October, 27 2005
TATA Steel Q2 net up 12.4% to Rs 1045 crores
TATA Steel Ltd has reported a 12.4% rise in net profit during the second quarter of 2005-06 to Rs 1,045 crore compared to Rs 929 crore in the year-ago period. Total income rose about 5% to Rs 3,983 crore during the July-September 2005 quarter as against Rs 3,795 crore in the corresponding period last fiscal
The company posted a 17% growth in net profit during the first half of 2005-06 to Rs 1,969 crore compared to Rs 1,675 crore in April-September 2004-05. Total income in the first half grew by 7% to Rs 7,478 crore as against Rs 6,987 crore in the first half of 2004-05
Stemcor acquires stake in Indian can maker Hindustan Tin Works
UKs Stemcor, the $ 6 billion metal trading house, has picked up around 12% stake in New Delhi based Hindustan Tin Works HTW which is one of the largest producers of metal tin cans used in food packaging in India. The $1.2m deal was part of a preferential allotment made by the company, to part-finance an ambitious Rs 50 crore expansion plan, the first-of-its-kind in the country, to take up production of beer and beverage cans.
HTW has moved into specialized production of two piece beer and beverage cans. The project is likely to be completed by March 06. The market for such beverage and beer cans in the country is estimated at 100m pieces per year. The entire demand for such cans is presently met through imports. HTWs expansion project, which is underway, proposes to set up a slow manufacturing line of 600 cans per minute at Taloja, Maharashtra. Eventually, the company hopes to be able to cater to the entire domestic demand for cans through its Maharashtra unit.
In addition to producing a range of metal tin cans, HTWs existing Haryana plant annually produces some 12 million cans used for exporting mango pulp. The company is also the largest can supplier to the likes of Nestle India, Heinz, Britannia and Hindustan Lever for its infant foods and coffee products.
The transaction gives Stemcor a foothold in a high growth area in India, which is poised to witness substantial growth in usage of beverage cans. We have invested in the equity of Hindustan Tin Works. The company is setting up Indias first beverage can line which we are confident will be a substantial growth area and will lead us to more substantial investment in this sector in the future, told Mr Matthew Stock, MD, Stemcor India
Hindustan Tin Works chairman Mr Vijay Bhatia said, Stemcor has invested in the company and could be interested in making further investment. He, however, did not disclose the price at which the deal was struck.
LME signs licensing deal with MCX
The London Metal Exchange LME on Tuesday announced that it had signed a licensing agreement with Multi Commodity Exchange of India Ltd MCX to allow the use of LME price as the basis of settlement of MCX contracts. The deal starts immediately and will be for an initial three-year period. Pricing will be in Indian rupees.
"The agreement will initially apply to MCX contracts for aluminium, tin and nickel in small lot sizes of 1 tonne which would be soon followed by launch of copper contract in the first quarter," the MCX CEO Mr Jignesh Shah, told press. He added that the agreement would enable a better understanding of the market dynamics of the base metals industry in India and would integrate the Indian market and participants with the global market more effectively and foster world-class practices in commodity futures market regulation and operations
"This is a unique agreement for the LME and it will reinforce the LME price as the only true global benchmark for the contracts that we trade. Additionally, it forges an important link with an ambitious and dynamic organization which is currently the fastest growing exchange in India," Lord Bagri CBE told news persons here
Mr Simon Heale, LME CEO said: "The agreement is real, it sets out tangible activities rather than a mere willingness to agree to talk about working together and as such, it has the potential to bring significant benefits to both parties. MCX is growing faster than other exchanges."
Jharkhand CM changes gear and offers left out ore to WB
It is reported that now Jharkhand is willing to part with iron ore to West Bengal provided it first meets its growing demand. The change of heart on the governments part comes a few days after WB CM Mr Buddhadeb Bhattacharjee complained to Prime Minister Mr Manmohan Singh in Delhi about Jharkhands refusal to provide iron ore for steel plants.
Jharkhand chief minister Arjun Munda, whose government had so far maintained it would not allow movement of the mineral outside the state without value addition, today said he was willing to give iron ore to his neighbor. But the gracious offer came with a rider.
Jharkhand will meet its own demands before we offer the mineral to Bengal. We are working out the details of requirements of iron ore that the new companies who have signed MoUs would require for steel production. If we are in a position, we shall surely provide it to Bengal, Mr Munda said.
Jharkhand mines department officials said according to a survey carried out by the Indian Bureau of Mines, West Singhbhum had deposits of 35,000 million tonnes of iron ore. But if all the 36 MoUs signed by the state government in the mining and steel sector materialize, it would be extremely difficult for Jharkhand to give iron ore to Bengal, said an official.
Munda, while making the offer to ore-starved Bengal, struck a tough note, saying he would not succumb to pressure from any quarters to provide iron ore to any state without giving priority to Jharkhands interest. I have to be selfish in Jharkhands interest, he said. For over 40 years, Jharkhands coal, iron ore and other minerals have been going to other states and they have benefited. But our people have not. Even today, 90 per cent of Jharkhands coal goes to other states for generating electricity. But ironically, in several parts of our own state, people still live in the lantern age, Mr Munda said.
IISCO seeks to lease out Kulti plant
It is reported that IISCO has sought state governments permission to give its spun pipe unit at Kulti, which was closed in April 2001, on long term lease to a private investor
Since the land which the factory and the township occupy, had been given on lease by the state government, its permission is being sought, a senior IIISCO official said. While the factory sprawls over more than 200 acres, the township comprises more than 350 acres.
Started before IISCOs Burnpur plant,
Kulti factory, which mostly produces spun pipes and steel casting material, was started even before IISCOs Burnpur plant. Spun pipes faced a stiff competition from ductile iron pipes, as their manufacturing cost is low and the demand for spun pipes gradually faded out resulting in closure of this facility
TATA Steel prefers acquisitions in SEA & China
South East Asia and China continue to be TATA Steel's preferred geography for acquisitions. The company would look at acquisitions elsewhere only if availability of crucial raw materials such as iron ore and coal is easy. "We would look at some of the finishing mills in South-East Asia and China; anywhere else we need to have the raw material availability advantage," Mr B Muthuraman, Managing Director, TATA Steel, told press
.
The company had stated that it would look at acquisitions as a means for growth. TATA Steel's focus would be to build a stronger base in India and pursue strategic acquisitions, he said.
Steel companies' profitability, he said, are driven by four factors cost, volumes, product mix and price. TATA Steel has advantages in these factors. In terms of cost, volumes and product mix the company is constantly working at either controlling them or improving them. Prices of steel, therefore, are not a significant factor for profitability for Tata Steel, he said.
British expertise to enhance coal output in ECL
The Eastern Coalfields Limited is all set to emerge with a British expertise in the field of coal production as an agreement with a British multinational technology giant was signed in this respect in New Delhi last week by the coal major.
The British company, according to the latest deal, will introduce continuous miners in Jhanjra colliery initially. It will help producing additional 4.20 lakh ton of coal annually. According to Mr Dipak Chakraborty, CMD, ECL will be enjoying the outcomes of this risk-gain saving deal resulted by this package worth 65 crores. We will be paying 85% of the sum after installation of the continuous miners in the project sites and the remaining amount would be paid in five years. This is the unique advantage of the deal. The ECL is not seeking any budgetary support to hire the machines and technologies in this respect, the officials said.
The company, that is sill under the purview of the Board for Industrial and Financial Reconstruction, with its present financial backup is capable enough to meet the cost expenses against the British deal. The company, already has opted a long term investment plan worth Rs 3000 crore till 2011-12 fiscal with phased funding
ECL, operates 89 underground mines and 18 opencast mines across the 1620 sq km stretches falling under West Bengal and Jharkhand has got a total coal reserve of 42.97 billion ton has managed securing 27.26 mt of coal in 2004-05 fiscal.
WBMTDC seeks coal blocks
The WB government is now going all out to attract mining sector investors to the state in its drive to bring about an industrial resurgence and has made plans to acquire coal blocks through a state owned outfit for mineral trading, West Bengal Mineral Trading & Development Corporation WBMTDC, in West Bengal and other adjacent states. The company already owns a major coal block in Damodar basin called Trans Damodar Coal mines.
Sources in the state government informed that I-win, the infrastructure consultancy joint venture of West Bengal government and ICICI Bank was now drawing the roadmap for WBMTDC. "It has applied for nine coal blocks. WBMTDC already got one and there is strong signal that it is likely to get few more," said sources.
M&Ms Tractorul acquisition to be completed by mid December
Acquisition of Romanian Tractor maker, Tractorul Brasov by Mahindra & Mahindra is most likely to finalize in mid-December. The acquisition is part of the companys strategy aimed at securing world leadership in the farming machine industry as per Mr Arun Nanda
Tractorul has been put up for sale in the market four times over the past five years and the sale procedures must be finalized by year-end, otherwise the company is to be wound up, according to the supplemental Memorandum of economic and financial policies signed with the IMF.
We cannot afford to fail in this take-over bid. It is, above all, a matter of image for Mahindra Company. We intend to become the worlds largest tractor manufacturer, and Tractorul Brasov is part of this strategy, M&M official stated
Romanian Minister of Economy and Commerce in his turn voiced his optimism with respect to the success of the privatization attempt, mentioning the same estimated date of contract signature. At some point in mid-December, it will all be ready. The Mahindra management is very determined, and things will go on very quickly. Considering what we have discussed with them, I believe that by the end of the year we will finally have a successful privatization, Mr Seres believes.
Romanian Premier Mr Tariceanu stated in a talk show that the M&M should come up with an investment plan of approximately $200 M, corresponding to the value of State-funded aid granted to the Romanian company over the years.
Wilbur Ross starting Indian turnaround fund
WL Ross & Co., the Manhattan-based investment firm, has partnered with Indias leading home-loan company on a $200 million fund to invest in corporate restructurings and turnarounds in that country. The new fund, which will be set up with Indias Housing Development Finance Corp., will co-invest with WL Ross other funds to buy non-performing assets, which are often troubled companies or units, and then restructure and sell them.
You have a lot of bad loans in India but you have a strong basic economy, CEO Mr Wilbur Ross said. India has a very well developed bankruptcy court regime.
Adanis Mundra Port reports record unloading of scrap
The Gujarat Adani Port Ltds GAPL Mundra Port, Indias largest private port facility, has reported a single-day unloading record for shredded scrap/HMS/bundles totaling 12,287 tonnes on October 21
MV Maritime Friendship, whose load port was Australia and which berthed at Jetty No. 3 discharged total cargo of 25,939 tonnes of steel scrap
China iron ore import likely to jump up by 20% in 2005
Chinas iron ore imports may rise to 250 million tonnes in 2005, an increase of 20% over last years imports of 208 million tonnes, as steelmakers expand production capacity as per announcement made by Mr Zou Jian Chairman of China Metallurgical and Mining Association in China International Steel and Raw Materials 2005 Conference in Qingdao.
"Domestic iron ores are in short supply, with limited capacity and at best may rise by 19% to 370 million tons, increasing dependence on imported ores" Mr Zou said in the paper.
China's iron and steel production may expand 22% to 330 million tons this year from 2004, Zou said, citing estimates by the China Iron and Steel Industry Association.
Corus announces supply contract with Messier-Dowty
Corus Engineering Steels has announced signing of a global supply agreement with Messier-Dowty, through to December 2008. The supply agreement is for the provisioning of aerospace steels produced by Corus to the Messier-Dowty facilities in Gloucester UK, Bidos France and Suzhou China together with the Messier-Dowty global supply chains.
This program will require Corus to supply a total of 21,000 tonnes of aerospace steels into the Messier-Dowty supply chains through the period 2006 to 2008.
Messier-Dowty uses the steels that Corus supplies to manufacture landing gears for Airbus and Boeing and also smaller landing gears for regional jets and military aircraft. They supply the nose landing gear for the new Airbus A380 and all the landing gears on the new Boeing 787 Dreamliner. The aerospace steel, required for these two new planes will be supplied by Corus.
Messier-Dowty and Corus have also cemented their relationship by adopting continuous improvement processes using the latest lean manufacturing tools, working together to drive out wasteful processes from the whole supply chain, from steel making through to final assembly on the aircraft.
Corus have invested heavily in the manufacturing of special re-melted steels to support this and other aerospace activities. More than 20million is currently being invested in the Corus plant at Stocksbridge in the UK to increase special re-melt capacity ESR and VAR furnace, finishing and product testing.
Australia's Smorgon seeks scrap metal operations in China
Australia's third-largest steel maker, Smorgon Steel Group Ltd said it is looking for scrap metal operations in China. The group's CEO Mr Ray Horsburgh said strong growth in steel production in China and other emerging economic giants including India and Brazil means demand for scrap metal, especially in Asia, looks very strong into the future. We now have a substantial metal recycling footprint in Asia and a platform for future growth in that part of the world with the fastest growing appetite for scrap metal,' Mr Horsburgh said.
He said Smorgon has already reduced its reliance on the Australian construction industry which now accounts for 48% of its revenue, as it expands businesses including metal recycling and manufacturing of grinding balls used by ore processing plants in the mining industry.
Iron Ore negotiations on a knife edge MEPS
The forthcoming annual iron ore price negotiations promise to be the toughest for a long time. Steel executives say they will resist any attempt to raise them for 2006, and some state they will be seeking decreases of 10 percent or so. The miners, however, are anxious to consolidate prices at the new level they reached after this years quantum leap. They may well seek a further increase.
What cards are the steel industry holding that can outplay the mines strong hand? There is talk of weakness in steel markets, reducing the industrys ability to pay higher prices for raw materials. The mills will no doubt also point out that extra demand is mainly required by Chinese mills.
Steel industry executives fear that consolidation has given the iron ore suppliers too much pricing power. When the top three companies have a market share of close to 75 percent, it is easy to hold the line against a fragmented buying side.
Market fundamentals support the miners case. Demand for iron ore is running at record levels. World pig iron production in the first three quarters of this year was almost 50 million tonnes, or 9.2%, higher than the same period of 2004. Production of direct reduced iron was up by 10%.
There is no sign of China running out of steam. In the first nine months of 2005, the country imported close to 200 million tonnes of iron ore, a year-on year increase of over 30%. Chinese demand for imported ore could exceed 400 million tonnes per year by 2010 double its 2004 level. Global demand for seaborne iron ore could rise from 596 million tonnes in 2004 to 650 million tonnes this year.
Looking at the supply side, output of iron ore is also at record highs. Growth production has barely matched rising demand, with a 10 percent jump in 2004. Mine expansions are under way, but some are being delayed by shortages of skilled labor and long lead-times for delivery of mining equipment. Most of the new capacity is being added by the Big 3 suppliers tightening their grip on the market. The miners argue that high prices are needed to finance the additional capacity. However, mills in the industrialized countries will balk at funding increased supplies to China, particularly now that the Chinese market is oversupplied and contributing to the current steel price weakness around the world.
Strong demand has seen the emergence of a substantial spot market, mostly for Indian ore exports to China. Prices in this spot market have been above annual contract prices, a fact that the miners will no doubt bring to the buyers attention.
A few months ago, observers were saying that, after this years increase, iron ore prices had risen to unsustainably high levels and could fall by 15-20% in 2006. A no change or small rise may be the result.
Vietnam removes tax exemption on imported steel ingots
Vietnams General Department of Customs has issued document 4374 demanding the end of tax exemption on ingot steel.
Prior to that, the Vietnam Steel Association called on the relevant authorities to reconsider the decision on tax exemption on the ingot steel. The association said that the tax incentives given to several enterprises since the end of 2004 have caused unhealthy competition in the market, thus making steel prices unstable.
Officials from the Ministries of Trade, Industry and Planning and Investment are discussing the issue for final official decision.
Several plants specialising in ingot steel production are scheduled to be operational in 2006, raising the ingot output to 1.9mil tonnes, increasing by 122% over the previous year. The plants are expected the meet about 40% of material for laminating steel plants.
Chinese government to curb expansion of copper industry
The wild expansion of copper smelting capacity will be vigorously curbed, said an official with the National Development and Reform Commission NDRC Wednesday. The copper smelting industry is the fourth sector framed under Chinas macro control following the other three of steel, cement, and electrolytic aluminum.
The copper price, which doubled since 2003, inspired many companies across the country to expand the capacity of copper smelting. The rising copper price was largely related to increasing demand due to recent expansion of power plants, said Jia The consequence was that the China now relies heavily on imported materials to maintain the production of copper
It is estimated that, by the end of 2007, China would accumulate about 3.7 million tons of smelting capacity, far exceeding the guaranteed concentration of copper ore in the country and possible supply in the global market.
Dansan Steel possible buyer of Romanian Laminorul Braila
Dansan Steel of Denmark submitted the purchasing offer for a 68.31% stake of Laminorul Braila, the State Assets Realization Authority AVAS) informed press. Laminorul is a steel rolling mill manufacturing steel sections
Only the companies that did not prejudice the financial situation of other privatized companies, by not fulfilling the commitments assumed in the privatization contracts concluded, can participate in the privatization of Laminorul
Laminorul was offered to privatization three times in 2005, but did not receive a valid offer.
Russia reduces iron ore exports 1.6% in 9 months
Russia has reduced iron ore exports 1.6% year-on-year to 14.29 million tonnes in January-September, as per Rudprom, the agency that collates statistics about ore producers
Russia exported 4.69 million tonnes of iron ore concentrate, down 25.7%, and 762,000 tonnes of briquettes, down 3.1%, but 527,000 tonnes of sintering ore, up 17%, and 8.29 million tonnes of pellets, up 17%.
Russia reduced iron ore production 0.9% to 71.56 million tonnes in January-September.
Coal mine explosion kills 5 in Shanxi coal mine
Five miners were confirmed dead and other six injured in a colliery blast in Taiyuan, capital of north China's Shanxi Province. The explosion occurred at 5 PM on Tuesday at Jiuyuancun Colliery, a village owned coal mine with an annual output of 60,000 tons, said Mr Gong Anku, director of the administration.
Four of the 15 miners working underground at the time of the explosion managed to escape from the coal mine.
The coal mine was ordered to suspend operation in September because it did not have the legal production licenses. But it continued operation secretly before the explosion happened, the administration said. The owner of the mine has fled after the explosion.
The cause of the accident is under investigation.
BHP Billiton increases Q1 iron ore production
BHP Billiton, the world's biggest mining company, said first-quarter iron ore production rose 5% after it expanded mines and transport facilities in Western Australia, whereas the coking coal output fell by 3%
Iron ore production rose to 23.6 million metric tons in the three months ended September 30, from 22.5 million tons a year earlier. Coking coal production fell to 9 million tons, from 9.2 million tons.
Iron ore output rise reflects the ramp up of production at Western Australia Iron Ore following the completion of the Accelerated Expansion Project and Rapid Growth Project 1,'' the company said.
Coking coal production fell because of declining reserves at the Riverside mine, a dragline outage at the Saraji mine and heavy rainfall at South Walker Creek, BHP Billiton said. All three mines are in northeastern Australia. Because Riverside had been depleted, and the replacement doesn't start up until later this year, there's possibly some softness in the metallurgical coal numbers,'' Mr Glyn Lawcock, an analyst at UBS AG in Sydney, said
Anglo plans to return $1 billion to investors by simplifying structure
Anglo American today said it would return up to $ 1billion to investors next year as it simplifies its structure following a strategic review, boosting its shares,
1. Anglo plans to cut its 51% stake in gold producer AngloGold Ashanti to give the unit greater flexibility to pursue its strategic agenda.
2. Anglo also said it was selling its 79% stake in Highveld Steel & Vanadium and might establish its paper and packaging unit Mondi as an independent business.
3. Anglo said he had no particular plan for the proceeds from any disposals but he did not rule out raising Anglos 74.8% stake in Angloplat, the worlds biggest platinum producer, or a greater cash return to investors
Russian coal producer to cut exports due to price dip
Siberian Coal Energy, Russia's biggest coal producer, said it may cut exports to Britain and other European nations if prices decline. Export prices below $55 per ton for thermal coal represent "a critical point" for Russia's coal industry, said Mr Igor Gribanovsky, MD of SUEK, the company's Swiss trading unit.
TopRomanian Silcotub signs agreements within Tenaris Group
Zalau based Romanian seamless tube maker Silcotub, a company belonging to the international Tenaris Group, the biggest pipe producer in the world, has concluded framework agreements with other members of the group in an annual value of Euro 106.3 million
Their contractual period is five years, the most important being the supply contract concluded with Donasid Calarasi, with an annual value of Euro 66.8 million. Silcotub also signed commercial contracts for Euro 35 million with Italian company Dalmine, the Italian operator of Tenaris Group.
International Tenaris Group acquired Silcotub Zalau last year and posted a turnover in the amount of Euro 73.7 million up by 45% as against the similar period last year.
The company manufactures carbon steel and non-soldered weak alloy steel pipes used in the building, oil and gas, energy, chemical and machine building industries and approximately 70% of the output is exported
Morgan to revamp Spanish Rod Mill
Global Steel Wire SA Santander, Spain, has chosen Morgan Construction Co. to carry out an upgrade of its rod mill. According to Morgans Mr Michael Shore, VP Engineering-Rolling Mill Technology, The contract with GSW calls for the addition of a bar in coil outlet to that companys existing Morgan rod mill. The addition will include a three stand bar reducing-sizing mill, a different arrangement of the traditional our-stand reducing mill for bars.
Mr Shore added that Morgan will provide pinch rolls, shears, pouring reels, and cooling conveyors. The new bar and coil outlet will produce bar in diameters from 22 to 52 mm. Additionally, the existing rod mill, which includes a rod reducing/sizing mill, will be upgraded to achieve rolling speeds of up to 105 meters/second, he said.
The new equipment will be manufactured at Morgans Worcester, MA, workshops and delivered in May 2006.
Global Steel's rod mill, formerly known as Nueva Montana de Quijano has been supplying wire rods to the US for a long time, mostly in high carbon and welding wire grades.
Algoma rejection of proposal initiates board changes by Paulson
Algoma Steel Inc. has rejected a demand from a large investor for a recapitalization that would enable the company to distribute $420 million in cash to its shareholders. Algoma disclosed that New York hedge fund Paulson & Co., which controls 19% of the steel maker's shares, threatened to requisition a special meeting of shareholders to replace the board if its demands were not met.
Paulson proposes that Algoma refinance its outstanding 11% notes with a new $200-million debt issue and use the proceeds and cash on hand to make the $420-million distribution.
"Algoma's board has already distributed a special dividend and made a normal course issuer bid in 2005," the company said in its response, valuing those moves at $300 million and adding that it will continue to consider future distributions of cash. "Paulson's proposal involves drastically reducing Algoma's cash position as the company goes into an uncertain time in the steel industry's cycle," stated Chairman Mr Ben Duster. "Such a step is not in the best interests of the company or its shareholders."
Algoma Steel Inc.'s biggest shareholder is talking to potential replacement CEOs for the steelmaker and has demanded a special meeting as it tries to force the company to distribute its pile of cash. "I don't think the (Algoma) board is very sophisticated on financial matters," Mr John Paulson, president of Paulson & Co. said in an interview. "We want to replace the majority of the directors."
Toyota to top GM as biggest auto maker
Toyota Motor Corp. plans to jack up vehicle output by 11% next year, unseating General Motors Corp. as the world's biggest manufacturer of automobiles, a Japanese newspaper reported
Toyota, whose profits and market value already dwarf those of its rivals, plans to raise group output to more than 9.2 million vehicles worldwide in 2006, or nearly 1 million more than its projection for 2005, the Nihon Keizai business daily said.
Helped by a reputation for building reliable and fuel-efficient vehicles, Toyota is picking up market share from loss-riddled GM in the U.S. Companys home market.
Like Toyota, GM has not announced production plans for 2006.
Mittal Steel SA to weigh Highveld stake
Mittal Steel SA is reported to have announced that it would consider buying a stake in Highveld after Anglo American said it would sell its 79% holding in the steel and vanadium company.
"We will study what's on offer and take a view after that," Mr Hennie Vermeulen, Manager Investor and Media Relations at Mittal Steel SA said. "We would be interested. We will consider what's on offer, and then we'll make a call," he told press
Mittal SA is South Africa's top steel maker, with Highveld Steel and Vanadium number two.
Korean pipe exports up 21.6% for September
According to the latest statistics issued by the Korean Iron and Steel Association, South Korean steel mills exported 82,400 MT of steel pipes in September, an increase of 21.6% as compared to August.
The total volume of pipe and tube exports during January to September is 720,200 MT, an increase of 4.5% compared to the same period of last year, with 6, 600 MT to China, 37,300 MT to the USA, 16,400 MT to Southeast Asian countries and 4,400 MT to the Japanese market.
Temporary steel shelters for earthquake victims
Pakistans Ministry of Youth Affairs, in collaboration with a local company Nasco introduced a model of shelter homes in earthquake hit areas in view the acute shortage of tents and the upcoming harsh chilly winter in the affected areas.
Each unit consists of six makeshift rooms of 8 cubic feet each and each room would provide refuge to at least eight people. The roofs of the rooms are sloppy in shape and the structure has been made by square form steel rods. Galvanized sheets have been used for the walls of the structure while the galvanized corrugated sheets have been used for the roof.
A unit of six rooms costs Rs. 72,500 which each room would cost a mere amount of Rs 12,084 which is cheapest shelter by all means. Each unit contains load of at least one ton and this weight helps the structure maintain its balance even in windy weather. As the shelter homes are a makeshift arrangement, these sheets can be re-used in the rehabilitation process.
BHP Billiton offers credits with coal
BHP Billiton, the worlds biggest mining company, is enticing customers to buy coal by offering emission credits, shipping and inventory management.
Coal, which provides a quarter of the worlds energy, faced competition from alternatives, said Mr Philip Aiken, BHPs energy business president. The commodity is only one part of the total offering, he said yesterday at the Coaltrans World Coal Conference in Paris. We see emissions as an integral part of the coal market. There was an increasing correlation between coal prices and gas and oil costs, increasing the possibility of users switching energy sources, Mr Aiken said.
Coal emits more than twice as much carbon dioxide as natural gas for each unit of power produced. BHP Billiton is among exporters of South African thermal coal, 80% of which is burnt by Europes utilities.
BHP Billiton mines coal in Australia and SA and sells it through its trading headquarters in The Hague, Netherlands. The worlds second-largest exporter of coal to power plants is among companies competing for market share, with prices forecast to decline.
Fortescue starts trial mining in WA
Iron ore developer Fortescue Metals Group Ltd has started trial mining at its $2.3 billion iron ore project in Western Australia. Fortescue is assessing the extraction rates and operating costs using a specially designed surface miner at the Cloud Break deposit over the next six weeks.
A second machine is on the way to the project now and Fortescue has an option to acquire a third, once it makes a decision to mine the project.
If the project is given the go-ahead, the mine will produce 45 million tonnes of iron ore a year from late 2007.
Taishan Steel to start production of CR
Shangdong Province based Taishan Iron and Steel Group, a mid-sized state owned steel company, recently received approval from the Shangdong Provincial Development and Reform Commission to launch a 300,000 tonnes per year cold rolling mill project. The pickling line is already in trial production, and cold rolling mills are now being installed
The project is being put up at an investment of RMB 606.97 million ($75.21 million) and the company purchased pickling and cold rolling equipments from domestic companies.
The project is still waiting for approval from the National Development and Reform Commission (NDRC).
Taishan Steel's hot rolled plate is mainly exported to Taiwan, South Korea and Japan.
US Senate rejects trade bill
Mr David Phelps, president of the American Institute for International Steel AIIS, reportedly told that a Senate bill that would have prohibited using existing trade laws as bargaining chips in international negotiations, was soundly rejected late last month during a meeting of the Association of Steel Distributors
Introduced by Democrat Senator Mr Byron L Dorgan, this bill would have prevented any changes to the existing trade laws and would have rendered World Trade Organization (WTO) negotiations completely futile.
Free trade, especially for steel-related items, is essential for the economic wellbeing of nearly all WTO member countries, so a successful outcome of the Doha Round is of great importance. That is why the U.S. Senate's rejection of Mr. Dorgan's bill bodes well for the future.
Oyak needs to expand Erdemir by 3.5 million tonnes
Turkish army pension fund Oyak is required to add 3.5 million tonnes of flat steel capacity to Turkey's Erdemir by the end of 2008 as a condition of purchase, and is paying a $500m bond to the administration as a guarantee, according the Turkish Privatization Administration. To install the necessary plant, Oyak could be required to invest some $2 billion.
Investments to increase Erdemir's finished product capacity, and introduce coil rolling capacity at Isdemir are already underway. These include a 500,000 tonnes plate mill in Eregli, to be completed by the end of 2005.
As another condition of the sale, Oyak is not allowed to reduce Erdemir's original workforce to less than 95% within two years.
Evraz cuts planned CAPEX
Evraz, Russia's largest steelmaker, plans to cut next year's capital expenditure to around $400 million from about $600 million in 2005, a source in the company said Wednesday.
The source said the final figures had yet to be approved officially. The figures concerned the whole of Evraz Group
Walter Industries to close Tennessee plant
Diversified homebuilding, mining and manufacturing company Walter Industries Inc has announced that it will close a Tennessee valve and hydrant plant and invest in a coal mining joint venture in Alabama. The closing of the U.S. Pipe facility in Chattanooga, Tennessee, slated for next year
Walter said that it will invest up to $19.6 million in Kodiak Mining Co. LLC, which has an Alabama coal mine with about 4.3 million tons of reserves. It expects the joint venture to produce about 700,000 tons of coal per year
Ticor minorities back bid by S.Africa's Kumba
SA iron ore miner Kumba Resources has announced that minority shareholders in Australia's Ticor had backed its bid to buy out the titanium group. Ticor minority shareholders had at a general meeting held in Perth, Australia, approved Kumba's proposal to acquire all outstanding shares in Ticor not currently held by Kumba at a price of A$1.875 per share. Kumba already has a 51.5 percent stake in Ticor.
"Kumba becomes the sole shareholder, and Ticor a subsidiary of Kumba. The intention is to de-list Ticor from the Australian stock exchange," Mr Trevor Arran, Kumba's head of investor relations told press. He said the completion of the deal awaited a final court hearing in Australia on November 1, 2005.
Kumba is the world's fifth biggest iron ore miner and two-thirds owned by Anglo American
Under a deal unveiled earlier this month, Ticor would be part of what would be South Africa's top black-owned company, to be formed when Kumba is split into two separately listed units. Anglo and Kumba announced a complex plan to split Kumba and form Kumba Iron Ore and a yet unnamed coal and heavy minerals company. The unlisted and black-owned Eyesizwe Coal Ltd will spearhead the new company
Bridgestone officially opens steel tire cord plant in Liaong
Bridgestone Corporation has opened Bridgestone (Shenyang) Steel Cord Co, Ltd, in Liaoning Province, China. Bridgestone invested US$94.3 million in the construction of the plant, which began producing steel cord for truck and bus radial tires in August this year.
Production capacity is projected to reach 70 tons per day by the end of 2007.
Chinese writer missing after reporting on steel worker protests
It is reported that the Chinese journalist, who reported on the internet about the steel worker protests in the central Chinese town of Chongqing has disappeared, and is thought to be in police custody, according to the advocacy group Chinese Rights Defenders (CRD). Police seized Shi Xiaoyu from his home in Shaoxing, Zhejiang Province on October 20
Mr Shi had been posting information on the Internet about Chongqing steel worker protests that began in August. Sympathetic to their struggle, he was in touch with the workers' representatives, according to online reports.
Two protesters were killed and scores injured in mid-October when police broke up one protest, the Hong Kong-based China Labor Bulletin reported. Chinese media have not reported the crackdown.
Rautaruukki Q3 pre tax earnings strong, outlook remains favorable
Finnish steel maker Rautaruukki Corp said third quarter pretax profit rose strongly to Euro 491 million from Euro 118 million in the same period last year. However, the operating profit of Euros 114 million is down by 11% from 128 million in the same period last year. Net sales reduced YOY to 812 million from 854 million.
"In the third quarter, destocking and the holiday season caused a slight drop in selling prices. The effect of higher raw material prices was also felt to the full extent during the past quarter," said company CEO Mr Sakari Tamminen
Rautaruukki's full year earnings outlook is good and the strengthening market situation creates a good basis for 2006. In 2005, comparable net sales are expected to exceed Euro 3.6 billion and profitability is expected to hold up well.
Alpha Natural completes acquisition of Nicewonder Coal Group
Alpha Natural Resources Inc, a leading Appalachian coal producer, today completed the previously announced acquisition of the Nicewonder coal group for $316.2 million in cash, stock and notes, plus adjustments for working capital.
It is reported that the Nicewonder group is expected to add about 4.3 million tons to Alpha's coal output in 2006, representing an increase of approximately 20% over Alpha's projected coal production this year.
Alpha Natural Resources is a leading producer of high-quality Appalachian coal. Taking into account Alpha's acquisition of Nicewonder, approximately 92% percent of the company's reserve base is high Btu coal and 90% is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the nation's largest producers and exporters of metallurgical coal. Alpha and its subsidiaries currently operate mining complexes in four states in US, consisting of 67 mines feeding 11 coal preparation and blending plants.
Falconbridge reports 81% increase in net income
The proposed friendly merger of Canadian miners Inco and Falconbridge could produce synergies that would result in considerable cost savings and expertise that could be applied to two planned mega-nickel projects in New Caledonia. Meanwhile, Falconbridge has reported an 81% increase in net income of $214 million for the third quarter of 2005 and a 47% growth. Net income for the third quarter of 2004 was reported at $118 million.
Net income for the first nine months ended September 30, 2005, increased 42% to $592 million according to Falconbridge CFO Mr Steve Douglas.
Despite the events involving the proposed merger, Falconbridge CEO Mr Derek Pannell assured analysts that the company is committed to going forward on proposed projects, such as the Koniambo nickel project in New Caledonia. Falconbridge must commit to making a decision by December 31st about whether to proceed with the project. Shareholders have until December 23rd to vote on the proposed acquisition of Falconbridge by Inco
Falconbridge President Mr Aaron Regent explained that Inco's proposed mega-nickel project Goro, which is also located in New Caledonia, would wrap up construction prior to the commencement of construction for Koniambo. Therefore, he suggested that the two companies could smoothly shift development resources from Goro to Koniambo.
A combined $681 million in capital investments is planned by Falconbridge this year, Mr Regent said. In 2006, Falconbridge plans to allocate $543 million to CAPEX projects.
CMC names new president & CEO of steel group
Commercial Metals Co. has named Mr Russell B Rinn president and CEO of its CMC Steel Group. The appointment is effective Jan. 26, 2006.
Mr Rinn, currently COO of CMC Steel Group, a subsidiary of Irving-based Commercial Metals, replaces Mr Clyde P. Selig, who will become an adviser to the chairman, and continue to be active with the company.
Mr Rinn has been COO of the CMC Steel Group for two years. He joined the company in 1978 and has held a variety of operating and management positions with the company's steel mills and rebar fabricating business segments.
Commercial Metals makes and recycles steel and metal products.
China Steel Q3 profit seen hit by costs, price cuts
Taiwan's China Steel Corp is expected to report its first drop in quarterly profit since early 2002 due to high raw material costs and lower steel prices sparked by China's excess capacity. The state-run company's third-quarter net profit likely fell almost 10% from last year to T$13.14 billion ($390 million), according to Reuters' calculations based on China Steel's pre-tax results released earlier. It is expected to report by the end of the week.
Analysts said maintenance-related production cuts will hurt profits in the fourth quarter, when stocks run down and the full impact of the cost of raw materials will be felt.
"The cost effect only kicked in the second half, as in the first half, they still had low-cost inventory," said Josephine Ho, an analyst at BNP Paribas Peregrine Securities Ltd. "But what's really hurting them is the product prices."
China Steel, whose products are used to build ships, automobiles and in construction projects, has said low-end products had seen steeper declines, with prices for higher quality products not suffering as badly.
Saint Gobains Pipe Activity sins for Xugang acquisition
The Pipe Activity of the Saint-Gobain Construction Products Sector signed an agreement On October 25, 2005 to acquire 100% of Xugang Company Xuzhou General Iron and Steel Works, which belongs to the municipality of Xuzhou Jiangsu province, as well as the shares held by Xugang in Ductile Iron Pipe Co DIP. This agreement will become valid once the authorization of the relevant Chinese authorities has been obtained.
Xugang is Saint-Gobain's partner in the Saint-Gobain Pipelines Xuzhou Joint Venture, which was created in November 2002.
The Xugang Company produces 600,000 MT of iron per year. Its facilities include five blast furnaces, installations for the preparation of iron ore and two coke batteries. This company is the major supplier of liquid cast iron for the production units of Saint-Gobain Pipelines Xuzhou and DIP.
This acquisition strengthens the number two position of the Pipe Activity in the Chinese market which is experiencing strong growth. It also allows a significant improvement in the competitiveness of these pipe production units in China. With this acquisition, the Pipe Activity also consolidates its world leadership in cast iron pipe systems.
Macarthur Coal Q3 sales hit record highs as port congestion eases
Macarthur Coal Ltd said its September quarter coal sales reached record levels as congestion eased at the Dalrymple Bay coal export terminal, which handles the company's coal along with coal from other producers in the Australian state of Queensland's Bowen Basin coal region. The coal miner said sales for the three months to September, the first quarter of its June fiscal year, totaled 1.359 million tonnes, up by 95,517 tonnes YOY
Macarthur said it is on track to meet or exceed its annual sales target of 4.5 million tonnes, adding that the strong first quarter performance positions the company well for the December and March quarters which can be hurt by wet weather delays. Total saleable coal production for the third quarter was 1.45 million tonnes, making an annualized production rate of 5.8 million tonnes.
During the quarter the company shipped thermal coal from its Moorvale mine in addition to PCI exports to Asian markets.
Timken announces record Q3 sales
The Timken Company has reported record Q3 sales of $1.3 billion up by 15 % percent over $1.1 billion during last year. Net income of $39.8 million is more than double last year's Q3 net income of $17.5 million
"We delivered strong performance this quarter as we continued to capitalize on the ongoing strength of global industrial markets," said Mr James W Griffith, president and CEO. "While we had record third quarter results in the Industrial and Steel Groups, our Automotive Group performance continued to be challenged."
For the third quarter, Industrial Group sales were $468.2 million, up 13% from $414.0 million last year. Sales grew in all industrial segments, with the largest increases in distribution and rail.
Automotive Group sales were $408.0 million, up 10% from $370.9 million in the third quarter of last year. The increase in sales was due to improved pricing and growth in heavy truck volumes.
The Steel Group had record third quarter sales of $427.9 million, up 20% from $355.3 million last year. The increase was due to strong demand in industrial, aerospace and energy segments as well as price increases and surcharges to recover high raw material costs.
Smorgon Steel seeing strong demand
Australian Smorgon Steel Group Ltd says the mining boom is continuing to drive demand for its products. The company said it was expecting net profit of about $130 million in the current financial year. Smorgon CEO Mr Ray Horsburgh said market consensus was that the company would make about $130 million in 2005-06. "On the full year ... we think the market's got it about right," he told journalists after the company's annual general meeting.
Mr Horsburgh said the company had a healthy order bank for its reinforcing products and was seeing strong demand for grinding products used by the mining industry and for rail products. "And on the back of the growth in the mining industry globally we see these trends continuing," he said.
Mr Horsburgh said there had been some slowing in demand from the manufacturing sector and this had been reflected in lower sales.
He said the contribution to earnings from the conventional scrap business in South Australia and Western Australia was expected to be strong in the second half of the year. "We expect the pattern of earnings to be skewed more towards the second half of this year," he said.
Mr Horsburgh said that demand for steel in China was continuing to grow as was Chinese steel production and demand for iron ore and coking coal. "In this environment we believe demand for scrap metal especially in Asia looks to have a very strong future."
ICG reports Q3 results
International Coal Group ICG reported that its results of operations for the quarter and nine months ended September 30, 2005 improved significantly when compared to the results of operations for the comparable periods last year for its predecessor, Horizon Natural Resources and reported revenue of $158.4 million during Q3
Mr Wilbur L Ross, ICG's Chairman, said, "We continued to post solid YOY gains and position ICG for even greater growth in the future. Our revenue growth was strong without major volume increases and our investment in the business is beginning to show results. While our third quarter margins were adversely affected by commodity price increases and other short-term effects, we remain optimistic for 2006 as the full effects of our investment program are felt, recent cost pressures abate and revenues are favorably impacted by tonnage increases, sales contract price re openers and general market improvement."
International Coal Group was organized by WL Ross & Co. LLC to acquire the principal operations of then-bankrupt Horizon Natural Resources on October 1, 2004.
Norfolk Southern third-quarter profit rises on coal demand
Railroad freighters Norfolk Southern Corporation reports Q3 profit growth of 5% due to higher coal demand helped boost revenue. The company earned $301 million up from $288 million a year ago. Norfolk Southern says the increase came despite unplanned costs from hurricanes and casualty claims.
Revenue grew 16% to $2.16 billion from $1.86 billion, boosted by a rise in coal shipments. Coal revenue rose 22% to $546 million.
Norfolk Southern said revenue growth was driven by demand for coal by utilities and increased fuel surcharges.
Northwest Pipe reports Q3 results
Northwest Pipe Company has reported its results for the Q3 of 2005. Sales were a record $86.8 million compared to $75.3 million in the Q3 of 2004. The Company reported quarterly net income of $4.0 million compared to $3.9 million in the Q3 of 2004.
Sales reached a new high in spite of some storm related issues that resulted in the temporary shutdown of the Company's Texas and Louisiana facilities and some disruption in raw material deliveries.
Northwest Pipe Company manufactures welded steel pipe in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon and has nine manufacturing facilities across the United States and Mexico.
China Angang New Steel 3Q net flat
China's Angang New Steel Co, one of the country's top five steel makers, said Thursday its third-quarter net profit fell a paltry 1.5% on year, amid shrinking sales volume.
Angang posted a net profit of CNY491.2 million for the three months ended September, down slightly from CNY498.8 million in the year-ago period, based on Chinese accounting standards.
Revenue dipped to CNY6.92 billion from CNY6 billion in the reporting period.
Angang's quarterly result echoed that of its smaller rival, Maanshan Iron & Steel Co. (0323.HK), which posted a net profit of CNY576.97 million for the three months ended September, flat from the same time last year of CNY574.24 million.
Australia's Portman reports record 3Q
Australian iron ore miner Portman Mining announced that its third quarter net profit nearly tripled to a record A$25.6 million, from A$8.7 million last year, with profit for the first nine months at A$66.7 million.
The Perth-based miner, 80% owned by Cleveland-Cliffs Inc. (CLF) of the US, said higher sales margins after a 71.5% increase in iron ore prices, and slightly higher sales volumes, were primarily responsible for the increase during the three months to September.
Managing Director Mr Richard Mehan said that as iron ore price negotiations for 2006 commence, the global market remains tight, with additional demand expected in the new year. He added that while some delays have been experienced, Portman's production ramp-up to 8 million tons annually is scheduled during the first quarter of 2006.
China Yanzhou Coal 3Q net falls by 55%
Yanzhou Coal Mining Co the smaller of China's two HK listed coal producers by output, posted a 55% decline in Q3 net profit on reduced coal production. Net profit for the three months ended Sept. 30 fell to CNY384.6 million from CNY855.8 million in the year ago period, based on Chinese accounting standards.
Revenue for the third quarter amounted to CNY2.66 billion, compared with CNY3.21 billion in the year-earlier period.
During the third quarter, Shandong-based Yanzhou Coal said it produced 7.36 million metric tons of coal, down 30% from 10.54 million in the year-earlier period.
Yanzhou Coal attributed the decline in production to ongoing disputes over the relocation of villages located over its coal deposits. The company said it expects to complete the relocation of some villages in the fourth quarter, but didn't elaborate further.
Allegheny profit soars on alloy sales
Specialty metal alloys maker Allegheny Technologies Inc, citing strong demand for its specialty alloys, reported a net profit of $88.3 million for the three months ended September 30, up from $8.6 million in the year-ago period.
Revenue rose 18% to $861.7 million from last year's $730.6 million, as strength in its high performance metals business offset weak results from its flat-rolled products business.
Most of the demand was coming from the oil and gas, electric power, aerospace and chemical processing industries, the company said.
