October, 19 2005
ESSAR follows suit to increase capacity to 10 million in Jharkhand
It is reported that ESSAR Group Chairman Mr Shashi Ruia met Jharkhand CM Mr Arjun Munda and put forth the revised proposal of setting up a 10 million ton steel plant at an estimated investment of Rs 12,000 in lieu of earlier singed a MOU for setting up of a 3 million ton plant
Mr Ruia told press that ESSAR would establish the plant in two phases of 6 million tonnes and 4 million tonnes. The first phase would be commissioned within 24 months time.
CISA and major Indian ore suppliers to go for long term contracts
The China Iron and Steel Association CISA and 12 major iron ore suppliers in India have decided to set up a long-term contract practice on iron ore imports.
The current practice of trading on spot prices hurt the market, the association said
Tata Steel picks more coal stakes in Australia
After purchasing minority interest in a coal project in Australia recently, Tata Steel is reported to be close to concluding its second equity investment in another coal field in Australia. It is reported that a team of Tata Steel, which recently visited Australia, has identified a second coal property for investment and a deal is expected to be signed soon.
However, Tata Sons director Mr JJ Irani told press that We have acquired two coal properties in Australia. In the second one Posco and another Japanese steel company have also picked up the stake however he declined to give further details.
Tata Steel had entered into an agreement with the Australian-based AMCI to buy a 5% interest in the Carborough Downs coal project located in Queensland in July and secured coal supplies to the tune of about 1.8 million tonnes from the field.
Tata Steel uses about 5mt of coking coal for its steel plant, 45% of which is imported.
Posco to seek nod for export clause in final pact
POSCO India will seek continuation of controversial iron ore export clause when it signs final agreement to set up its 12 million tonne steel plant with the Orissa government sometime next year. Mr Tae-Hyun Jeong Deputy MD of the company is reported to have said that this was necessary as iron ore in Orissa traditionally had high levels of alumina unsuitable for use in blast furnace.
In any case, iron ore exports from our captive mines will take place only after we import better quality of ore in similar quantities here for blending Mr Jeong said adding, that ore constituted only about 20% of the total cost of steel making.
Poscos decision on iron ore exports comes at a time when opposition is building in Orissa over the controversial clause in the MoU. Even the National Advisory Council to the government, headed by Congress president Mrs Sonia Gandhi, has expressed its concern over the certain clauses in the MoU.
The state government is meeting more opposition now as the Jharkhand government has signed MoU with worlds largest steel maker Mittal Steel without any commitment on iron ore exports even for blending purpose.
The MoU between Orissa government and Posco permits the steel company to export 30% of annual production from its captive mines under a swap arrangement.
Bridge & Roof looking for JV to expand operations
Bridge and Roof Co India Limited B&R, a subsidiary of Bharat Yantra Nigam Limited has announced that the company ended last fiscal with revenues of Rs 455 crore and has set a target of Rs 525 crore for this fiscal. Profits in the last fiscal was however a paltry Rs 1.48 crore before tax and below Rs 1 crore after taxation as the company had been going through a phase of negative cash flow due to the unprecedented rise in steel prices.
The recent capital restructuring announced by the Union government for the heavy industries and public enterprises sector has given a new lease of life to companies like Bridge and Roof Co (India) Limited, which was aiming to become a Rs 1000 crore company in the next three years. Highways and roadways construction comprised about 7% of the turnover and most revenues came from civil and mechanical engineering.
B&R has project orders in hand worth Rs 1000 crore and expects order books to increase to Rs 1200 crore by March 2006. Some of the major project works under execution include construction of National Highway in Punjab & Gujara, sub contracts at power plant at Birshingpur, Bakreswar & Mejia and crude oil storage tank at Paradeep. B&R is also present in Abu Dhabi, working on Asian Development Bank projects like cement plants and roadways in Nepal and also projects in Bhutan.
B&R CMD Mr Biswas is keen on forming JV alliances to bid for bigger higher value projects in India and other Asian markets.
Lifting of coal at Paradip port affected
Transport and lifting of coal at Paradip port are said to have been affected following an unseemly tussle between the transport associations and the company which has been awarded the work. The district administration has decided to intervene and collector convened a meeting of both the groups resolve the problem.
Reliable sources said that Paradip Port Trust had engaged a transport agency for lifting and transporting coal from the port area to other places of Orissa and other states. However this transport agency ran into trouble with two local transport associations allegedly creating problems.
SAIL equity shareholders to consider scheme of amalgamation
Steel Authority of India Ltd SAIL has convened a meeting the equity shareholders of the company on November 08, 2005, pursuant to the order of Ministry of Company Affairs, to consider the scheme of amalgamation between Indian Iron and Steel Company Ltd IISCO and the company.
TopDiamond Harbour to get cargo handling terminal
Diamond Harbour has been selected by Kolkata Port Trust to become its cargo handling terminal in three years time, in a move at easing the congestion of ships at the Haldia port.
DH is expected to handle three million tonnes of cargo of iron ore, coal and timber initially. Feasibility studies would be conducted on two sites for the proposed facility. The last date of submission of tenders to conduct this study is 24 October
Chinese push for 10% cut in iron ore prices
State owned Chinese importer Sinosteel said yesterday that it was hoping for a 5 to 10% cut in the price of iron ore next year as it sought a bigger say in annual pricing negotiations for the major steel ingredient. Sinosteel president Mr Huang Tianwen said he believed the 71.5% price increase agreed between major Japanese steel mills and the major Australian iron ore producers for 2005-06 was too high and a cut next year would help the sustainability of the industry.
Mr Huang made the comments after signing an agreement with West Perth-based iron ore hopeful Midwest Corporation for a joint venture that could see Sinosteel and Midwest jointly develop the Australian company's high grade Weld Range and low grade Koolanooka deposits east of Geraldton. Sinosteel has agreed to kick in $16.3 million to fund a feasibility study into a $1.5 billion mining and infrastructure development.
The investment comes as Chinese steel mills, which are supplied with raw materials by Sinosteel, undergo a massive production boom that is likely to see steel production increase this year to 340 million tonnes from 272.5 million tonnes last year.
China has traditionally been a smaller player than Japan in the iron ore market but it now attempting to flex its muscle as it becomes the world's biggest producer of steel, feeding booming construction of property and infrastructure in the world's most populous nation.
Steel Dynamics to acquire Roanoke Electric Steel
Steel Dynamics Inc and Roanoke Electric Steel Corp announced that they have agreed to a merger that will result in SDI acquiring Roanoke. The transaction will be completed by issuing an agreed share of SDI stock to Roanoke shareholders, so the value of the takeover is not yet determined. SDI will assume an estimated $41 million of Roanoke debt in the transaction. The merger is subject to consent by Roanoke shareholders, as well as regulatory approval including anti-trust and satisfaction or waiver of customary conditions
Mr T Joe Crawford, Roanoke Electric Steel president and COO, will become as VP and GM of SDIs Roanoke Electric Steel Division. Mr Tim Duke will be VP of SDI and remain president of Steel of West Virginia Inc, which will be a subsidiary of SDI.
SDI President and CEO Mr Keith Busse said "This combination further diversifies SDI's product offering, provides additional penetration of the joist, truss and girder markets and provides SDI with its first foray into the processed raw materials arena." He emphasized the consolidation will extends SDIs geographic presence and strengthen its relationships with customers. Mr Busse also stated SDI foresees investing $50-$80 million to improve and upgrade Roanoke's facilities
SDI operates three steelmaking divisions in Indiana producing flat-rolled steel, structural, SBQ bar, and rail; a strip coating division; Iron Dynamics, which produces a scrap-substitute product; and New Millennium Building Systems, which produces steel joists and decking at two plants.
Roanoke operates two mini mills Roanoke Electric Steel at Roanoke, Steel of West Virginia at Huntington and several steel fabricating operations. Products include merchant bar, specialty shapes, billets, steel joists, and rebar.
Race for Kryvorizhstal Uncertainty prevails
Ukraine's parliament passed a bill banning the privatization of Krivorozhstal, the country's largest steel mill, in the first reading Tuesday. The bill, which passed with 256 votes, 30 more than required, must undergo a second reading. Speaker Mr Volodymyr Lytvyn said a resolution calling for Kryvorizhstal to remain state property had been passed by the 450 member assembly. Deputies also approved a corresponding law, but only in a first reading. It was not immediately clear whether parliament's move, denounced by one lawmaker as unconstitutional, would derail the sale.
The parliamentarians also approved a draft bill to impose a moratorium on the privatization of Krivorozhstal. The parliament also adopted a regulation On Keeping Krivorozhstal's Shares in the State Sector, recommending that the government back down from its privatization plans for the company.
But Ukrainian President Mr Viktor Yuschenko said nothing would impede the sale at October 24 tender. The parliament's resolution on Tuesday to leave the enterprise in state ownership was a regulatory act and did not have the same status as an existing Ukrainian law or government resolution.
The existing law is the parliament's supreme decision, and this is reinforced by the supremacy of the Cabinet's resolution. He said that politically, Tuesday's vote was "a gesture which most likely demonstrates a poor understanding of the logic of privatizing Kryvorizhstal. "Yes, of course this is a bad signal to investors. But it has a purely political meaning, nothing more," Mr Yushchenko said.
While the parliamentary votes appeared unlikely to stop the auction, set for October 24, it sent a clear signal of opposition to the government and foreign investors
Mr Ross poised to consolidate debt ridden global auto part industry
Mr Wilbur Ross, is close to buying the UK and European assets of Collins & Aikman for more than $1 billion as part of a grand plan to corner 15 per cent of the worlds car parts market. Wilbur Ross and Associates, his investment vehicle, is considered the front runner in the auction of Collins & Aikmans European arm, the sale of which will be completed in the next 90 days. Collins & Aikman, a leading automotive acoustics and interiors manufacturer, filed for Chapter 11 bankruptcy in May.
Mr Ross has also teamed up with Lear Corporation to form a $3.5 billion joint venture to manufacture components for car interiors. The venture would subsume the Collins & Aikman businesses. Now that we have teamed up with Lear, we are the logical acquirer, Mr Ross said.
The global car parts sector is ripe for consolidation, he said, with more than 35 companies filing for bankruptcy in the past 12 months. We will build a global auto parts business, I think we can consolidate an entity with about 15 per cent of the global market without incurring any troubles with antitrust. He forecast that such a company would be worth about $10 billion.
Mr Ross has already built a portfolio of car parts manufacturers in Japan, China, Europe and America as he owns controlling stakes in Ohizumi, a Japanese group that makes air conditioning components, Nikko Electric, a maker of electric motors. He also controls Oxford Automotive and Safety Components International, a US airbag maker.
Mr Ross is keen on buying most or all of Delphi, the former General Motors unit that ten days ago filed the largest bankruptcy protection case in US automotive history.
Mr Ross believes that the global car industry will be based largely in China in years to come. I believe China is determined to move up the value added chain in terms of manufacturing, he said. In the beginning, they were happy to export steel. Now they want to export steel in the form of cars and appliances
Foreign partner search for OYAK comes to a deadlock
A search for a foreign partner by the Turkish Armed Forces Pension Fund, OYAK, which won the tender for the bloc sale of 46 percent of Eregli Iron and Steel Company Erdemir for $ 2.770 billion, has come to a deadlock on which partner will have the majority interest as OYAK wants to continue to be the dominant partner
OYAK has had meeting on this issue with both Arcelor and Mittal Steel and according to reports the meetings were marked by a deadlock on the issue of majority interest. Rumors take place that OYAK said "no" to Arcelor's request to be the owner of 51% percent of Erdemir shares because it wanted to avoid public reaction, however, it has still left the door open. Arcelor still seems to be the best candidate as they already hold 4% shares of Erdemir, are 50% partner with Erdemir in Sollac and supplying steel to OYAKs Renault plant
A visit to Turkey by Mr LN Mittal could be taken an indicator of their interest in ERDEMIR. It is also reported that foreign companies including Corus, NLMK and Severstal have also paid frequent visits to OYAK which shows their interest in ERDEMIR.
OYAK's search for a foreign partner is also being closely observed by 7,000 workers employed in Erdemir and they are reported to be somewhat confused because Turk Metal Trade Union remained silent regarding OYAK's search for a foreign partner
ThyssenKrupp looks to raise R&D budget
ThyssenKrupp AG CEO Mr Ekkehard Schulz said the steel conglomerate must increase its research and development budget from its current Euro 600-650 million per annual level, in order to continue to produce innovative steel products for industrial use.
ThyssenKrupp currently invests about 1-1.5% of its total sales in R&D and it is too little and we want to raise this percentage said Mr Schulz. However, the chief executive added that a budget of 3% would be too high, given that steel producers devote a relatively small proportion of their budgets to R&D.
Inventing and developing new products is an important motor for German industry said Mr Schulz said at a press conference. Like other industry players, ThyssenKrupp is looking to produce an increased amount of specialized products in order to keep orders high throughout the steel cycle.
ThyssenKrupp produced about 16.5 million tonnes of steel in the fiscal year to end-September, despite cutting 800,000 tonnes of cold rolled and coated steel production and 120,000 tonnes of stainless steel.
Ferroalloys lower on European market
The European ferroalloys market has recently been on a downward trend.
This concerns the prices of ferromolybdenum, ferrochrome and ferrotitanium.
The weak demand in the stainless steel market is considered the main reason behind the dropping prices.
The stainless steel price has gone down by US$30 40 per mt and traders believe the continuous weak market is the reason why the scrap price is lower than expected.
According to the transactions on the European market, the ferrotitanium price reduced to US$24 26/kilogram from US$26.50 27.8/kilogram C&F. The ferromolybdenum price fell to US$79 81/kilogram from US$80 82/kilogram
Japanese NSSC keeps October prices unchanged for SS
Tokyo based Nippon Steel & Sumikin Stainless Corp NSSC, Japan's largest stainless steelmakers, will keep prices of SS unchanged during October as rising Chinese imports are lowering demand for Japanese steel products. NSSC, will charge 300,000 yen ($2,622) a metric ton for its 304 grade as per Mr Kiyotaka Mishima, Group Manager Planning Division of the company
Demand for Japan's SS is falling as consumers purchase more Chinese and South Korean products, forcing NSSC and Nisshin Steel Co to cut output. NSSC, which started production cut since February, will continue to cut output of SS by almost 35% till December Mr Mishima said.
China's SS production capacity has doubled in the past year as Shanxi Taigang Stainless Steel Co and Baoshan Iron & Steel Co. build new lines, pushing prices down. Chinese mills are adding production on expectations demand for stainless steel will surge as the world's fastest-growing major economy expands at more than 9 percent annually. China is expected to become the biggest stainless steelmaker within two years, overtaking Japan and the US
NSSC is 80% owned by Nippon Steel and 20% by Sumitomo Metal, Japan's third biggest steelmaker.
Germany's election result unlikely to stimulate steel production
According to MEPS, the formation of a "grand coalition" government in Germany has left economic commentators unimpressed. Many believe decisive and radical action is needed to spur industrial growth and, with it, steel consumption. But a coalition government, composed of left and right wing parties who have little in common, could see compromise, indecision and even paralysis.
At the recent election, the conservative Christian Democrat Union leader Angela Merkel campaigned on a platform of radical reforms of tax and the labor market. However, voters failed to back her in sufficient numbers and left no single party with enough seats in the Bundestag to take power. After three weeks of wrangling, Merkel has finally succeeded in forming a government but has been forced to concede control of key ministries.
So the economic outlook for Europe's largest steel producing and consuming country remains distinctly lacklustre. Steel demand this year was already forecast to be down by more then 3 percent compared to last year, which saw a massive stock build. Crude steel output in January-September was 4.6 percent lower than in the first nine months of 2004, as mills cut output to bring supply better into line with demand.
There are some signs that market conditions may be starting to improve. September saw a 12 percent increase in German steel mills' order intake over the same 2004 month. At 3.3 million tonnes, it was the highest September figure since 1999. Export orders led the way. Foreign sales of steel-containing goods will also be favored by the decline in the value of the euro against the dollar. So far this year it has lost more than 11 percent of its value against the US currency.
Japans crude steel output increases by 0.7% in H1
Japan's crude steel output in the April-September first half of fiscal 2005 rose 0.7% from a year before to 56.80 million tons, the third-highest level on a fiscal first half basis, due to strong domestic shipments to automakers and shipbuilders, an industry body said Tuesday.
The output level was the largest since the first six months of fiscal 1974, when it totaled 59.61 millions tons, the Japan Iron and Steel Federation said
Bulgarian Kremikovtzi re launches Kosovo galvanized unit
Sofia based Kremikovtzi has relaunched production at its Kosovo plant NewCo Llamkos Steel LLC for galvanized steel. Kremikovtzi had won the bidding for 100% of the Kosovo plant with an offer of Euro 4.1 million euro in April and announced plans to invest Euro 15 million in refurbishment of the Kosovo plant over the next two years which has annual capacity of 150,000MT but has been idle since 2001 due to financial difficulties
Part of the plant's output will be used in the manufacturing operations of Serbian Leskovac based Lemind FPL factory, which the Bulgarian company bought earlier this year, for making plastic coated steel.
Global Steel Holdings Ltd GSHL purchased 71% stake in the Kremikovtzi plant from Finmetals Holding in August and announced investment of $300 million in the mill over the next 3 years.
Rio in $1.7 billion WA expansion
Rio Tinto is spending $1.35 billion to expand its iron ore operations in Western Australia amid continued strong demand for the raw materials. The company will spend $ 530 million expanding its Yandicoogina mine and another $ 690 million boosting port facilities at Dampier, both part of Rio Tinto's wholly-owned Hamersley Iron subsidiary.
Rio Tinto CEO Mr Leigh Clifford said the expansion would take the capacity of the group's ports in Western Australia's Pilbara region to close to 200 million tonnes on completion at the end of 2007. The investment will make the Yandi mine, with an expanded capacity of 52 million tonnes a year, the largest iron ore mine in the Pilbara and a cornerstone of Hamersley's operations
Rio Tinto Iron Ore CEO Mr Sam Walsh said the upgrade would position the company to phase in additional capacity to meet demand. The expansion will take Yandi's annual capacity to 52 million tonnes from 36 million tonnes.
Rio Tinto said the mine's capacity had progressively increased since 1999, including the most recent expansion to 36 million tonnes a year, from 24 million tonnes, completed in August.
Dampier's annual shipping capacity will be increased to 140 million tonnes from 116 million tonnes. Rio Tinto said the current expansion, to 116 million tonnes, would be completed by the end of this year, with the first shipment of ore loaded from the new ship loader last month.
Brazilian Caemi to invest $750 million in 3 Years
Brazil's Caemi Mineracao e Metalurgica SA, an iron-ore producer controlled by CVRD, is planning to invest $759 million to boost output.
Caemi will carry out the investment plans over the next three years, the company said in a statement to the country's stock exchange.
Australian Aviva starts pre feasibility study for steel mill
Australian coal explorer Aviva said yesterday that it has finalized the appointment of all consultants for the pre feasibility study of an iron making and cogeneration facility based on the Central West coal deposit, in Western Australia. Aviva proposes a project output of two million tons of iron and 200 MW of power.
The pre feasibility study will investigate an initial 0.5 million tons iron making unit, 50 MW of power generation and 600,000 tons of coal production.
Resource sampling and coal analysis for the prefeasibility study is almost complete and many of the activities have commenced. Aviva expects that the study will be completed in the first quarter of next year at an estimated cost of $1.3 million.
High coal prices improve Peabody Profits
High coal prices delivered stronger profits for St Louis based Peabody Energy Corp during the third quarter, with net income more than doubling compared to the same period last year, the nation's largest coal company announced and reported net income of $113.3 million, up from $43.4 million during the same quarter last year.
Revenue for the quarter was $1.2 billion, up 33 percent from last year when revenue was $919 million. The company sold 61.6 million tons of coal during the quarter, up 5 percent from last year when it sold 58.7 million tons.
"Peabody's 2005 performance continues on its record pace," said Peabody President and CEO Elect Mr Gregory H Boyce. "Coal fundamentals are excellent, and coal is fueling the world's largest and fastest growing economies."
Mr Mark Reichman, an analyst with AG Edwards & Sons said that Coal prices continue to climb as demand remains steady while supplies tighten and utility companies have lower than usual coal reserves which is pushing the price higher as they try to boost inventories. US utility companies have roughly 100 million tons stockpiled to meet demand in coming months which is lower than the average 123 million tons that companies have had over the last five years. He added that Peabody is also expanding overseas operations to reap the benefits of increasing demand in India and China
Anglo American coal unit hit hard by strike
Anglo Americans South African coal unit said output was significantly affected by a general one-day strike in the region where 80% of South Africas coal is produced. The strike was one in a series of work stoppages that started on June 27.
The strikes were called by the Congress of South African Trade Unions to protest against unemployment and to push the government to weaken the rand
ThyssenKrupp acquires majority stake in Jupiter Stomana in Bulgaria
Dsseldorf based ThyssenKrupp Services AG is intensifying its involvement in Eastern Europe and has acquired an 80% interest in Sofia based Jupiter Stomana PLC, one of Bulgarias largest materials distributors and service providers, effective October 1, 2005. Jupiters MD Mr Krassimir Sotirov holds the remaining 20%. The parties have agreed not to disclose the purchase price.
Under the new name ThyssenKrupp Jupiter Stomana, the warehouse and service business will be rapidly expanded, in particular for rolled steel and tubes. In addition, stainless steel and nonferrous metals are to be added to the range. The company has three warehouse sites in Sofia, Russe and Plovdiv. Further expansion is also planned here. The company generated sales of Euro 11.1 million in 2004.
Mr Joachim Limberg, responsible for materials services on the Executive Board of ThyssenKrupp Services, explains: "All Eastern European markets have significant growth potential with gross domestic product rising by around five percent annually. Investments are being made in new infrastructure and construction projects, and our supply and service range is highly sought-after. As in Bulgaria, we intend to establish a presence on all key Eastern European markets, focusing on local partnerships with suppliers and consumers."
ThyssenKrupp Services has been pursuing a highly successful expansion strategy in Eastern Europe for some time and their companies in Hungary, Poland, the Czech Republic, Russia and the Ukraine now generate sales of well over Euro 400 million. Negotiations on joint ventures are currently being held in several other countries.
US Air Force testing new transparent armor
Wright Patterson Air Force Base engineers are testing a new kind of transparent armor which is stronger but lighter than traditional materials and could stop armor piercing weapons from penetrating vehicle windows. The Air Force Research Laboratory's materials and manufacturing directorate is testing aluminum oxynitride, ALONTM, as a replacement for the traditional multi-layered glass transparencies now used in existing ground and air armored vehicles. The test is being done in conjunction with the Army Research Laboratory at Aberdeen Proving Grounds, Md., and University of Dayton Research Institute, Ohio.
ALONtm is a ceramic compound with a high compressive strength and durability. When polished, it is the premier transparent armor for use in armored vehicles. The new armor combines the transparent ALONtm piece as a strike plate, a middle section of glass and a polymer backing. Each layer is visibly thinner than the traditional layers.
ALONtm is virtually scratch resistant, offers substantial impact resistance, and provides better durability and protection against armor piercing threats, at roughly half the weight and half the thickness of traditional glass transparent armor
Baosteel starts operation of new heat treatment lines
Baosteel has started operations of the No 2 and 3 heat treatment lines at their thick plate plant. With the two new lines in operation, the annual output will be up to 500,000 tons.
Baosteel had one heat treatment line with an annual output of 112,000tons, and with the new lines, the company has increased its products variety and improved the products quality.
Huaneng Q3 profit surges as coal prices dip
Huaneng Power International, the largest HK listed electricity supplier in China, has announced that their Q3 net profit rose by 7.5% as sales grew amid continued strong demand for power and coal prices softened. Net profit rose to 1.43 billion yuan for Q3, from 1.33 billion yuan the same period a year ago, after a 32 percent decline in the first half and revenue jumped to 10.3 billion yuan from 8.4 billion yuan.
Huaneng said unit fuel costs rose 15.6% in the first nine months of 2005 from a year ago to 158.63 yuan per megawatt-hour but that an increase in revenue during the period "could not fully offset the impact of fuel costs."
For the first nine months, net profit fell 21% to 3.05 billion yuan from 3.86 billion yuan while revenue rose% to 29.1 billion yuan.
Domestic thermal coal prices fell to 280 yuan per tonne this month from 281 yuan in the third quarter and 294 yuan in the second, but analysts said prices may rise in the near term as smaller mines undergo safety inspections and as larger mines find it difficult to relocate farmers to build new mines.
Southwire Co restart production after breakdown
Southwire Co have restarted production at their rod mill after a closure of two days. The mill was closed down for two days due to engine failure.
It is not clear yet how of if deliveries have been affected by the shutdown. The company is based in Georgia and produces wire and cable products as well as copper and aluminum rod.
Private steel mills in Iran to add steel capacity in next six months
It is reported that Navard-e Mazandaran, Poulad-e Navard, Foulad-e Gilan and Siadan Steel, private steel mills in Iran will begin operations by March 2006 and add 2.175 million tons per year capacity to the country. Siadan Steel has already started Rebars and would commence production of beams by end of March 2006.
Some other Steel Mills in which are expanding their capacity including Ardebil Steel, Seven Diamonds, Yazd Steel, Pars Steel and Natanz Steel and will also add to increase in steel production capacity by the end of next 6 months to take the total steel capacity in private sector in Iran to almost 6.2 million tons per year
Some 21 private companies are currently involved in steel production in Iran with total steel output at 2.7 million tons at present.
Pennsylvanian workers want state incentives for Allegheny Ludlum
The United Steelworkers of America want Pennsylvania to offer an incentive package that will inspire Allegheny Ludlum to invest $300 million in its Valley facilities rather than build a new plant out of state. The steelworkers are lobbying the Valleys legislative contingent to offer tax breaks, utility incentives and other benefits to Ludlum as the company reportedly considers where to build a new mill. Steelworkers fear the alternative may be Kentucky.
They will put that mill where they get the most cooperation, said Gary Bell, of West Leechburg, president of USWA Local 1138. Pennsylvania has got to offer them some type of incentive.
The company is considering several options for upgrading its plants, company spokesman Mr Dan Greenfield said. The company hasnt decided how much to spend, what to build or buy, or where to make the improvements, he said. We are still in the evaluation process, Greenfield said.
The steelworkers fear, however, the company is leaning toward buying a $300 million Steckel Mill, a reversing steel sheet reduction mill, which would modernize Ludlums operation.
Kentucky is home to one of Ludlums main competitors, North American Stainless, which is owned by Acerinox and the utility costs are significantly less in Kentucky, and workers arent unionized
Zambian government keen on a steel plant
The Government says establishment of a steel plant in Zambia is essential in development. A steel plant is earmarked to be set up in Kafue, a small bustling town 30 kilometers north of the capital Lusaka.
The Chief Government spokesperson said the Government has taken keen interest in the project to be undertaken by a local company Trade Kings.
Chinese Chung Fung opens Angolan steel mill
Chung Fung Holding of China has opened a $ 28 million steel mill in Angola. The plant, Industria Sigerurgica, will be 51% owned by Chung Fung and 49% by a local company Sociedade Angolana de Siderurgia Ltda
It will produce 32,000 metric tons of steel ingots a year in its first phase'' and 180,000 tons of steel bars when completed
California Steel Industries Q3 net down by 26%
California Steel Industries Inc CSI has reported results for the quarter ended September 30, 2005. Net sales during the period decreased 26% to $287.7 million, compared to net sales of $390.3 million in the third quarter of 2004. Net tons shipped decreased 18% and average sales prices decreased 11% compared to third quarter 2004, while average slab consumption costs increased 16%.
EBITDA for the quarter was $6.7 million, compared with 2004's third
quarter results of $87.1 million, and $26.1 million in second quarter 2005.
Net sales were 6% lower than second quarter 2005, reflecting sales prices
lower by almost 13%, while net tons shipped increased 7%.
SCI sold 190,208 net tons of HR, 52,364 net tons of CR, 163,775 net tons of Galvanized and 52,775 net tons of ERW pipes in Q3 of 2005
Prices for electricity and for natural gas ran 16% and 34% higher respectively, over third quarter 2004.
"Third quarter, usually our busiest time of year, was a difficult one for the steel industry. Lower sales volume and falling prices reflect a market that we believe reached its low point during this challenging year," said Mr Masakazu Kurushima, President and CEO. "However, demand for our products, as well as sales prices, has increased, and we believe that fourth quarter financial results will improve," he continued.
ThyssenKrupp reiterates that it does not plan to sell automotive unit
ThyssenKrupp AG CEO Mr Ekkehard Schulz reiterated that the steel conglomerate has no plans to sell its Automotive unit, currently suffering from weak sales at its US clients. 'I want to underscore that these reports are not true,' Mr Schulz said.
Reports appeared in the German press earlier this week that ThyssenKrupp may sell or close some of its US auto parts businesses if the auto industry does not improve there.
Mittal Steel to join management team of Hunan Valin Steel Tube & Wire
Hunan Valin Steel Tube & Wire Co Ltd announced that it has nominated 15 candidates for its new board of directors, of which five are from Mittal Steel Co NV. Valin Steel said in a statement to the Shenzhen Stock Exchange that the five Mittal Steel nominees are Mr Malay Mukherjee, Mr Ondra Otradovec, Mr Henk Scheffer, Mr David Clarke and Mr Sridhar Krishnamoorthy.
Mittal Steel paid $ 338 million for a 36.67% stake in Valin Steel Tube last month, becoming the listed company's second largest shareholder after Hunan Valin Iron and Steel Group which has a 37.67 pct stake.
According to a report by the Shanghai Securities News today, Mittal Steel will also send another senior management team to assist in Valin Steel's management.
The newspaper said that under the cooperation agreement signed by the two steelmakers, Mittal Steel will provide six internationally advanced steel production technologies to Valin to help enhance the company's core competency. Mittal Steel will also provide more than three million tons of iron ores to Valin annually, which will sharply reduce the Chinese steel maker's annual procurement cost. Mittal Steel also plans to sell Valin's products via its global sales network, said the newspaper.
Sphere trebles resources at iron ore deposit in Mauritania
Sphere Investments Ltd has announced a major increase in resources at its Guelb el Aouj iron ore project in Mauritania, announcing an Inferred Resource of 450 million tonnes at 36.6% iron for the project's East Deposit. The result has trebled the project's total Inferred Resource to 675 million tonne at 36.4% iron from the previously assessed Centre Deposit's Inferred Resource of 225 million tonnes at36.0% iron
"The first official resource estimate for the East deposit, not only confirms a large, high quality resource, but has also served to redefine the parameters of the Guelb el Aouj project," Sphere's MD Mr Alex Burns, said. "Based on the drilling and metallurgical results, we think there is sufficient magnetite mineralisation at East on its own to support a stand-alone 30 year iron ore mining and pelletising operation based on our planned production rates," Mr Burns said.
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"Both deposits consist of very thick sequences in synformal structures thereby being most readily suited to open-pit mining with a very favorable waste to ore ratio over the mine life. The end result is the emergence of an outstanding iron ore project of substance and quality to rival any magnetite project anywhere in the world."
Nigerian Coal corporation for privatization by December
The Nigerian Coal Corporation NCC will be privatized before the end of this year, Permanent Secretary in the Ministry of Solid Minerals Development Mr Aboki Zhawa has said.
Mr Zhawa told newsmen in Abuja that the privatization process, which had commenced, was in line with the ministrys emphasis on private sector-driven mining sector. He explained that government would provide necessary legislation and incentives to back up the private sector so as to move the mining sector and the nation forward.
As part of preparation for the privatization exercise, he said the ministry had began payment of 40 months salaries arrears owed staff of the corporation. Mr Zhawa also said that the disengagement of staff of the corporation would begin as soon as the arrears were paid.
The corporation was established in 1950 to mine and sell coal
