - Three bidders pay deposits
Three bidders for Ukraine's largest steel mill Kryvorizhstal have so far paid deposits to take part in the privatization tender this month, the State Property Fund announced.
The fund said that Mittal Steel and two Ukrainian companies LLC Smart Group and Industrial Group have paid deposits worth 1 billion hryvnias ($200 million) so far.
Ukrainian PM Mr Yuri Yekhanurov had earlier announced that 10 bidders had submitted bids without giving details
The last date for submitting bids is October 17th and the auction is on October
China plans to lower export rebate on some steel products
In a move to reinforce Beijings strategic target of having the iron and steel industry serve the domestic market and bring balance to the countrys imports and exports, the State Reform and Development Committee reportedly worked out a draft on reducing the export rebate rate on some steel products.
Pending final approval, the State Reform and Development Committee plans to reduce the export rebate rate on rebar and strip steel products by 3 percentage points, effective January 1, 2006. Such a reduction would lower the export rebate to 8 percent. The export rebate on these products had been lowered by 2 percentage points, to 11 percent, this past May.
The reduction in the export rebate rate will impose pressures on prices of rebar and strip steel products in domestic market, squeezing profit margins. The China Iron and Steel Association had mixed reactions to this future policy.
Arcelor Sections announces base price increase
Arcelor Sections Commercial, taking the increase in transport and energy costs into account, decided to increase its base prices for November shipments, according to a statement released by the company.
Arcelor announced that the base prices of small, medium and heavy sections will be increased by 25 per ton effective for shipments as of November 1, 2005.
China government think tank sees 2005 GDP growth at 9.4%
A Chinese government think tank said Friday it expects the country's gross domestic product to grow 9.4% this year, and slow to around 8.9% in 2006 on the government's measures to cool the economy.
But fixed asset investment will continue to rise at a more rapid pace than the overall economy, the China Academy of Social Sciences said in a report published in the China Securities Journal. It said it expects fixed-asset investment to rise 22.9% to CNY8.61 trillion this year, and grow by 19.7% to CNY10.31 trillion in 2006.
China's economy grew by 9.5% last year, while fixed-asset investment rose by 26.6%.
The think tank estimated China's trade surplus to reach a record $100 billion this year, which it said reflects weak domestic demand and could lead to further upward pressure on the Yuan.
The think tank urged the government to continue to take measures to boost domestic demand and called attention to overinvestment in sectors like steel, coal and electricity.
Inco expects competing bid for nickel rival
Inco Ltd expects a competing bid will emerge for nickel miner Falconbridge Ltd but it believes the $12.5 billion deal it struck this week will prevail. The deal would transform Inco from a company focused almost exclusively on nickel to a more diversified producer. About 83 per cent of Inco's sales now come from nickel; that would drop to about 48 per cent if the deal goes through.
Falconbridge had been seen as potential prey for Xstrata PLC, a Swiss-based mining firm that acquired a 19.9% stake in Falconbridge in August. Xstrata, which has extensive coal and copper assets but no nickel operations, had been widely expected to make a play for the rest of Falconbridge. Now the Swiss company's next move is uncertain. It could make a competing bid, tender its shares and pocket the profit, or retain a smaller share in the combined company.
Both Inco and Falconbridge have extensive operations in Sudbury's legendary nickel region and expect to save millions by making more efficient use of plants and mines and by coordinating exploration and development programs. Both Inco and Falconbridge are developing mines in the French Overseas Territory of New Caledonia in the South Pacific. Inco's Goro project is scheduled to come into production in 2007. Falconbridge's Koniambo is slated to begin production in 2009.
TMK pipe mills up output in 9 months
Seversky Tube Works STZ, Sinara Pipe Mill SinTZ and Volzhsky Pipe Mill VTZ, all part of Russia's biggest pipe producer Pipe Metallurgical Company TMK have raised output in the first nine months of 2005.
STZ increased steel pipe production 12.6% YOY to 450,000 tonnes in the nine months and sold 448,000 tonnes of pipe, up 11%.
The Sinara plant edged pipe output up 1.2% in the nine months to 440,800 tonnes as its sales grew 0.1% to 445,000 tonnes, including a 10%-rise in exports to 90,300 tonnes.
Volzhsky Pipe Mill VTZ boosted pipe output 24.6% YOY in January -September to 728,800 tonnes and pipe sales in September rose 53% year-on-year to 71,800 tonnes.
TMK is the worlds second biggest pipe producer and is a leading
producer of seamless pipes for the fuel and energy sector represents the Volzhsky, Sinara, Seversky and Taganrog pipe mills in Russia. It controls 44% of Russia's market for steel pipes, producing 2.5 million tonnes and exporting 780,000 tonnes in 2004 to more than 60 countries.
Mittal Steel Poland is worth $ 886 million more today
Mittal Steel Poland, earlier known as PHS, has evaluated itself at $ 1.49 billion, as against $ 519 million paid in March 2004 to buy it from Polish Government. Mittal Steel Poland has in its balance USD 886m as negative goodwill. The value of the Polish company may be higher than when negotiations were conducted between the government and the investor.
It is reported in a local daily that Polish Supreme Chamber of Control NIK is currently investigating the privatization process because the government might have sold PHS too cheaply.
Representatives of investor relations in Mittal Steel Poland are reported to have told a local daily thatWe had to write in our financial report that PHS was indeed worth USD 519m. This price was suitable in the moment of the transaction. Hadnt we done that, we would have to have USD 886m of net loss for 2004 in order to equal the book value of PHS with its market value
In the PHS privatization process, the agreement was signed in October 2003, or two weeks before the market rebounded. PHSs capitals increased from PLN 2.6 billion in 2003 to PLN 5.2 billion in 2004 (Euro 1.3 billion). It was mainly due to increasing net income from PLN 68m to PLN 1.7 billion.
NLMK lowered production of steel
Novolipetsk Iron & Steel Works NLMK lowered production of steel, cast iron, coke and rolled metal compared to last year
The coke output decreased by 14 percent to 2.52 million tones from 2.93 million tones, cast iron production declined by 16 percent to 5.03 million tones from 6.01 million tones, steel output fell 12 percent to 5.43 million tones from 6.17 million tones and finished steel output dropped 12 percent to 5.1 million tones from 5.79 million tones a year ago.
NLMK is the third largest steel company in Russia specialized in production of sheet products of wide assortment
Steel Tech plans third steel plant in Mexico
Kentucky based Steel Technologies announced it plans to build and operate a new steel processing plant in Juez, Mexico. The project will require an initial investment of $8.5 million and the company expects to start operations at the new site in the second half of 2006.
"The addition of the Juarez location adds to the network of operations Steel Technologies has in Mexico," said Carlos von Rossum, general director for Steel Technologies' Mexico operations
Steel Technologies has steel slitting, cutting and re rolling plants in Mexico's Nuevo Le and Tamaulipas states. The company provides value added steel products, largely to the automobile industry and equipment manufacturers.
Louisville based Steel Technologies processes flat-rolled steel for various industries. The company has 20 facilities located throughout the United States and Mexico.
New BEE firm to pay off debt in seven years
Eyesizwe Coal, which will spearhead the SAs top black owned company, said it was confident that the new firm would pay off hefty start up debts within seven years. The new company, which would have an enterprise value of about R16 billion, will start life with R800 million of net debt. This will rise to R3.25 billion if it buys Anglos Namakwa Sands mineral sands, 26% of its Black Mountain and Gamsberg base metals mines, as it plans to, implying debt levels of 20% of its enterprise value.
"Yes, the debt is huge, but estimates show the company can comfortably handle it and pay within seven years," said Mr Sipho Nkosi, Eyesizwes CEO.
"We have looked at the iron ore cash flows that the new company will derive from Kumba, and the long-term coal contracts with state power utility Eskom and we can meet the payments," said Mr Nkosi
The new company would also hold a 20% stake in Kumbas Sishen iron ore business, which analysts say would be lucrative due to strong global iron ore prices. "Twenty percent of that business is huge when you look at the cash flows," Mr Nkosi said.
He said a name and CEO for the new company, which will be 58% black-owned and managed, would be known by year-end.
The new company would be the countrys biggest black economic empowerment BEE firm across all sectors, and leapfrog African Rainbow Minerals as the top listed black-owned miner.
Arcelor to expand capacity at Dunkirk and Mardyck
Arcelor plans to invest euro 600 million at its production sites in Dunkirk and Mardyck in north France between now and 2008 in order to renovate the factories and expand capacity, a company spokesman said.
Most of these investments will focus on modernizing the blast furnaces at the Dunkirk site, where flat carbon steel production capacity should reach 7.2 million tonnes per year
The spokesman said at the launch of a new galvanized steel line at Arcelor's factory in Mardyck.
China, EU trade increases 23.3 percent
Chinas General Administration of Customs disclosed that the bilateral trade between China and EU reached $157.79 billion during the January-September 2005 period, an increase of 23.3% YOY
Chinas bilateral trade with the US rose 25.6 percent year on year to $153.5 billion during the same period. Japan remains Chinas third largest trade partner with a trade volume of $134.6 billion, up 10.5 percent year on year.
The trade volumes of Hong Kong and the Asian Free Trade Area (AFTA) with China reached $94.7 billion and $94.5 billion respectively, in the first nine months of the year.
Customs statistics indicated that Guangdong and Jiangsu provinces and Shanghai ranked the top three among all regions in China in terms of import and export value.
Chinese company explores iron ore deposits in Kyrgyzstan
The leading Chinese private extracting company Gansu Jianxin Group began in cooperation with other Chinese partners exploration of iron ore on Jetym deposit in Naryn Oblast. It is expected, the geological exploration on Jetym deposit will last 5 years, the investments in this project will make 50 million Yuan ($6.2 million).
The stocks of the given deposit of Kyrgyzstan are estimated in 10 billion tons.
Atlas Tube plans a new facility in Blytheville
Atlas Tube Inc, the largest manufacturer of hollow structural sections in the world, has announced plans to build a new manufacturing facility in Blytheville.
The new facility will house two state of the art tube mills capable of producing tubing from 2 inch to 12 inch 5/8 wall and rounds up to 16 inches in diameter.
The company's total investment will be $55 million. Construction will begin immediately. Production is expected to begin in the late summer of 2006, and the plant should be fully operational by the end of 2006.
The company will utilize steel produced at Nucor Steel of Arkansas' Hickman plant, located just northeast of Blytheville along the Mississippi River
Russian Ugol to invest more than $35 million in Novosibirsk
The Russian coal mining company Russky Ugol has announced that it is planning to invest more than $35 million to modernize the Novosibirsk metallurgical enterprise.
Russky Ugol has already launched the experimental and industrial operation of the automated metal control system at the metallurgical facility to have information about available stocks and client order fulfillment. The system will be eventually integrated into the client order keeping, accounting and other systems. The project cost more than 8 million rubles ($280,000) the company said.
Russky Ugol owned Novosibirsk metals enterprise is the sole facility in Siberia producing high quality long, flat and tube products
Mittal Steel adopts community of Long Beach
Mittal Steel US, is focusing its Katrina rebuilding efforts on the beachfront town of Long Beach, Mississippi and has pledged an immediate donation of one million dollars. Mittal Steel US has committed to an ongoing contribution of materials, people and capital for the long-term reconstruction project.
As part of its adoption, the company will work with individuals, churches, communities, local companies and organizations in partnership with Mississippi Governor Haley Barbour and the mayor of Long Beach, Billy Skellie, to rebuild the community, the company said in a release last night.
"The effects of hurricane Katrina on the people of Louisiana, Mississippi and Alabama are heartbreaking, and it will take years to rebuild the affected communities," said Mr LN Mittal, CEO of Mittal Steel
Corus Engineering Service wins contract for aircraft steel
Yorkshire based Corus Engineering Steels CES has signed a deal to supply steel to Messier Dowty to make the landing gear for Airbus and Boeing aircraft as well as military jets. The contract to supply 21,000 tonnes of aerospace steels to Messier-Dowty's manufacturing sites in Gloucester, Bidos in France and Suzhou in China is from 2006 to 2008.
Messier-Dowty uses the steels that Corus supplies to manufacture the nose landing gear for the new Airbus A380 super jumbo and all the landing gears on the new Boeing 787 Dream liner.
The announcement of the contract win comes a day after CES, unveiled its 90m investment in its specialist steels plant at Rotherham. CES is one of the largest producers of engineering steels in Europe and has an annual turnover of 600m.
Messier Dowty, which has supplied landing gear to 19,000 aircraft, is a subsidiary of the French group SARFRAN.
Construction starts at Jorgensen Quebec City facility
California based Earle M. Jorgensen Co has started the development of a new steel processing and distribution facility in Quebec City and expects to begin production in January 2006.
The facility will hold an extensive inventory of bar and tube stock and also will have cutting equipment. The new facility is intended to improve service and delivery frequencies to customer in the Quebec City area
Intl Ferro Metals to double Fe Cr output
International Ferro Metals Ltd is confident enough about ferrochrome demand that it is making plans to double output even as it gears up to build its first South African smelter. The ferrochrome market is currently weak, but should see healthy demand growth in coming years with supply impacted as South Africans rebuild old smelters to cut pollution and we expect demand growth at around five to six percent a year said Mr Ronnie Barnard, CEO of IFM's South African unit.
IFM started construction this week on a 267,400 tonne-pear-year ferrochrome smelter in South Africa, with initial output due in 2007 and full production by the end of that year. The smelter will cost around 1.1 billion rand, with funding raised through the listing and debt through various financial institutions.
The operation, located in South Africa's North West province, will be one of the world's lowest cost ferrochrome producers, with South Africa's ASA Metals the only cheaper operator in the country. Output from the underground Buffelsfontein mine will go directly into the adjacent processing plant by conveyor belt, cutting out transport costs. The smelter is being built with two furnaces, but has been designed to accommodate two additional ones.
Even though several expansion projects are gearing up in South Africa, output growth among established players will be impacted by environmental laws banning toxic chrome 6 fumes from being expelled from old-style furnaces. Around three quarters of South Africa's existing furnaces, which number around 45, will have to be temporarily closed for rebuilding in coming years to meet the pollution regulations, Mr Barnard said.
Australian IFM's biggest shareholder, with a 26% stake, is China's Jiuquan Iron and Steel Group Company Ltd JISCO, which has entered into an offtake agreement to buy ferrochrome for its steel plants. IFM has signed off take agreements which will account for 64 percent of the smelter's initial full output, Mr Barnard said.
Xinwen Coal sign stainless steel project agreement with Korean Co
Xinwen Coal in Chinas Shandong province will set up a stainless steel joint venture with 2 South Korean companies. The signing ceremony for the project was held recently.
The project's total investment is US$102 million and will be divided into 2 construction phases over a 42 month period. It will produce 120,000 tons of stainless steel and the thickness ranges from 0.05 to 0.12mm.
The estimated sales revenue is US$506 million with the gross profit expected to reach US$103 million. The key equipment and advanced technology for this project will be introduced from Germany.
ThyssenKrupp Schulte with new office in Wrzburg
ThyssenKrupp Schulte GmbH, ThyssenKrupp Services AG's materials service provider recently opened its first sales office in Wrzburg. "The Franconia region is a very attractive business area for us. Wrzburg, with its excellent infrastructure, is the hub for this region", explains ThyssenKrupp Schulte MD Mr Martin Gruber.
With a wide product spectrum comprising flat products, rolled, special and stainless steel, as well as tubes, nonferrous metals and plastics, the company, together with its international sister companies, is one of the world's leading materials service providers.
Headquartered in Dsseldorf, ThyssenKrupp Schulte GmbH with its products and services has taken on a pioneering role for the European materials business of ThyssenKrupp Services. With more than 50 branches and subsidiaries in Germany, the organization not only offers a full range of materials carbon, stainless and tool steels, nonferrous metals and plastics but also provides extensive services such as cutting to size, surface treatment and just in time delivery.
Malaysia's Ann Joo signs MoU to conduct study on Plant
Ann Joo Resources Berhad said it has entered into a MoU with Kobe Steel, Ltd and Mitsui & Co Ltd to conduct a detailed feasibility study on a "build, own and operate" basis of a hot metal making plant to be constructed in Malaysia. The parties are interested in making capital investment in the project depending on the outcome of the study, Ann Joo said in a statement to Bursa Malaysia.
The study consists of certain specific work, study and survey and each work is assigned to the responsible party in accordance with the provisions of the MoU. It said the study will start on the date of the parties signing the MoU and end on 31 January 2006.
"The purpose of the study is to enable the parties to research and study the project in every aspect so as to evaluate its viability by 31 January 2006 and thereafter, each party will make its decision whether to form a joint venture company," Ann Joo said
Reliance Steel heading into Far East
Reliance Steel & Aluminum Co. is partnering with Singapores New Wave Technologies Ltd to form a new joint venture, bringing the Los Angeles Company into the Chinese market. The new company Reliance Pan Pacific Pte Ltd will have Reliance holding a 70 % and New Wave associate firm Manufacturing Network Pte Ltd holding the other 30%.
Another part of the deal will have MNPL sell Everest Metals (Suzhou) Co Ltd a Chinese metals service center company, to Reliance Pan Pacific. MNPL owns 100 percent of Everest Metals. The deal is expected to close in early 2006 subject to regulatory and shareholder approval.
Los Angeles' Reliance Steel & Aluminum Co has more than 100 locations in 31 states, as well as Belgium and South Korea. The company's products include galvanized, hot rolled & cold finished steel, stainless steel, aluminum, brass, copper, titanium and alloy steel
Shandong Quanxing to start production of stainless steel products
Shandong Quanxing Stainless Steel Co. Ltd is expected to start operation in October. It is estimated that their annual output will be 180,000 ton.
Canadas Terra Nostra owns a 51% stake in the company after they bought the shares in May this year. The remaining 49 percent of the shares are owned by Shandong Jinpeng, the biggest copper products manufacturer in China.
