October, 18 2005
NMDC to increase Bailadila iron ore dispatches by 1.4 million tonnes
National Mineral Development Corporation NMDC, as part of its expansion plans, has decided to open a couple of new iron ore blocks at Bailadila mines to increase its iron ore dispatches from the mines by about 1.4 million tonnes during 2005-06 to 18.7 million tonnes as against 17.3 million tonnes during 2004-05
During the H1 of 2004-05, the total shipment has been 7.8 million tonnes, which has been 0.4 million tonnes more than during the same period of last year
NMDC main customers for Bailadila are MMTC Limited, RINL, Hy -Grade Pellets, Ispat Industries Limited and Vikram Ispat limited etc. It has supplied about 2.9 million tonnes to RINL, 2.1 million tonnes to Hy -grade Pellets, 0.4 million tonnes to Ispat Industries Limited, 0.2 million tonnes to Vikram Ispat Limited and 0.3 million tonnes to small steel companies during H1 of 2005-06. MMTC has purchased 1.7 million tonnes for exporting to Japan.
NMDC has agreed to supply 4.4 million tonnes to MMTC Limited, 6.2 million tonnes to RINL, 5 million tonnes to Hy -grade Pellets, 1.2 million tonnes to Ispat Industries, 0.6 million tonnes to Vikram Ispat Limited and 1.2 million tonnes to small steel units of Bailadila ore under the yearly contracts signed for 2005-06
India Coal Summit-2005 on 19th-20th October in New Delhi 10
The India Energy Forum, the Mining Geological & Metallurgical Institute of India and Indian Coal Forum are organizing the India Coal Summit-2005 to address the critical issues for increasing indigenous coal availability in the country.
The objective is to focus attention on the Key Development Issues impacting the pace of development of coal sector in India. To discuss ways for meeting the challenges of competitiveness in coal sector through innovative approaches in management practices, application of technology, environment protection. The Summit will also catalogue. Initiatives required for overcoming the impediments and increasing the Indian & Foreign investment in the coal Industry.
The Summit will discuss Key Issues impacting the sector including Policy Framework, Exploration and Conservations, Technical Options for mining industry both underground and opencast, washing and beneficiation, coal gasification, CBM, Environmental and Social issues, Rehabilitation and Resettlement Policies, musters perspectives equipment availability and utilization, consumers perspectives, research and development, safety and training.
The key speakers include Dr Montek Singh Ahluwalia Dy Chairman Planning Commission, Dr Kirit Parikh Member Planning Commission, Mr PC Parakh Secretary Coal, Mr Shashi Kumar CMD CIL, Mr SB Ghosh Dastidar Member Traffic Railway Board, Mr RH Khwaja CMD SCCL, Mr A Sharma CMD MCL, Mr RP Ritolia CMD CCL, Mr VK Singh CMD NCL, Mr PS Bhattacharyya CMD BCCL and several other prominent heads of coal users and coal bodies
Posco to pump in $200 million for ore mining for its Orissa plant
POSCO will pump in an additional $200 million into its Indian subsidiary next year to undertake captive iron ore mining activity for its proposed 12 million tonne steel plant in Orissa. The company has also decided to rope in an Indian mine developer to facilitate development of 600 million tonne iron ore mine to be licensed to the steel major by the Orissa government.
POSCO has already put in $50 million in its recently set up Posco India and additional capital infusion is proposed after the company gets mining lease sometime late next year.
Posco India deputy MD and head of India project Mr Tae-Hyun Jeong told press that funds were not a problem as POSCO has cash flows to the tune of $4 billion annually and it plans to finance the Indian project in a 6:4 debt equity ratio.
He said that company was also looking at engaging only Indian mine developers for its captive mines, the process for which would begin next year by when Posco expects to secure mining leases. It is understood that the company is talking with seven Indian mining companies including Kudremukh Iron Ore Ltd KIOCL, National Mineral Development Corporation NMDC, Essel and Rungta for forming a separate mining JV
Indo China trade touches $12.2 billion in first 8 months of 2005
The bilateral trade between India and China has reached $12.2 billion in the first eight months of this year, an increase of 40% over the same period the previous year as per the figures released by Chinas customs authorities on the sideline of Confederation of Indian Industrys CII trade show in Shanghai and Mr Sujan Chinoy, Indian consul general believes that the $20 billion trade target by 2008 as mentioned by Chinese Premier Mr Wen Jiabao during his visit to India in April might be achieved by the year end.
The trade between the two countries had increased 79% in 2004 over the previous year.
Indias exports to China are dominated by low value, primary products with a huge reliance on iron ore and amounted to more than 50% in 2004 ores. By contrast Chinas top exports to India included electrical machinery.
Tronoh secures RM780 Million EPC Contract for Indian IPP
Tronoh Consolidated Malaysia Bhd has secured a RM780 million contract to design and build phase II of an independent power plant (IPP) in Chhattisgarh. With this award, Tronoh becomes the sole engineering, procurement and construction EPC contractor for the 2X300MW coal-fired power plant being developed by Lanco Amarkantak Power Pvt Ltd, Hyderabad. The agreement with Lanco was signed in Hyderabad on Oct 13.
Earlier, the Unit I, valued at RM766 million, was awarded to Tronoh on May 25, 2005, giving Tronoh a combined contract value of RM1.55 billion. The contract was awarded to its wholly owned subsidiary Zelan Construction (India) Pte Ltd and 49.99 percent associate, Zelan Projects Private Ltd.
According to Tronoh, the scope of work for both units of the Chhattisgarh plant is similar. They involved the design & engineering, civil and structural construction, as well as the supply, installation, testing and commissioning of offshore and onshore equipment and systems.
Apart from India, Tronoh is also pursuing opportunities in Indonesia, Thailand and countries in the West Asia such as the United Arab Emirates, Saudi Arabia and Qatar, the statement said.
Tronoh, through its wholly owned subsidiary, Zelan Holdings Sdn Bhd has built a reputation as a "fast-track" design and build civil engineering contractor for power plants in Malaysia and Singapore since the mid 1980s. Apart from the Indian power plant, it has also recently secured the RM107 million wharf expansion projects at the Port of Tanjung Pelepas, in Johor.
Kanishk Steel merges 2 group companies with itself
Kanishk Steel Industries has announced the merger of two of its group companies OP Steels and Avanti Oil & Steel Industries Private Limited, with itself. A company press statement said that the court convened meeting, held on October 13, 2005, has unanimously approved the amalgamation of OP Steels, and Avanti Oil & Steel Industries with the company. The merger will take effect retrospectively from April 1, 2004.
OP Steel clocked a total turnover of Rs 71.2 crore and Avanti Oil & Steel Industries reported a turnover of Rs 23 lakh during 2004-05. Kanishk Steel Industries garnered a turnover of Rs 163.53 crore as on March 31, 2005. With the merger, the company expects to register a total turnover close to Rs 300 crore during the current fiscal.
Mr Ravi Gupta CMD of Kanishk Steel Industries, said, The merger of O P Steels and Avanti Oil & Steel Industries with Kanishk Steel Industries will give us the advantage of scale in terms of production capacity, sales efficiency and the capacity to take up large projects for expansion.
O P Steels manufactures MS Ingots, which is used by Kanishk for manufacturing finished products. The merger will lead to a backward integration of operations with cost reduction or saving in payment of excise duty and sales tax for M S Ingots, added, Arvind Gupta, president of Kanishk Steel Industries. Avanti Oil & Steel Industries owns a 53-acre of land, at present, which is taken on a lease basis by Kanishk Steel for installation of wind energy generators.
Chinese firms to buy more Vietnamese coal
Chinese companies are intensifying import of Vietnamese coal amidst Vietnam's plan to raise prices of coal products in 2006, according to the Trade Information Center under the Vietnamese Trade Ministry on Monday. The Chinese firms are estimated to import some 1.5 million tons of coal via border gates this quarter, mainly to fuel power plants in some of China's southern localities. 5 large, 11 medium and many small sized enterprises from China frequently import coal from
Vietnam. Vietnam plans to sell some 14 million tons of coal overseas this year, up 32% against last year, of which 9 million tons are expected to go to China, said the country's biggest coal producer Vinacoal. Vietnam is likely to increase prices of coal products by 31-57% in the domestic market in 2006, mainly due to the rising production cost. Vinacoal, which currently sells its products for average $ 27 per ton, plans to produce 30 million tons of coal next year.
Vietnam is expected to exploit nearly 47.6 million tons of coal in 2010, and over 64.4 million tons of the mineral in 2020. The country, which exported more than 10.6 million tons of coal valued at US$319 million to over 20 countries and regions last year, shipped abroad over 11.3 million tons of coal valued at US$437 million in the first nine months of this year, posting year-on-year respective surges of 35.6 percent and 78.9 percent.
Wind tower maker DMI acquires Ontario manufacturing plant
DMI Industries West Fargo ND has announced that it is expanding its heavy steel wind tower fabrication operations into Canada with the purchase of a manufacturing plant in Fort Erie, Ontario. The addition of the Canadian facility positions DMI to better serve wind energy customers in Canada and the northern tier of the United States.
DMI has purchased and will modernize an existing manufacturing facility in Fort Erie with state-of-the-art wind tower fabrication equipment. Construction is set to begin in late 2005, with deliveries from the plant starting in the summer of 2006 with an initial capacity of 400 to 500 tower sections each year.
DMI President Mr Lars Moller said that there is strong support for wind energy development from the governments of Canada and Ontario, and
demand for wind towers is growing proportionately. This expansion allows us to meet that demand while lowering the cost of delivery to site for our customers
DMI, an operating company of Otter Tail Corporation, is a diversified steel manufacturer whose primary focus is wind tower fabrication. The company also has capabilities to produce equipment for a wide variety of industries, including agricultural processing, ethanol production, oil and gas extraction, processing and refining, and water and waste water processing.
Otter Tail Corporation has interests in diversified operations that include an electric utility, plastics, manufacturing, health services, food ingredient processing and other businesses.
Ferrostaal to invest Rand1.8 billion for arms offset in SA
German industrial group MAN Ferrostaal will make two major investments in South Africa worth about R1.8 billion in fulfillment of its offset obligations under the strategic defense procurement package. The projects include a stainless steel precision strip mill at Coega and an oil rig manufacturing plant at Saldanha Bay. Both projects are expected to get under way in March.
So far $1,5bn has been committed and invested by the major arms contractors of the $4bn in investments required over the lifetime of the offset program, which ends in 2007 for four contractors and in 2011 for the BAE Systems-SAAB consortium
Global car production boom to strain steel supply
An expected 20 percent jump in global car output in the next five years will keep supplies tight for a while for auto grade steel as well as iron ore and other raw materials used in steel production, Japan's Kobe Steel Ltd said on Monday. Mr Hideki Nakamura, a senior executive at the Japan's fourth biggest steel maker, said Japanese steel makers will further accelerate a shift to high end steel from garden variety grades to keep up with demand, while stepping up technological cooperation with car makers to raise profitability.
''We expect demand for high-end steel used in cars to continue tight until 2010, despite a boost in commodity grade steel production by mills in China, India, Taiwan and others and suppliers of iron ore and other raw materials won't be able to keep up with strong demand for a while, given an estimated 20 percent jump in steel demand over the next five years,'' Mr Nakamura told during International Automotive Conference in Tokyo
US research firm JD Power estimates global auto production will grow to 79 million vehicles in 2010, up from 66 million 2004, led by strong growth in China.
Race for Kryvorizhstal Contenders down to three
It is reported that only three companies have paid the deposit of $200 million although the Ukrainian State Property Fund had signed confidentiality agreements with as many as 12 potential bidders. It is said that those who have paid the deposit are not likely to back out now because the deposit is too high. USPF said details about the bids would be accepted till 18:00 on Monday and the bidders are likely to be named on Tuesday morning.
The tender will be broadcast live on television on October 24, as Ukrainian President Mr Viktor Yushchenko recently promised, the Property Fund said.
It is reported that Russian Evraz, Severstal, Ukrainian System Capital Management Holding have withdrawn from the tender
The bidders who have deposited $ 200 million for tender are
1. Mittal Steel
2. Smart Group
3. Industrial Group
Analysts have suggested that the unstable situation in Ukraine as well as high requirements for the Krivozhstal purchaser would rattle some of the bidders.
Samsung Corp eyes further expansion in Romania
Samsung Corporation, Korea's largest general trading company, plans to increase its investment in Romanian infrastructure projects and Mr Chung Woo-taik, president of the company's trading division, will meet with Romanian President Traian Basescu in Seoul today
Samsung has been persistently tapping Romania as a lucrative business partner in Eastern Europe for the past eight years. In October 1997, Samsung Deutschland GmbH, the company's local operation in Europe, took over SC Otelinox SA with the acquisition of a 51 percent stake for $37 million.
Otelinox established in 1974 in Targoviste town in southern Romania was a state run enterprise manufacturing SS products with two production units of cold rolled stainless steel strips and hot rolled small wire rod posting an operating profit of only $500,000 per year due to financial distress
With the completion of the privatization, Samsung funneled its corporate resources into high value added products such as stainless steel board, shedding the production units of less market oriented products. Samsung also introduced market based business approaches to the company. In addition to the restructuring, Samsung launched a package of renovation projects, aimed at upgrading facilities and training local staff in a bid to improve the quality of the products. Furthermore, the Samsung's existing overseas marketing network helped boost the sales of Otelinox's new products.
With an investment of $20 million, the company completed a new manufacturing plant designed to produce ultra-thin stainless steel strips, which made Otelinox the sole producer of ultra-thin stainless steel products among the former communist European countries. The new product list includes major components for auto parts, precision equipments and quality electronics.
The company's operating profit increased nearly 18 percent to $122.9 million during the first six months of the year, compared to a year earlier.
Steel price pinch puts squeeze on Mechel
Russian steelmaker Mechel suffered a squeeze in profitability due to weak steel prices in the first half of the year, but its strong mining operations helped soften the blow as per the financial results
Net profit declined by 4.3% YOY to $243.6 million despite a rise of 33.2% in revenues to $2.14 billion. EBITDA amounted to $422.7 million, barely up from $420.6 million in the first half of 2004. But the EBITDA margin slumped to 19.7% in the first half from 26.1%
Mechel's first-half steel sales grew 24.3% to $1.55 billion, but steel segment net income slumped by 89.6% to $9.5 million.
"In the second quarter 2005, we saw negative pricing trends for both our mining and steel products," CEO Mr Vladimir Iorich said. He said Mechel's vertical integration, which enables it to supply inputs such as coking coal and iron ore concentrate to its smelters, had helped it to cope with weaker steel prices in the spring quarter.
Valin Lianyuan Steel Plate launches 1.5 million ton CR mill
Hunan based Valin Lianyuan Steel Plate Co Ltd launched a production line Sunday for cold rolled and pickled steel line with an annual capacity of 1.5 million tonnes. Work on the project began on Feb 23, 2004, and took twenty months to complete, the fastest time to date for such a project as similar projects normally take almost 25 months or more to complete.
In addition the company is planning to build a new hot rolling line to guarantee production expansion plan of steel plates over the next five years. Lianyuan Steel Plates will also launch the color coating line on October 25 and an annealing line on October 31
The project has commissioned a Mitsubishi Heavy Industry's UCM cold rolling mill and other key production facilities and administration software are also from oversea leading providers. The total investment in the CR project is $ 339.09 million
The project's products will be mainly sold domestically for household electric appliance production and construction.
Lianyuan Steel Plate is a joint venture between and Valin Steel Group and the Lianyuan Steel Co Ltd. for the purpose of building a number of steel plate projects in order to optimize the two companies' product structure. Lianyuan Steel Plates plans to increase its annual production capacity to 6.3 million tonnes in 2010
Concast Awarded Caster revamp by Gerdau Ameristeel
Concast AG, Zurich, Switzerland, and its Pittsburgh based subsidiary Concast America Inc, have bagged a new major contract from Gerdau Ameristeel to modernize the five strand 26 ft radius billet caster at Whitby. The project involves replacing the casters "technological core," as well as all of its downstream equipment.
Concast will install new dual cantilever tundish cars, cartridge meter mold assemblies with electromagnetic mold stirring, electromechanical short lever oscillation, intensive multi zone ConMax secondary spray cooling, roller apron & strand guides, CCS withdrawal straighteners, torch cutting machines and all discharge equipment including a turnover cooling bed.
The casters entire automation package will be developed and supplied by Concast Systems group.
Ugandan Company to export SS to US
TEMBO Steels Uganda Ltd, one of the leading steel manufacturers in the Uganda, will by mid next month unveil a multi million dollar stainless steel plant at their Iganga factory and embark on the exportation of the stainless steel to the US market.
Company Chairman Mr PK Sanjay told press that they have invested up to $10 million in their Iganga plant, aiming 100% export of the product to the US as a means of exploiting the AGOA initiative. He said the plant would be in full production by the start of November and the company should be exporting them to the US by Jan 2006.
TEMBOs MD, Mr Sham Agarwal said that apart from being the first steel plant in Uganda to exploit the AGOA initiative, they would also be the first in the East African region and second in Africa as a whole after South Africa, to produce stainless steel, which he said is greatly demanded in the construction sector today. We will produce high quality stainless steel ingots, angles and rods, which are on demand in the construction sector and other beautification work in the first phase he added
Two Technosteel tube mills to start production soon
Two new tube mills of the Swiss based Technosteel will start production by the end of the year. The total annual production capacity of the two new tube mills will be between 48,000 and 60,000mt.
The mill in Niksic, Montenegro will be producing welded precision tubes and profiles at sizes between 12 to 52mm and the testing has already started... The other mill located in Iasi Romania will be producing tubes and profiles at sizes between 17 to 90mm.
SMS Demag completes upgrading of Baotou plant
The modernization of Baotou Iron and Steel Cos two strand compact strip process CSP has been completed. The work was done by Germanys SMS Demag AG. The upgrade included the increasing the capacity of caster to 2.8 million tonnes per year from original 2 million.
Baotou uses liquid core reduction to cast thin slab in thicknesses of 55mm and 70mm and in widths between 980mm and 1560mm.
Oxymetal to expand in Tunisia
French steel company Oxymetal is building a new facility in Tunisia with its idle laser cutting equipment moving from the companys Lyon Corbas site. Oxymetal is installing two laser cutting machines after recent installation of four new laser machines and one drilling unit at its sites in France.
The company also has a site in Germany which specializes in laser cutting, oxycutting, metal bending and other metal processing activities. The company's main products are aluminium and stainless steel.
Five professionals included in Baosteel board of directors
Baosteel Group Corp has asked five outsiders to sit on its board of directors to become China's first state owned company to introduce the practice of enhancing external oversight of corporate management. The five external members are business leaders who have taken leading positions in overseas, state owned and listed companies and accounting bodies
The five new external directors include Mr William Fung, MD of HK's Li & Fung Ltd, Mr Stephen Lee President of Singapore National Employers Federation and the MD of Great Malaysia Textile Manufacturing Co Pte Ltd, Mr Wu Yaowen former Deputy GM of China National Petroleum Corp, Mr Yang Xianzu former President of China Unicom Group and Ms Xia Dawei President of Shanghai National Accounting Institute
The central government launched a campaign last year urging SOEs to conduct a structural overhaul which includes bringing in outside directors. Baosteel was one of 11 SOEs that was picked under the plan. Industry analysts said an improved management system is a must for Baosteel
AK Steel announces surcharge for November
AK Steel citing higher prices for raw materials and energy said on Monday that it will add surcharges for carbon steel and electrical steel products shipped in November plus an energy surcharge for all grades of stainless steel sheet, strip and plate products.
The surcharge for flat-rolled carbon steel will be $193 a ton and $220 a ton for electrical steel.
The energy surcharge will be based on reported prices for raw materials and energy to manufacture the products, AK Steel said.
Fitch assigns Senior Unsecured BB & Short term B ratings to Evraz
Fitch Ratings has assigned Luxembourg-based Evraz Group SA ratings of Senior Unsecured BB- and Short term B. The Outlook is Stable.
The ratings are the same as those of its main subsidiary Cyprus-based Mastercroft Ltd, reflecting the role of the subsidiary as a key driver of Evraz's credit and rating profile.
Evraz is Russia's largest vertically integrated steel producer in output and ranks 15th in the world. It specializes in production of long-steel products, operates three steel plants and iron ore and coal mines.
Russian steel output up 0.5% in 9 months
Russia has increased finished steel output by 0.5% YOY to 40.2 million tonnes in January-September, the Federal State Statistics Service said.
Iron ore output dropped 3.9% to 69.9 million tonnes, while coal production rose 4% to 213 million tonnes. Coke production fell 8.3% to 23.5 million tonnes.
Steel pipe production increased 4.7% to 4.9 million tonnes in the first nine months of 2005.
Skilled SA miners heading for Australian mines
The mining boom in Australia has resulted in a gap in manpower and a
Recruitment firm has developed a scheme to recruit trained people from South Africa to work on large mining projects in Australia and to date, has placed more than 20 trades people in coal and iron ore projects in the Pilbara region of Western Australia and the Bowen Basin in Queensland.
Recruitment & HR Firm, Hudson Australia Trade & Industrials GM Mr Patrick Vanderham said given the similarities between the two countries, it was a logical solution to beat the Australian mining skills shortage and they have developed a recruitment model that handled advertising, in country interviews with candidates and their partners in South Africa, and their visa requirements.
Minerals files bankable study for Mount Klappan coal project
Fortune Minerals Ltd estimated its Mount Klappan coal project could cost up to $522 million to develop, depending on the production rate of the mine, according to the company's bankable feasibility study. The study suggested the mine could cost from $275 million to $522 million, depending on the production rate at the mine and the company's investment in the upgrade of a railway and extension of the track, Fortune said
A bankable (full) feasibility study is a comprehensive analysis of a projects economics (+/- 15% precision) and is used by the banking industry for financing purposes. The Lost Fox feasibility study was conducted by Marston Canada Ltd, a subsidiary of St. Louis-based Marston & Marston Inc., an independent engineering and consulting firm that specializes in coal and oil sands projects.
The Marston study evaluated production scenarios of 1.5 and 3.0 million tonnes per annum of 10% ash ultra-low volatile pulverized coal injection (PCI) product for the overseas steel industry. The study has estimated cash costs FOB loading vessel average C$74 for the 1.5 Mtpa production scenario and C$75 for the 3 Mtpa scenario, and as low as C$63 per tonne in early production years of the 1.5 Mtpa scenario. Because of the high carbon and energy content and very low volatile content of Mount Klappan ultra-low volatile PCI coal, Fortune would expect to receive prices at the high end of the PCI range.
Fortune Minerals is a diversified natural resource company with seven mineral deposits and a number of exploration projects, all located in Canada. They include the Mount Klappan anthracite coal deposits in British Columbia, and the NICO cobalt-gold-bismuth deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories.
Midwest closes on $1.5b iron ore mine
Midwest Corporation is likely to sign a JV with Chinese Sinosteel Corporation to bring its $1.5 billion iron ore Mount Weld and Koolanooka projects east near Geraldton against the framework agreement signed sometimes in June 2005. Discussions are underway with Department of Industry and Resources, which has inherited these properties from failed steel group Kingstream Resources in 2003.
Particular emphasis will be placed on Midwest's infrastructure requirements, including the controversial proposed Oakjee port and most of Sinosteel's investment is likely to go towards major rail and port facilities.
Sinosteel is one of China's biggest State run raw materials developers and traders, turning over more than $4.5 billion last year
Mongolian iron ore imports into China surge in September
The iron ore imports through the Manzhouli Border Crossing, one of the largest border crossings in northern China between Inner Mongolia and Mongolia and connecting Russia, surged 641% in September compared with August by 44,500 tons. According to the Manzhouli Customs, all the imports were executed as small contracts.
Private companies are the main importers of the iron ore through Manzhouli and have imported 160,000 tons of iron ore over the first nine months of this year, attributing for 86% of the total imports. The iron ore imports through Manzhouli from January to May were 136,000 tons. There were no imports in June and July. The imports in August were 6,000 tons. The volume has shown an upward trend in September.
Shougang to set up steelworks in Thailand
Shoudu Iron and Steel Group Shougang, the third largest steel maker in China, plans to set up a large steelworks in Thailand in cooperation with local steel companies
"Thailand does not have a large scale and overall steel company which could smelt, roll and process, and most local steelworks only focus on steel rolling sector but capacity for each is not very big, which gives Shougang a good opportunity to expand there," Mr Pan of Shougang International Co told press
Thailand is now in great need of slab and steel plate since the country is rapidly developing, according to Pan.
It is reported that Shougang would invest more than $ 2.4 billion to set up a steelworks with 4 million tons of capacity in Rayng Province, 180 km from Bangkok.
Xinxing Steel Pipe sees 22% decline of net profit in Q3
Xinxing Steel Pipe Co Ltd, a leading pipe producer based in Henan Province, announced a RMB 124.10 million net profit for the Q3, a 21.89% drop compared to last year due to lower steel product prices.
In the first nine months of the year, the company's operating revenue climbed 20.84% YOY to RMB 7.61 billion ($ 887.24 million), while net profit saw a 7.36% decrease and reached RMB 435.14 million ($ 53.92 million).
Xinxing Pipe produced 629,200 tonnes of steel pipe, down 0.95%, 1 million tonnes of other steel products, up 13.17%, and 2.31 million tonnes of pig iron, a 9.33% increase in the first nine months.
Nanchang Steel working on investment deals
Eastern China's Nanchang Iron and Steel Co Ltd is in financing negotiations with several companies, both foreign and domestic, to help boot production capacity and restructure assets, a company official said Monday. "Several steel companies are involved in negotiations with our company, which include major domestic steel companies and foreign companies," without disclosing the names of the companies involved in the talks.
The company needs RMB 1 billion to 1.5 billion ($ 123-185 million) to boost steel capacity to 2.5 mln tons per year
The company currently produces 480,000 tonnes of coke, 1.55 million tonnes of pig iron, 2.05 million tonnes of steel, and 2.10 million tonne of steel product.
The company hopes investors could help Nanchang produce 1.9 million to 2.3 million tonnes of iron, 2.5 million tonnes of steel, and 2.4 million to 2.5 million tonnes of steel product per year
Nanchang Steel, Xinshe Iron and Steel Co Ltd (Xinshe Steel) and Pingxiang Iron and Steel Co Ltd (Pingxiang Steel) are three major steelworks in eastern China's Jiangxi Province. Jiangxi Metallurgical Group is now the controlling shareholder of the three companies. Chinese media has reported that Xinshe Steel and Pingxiang Steel would probably follow Nanchang Steel and start restructuring assets
Memphis scrap processor Remarket signs agreement with OmniSorce
Memphis based processor of scrap metal Remarket Inc has signed a deal making OmniSource Corp the company's exclusive sales agent for all of Remarket's ferrous and non ferrous scrap.
Founded in 1943 to supply scrap metal during World War II, OmniSource has grown to be one of North America's largest scrap recycling firms. Headquartered in Fort Wayne, the company has 32 processing facilities and handles more than six million tons of ferrous scrap and 700 million pounds of nonferrous metals annually.
Remarket Inc. serves industrial, wholesale, and retail generators in the Memphis area.
ThyssenKrupp to double GI output with China JV
ThyssenKrupps JV TAGAL in Dalian, China will double the companys annual HDG production to 800,000 tons in 2006 in order to meet the growing demand from the automobile market in China
ThyssenKrupp plans to expand the automotive steel supply ability of whole procedure from materials to processed products by the way of increasing Asian business through new joint venture and partnership. The firm is going to establish more China steel service centers which are with tailored equipment, and invest in the rapidly growing China and Japan factories which the firm establishes joint venture with JFE Steel.
Coal company plans dry bulk cargo terminal
Keystone Industries LLC, a coal company, has announced it will build a dry bulk cargo terminal on 61 acres, it has agreed to buy on Wigmore Street, at the north end of Talleyrand Avenue. It plans to build one or two deep-water piers, conveyor systems and storage buildings to handle other companies' bulk cargoes. Besides coal, the company said it will handle cargoes such as limestone rock, granite chips, gypsum, salt, wood ships, cement and silica.
Mr Richard Bruce, VP of business development for Keystone said Keystone's interest in the site was driven largely by its location and its transportation infrastructure. The terminal will be served by Norfolk Southern Corporation for rail, with nearby connections available for CSX Corporation and Florida East Coast Railway. The site provides enough space for a rail loop to load a 100-car train, enough to carry about 10,000 tons, Bruce said.
Lone Star Technologies reports Q3 2005 earnings
Lone Star Technologies Inc has reported quarterly net income of $ 50.3 million for the third quarter of 2005. These results represent a significant increase over the company's third quarter 2004 net income of $26.8 million, and a decrease from the company's record second quarter 2005 net income of $63.5 million, which included other income of $7.8 million. Total revenues were $324.1 million in the third quarter of 2005, essentially unchanged from the second quarter of 2005 with EBITDA of $64.1 million
The decrease in Lone Star's net income from the second quarter reflects the negative impact of Hurricane Rita, which resulted in the temporary shutdown of some of the company's Texas-based manufacturing and finishing facilities. Also, the company's effective tax rate for the third quarter increased to 8% from 2% for the second quarter, further reducing net income. Lone Star estimates that its effective tax rate will be 10% for the fourth quarter of 2005.
Mr Rhys J Best, Lone Star's Chairman and CEO stated, "Overall demand for our premium oilfield products remained robust throughout the third quarter. However, the two-day shutdown at our Lone Star Steel and Bellville Tube plants and the longer interruption in operations at our Star Energy Group finishing facility related to Hurricane Rita impacted our financial performance. While demand related to drilling activity in the Gulf of Mexico is likely to be lower in the fourth quarter than was previously anticipated, we expect continued growth in OCTG and line pipe demand and remain well-positioned to capitalize on this trend."
Lone Star Technologies Inc's principal operating subsidiaries manufacture, market and provide custom services related to oilfield casing, tubing, couplings, and line pipe, specialty tubing products used in a variety of applications, and flat rolled steel and other tubular products.
Gladstone nickel mine costs surge to $1.2B
Gladstone Pacific Nickel Ltd. announced that the development cost of its laterite nickel mine and refinery Australian project may surge to $1.2 billion as raw materials and labor costs hit resource projects from a $900 million forecast
Gladstone Pacific expects the project to produce 30,000 tons of nickel a year from 2009. It will source the ore from its Marlborough deposit in the state of Queensland and send it 170 kilometers by pipeline to a refinery on the coast at Gladstone.
The Brisbane-based company plans to sell the project to Chinese interests to meet surging stainless steel demand, with a view to expanding the Gladstone plant capacity to 125,000 tons a year. The expansion will be fed from deposits in the South Pacific and make the refinery the world's fourth-biggest nickel producer, Pearce said.
BHP had also said last month that development costs at its Ravensthorpe laterite nickel project in Western Australia had blown out by US$400 million to US$1.8 billion.
51coal mines are to be liquidated in Donetsk region
Fifty three coal enterprise of Donetsk region including 51 coal mines and two ore mill are in the stage of liquidation.
Mr Alexander Klimenko the deputy of Donetsk Governor informed that 23 coal mines completed the stage of physical liquidation and Gornyak mine accomplished the first stage of this process.
Donetsk region has spent 2318.9 million UAH of budget recourses since the beginning of the liquidation.
ThyssenKrupp targets 10% more sales in Asia within 5 years
ThyssenKrupp AG board member Mr Olaf Berlien told a German daily that the steel conglomerate wants to achieve annual sales in the Asian region of at least Euro 5 billion within the next five years from thee current levels of Euro 3.7 billion
He said that once the goal is achieved, ThyssenKrupps sale to Asian region would account for about 10% of the overall revenue.
ThyssenKrupp has earlier announced its intention to increase sales in Japan to more than Euro 1 billion by increasing supplies to Toyota Motor Corp
