October, 22 2005
Kudremukh bags top exporter award
State owned Kudremukh Iron Ore Company Ltd KIOCL has bagged the top export award for its good performance in export of iron ore concentrate and oxide pellets for the year 2004-05. Kudremukh was also conferred with golden star trading house status at Chennai, a company release said.
It produced 4.3 million tonnes of iron ore concentrate and 3.7 million tonnes of pellets during 2004-05, it said, adding that exports were of the order of 0.7 million tonnes of concentrate and 3.7 million tonnes of pellets.
Corus undecided on entry into Indian steel scenario
India is now regarded as the most lucrative country by Global Steel Companies and several steel majors have already announced their plans to make in roads into Indian steel industry
It is reported that now Corus Group Plc of UK is also contemplating entry into India. Corus director commercial coordination Mr Duncan Pell is reported to have commented "We want to grow in Asia but we havent yet decided whether to come to India or not."
However, these majors said they were cautious in their India plan after mega announcements by several steel majors of domestic majors and international players in greenfield steel projects and expansion of capacities.
Dutch experts visit steel rolling mills in Punjab
A four members of the team of experts from Netherlands comprising of Mr Nico A Williamc, Mr Lon J M Van Der Zon, Mr J S Zijlmans and Mr Gustaaf A J M Van Ditzhuijzeneam, is presently visiting Mandi Gobindgarh and Ludhiana of Punjab during from October 16 to October 27 to analyze various factors and parameters in rolling mills to see how one can improve quality of products and efficiency of the steel rolling mills on the invitation of the All India Steel Rerollers Association AISRA.
Mandi Gobindgarh is cluttered with hundreds of small steel rolling mills and a very crude method of process in being employed. There is a scope of mechanization and automation, which could improve the economics of the units and also improve the quality of products
The team will submit a final report about their observation and analysis made on the industrial unit to Punjab with the efforts of the Punjab State Council for Science and Technology PSCST
RINL stresses on producing economic, environment friendly coke
During the inauguration of the 38th Operating Committee Meeting on Coal, Coke and Coal Chemicals in Visakhapatnam RINL CMD Mr Y Siva Sagara Rao stressed the need for assimilation of knowledge in the field of producing coke economically keeping in mind environmental safety and minimizing pollution.
He said that the need of best operating systems in coke ovens is not only to produce coke in an efficient manner but to ensure good health of the work-force. Mr Rao opined that the increasing prices of coal from India and abroad are playing a major role in the economics of steel making. In view of this, there is an urgent need to cut imports of coal and try to blend Indian coal to meet the requirements of coke ovens
The main thrust of the meeting is to deliberate on environmental control in coke ovens and coal chemical plants, cleaning of raw coke oven gas with respect to ammonia, naphthalene and hydrogen sulphide.
SC notice on exploitation of forest land in Chhattisgarh
The Supreme Court today issued notice to the Central & Chhattisgarh government and others to file their response within two weeks. on an application by a Chhattisgarh MLA seeking a CBI probe into alleged commercial exploitation of forest land in the state by mine owners and private companies in gross violation of the provisions of law and a 1996 apex court ruling.
Congress legislator Mr Bhupesh Baghel has alleged that the new management of Korba based BALCO, which has now been taken over by Sterlite Group, had gone ahead with an expansion plan encroaching 1000 acres of forest land. The government owned BALCO was privatized in 2001 and the expansion plan was put forward in 2002. An inquiry ordered by a state minister, who was elected from the area, revealed that BALCO had encroached 1000 acres of forest land and had chopped off 50,000 trees.
Pointing to another violation, Mr Baghel said that Essar Steel Ltd, which had been permitted to cut forest trees in Bastar to create a 8.4 meter wide corridor for laying an underground pipeline to transport iron ore slurry to Vizag, had created a 20 meter-wide corridor. He alleged that the state forest department did not do anything to prevent the destruction of forest by Essar and only imposed a fine of Rs 95 lakh on the company.
The MLA has also pointed out that a Durg based industrialist, who had been granted an iron ore mine in Kanker district on lease, had been violating the conditions of lease by cutting trees without permission. The industrialist had started mining operations without getting an approval from the Indian Bureau of Mines, he alleged.
Vikash Metal to setup a steel mill in Purulia
Kolkata based Vikash Metal & Power Ltd VMPL has charted out an Rs 134-crore expansion plan to set up an integrated steel project for manufacturing long products used in the construction and infrastructure sectors.
The company will be setting up a plant in Purulia in West Bengal. The complex will include a billet casting plant, a steel rolling mill, and a ferro manganese plant. It also plans to put up a 10 MW power plant that would make use of waste heat generated in the steel-making process.
The expansion of the sponge iron unit to 1.3 lakh tonnes a year, from 65,000 tonnes now, would incur an investment of Rs 39 crore whereas the captive power plant would require another Rs 38 crore
Steelmakers reduce sheet output to combat domestic price slide
Chinese steelmakers will cut sheet output by 5% in the fourth quarter in one of several steps to combat tumbling steel prices, the China Iron and Steel Association CISA said yesterday. The decision was made at an association meeting in Beijing with about 50 major Chinese steelmakers participating, brainstorming to curb falling domestic prices. "Sheet products shall be priced on a quarterly basis to fight such a situation," the association said.
Domestic steel prices have been dropping since April while international prices have been climbing since September. The flat products have been the hardest hit in the current price tumble.
CISA added that "Another remedy may be to add direct sales." Baoshan Iron and Steel, for example, sells products on a quarterly basis. Most are sold directly to consumers, such as the country's big-three automakers. The practice has helped the steelmaker ward off volatile prices fluctuation in the spot market.
Exports are another concern. China will not further cut the tax rebate on steel exports, the association said. The country has taken several measures to curb the sector since April, including scrapping a tax rebate on exports of pig iron and semi finished product.
Salzgitter says most clients have accepted Q4 steel price increases
It is reported that Salzgitter AG has said that most of its industrial clients have accepted its fourth quarter steel price increases. 'For the most part, we have been able to implement the price increases,' a company spokesman said.
Earlier, a report in the German press cited industry experts who estimated that Salzgitter's clients were only willing to pay half of the price increases, which reached the 30 euro per tonne level for some products.
Corus Appoints No Harwerth as Non-Executive Director (21/10/05 10:19 CET)
Iron ore miners see higher 2006 prices
Chinese steel companies and their raw material suppliers are making an early start to talks that will set 2006 iron ore prices after miners secured record-high levels for the current shipping year. A 71.5 percent increase in term iron ore prices for shipment in the year to March 2006 drew protests from Chinese mills, but strong spot prices and steady demand from the world's largest consumer bear out the justice of the hike.
Some analysts and industry sources said term prices from April next year could rise another 10 percent to 15 percent, although China's industry association is calling for a reduction. Macquarie estimates contract iron ore prices will raise by 15% on FOB basis next year, citing strong demand for term supply from Japanese and Chinese steel mills.
"Our view is that Chinese demand will continue to grow. There will be ups and downs but we see it as positive," said Mr Ian Bauert, managing director of sales, marketing and new business at Rio Tinto Plc Ltd. "Every tonne we produce, we ship, so demand is still strong. There's a lot of iron ore coming to China," Mr Bauert said ahead of an industry conference in the eastern coastal city of Qingdao.
For most of this year, landed spot prices in China have stayed above those of term iron ore. Long term Brazilian ore and spot ore from India both land in Chinese ports at about $70 a tonne, while Australian ore lands at $52 a tonne for long term cargoes
AK Steel enters long term agreement for iron ore pellets
AK Steel announced that it has entered into a long term supply agreement with Quebec Cartier Mining Company QCM for the purchase of iron ore pellets. The 10 year contract provides for the purchase of a significant portion of AK Steel's iron ore needs from QCM.
"This long term agreement with QCM, a leading producer of iron ore products, represents another important step in AK Steel's raw materials strategy," said Mr James L Wainscott, president and CEO of AK Steel. "The agreement ensures that AK Steel will have a reliable supply of this important raw material for years to come."
Quebec Cartier Mining Company has headquarters and locations in Quebec, Canada.
Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
ThyssenKrupp Service Acier starts new slitting line
ThyssenKrupp Service Acier, a French subsidiary of ThyssenKrupp Stahl Service Center GmbH, has begun operation of a new slitting line. The line can process steels with strengths of up to 1,400 mega Pascals and was installed in response to increasing demand from automotive customers for high-strength steels. These materials can be used to build lighter cars with lower fuel consumption. More than 65 percent of ThyssenKrupp Service Acier's production is supplied to automotive OEMs and suppliers in France.
"The French market is of strategic importance for ThyssenKrupp Steel. We are underlining this by our investments in the processing and distribution of our steels by ThyssenKrupp Service Acier" said Dr Jost A. Massenberg, Member of the ThyssenKrupp Steel Executive Board, at the start-up of the new slitting line at the Fosses plant. France is Europe's second-biggest auto market, producing around 3.5 million vehicles per year.
ThyssenKrupp Service Acier was founded in August 2004 by the merger of the two steel service centers Coste S.A. and Laminoirs et Ateliers de Jeumont SAS. In addition to the site at Fosses, not far from Paris, the company has a second plant in Jeumont on the border with Belgium. In Fosses ThyssenKrupp Service Acier operates two wide slitters and a slitting line for narrow strip. The Jeumont plant has two wide slitters, two narrow strip slitters, a cut to length line and an edging machine for processing slit strip edges.
ThyssenKrupp Steel's European steel service centers are combined in the Steel Service operating group. Including associate companies, the group has some 1,000 employees and generated sales of around 1.2 billion euros in fiscal 2004-2005. The centers process hot and cold rolled metallic and organic coated carbon steels and stainless steels.
Caterpillar announces record Q3 sales and profits
Continuing to meet strong customer demand worldwide, Caterpillar Inc has reported Q3 sales and revenues of $8.9 billion and profit of $667 million. Both sales and revenues and profit per share are the highest in the company's history for a third quarter.
Revenues of $8.977 billion were up $1.318 billion 17% compared to $7.659 billion for the Q3 of 2004. Profit of $667 million is up 34% compared to profit of $498 million in the third quarter of 2004.
"Thanks to the hard work of our people around the world and the discipline of 6 Sigma, Team Caterpillar has again effectively responded to our customers needs," said Caterpillar Chairman and CEO Mr Jim Owens.
BHP Billiton eyes Angang Steels state-held shares
It is reported in dailies that BHP Billiton plans to buy over 30% of Henan Province-based Angang Steels state held shares. Such a move by BHP Billiton would need approval from the National Reform and Development Commission and China Securities Regulatory Commission.
Officials at Angang Group have indicated that formal negotiations have not taken place yet but some insiders point out that BHP Billiton plans to become more involved in Chinas markets.
Blast at metal recycling plant in Azerbaijan
The blast took place in the town of Akstafa, 500 kilometers North West of Azerbaijans capital Baku as per reports in local killing three and wounding more than 30 persons
It is reported that the blast took place at a factory that processed scrap metal. According to preliminary information, an artillery shell detonated as workers tried to disassemble it.
Analysts give mixed response to BHP expansion
BHP Billiton's planned expansion of its Pilbara iron ore operations, by investing $ 1.3 billion for increasing output to 129 million tonnes a year by the end of 2007, has been welcomed by mining analysts but concerns have been raised about the project's timing.
Credit Suisse First Boston CSFB analysts said they endorsed the expansion but that it would result in a 10 per cent drop in production during the construction process.
Goldman Sachs JBWere GSJBW analysts said the pace of the iron ore ramp up could be quickened.
UBS analysts said the expansion would cost less than they had expected and would boost production earlier than they had anticipated.
However the analysts said the willingness of BHP Billiton and Rio Tinto to expand their iron ore operations at a time of high costs helped reinforce the view that demand for iron ore would remain strong for some time.
Teck boss lauds Inco-Falconbridge deal
Nickel giant Inco Ltd.'s $12.5-billion planned takeover of Falconbridge Ltd. is good for Canadian mining, the head of Teck Cominco Ltd. said yesterday in his first public comments on the deal since it was unveiled Oct. 11. "Anything that will ultimately result in Canadian assets becoming more efficient and more competitive and more viable in a very competitive market, particularly when the next downturn comes, I think is a good thing," Mr Don Lindsay, president and CEO of the Vancouver based Tech
He also dismissed the notion that the Inco Falconbridge transaction may have put Teck itself in the radars of acquisition-hungry global mining giants.
Metals USA reports Q3 results
Metals USA Inc has announced results for the three months ended September 30, 2005. Net income in Q3 of 2005 was $11.2 million, less than those achieved during our record setting Q3 of 2004 when net income of $31.8 million was recorded. Net sales revenue was $396.1 million, against $412.6 million sold during Q3 of 2004 with EBITDA of $21 million
Average realized sales prices per ton and shipment volumes by the Flat Rolled and Plates and Shapes Groups were down 2% and 3%, respectively, compared to the same quarter last year.
Mr C Lourenco Goncalves, President and CEO, stated, "While Metals USA is not dependent upon the automotive industry, the mid-year slowdown of that industry affected the steel business as a whole in July and part of August. Metals USA continued to reduce inventories, and paid down an additional $75.4 million of our debt during the third quarter. As soon as scrap prices increased and the market realized that inventories were low across the board, the leading steel mills successfully increased steel prices, benefiting all members of the supply chain, particularly service center companies like Metals USA." Mr. Goncalves continued, "Following the restructure of the Building Products Group during the later part of last year, this division continues to deliver consistent, improved results, contributing $5.4 million of operating income this quarter." Mr. Goncalves concluded saying, "We expect a strong and profitable fourth quarter, and are extremely excited with the prospects ahead of us."
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.
Angang drops plan to sell more shares
Chinas No. 2 steelmaker Angang New Steel Co yesterday scrapped a plan to sell additional shares to retail investors and excluded holders of foreign currency equity from compensation in its stockholding revamp. It will only issue 2.97 billion Yuan denominated shares at 4.29 Yuan (53 US cents) each to its parent as part of payment to acquire a 19.7 billion Yuan steel unit.
Angang said in December it planed to sell as many as 3 billion new shares to parent Anshan Iron & Steel Group and place eight shares with all stockholders for every 10 they own.
The unit to be acquired is Angang New Iron & Steel Co, also controlled by its parent, which produces upstream products including hot-rolled steel strips, steel plates and cold-rolled silicon steel.
Anshan Iron & Steel, which holds 63.6 percent of Angang, promised it will keep at least 60 percent of Angang until the end of 2010.
75 years of ThyssenKrupp VDM
ThyssenKrupp VDM GmbH is celebrating its 75th anniversary with a two day Energy and Environment Symposium on October 20 and 21. The guest speakers include Christa Thoben, Minister for Economy, SMEs and Energy in the state of North Rhine-Westphalia, and Prof. Dr. Dieter Ameling, President of the German Steel Federation (Wirtschaftsvereinigung Stahl).
In further presentations during the event, customers of ThyssenKrupp VDM GmbH will describe the requirements they place on modern high performance alloys, and employees of the company will present ThyssenKrupp VDM products for energy and environmental applications.
ThyssenKrupp VDM GmbH was founded in 1930 as Vereinigte Deutsche Metallwerke, an amalgamation of medium-size enterprises under the management of Metallgesellschaft in Frankfurt. Founder members of VDM included the companies Carl Berg, founded in 1853 in Werdohl-Eveking, and Basse und Selve, established in 1869 in Altena.
For more than 40 years, VDM manufactured semi finished products of nonferrous materials such as copper, aluminum and brass before concentrating on the production of nickel-base alloys and special stainless steels at the end of the 1970s. This proved to be a successful strategic decision: today the company is world market leader in these materials, which have properties such as high heat and corrosion resistance and are used in the chemical, energy and offshore sectors among others.
VDM joined the present ThyssenKrupp Group in 1989, when it was acquired from Metallgesellschaft by the then Krupp Stahl AG. Today, ThyssenKrupp VDM is part of the Stainless segment in the ThyssenKrupp Group. The nickel base alloys and special stainless steels produced by ThyssenKrupp VDM round off the top end of the segments portfolio of stainless, acid and heat resistant materials.
Tokyo Steel's H1 net profit drops 33.4%
Tokyo Steel Manufacturing Co Ltd said its net profit for the first half to September tumbled 33.4% to 19.60 billion yen from a year earlier, hit by slump in exports to Asia due to stiffer competition from Chinese steelmakers.
Tokyo Steel Japan's largest electric furnace steel maker, said its output of steel products fell some 17.6% from a year earlier to 1.51 million tons.
Corus appoints Ms No Harwerth as non executive director
Corus has announced the appointment of Ms No Harwerth as a non executive Director with effect from 1st November. At Corus she will also become a member of the Audit and the Health, Safety & Environment Committees.
Commenting on her appointment Mr Jim Leng, Chairman of Corus, said "Nos background and experience in international finance will add to the skills of our board as we look to build and develop the Company. We are delighted she has accepted our invitation to join the Corus board."
Ms No is currently non executive Director of Royal & Sun Alliance Plc, Partnership Director of Tube Lines and Metronet and Deputy Chairman of Sumitomo Mitsui Banking Corporation Europe.
Ms No Harweth has extensive experience in financial services with particular focus on governance, risk management and taxation. Until her retirement from Citigroup in 2003, Ms Noẽl operated as COO for the Citibank International in Europe with responsibility for infrastructure and governance. Prior to this, in 1988,
