October, 23 2005
TATA Steel Dy MD says export cars and not iron ore
The Tata Steel Deputy MD Dr T Mukherjee, while speaking at Steel Metallics India 2005 Kolkata, has made a strong case for disallowing export of iron ore from the country. Dr Mukherjee said: "Under-developed countries export iron ore, developing one export semis and developed ones export cars". With India having arrived as a developing nation and well on its way to becoming a developed one, "we as a nation would have to decide if we wished to export ore or cars," he said.
Dr Mukherjee said the domestic consumption of iron ore was bound to go up substantially and the reserves in India did not justify export of iron ore. India needs to go up the value chain and, instead of exporting iron ore, would have to import iron ore to fuel its economic growth.
Steel import up by 34% in H1 at Mumbai Port
Bulk cargoes have, in the main, boosted the traffic throughput at Mumbai Port, which have registered a growth of over 17% during April-September 2005-06, compared to the first half of 2004-05. The port handled a total volume of 19 million tonnes during the first half of the current fiscal, as against 16.78 million tonnes during the corresponding period of 2004.
Volumes of iron and steel cargo increased by 32% to 2.4 million tonnes as per Mr V. Ranganath, Traffic Manager, Mumbai Port Trust, said.
In 2005-06, the Port was expected to handle 38 million tonnes, which would be three million tonnes more than in 2004-05.
CPI (M) opposed to passage of Coal Bill 2000
The government proposal to amend the Coal law to allow commercial mining of coal in India ran into a rough weather with the CPI (M) today opposing the proposal totally. "We are not in favor of passing the Coal Bill 2000 pending in the Parliament," CPI (M) General Secretary Prakash Karat, said today
The Bill currently pending with the Rajya Sabha specifies for its due consideration is being opposed by the trade unions tooth and nail, following which the Group of Minister headed by Defense Minister Pranab Mukherjee, is now looking into the various issues concerning the coal industry.
The GoM has not taken any decision on whether to pursue the passage of the said Bill in view of repeated threats of strike by the trade unions.
Orissa CM directs to expedite environment clearance for mines
Orissa Chief Minister Naveen Patnaik has asked the Forest and Environment Department to complete all formalities for obtaining forest and environment clearances for different mines leased out by the State Government to the Orissa Mining Corporation OMC. The Chief Minister reviewed the progress in this regard at a high-level meeting here on Friday and directed the officials to expedite the processing of the applications and complete it within the next six months.
Clearances for 14 mines leased out to the OMC are pending at different levels. It was found that ten cases were pending with the Divisional Forest Officers of Keonjhar, Bonei and Dhenkanal while one case is pending in the office of the Principal Conservator of Forest. Three cases are pending with the Centre. The mines leased out to OMC which are yet to get forest and environment clearances are, Gandhamardhan A, Gandhamardhan B, Daitari, Banspani, Korea, Rantha (all iron ore), Kurmitar, Serenda (iron ore and manganese), Sukharangi, South Kaliapani, Kaliapani, Baula, Birasal and Kathpal (chromite).
Forest Department officials maintained that applications for clearances would have to be processed in the new format as per the latest guidelines of the Centre.
The demand for iron and chrome ore has increased after companies lined up to set up steel plants in the State. The State Government has signed memoranda of understanding (MoUs) with 36 companies. The State Government has decided to supply raw materials to these plants through the OMC till captive mines are leased out to them. However, with operations yet to start in so many mines, the State Government may face difficulties in supplying ore to many companies.
Italian firm Fagioli plans manufacturing base at Kandla EPZ
The Italian Fagioli group, which specializes in heavy lifting equipment for civil, offshore, power and petrochemical industries, has decided to set up a $3 million manufacturing base in the Kandla Export Promotion Zone EPZ.
The company, which manufactures alternative lifting equipment, sees significant demand growth in this sector. "The demand for alternative lifting equipment is growing in India; currently the market size is pegged at about Rs 40 crore," said Mr Les J Brown, MD of Fagioli PSC Ltd, UK. "Corporate are increasingly shifting from conventional methods of lifting to alternative lifting systems, as these are faster, safer, economical, and easy to operate," Mr Brown said.
Currently, about 80 per cent of the equipment erection works is carried out by cranes, and the rest through alternative lifting equipment. Fagioli is considered to be one of the world leaders in alternative lifting equipment such as strand jacks and tower lift system, archaic cranes, derricks, and winches.
Australia rescinds AD investigation on hollow bars
The Australian Customs Service had initiated an investigation into the antidumping duty order on hollow steel sections HSS imported from China, South Korea, Malaysia and Thailand, upon a petition filed by domestic producers OneSteel Trading Pty Ltd., Smorgon Steel Tube Mills Pty Ltd. and Orrcon Operations Pty Ltd. on December 23, 2004
Subsequently Customs decided that ending the investigation was not likely to cause injury to Australian industry. Accordingly, Customs, on April 5, 2005, canceled the investigation with respect to imports of the subject merchandise from the four countries.
However, the petitioners, on April 28, 2005, asked the Trade Measures Review Officer for a review of Customs decision to terminate the investigation. Upon the petition, the TMRO overturned Customs decision to terminate the investigation. On July 29, 2005, the TMRO found that Customs decision dated April 5, 2005 was inappropriate under the terms of the Customs Act 1901.
Therefore, the investigation was re-initiated. However, on October 5, 2005, the Federal Court made consent orders that the TMRO decision be set aside and the Customs decision regarding termination of the subject investigation be remitted to the TMRO to be further considered and determined according to law. As a consequence of these orders, the resumed Customs investigation has been rescinded. The TMRO announced that it would complete its review by December 5, 2005.
IISI Short Range Outlook Good Prospects for Steel
The International Iron and Steel Institute (IISI) has issued its Short Range Outlook for Steel Demand. The Outlook forecasts the development of the Apparent Demand for Finished Steel Products until the end of 2006. The prospects are good for continued real growth in the demand for steel worldwide according to the latest projections by IISI. Apparent Steel Demand is forecast to grow to between 1,040 and 1.053 million tons in 2006 from a total of 972 million tons in 2004. This is a growth of 4-5% over the two year period.
The strongest growth continues to come from China, which should see a 10% increase in steel demand in 2005 and a further 7-10% growth next year. In the rest of the world, Apparent Steel Demand in 2005 will be the same as in 2004. A significant build-up of steel inventories in 2004 has been worked-off this year. In 2006 there should be a renewed increase in Apparent Steel Demand of 20 to 25 million tons in the rest of the world and a further increase of 20-30 million tons in China.
For 2005 the apparent steel demand forecast is 998 million tonnes with 300 million tonnes for China and 698 million tonnes for rest of the world. The region wise forecast includes 190 million tonnes in Europe down 1% from 2004, 45 million tonnes in CIS up 2%, 145 million tonnes in NAFTA down 4%, 33 million tonnes in Central & South America up 1%, 20 million tonnes in Africa up 1%, 28 million tonnes in Middle East up 3% and 534 million tonnes in Asia Pacific including China up by 6%
For 2006 the apparent steel demand forecast is 1040-1055 million tonnes with 320-330 million tonnes for China and 720-725 million tonnes for rest of the world. The region wise forecast includes 198 million tonnes in Europe up 4% from 2005, 48 million tonnes in CIS up 5%, 149 million tonnes in NAFTA up 3%, 36 million tonnes in Central & South America up 7%, 21 million tonnes in Africa up 5%, 31 million tonnes in Middle East up 7% and 570 million tonnes in Asia Pacific including China up by 7%
The forecast for 2006 are given as a range to reflect some uncertainty in the prospects for a pick-up in economic growth which may be adversely impacted by the recent further sharp rises in the price of oil and energy. However, the forecasts confirm the trend of recent years of an increase in steel use in-line with general economic growth and with the fastest growth occurring in the countries with the highest GDP growth such as India and China. Costs of raw materials and energy continue to represent a major challenge for the world steel industry.
German auto major Bosch sees steel prices rising again in 2006
Robert Bosch GmbH, the world's largest automotive parts supplier, expects steel prices to continue to climb come next year, its CEO Mr Franz Fehrenbach told a German daily.
"Our earnings this year will take a hit in the hundreds of millions of euros from price hikes in steel and other raw materials. Unfortunately, it looks as if steel prices will further rise at the beginning of 2006," he said, adding that the group's target to achieve flat profits this year was becoming more difficult. He said
Norilsk to release new production strategy
Russian metals giant Norilsk Nickel released estimates for 2005 metal output, and is in the process of revising its entire metal mining and production strategy and expects to announce its new plans in the first half of 2006.
Norilsk's Deputy GD Mr Denis Morozov told press that "We're revising our production figures today and would be interested in enjoying current commodity prices, but there are some technical decisions that need to be made."
With different metals coming from the same ore body, for example, he said decisions need to be weighed about which deposits to expand based on their varying degrees of demand and therefore value in the global market.
For example, Morozov said, whereas nickel supply is expected to show a deficit in 2005, palladium, which tends to occur in the same deposits, has not been as strong.
Until recently, Norilsk has been the world's leading producer of nickel, a metal used mainly in steel production. It will likely be supplanted if Canada's Inco Ltd, the world's number two nickel producer, is successful in taking over its compatriot Falconbridge Ltd to create the world's biggest nickel miner.
Capital Steel opens new branch to step up relocation
The Capital Steel (Shougang) Corporation, a Beijing based steel maker, opened a new subsidiary in its neighboring Hebei province, a major step in its eastward relocation. The new company, called Capital Steel Beijing-Tangshan Iron & Steel Joint Co. Ltd., is based in Caifeidian Industrial Park of the Tangshan city in Heibei.
Chinese vice Premier Zeng Peiyan inspected the new site of the company Saturday and encouraged its officials and workers to develop high value-added products with least pollution.
Mr Zeng said the relocation of the Capital Steel in Hebei represents a major policy decision made the Communist Party of China (CPC) Central Committee and the State Council, the requirement of the development of iron and steel industry in the national capital and Tangshan area; and it will surely help the company adjust its product mix and also plays an active role in prospering the Bohai Bay economic zone.
Environmentalists say that Beijing, the host city of 2008 Olympic Games will see its air quality greatly improved when Capital Steel moves out to Hebei
China's Wuhan Steel 3rd-qtr net profit down 18%
Wuhan Steel, China's third-largest steel maker, said on Saturday its third-quarter net profit fell 18% as it cut prices due to weak domestic demand. Wuhan Iron and Steel Co. Ltd. said net profit from July through September fell to 1.1 billion yuan ($136 million) from 1.35 billion yuan in the year-ago period.
''In the face of steadily falling steel prices ... the company continually faced a challenge ... and worked hard to improve its production organization, adjust its product structure, strengthen management of its forecasting and strictly control costs,'' Wuhan Steel said in its quarterly results
Domestic steel prices have fallen on an average of more than 20 per cent since the end of March, when they reached their highest levels in more than a decade. In response, Wuhan Steel cut its product prices from July, its first cut since September 2004.
Wuhan Steel, which dominates the central China steel market, is the smallest of a dominant domestic trio that also includes the state-run parents of leader Baoshan Iron and Steel Co. Ltd. in the east and Angang New Steel Co. in the north.
Race narrows for expansion of the iron palletizing plant of GIIC
With the elimination of Finlands Outokumpu only three companies Germanys Siemens, Italys Danieli and Japans Kobe Steel are left in the race to get the $250 million-300 million main plant contracts on the expansion of the iron palletizing plant of Gulf Industrial Investment Company GIIC
The work includes installation of a kiln, rollers and palletizing machines to double capacity. Technical evaluation is under way of about three bids for the infrastructure contract, estimated to be worth $90 million-100 million, covering construction of a jetty, a stockyard, power and desalination plants and seawater intake facilities
Indonesian energy minister recommends 5% tax on coal exports
Indonesian Energy and Mineral Resources Minister Mr Purnomo Yusgiantoro has recommended the imposition of a five-percent tax on coal exports when the commodity's international price has reached its normal level at US$50 to US$55 a ton. "I think the acceptable price for the imposition of export tax is between US$50 and US$55 a ton," Mr Purnomo said after a coordinative meeting on economic affairs
The government has issued a Government Regulation on the imposition of coal export tax, and as a follow up, it would issue a joint trade minister's and finance minister's decree The joint decree would among other things set the price level for the imposition of the export tax.
Construction of coal-transporting railway starts in China's Hebei
Construction of the coal shipping Qian'an - Caofeidian railway started Friday in Hebei Province, north China. The 213-km line will be linked with the Datong - Qinhuangdao railway will relieve the pressure on the railway which is specialized in shipping coal produced in Shanxi Province to the sea port of Qinhuangdao.
It is the first railway involving non-government investment, which totals 4.8 billion yuan ($593 million). When in operation in 2007, the railway, with a designed annual capacity of 130 million tons, is expected to help increase the coal transportation capacity of Shanxi, Shannxi and Inner Mongolia, all major coal producers in north and northwest China.
Aramco approves projects for 2006
The Saudi Aramco Board of Directors, at its fall meeting in Dhahran under the chairmanship of Mr Ali I Al-Naimi, Minister of Petroleum and Mineral Resources, approved the 2006 capital and non-capital budgets as presented, including Exploration and Development budgets.
The projects include the Hawiyah Gas Plant Expansion Project, four items for pipeline rehabilitation, upgrades and capacity increases and a project for upgrading Jiddah Refinery waste water treatment facilities.
Yemen LNG awards $ 160 million tank farm package
Yemen LNG has awarded a contract to build a tank farm serving the grassroots liquefied natural gas (LNG) project at Bal Haf to a three member group of Japans TKK, South Koreas Daewoo Engineering & Construction Company and Dywidag International of Germany
Estimated to be worth $160 million, the EPC contract calls for the construction of two LNG storage tanks, each of 140,000 cubic meters, piping, related civil and mechanical works.
Mittal Steel US cuts salaried retiree benefits
Mittal Steel is cutting off health insurance for 2,700 Ispat Inland salaried retirees and surviving spouses who are eligible for Medicare starting Jan. 1, 2006. The company said continuing coverage is too costly and the new Medicare Part D drug benefit will be available for these individuals.
The company will still provide health insurance to its salaried retirees and dependents until they turn 65. This decision will not affect former LTV or Bethlehem retirees, who already lost health insurance.
The company sent a letter to salaried retirees, spouses and surviving spouses of those who had retired on May 1, 1984, or after saying because the Medicare prescription drug program will be available, Mittal Steel will end its program.
The companys decision will ultimately affect a total of 4,500 retirees, spouses and surviving spouses about 1,800 of whom arent yet Medicare eligible.
