TATA Steel may acquire Thai Millennium Steel

TATA Steel is reported to be close to acquiring Thailand Millennium Steel for about $400m and may announce the same during the week. TATA Steel has been reported to be in discussions with Siam Cementhai group which owns close to 40% in Millennium Steel. The deal would involve purchase of the Siam stake, followed by an open offer. Subsequently, Tata Steel is likely to make additional fresh investments. The total deal size which includes the price for Siams 40%, the open offer and the fund infusion into the company would be around $400m.

Millennium Steel is using EAF to make almost 1.7 million tonnes of steel used mainly in construction industry in its three manufacturing units across Thailand. It has two subsidies Siam Iron and Steel which manufactures rebars, wire rods, small section and special bars and Siam Construction Steel Company Limited which manufactures rebars and wire rods.

TATA Steel seems to take advantage of low cost steel from BF based plant in India and add value by producing construction steel at rolling facilities located in read made markets in SEA

SC orders coal buyers to pay more to CIL in E-auction case

The Supreme Court, which is hearing petitions challenging a decision by Coal India to sell coal at higher rates through E-auction instead of supplying at the notified price, has directed industrial undertakings to pay one third of the excess amount claimed by the undertaking till the disposal of their petitions till the court decided on the validity of the scheme of selling coal through E-auction.

The purchasers would further have to furnish a security for two third of the extra money demanded, the court said in its interim order. The extra amount paid by industrial undertakings would be refunded with interest if the court struck down the validity of the decision to sell coal through E-auction.

Coal India had submitted that it would not be able to run its business if it received mere securities and bank guarantees and that it would be just and fair if it got a part of the excess amount claimed in cash.

The apex court is hearing a batch of petitions challenging the decision by Coal India not to supply coal at the notified price. The Centre has sought transfer of all similar petitions pending before various High Courts to avoid conflicting judgments. Two conflicting judgments have already been passed. While the Guwahati High Court has held the scheme as invalid, the Madhya Pradesh High Court has upheld the validity of the sale through E-auction.

Future of steel lies in India - Dr Irani

India could overcome China in producing steel as the future of steel lies in India, said Dr JJ Irani while delivering keynote address at Manufacturing Summit 2005 organized by Confederation of Indian Industry (CII). With the availability of key raw materials within the country, we must focus on manufacturing steel ourselves, Dr Irani said adding the priority should be given to resolving the problem faced within the country rather than those faced by China. His remarks were in the context of pressures being built to allow export of iron ore from India.

Substantiating his thought on the future of steel, Mr Irani said, About 15 years ago, some consultants asked us to exit the steel business, stating it to be a sunset industry. However, we continued to invest more during the downturn as the cost of investments is lower during the down turn and the results are for everyone to see Dr Irani added.

Steps to bridge demand supply gap in coal sector

The total demand of raw coal in the country is estimated at 445.65 million tonnes in 2005-06. The Coal Ministry has planned to meet it by domestic supply of 406.48 million tonnes, which includes all India domestic production of 405.38 million tonnes and stock liquidation of 1.10 million tonnes from CIL sources. This leaves a gap of 39.17 million tonnes. With proposed import of 31.39 million tonnes (23.89 million tonnes of coking and 7.50 million tonnes of non-coking coal) a gap of 7.73 million tonnes still persists. In view of the gap between demand and supply of indigenous coal, Government has already taken a decision to import 13.45 million tonnes coal by Power Utilities during 2005-06.

As per the assessment of the Planning Commission, the amount of coal likely to be imported during the year 2006-07 is 46.62 million tonnes. The Commission has assessed a demand of 473.18 million tonnes of coal for the year 2006-07. Against this demand, a supply plan of 426.56 million tonnes has been made from indigenous sources, which leaves a gap of 46.62 million tonnes. It is envisaged in the plan to import 24.19 million tonnes of coking coal for steel sector and 22.43 million tonnes of non-coking coal for Power, cement and other sectors to overcome the shortage of coal.

This information was given by the Minister of State for Coal, Dr. Dasari Narayana Rao in a written reply in the Lok Sabha yesterday

Karnataka to upgrade Karwar port

The Karnataka government plans to upgrade the Karwar port at a cost of Rs 4.5 crore to promote international trade. Karwar port is one of the minor ports and is increasingly used for export of iron ore, granite and import of furnace oil, edible oil and unrefined sugar.

The state government will take up dredging to remove silt that has accumulated. This is being done after a gap of 10 years. The ships were finding it difficult to berth at the port due to accumulation of silt. The Karnataka government has also agreed to install night navigation and piloting facilities at the port and to constitute a maritime board and port fund.

Coal E-Auction during April- November 2005

The sale of coal through e-auction is an innovative scheme introduced by the coal companies to curb the black marketing of coal and provide coal to those consumers who have not been getting coal due to absence of linkage or due to quantities under linkage being inadequate. The possibility of black marketing of coal sold under e-auction is ruled out and so far no such complaints have been received. Under the e-auction scheme any consumer of coal can avail of the opportunity to buy coal.

The quantity allocated during April-November, 2005 to coal companies which have sold coal through e-auction is given below:

This information was given by the Minister of State for Coal, Dr. Dasari Narayana Rao in a written reply in the Lok Sabha yesterday.

Kolkata Port Trust appoints consultant for Hooghly jettys feasibility

The Delhi-based Consulting Engineering Services has been appointed by the Kolkata Port Trust to undertake the feasibility study on the jetty proposed to be built on the banks of the Hooghly at Diamond Harbor. The study will formulate a detailed action plan, including land survey, traffic survey and environmental impact. The report is expected to be finalized within six months

The proposed jetty will be a multi-purpose one of capacity 1.5 million tonnes per annum with a large back up area Cargoes to be handled at the proposed jetty will include imports of thermal coal and exports of iron ore

PM to constitute National Panel to check illegal mining & pilferage

Prime Minister Dr Manmohan Singh has proposed to constitute a National Committee comprising representatives of the coal industry to check pilferage and illegal mining which has often been the cause of accidents in mines.

Admitting that illegal mining is being carried stealthily and clandestinely in abandoned, closed, disused and even from the non-working part of active mines, Minister of State for Coal Dr Dasari Narayana Rao told the Lok Sabha that it was primarily the responsibility of the state governments to take necessary deterrent action to stop or curb the illegal mining and pilferage of coal.

MMK to increase crude capacity to 13 million by 2007

Magnitogorsk Iron & Steel Works has announced its plans to invest around US$2 billion in the next 5 years to increase crude steel production by 2 million tons to take the total capacity to 13 million tons in 2007.

MMK is likely to achieve this by installing electric arc furnaces and a continuous slab caster

Nippon Steel to invest Yen 850 billion over next 3 years

Nippon Steel Corp, Japan's largest steel maker, said that it will invest Yen 850 billion over the three years to March 2009, in a bid to fuel earnings growth. The new investment plan is sharply higher than the old one which earmarked Yen 635 billion in investments from the year to March 2004 through to the year to March 2006.

By stepping up investment into high-grade steel products, Nippon Steel said it hopes to earn current profit of at least Yen 300 billion, operating profit of over Yen 540 billion and sales of Yen 4.2 trillion in the year to March 2009.

For the year to March 2006, the steel maker is projecting operating profit of Yen 525 billion on sales of Yen 3.86 trillion

US Steel tube makers to lobby for China quotas

Workers from Western Pennsylvania steel tube maker Sharon Tube Co, the United Steelworkers of America and other domestic steel tube manufacturers will rally Thursday in Washington, D.C. for the imposition of importation quotas on standard steel tubing from China.

The U.S. International Trade Commission, a division of the U.S. Commerce Department, ruled 4-2 in October that increased shipments from China of standard steel tubing were disrupting or threatened to disrupt the domestic steel tube making industry.

The alleged violations are to Section 421 of the amended Trade Act of 1974 that was a condition of China's entry into the World Trade Organization in 2000. The amended law stated that China was prohibited from importing sufficient quantities of goods to U.S. markets to disrupt those markets. Two trade commissioners have proposed a 160,000-ton quota on those products over three years. A second pair of commissioners is calling for a first-year quota of 267,468 tons, to be followed by increases of 5% in the second year and 10% in the third year. Those commissioners propose that any imports over those amounts be subjected to a 25% tariff.

Although the commissioners have recommended remedies for the increased imports, only President Mr Bush has the power to implement the quotas or the tariffs.

According to spokeswoman Ms Nancy Gravatt of the American Iron and Steel Institute imports of standard steel tubing from China have jumped from 10,000 tons in 2002 to 270,000 tons in 2004 and threaten to exceed 380,000 tons in 2005.

Mechel raises stake in Romanian Mechel Targoviste SA

Russia's Mechel has raised its stake in Romanian steel firm Mechel Targoviste SA to 83.66% from 81.5% by buying $5.9 million worth of Targoviste's additionally issued shares as part of its investment agreement with the Romanian government, a Mechel spokesman said

Mechel is a Russian steel company with a strong position in the raw materials business.

Gazprom seeks stake in Ukrainian pipelines

Russian gas giant Gazprom seeks to get an undisclosed stake in Ukrainian natural gas pipelines as a compromise to end an ongoing natural gas dispute, Gazprom CEO Alexei Miller said. Ukraine has so far been refusing to let Gazprom manage the countrys gas pipelines that politicians across the board view as strategically important assets. The comments show that Gazprom has been aggressively pushing for getting the stake in the existing pipelines as opposed to investing in construction of new pipelines as Ukraine had suggested.

Ukraines gas transit system, which moves about 120 billion cubic meters/year of Russian and Central Asian gas to Europe, is estimated to generate about $2 billion in annual revenue.

Ukraine and Russia are in a natural gas dispute since March with Gazprom insisting to switch to cash payment for gas as opposed to shipment of gas that had been in effect for 15 years. At the same time Russia also demanded tripling gas prices for Ukraine to $160/1,000 cubic meters starting Jan. 1, 2006, the hike that would apparently paralyze the Ukrainian economy, including chemical and steel sectors.

Ukraine refused to agree to the switch and to the increased prices, citing a 10-year agreement with Gazprom signed three years ago had anticipated the existing settlements.

Iranian Chaharmahal Steel secures project financing

Mr Hossein Mardani MD of Chaharmahal Steel Mill Company is reported to have said that it is in discussion to obtain a Euro 98 million foreign loan by the end of the current Iranian year from the General Bank of Belgium.

He added that funding will cover over 90% of the credit needed for construction of the factory. The line of credit documents are ready and will soon be signed by both sides. The loan is to carry a 13 year payment period.

After the approval of the loan and payment of initial down payment, the plant is scheduled to be operational within three years. The annual capacity is slated to reach 300,000 tons of galvanized sheets used in automobiles manufacturing.

Trinidad signs deal for 3 steel mills with Chinese CEMEC

Trinidad and Tobago governments newly established company Alutrint Limited, which is an aluminum smelter plant and the Chinese National Machinery and Equipment Import and Export Corporation CEMEC have signed an agreement on Monday for setting up of three steel manufacturing plants in Trinidad. The three steel manufacturing companies will be created, an automotive parts and car wheel plant, a rod mill and a barbed wire and cable company.

A plant making wire and a plant making rods and also two other plants at the Tamana Intec Park in Wallafield which will be producing wheels and other automotives components, said the islands PM Mr Patrick Manning.

AWS announces new edition of welding standards D14.3/D14.3M

The American Welding Society AWS has published a new edition of the standard governing structural welds used to manufacture self-propelled earthmoving, construction, and agricultural equipment.

The new 5th edition, AWS D14.3/D14.3M:2005, Specification for Welding, Earthmoving, Construction, and Agricultural Equipment, emphasizes workmanship and welder qualification. It contains extensive illustrations of pre qualified complete and partial penetration welded joints butt, corner, T-, or combination for shielded metal arc welding, submerged arc welding, gas metal arc welding, and flux cored arc welding. Also included are variables for pre qualified fillet welds.

This 5th edition was renamed to reflect the inclusion of agricultural equipment in its scope. Other changes and improvements include updated welding suitability tables, a different carbon equivalent formula and revised recommendations for heat input limitations, the addition of metal core GMAW consumables, revisions to preheat requirements and revised recommendations for storage of consumables and control of H2 levels.

The American Welding Society is the largest organization in the world dedicated to advancing the science, technology, and application of welding and allied processes, including joining, brazing, soldering, cutting, and thermal spraying. Headquartered in Miami, Florida, USA, AWS serves almost 50,000 members in the United States and around the world.

Rixin to launch new CR SS line in Jiagmen

Rixin Stainless Steel Co Ltd has announced that a 12,000 ton cold-rolled stainless steel project will start operations on December 18 in Jiangmen of Guangdong Province of China. The total investment for the project is reported to be RMB 210 million ($26.25 million)

Rixin Stainless was established in 1993 and was previously a wholly owned subsidiary of Macau based Yiu Heng Hong Trading Development Co Ltd and presently has a 23,000 tonnes stainless steel processing capacity

SeverCorr places order for industrial drives to TMEIC GE

SeverCorr, the flat-rolled mini-mill project now under construction in Columbus has placed a contract with TMEIC GE for a selection of constant- and adjustable-speed drives, motors, and associated electrical equipment for the plant's electrical drive systems.

The TMdrive family offered by TMEIC GE spans the full range of applications in coordinated AC drive systems, with common control components and innovative packaging. The scope of supply for SeverCorr covers electrical drive equipment for the thin-slab caster, six-stand hot mill, the continuous pickle line, tandem cold mill including process control and rolling models, hot-dip galvanizing line with in-line skin pass mill including process control and a stand-alone temper mill including process control.

SeverCorr is an $880 million JV of Severstal and SteelCorr, a new company established by Mr John Correnti. SeverCorr will start up in the second half of 2007, producing hot-rolled, cold-rolled, and galvanized strip.

TMEIC GE is a global JV involving TMEIC, itself a JV of Toshiba and Mitsubishi Electric and General Electric. Its focus of activity is industrial drive systems

Burson-Marsteller announces most admired CEOs listing

A global study, conducted by Burson-Marsteller with the Economist Intelligence Unit ahs announced the listing of most admired CEOs in the world. Majority of the CEOs on the list are from the US and Europe.

While Mr Bill Gates tops the list, the second and third places went to Mr Steve Jobs of Apple and Mr Warren Buffet of Berkshire Hathaway respectively. Infosys CEO Mr NR Narayana Murthy was named as the eighth most admired CEO in a list of 15 ahead of Mr Jeffrey Immelt of General Electric, Mr Rupert Murdoch of News Corporation, Mr John Chambers of Cisco Systems and Mr Jorma Ollila of Nokia. Mr LN Mittal is ranked number 15 in the list.

The online study, conducted in 65 countries between May and July 2005, was completed by 685 business influentials mainly CEOs, senior executives, financial analysts, business media and government officials. The participants were drawn from a cross section of 19 industries.

"Business decision-makers clearly voted for long-term performance and proven track records over fleeting success," Mr Patrick Ford Burson-Marsteller's Global Corporate Financial Practice Chair, said, adding that "The tenures of these top-ranking CEOs are not short-lived. They had an average tenure of 21 years to repeatedly prove themselves."

Construction of Kavian Steel Project in Iran to start next year

It is reported that the construction of Kavian steel project will start in the first half of the next Iranian year. The Banque SociGale of France will provide a 175-million-euro loan for the project.

Mr Hassan Shoqi Project Manager said that "The development plan includes a smelting and casting unit with a total slab production capacity of 700,000 tons, as well as an electric arc furnace and an LF3 furnace," "The nominal production capacity of the plant was earlier estimated to reach 800,000 tons," he added, saying that this year's output will total 480,000 tons.

Chinas GDP to Grow 9.4% in 2006

China's GDP is likely to grow 9.4% this year and about 9 % in 2006, the Chinese Academy of Social Sciences (CASS), said in a report published on Monday.

The Financial News newspaper quoted a report by CASS, the government's leading think-tank, as saying that the growth slowdown would be modest, barring natural disasters and political instability. China's economy has grown at an annual rate of more than 9% for the last nine quarters, a record economists expect to be extended this quarter.

GDP growth was 9.5% in both 2004 and 2003

TMK Invests $22 million in Romanian Resita Steel Plant

The second largest piping manufacturer in the world, the Russian TMK Group, which took over Resita Steel Plant CSR last year, has made over $22 million investments

In the first stage, the investments were appraised by the plant and by the State Assets Resolution Authority AVAS at lower levels but in order to address the serious environmental issues the plant faces, in real terms, and also in order to build high performance installations, the value increased at $22 million.

Eramet fully acquires US FeV maker Bear Metallurgical

French integrated mining and metals group Eramet, through its US subsidiary, Gulf Chemical & Metallurgical Corp, said it had increased its shareholding in Bear Metallurgical Co to 100% from 49.5% for an undisclosed sum.

Bear Metallurgical, located in Butler, Pennsylvania, is the largest producer of ferrovanadium and ferromolybdenum in North America. Eramet said that owning the whole of Bear Metallurgical would allow it to strengthen its position in the vanadium and molybdenum markets in North America.

Nisshin Steel to increase high steel capacity

Japanese Nisshin Steel Co will raise capital spending on a consolidated basis over the next three years to about Yen 137 billion or at least double the amount for fiscal 2003-2005 to boost production as per a company statement.

Nisshin Steel will invest about Yen 18 billion in its special steel operations to install a new rolling line at its factory in Sakai, Osaka, to hike output of steel sheet used for automobile parts. The company aims to raise production to 36,000 tons monthly by 2008, representing a 33% improvement from the current capacity.

Meanwhile, Nisshin Steel will invest about Yen 8 billion to boost production capacity of high-grade stainless steel products, the report added.

Gansu ferroalloy mills shut down for environmental reasons

Local authorities of Gansu province, the region where the large portion of Chinese ferrosilicon is produced, have inspected the local ferroalloy mills for the environmental problems.

The mills without waste capture facilities will be closed. Experts forecast that ferrosilicon supply will be tight at the beginning of next year, and market will be stronger.

Vietnamese Dy PM urges VSC to cater to domestic needs of billets

Vietnams Deputy Prime Minister Mr Nguyen Tan Dung has urged that The Viet Nam Steel Corporation (VSC) must become a supplier of steel ingot not only for itself but also for other local businesses over the next five years. To do so, the VSC should take many measures simultaneously in order to stabilize capital sources for major investment projects, particularly those to exploit iron ore at the Quy Xa and Thach Khe mines in northern border Lao Cai and central Ha Tinh provinces, respectively, he added.

Mr Dung noted that it is not necessary for the VSC to turn into a holding company in 2006 and that the corporation should play a more active role in orienting the market. He also praised VSC for its achievements as well as its role in stabilizing the domestic steel market in the recent past.

VSC accounts for 17% of the countrys total steel output and 40% of Viet Nams market share

Severstal commissions PPGI line

It is reported that Severstals has recently commissioned a pre painting line with a capacity of 200,000 tons per year to become one of the major PPGI suppliers in Russia.

It is learnt that the input steel for PPGI line would be supplied by the Severstal Arcelor JV Severgalin 2006

Korean INI Steel gets new President cum CEO

Hyundai Motor India Managing Director Mr SS Yang has been appointed as President and CEO of the Incheon based South Korea's second largest steel manufacturer INI Steel Company. His appointment comes in wake of the companys effort to bring the dynamic professionals at the helm of its steel and construction businesses to position the company on a global level.

He joined Hyundai Heavy Industry in 1977 and entered Hyundai Motor Company in year 1999. He has a remarkable experience in overseas business, production and marketing, especially in the Steel and Automotive field and is ideally suited to lead the growth and consolidation on the steel front. Before taking over India operations in April 2005, Mr Yang, as senior member of Hyundai Motor Company, spearheaded Hyundai Motors sales and marketing efforts in countries like Eastern Europe, Poland, Turkey, Russia, China and India.

New Zealand ups anti-dumping duty on GI Wire form Malaysia

The anti-dumping duty charged on Malaysian galvanized wire imported to New Zealand has been increased. The duty against imports of wire with diameter of 2mm to 4.5mm was increased from 9% to 11%. According to the New Zealand Ministry of Economic Development, the new rate will be retrospectively applied to imports from March 2005.

Imports from Southern Wire Industries, SMI Wire Sdn, and RCI Wire Sdn are the only companies exempt from the decision. The first two companies have negotiated confidential rate for their export, while RCI was not involved in the original case.

The original case against the galvanized wire imports was brought forward by Pacific Wire, a unit of Fletcher Building Ltd, in 2004.

Nigerian steel Sector fully privatized

Nigerian Minister for Power and Steel Mr Liyel Imoke announced that the government has successfully completed the divestment of its stakes in the steel sector. He said that the decision of government to privatize all the steel companies was to save the sector from total collapse.

The list includes Ajaokuta Steel Company Limited ASCL, Nigerian Iron Ore Mining Company NIOMCO and Delta Steel Company Limited DSCL, whose concession bids were won by the Global Infrastructures Nigeria Limited, while the biding process for the Inland Rolling Mills based in Jos, Katsina and Osogbo have almost been concluded.

"I am happy to inform you that considerable progress has been made in this regard. ASCL and NIOMCO have been concessioned, DSCL has been privatized, while the three inland rolling mills are being liquidated," he said.

Hunan Valin sweetens offer to public holders

Hunan Valin Steel Tube & Wire Co Ltd said that it will sweeten the compensation plan for public shareholders as part of its reforms aimed at floating non-tradable state holdings.

According to the new plan, the company will offer its public shareholders either 7 or 8.2 put warrants for every 10 tradable shares compared with six or eight put warrants previously. The number of warrants public shareholders actually receive will depend on the number of tradable shares on the date of the implementation of the plan.

Red Hill Iron Ore company to list on ASX

Giralia Resources has announced it will list its Red Hill Iron Ore Company on the Australian Stock Exchange next February. Red Hill Iron controls tenements covering about 2,000 square kilometers inland from Onslow, south of the Robe River-Pannawonica iron ore mines, in north-west Western Australia.

Giralia MD Mr Mike Joyce says BHP Billiton carried out preliminary drilling in the area in the 1970s, but the project was abandoned on the grounds it was not economically feasible. Mr Joyce says given the surge in demand for iron ore, it is well worth exploring. "The key elements are that it's very close to the coast and infrastructure," he said. "We've got mining operations just to the north of us. We think there are good opportunities to find similar styles of mineralization on these tenements, so it's a good opportunity for Giralia to have a piece of the renewed interest in the iron ore sector."

Dana to close three more auto parts plants in US

The struggling auto parts maker Dana Corp has announced that it will close three more plants in Danville, Sheffield and Burlington as part of its ongoing effort to cut costs by the middle of next year. The plants are part of the company's thermal products group and produce small radiators and heat exchangers. Work from the three latest closings will be shifted to plants in St. Clair and Cambridge.

Toledo-based Dana said in October that it would close two Virginia plants and sell parts of its business. The company said reductions were needed after cutting its profit forecast for the year in half because of soaring energy and steel costs.

The company currently employs 46,000 people in 28 countries.