January, 11 2006
Tribal demand return of land from Rourkela
Armed tribal today launched an indefinite economic blockade cutting off road and rail traffic to Rourkela the steel city of Orissa demanding return of the surplus land acquired for the establishment of the Rourkela Steel Plant 50 years ago to its original owners. Rourkela had been cut off from Sundargarh as the state highway 10 and from Keonjhar as the NH-203 was blocked.
The blockade had been called jointly by Rourkela Local Displaced Association and Anchalik Surakhya Committee. The two organizations had been agitating for the last one and half years demanding the RSP authorities should restore the surplus land, acquired during 1954 for the construction of the steel plant but not being used now, to its owners.
Stating that the compensation paid during the acquiring of land was very meager, the two organizations demanded proper compensation should be paid to the ousted families and the areas where they had been resettled should be developed.
Police said the blockade commenced in the wee hours after which several vehicles were set ablaze in Panposh and Beldih areas on the city outskirts. The organizations spearheading the agitation denied the protesters were involved in the incidents of arson.
New Indian iron ore policy on the anvil
The revised iron ore export policy may broadly retain its current structure with some minor modifications while renewing the long-term agreements for export of the commodity to Japan, South Korea and China. The current term of long-term agreements for supply of iron ore to these countries ends on March 31, 2006. Though the domestic steel industry did not want these pacts to continue, the government might renew these agreements.
Export of iron ore fines in excess of domestic demand would continue but the government will examine removal of certain restrictions. The issue will be jointly looked in to by the Commerce, Mines and Steel Ministries. The Commerce Ministry, which has invited stakeholders' suggestions on the proposed changes, has also made it clear that the canalization agreement would continue. However, it may include public sector canalizing agencies other than MMTC
The Ministry also proposes to continue with quantitative restrictions on Bailadila iron ore in view of increase in domestic demand and the actual quantity would be finalized between the Ministries of Commerce and Steel.
900 million tonne of Coal in NE
It is reported that there is a whopping stock of 900 million tonne of coal lying beneath the surface in various coal fields of the North East which are yet to be tapped. To harness that the Regional Research Laboratory and Federation of Industries of North Eastern Region have come together with an objective to promote efficient, rational and sustainable utilization of the available natural resource of the North East region.
A seminar was held, which discussed that the coal from the NE regions had different physio-chemical attributes and therefore offer challenging opportunities to develop suitable and sustainable technologies. It was also mentioned that effective utilization of this high sulphur, less matured coal in industries encounter new challenges.
President of FINER Mr SK Jain stated that FINER has been spearheading the movement to catalyse the economic development of the NE region. He also said that Coal was a natural resource of the region with large reserves and has tremendous potential for economic exploitation.
Uttam Galva announces expansion of service centers
Uttam Galva Steel is investing Rs 100 crore to expand capacities in its service centre for steel processing and distribution. The centre will focus on steel retailing at industry level and will provide cutting, slitting and steel blanking services. We will focus on just-in time delivery and inventory management as well, said Mr Ankit Miglani, director.
At present, the centre has installed capacity of 5,000 tonne per month. In the first phase of expansion, additional capacity of 25,000 tonne will be added by March. And by December the company expects total capacity to touch 50,000 tonnes per month.
The company claims the expanded service centre will be the first of its kind to be set up indigenously. The centre will cater to auto engineering and white goods industries. It is primarily focused on the domestic market, with an eye on exports said Mr Miglani.
Mukand denied duty refund by US court
In an anti-dumping case going back more than a decade, Mukand International suffered a minor setback when the US Court of International Trade last month refused to refund duties paid by the company on a technical ground. The company, a wholly owned subsidiary of Mukand Ltd, was slapped with Rs 31 lakh anti-dumping duty on stainless steel bars exported by it from the United Arab Emirates (UAE). It manufactures bars in the UAE, using stainless steel wire rods imported from India.
In 1993, the US department of commerce had imposed 21% anti-dumping duty on various exporters from India, including Mukand Ltd. In 1999, the companys international arm began exporting stainless steel bars to the US from its UAE unit. Three years later, Mukand International was slapped duties for exports from 2000 to 2002.
The company, however, appealed as the UAE products were different from products sourced from India, they were not subject to anti-dumping duty. This was agreed by the department of commerce in its ruling in February 2005 and said UAE products dont fall under the anti-dumping duty scope for India.
However, the US Court of International Trade last month denied Mukand International refunds on a technical ground- the appeal should have been pursued before duties were liquidated by the US Customs for a brief period between November 2003 and May 2004
Mukand is now consulting legal advisors in the US to decide the future course of action, said a company statement. The company has stopped exporting the product to the US now and has also stopped its manufacturing at UAE
JK, Adani ramp up port project cost to Rs 3000 cr
Gujarat Maritime Board has approved the project plan of the Dholera port in Gujarat, a 3000 crore JV of JK group 51% and the Adani group 49%. The Dholera port is also going to be the only other chemical port terminal after Gujarat Chemical Port Terminal in the country.
Mr VK Saxena CEO of the Dholera port project said With the entry of the Adani group, now we have much required expertise for the Dholera port project, and with that we have decided to change the project completely.
The Adani group has successfully commissioned the Mundra port and has much required financial muscle for the Dholera project. With support from the Adani group now, we are considering container terminal and liquid handling terminals, said Mr Saxena. In its original format, the port was to have a general cargo- and coal-handling facility.
The port project had originally envisaged 6 million tonne cargo handling capacity spread among eight jetties.
Adhunik Metals plans Rs 100 crore IPO
Adhunik Metaliks Ltd has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offer worth Rs 100 crore to part finance its new project. The company plans to enter the capital market with an IPO of equity shares of Rs 10 each for cash at a premium to part finance a Rs 437 crore project to manufacture special and auto grade steel and stainless steel, Adhunik Metaliks said in a release on Tuesday.
The project envisages backward and forward integration in the value chain that would enable the company to emerge as a price competitive player in the special steel and stainless steel segment, it said.
NLMK sells stake in Lebedinsky GOK and acquires more of KMA Ruda.
OJSC Novolipetsk Steel NLMK has agreed to sell its entire stake of 12% in Lebedinsky GOK to OEMK-Invest Stary Oskol for $400 million in cash. Lebedinsky GOK is an iron ore mining and processing enterprise in Russia.
NLMK has also agreed to acquire from the companies affiliated to the shareholders of Lebedinsky GOK an additional 25% stake in KMA Ruda, bringing its total ownership to a controlling stake of 58%. KMA Ruda is a mining company located within 350 kilometers from NLMK's production facilities in Lipetsk. The enterprise already supplies NLMK with iron ore concentrate, maintaining an annual production capacity of 1.8 million tones. This acquisition enables NLMK to consolidate KMA Ruda on its balance sheet and to fully control its operations.
Before this transaction NLMK had 97% ownership of Stoilensky GOK Russia's third-largest iron ore producer, a 33% stake in KMA-Ruda and 12% in Lebedinsky GOK.
China faces overcapacity of steel industry
China is to cut the annual production capacity by 100 million tons of iron and 55 million tons of steel in the coming five years, in a bid to cool down the overheated steel industry, an official said in Guiyang. Last year, the country produced 348 million tons of steel out of its annual capacity of 470 million tons, said the official of the State Development and Reform Commission.
According to a recent survey of the commission, China has 1,499 steel companies. Only 15 of them have an annual production capacity of more than 5 million tons each and 40 others have 1 million to 5 million tons. However, more steel companies are under construction or on the drawing table of planners.
All this indicates steel supply will be much more than the expected demand though large amounts of steel products will be needed to support the country rapid development, said the official. The majority of the steel projects under construction were started up by local governments without the approval of the central authorities, added the officials.
Australia coal producers resist calls for price cuts
Major coal producers will this week resist calls from Japanese steel mills for a steep cut in low-quality coking coal prices, despite growing concerns that producers are facing lower than expected settlement prices, Talks with Japanese steel mills in Tokyo on annual contract prices for semi soft coking coal resume this week with the steel mills expected to press the majors to accept cuts of up to 30%
But, The Australian said, the major producers are dismissing the recent price deals as irrelevant, setting the stage for potentially protracted negotiations.
"There appear to have been some minor settlements in the past month or so but none has been significant or have any bearing on the direction of the market," Xstrata Coal head Mr Peter Coates told
Last month, some small Australian producers reportedly agreed to about a $25 a metric ton reduction in prices to around $55 a ton, a fall of just over 30 pct. Earlier, the market had been unsettled by rumors that new entrant Wesfarmers Ltd had agreed with POSCO to a 35% price reduction for PCI, coal.
Russian PM imposes anti-dumping duties on Ukrainian steel pipes
Russian Prime Minister Mikhail Fradkov has signed a resolution imposing anti-dumping duties on Ukrainian steel pipes, the government press service said Tuesday.
The measure aims to protect the interests of Russian producers of steel pipes after the Economic Development and Trade Ministry's anti-dumping inquiry into exports of the relevant Ukrainian products to Russia.
The new customs duties vary from 8.9% to 55.3% depending on the type of pipe.
Dofasco Duel - Arcelor declines to comment on joint bid
Arcelor declined to comment on a report in French newspaper Le Monde that it may team up again with Nucor Corp to bid for Canada's Dofasco Inc. Mr Luc Scheer, a Luxembourg-based spokesman for Arcelor, today declined to comment on Le Monde's report yesterday that it will again make a joint bid with Nucor for Dofasco.
It would be the fifth time that Nucor, the second-largest U.S. steelmaker, and Arcelor make a joint proposal. Arcelor and Nucor initially proposed a cash offer for Dofasco at C$43 a share on May 27. On June 9, Dofasco announced the acquisition of a 65.8% stake in Quebec Cartier Mining Co. for C$306 million and later rejected Arcelor and Nucor's bid. The steelmakers made a second bid on June 21, offering C$46 a share in cash and a security representing the additional stake in QCM. The offer was rejected by Dofasco two days later. A third joint proposal of between C$52 and C$55 a share in cash was made November 10 and rejected by Dofasco eight days later. A fourth proposal was made on November 22, for C$50 in cash and a security representing the additional QCM interest. Dofasco rejected the offer the same day and Nucor withdrew from the bidding.
By bidding with Nucor, Arcelor would be ready this time to put at least C$70 per share,'' France's La Tribune newspaper reported today, without saying where it got the information. Arcelor has made two separate unsolicited offers alone. Its most recent, at C$63 a share, was matched in a Dofasco-backed bid by Germany's ThyssenKrupp AG.
Both Arcelor and ThyssenKrupp are vying for a slice of the North American automotive-steel market and access to steelmaking raw materials. Dofasco, which supplies steel to about 10% of the North American auto market, counts Ford Motor Co among its customers and produces more iron ore than it needs.
Dofasco's shares closed at C$64.81 yesterday. They have risen 47 percent since November 22, the day before Arcelor made its first public offer for Hamilton, Ontario-based Dofasco.
Asian average steel forecast from MEPS
As per the latest release from MEPS, in the flat products category, MEPS still cannot see any short term solution to the chronic over supply situation in the region. Production cuts have been made in Japan, South Korea and Taiwan. However, more action is needed in China to redress the imbalance between supply and demand. This may be partially achieved by higher export volumes to the North American and EU markets. Significant price cuts are anticipated in January. The only positive note on pricing in Asia is that the rate of decline should ease and a modest upturn in prices is possible in the second half of 2006. MEPS believe that drastic action to curb output growth will be taken in China during the first half of next year. Moreover, higher export activity will ensue from all the main Asian steel producing countries.
Recently reported price reductions have not been fully incorporated in our forecasts. The balance of probabilities lies at 80:20 that our predictions will be on the high side. The rate of decline could be faster and deeper - given the projected spate of price cutting in the region.
The short term outlook for prices in the long products sector remains rather poor. Values are forecast to slip further over the next few months in all product categories as oversupply blights the markets. Higher export volumes and further cuts in production should, however, stabilize the situation in the springtime. A slow but modest price improvement is anticipated through the summer months and into the remainder of the year.
Regulation of supply is essential in China. MEPS does not anticipate major cuts in output in 2006 but expects the rate of growth to be reduced to levels significantly below the 2005 outturn.
Aztec Resources & Marubeni boosts Koolan iron ore project support
Aztec Resources Limited said that Marubeni Corporation is elevating its support for the Koolan Island Iron Ore Project and it has signed a Letter of Intent with Marubeni, which represents further definition of agreements set out in the MoU signed by the two parties in December, 2004, following the positive outcome of Aztec's bankable feasibility study and successful visit by Aztec to Japan for technical presentation to Japanese steel mills.
The LoI provides for Aztec and Marubeni to move towards off-take agreement and the provision of financial assistance for the Koolan Island Iron Ore Project. The letter expresses intent by Marubeni to extend financial assistance for the timely development and construction of the Koolan Island Project of up to A$20 million subject to mutual agreement with Marubeni and its board approval.
Under the terms of the LoI, Marubeni and Aztec have expressed intent for Aztec to supply 1.0 to 1.5 million tonnes per annum of high grade Koolan Island iron ore, over the life of the project to Marubeni. The ore will be consumed primarily by integrated steel mills in Japan and Asia. Formal supply agreement terms will be based on mutual agreement on the detailed conditions of the purchase of Koolan Island iron ore and approval by the purchasers' Board.
Aztec Resources Limited now has buyers committed to take all iron ore produced from its proposed 4 million tonne per annum iron ore mine at Koolan Island, Western Australia for the life of the Project.
Founded in 1858, Marubeni Corporation is one of the largest Japanese trading companies. The company's operations encompass domestic, import/export, offshore trade and investment activities ranging from the development of natural resources to the retail marketing of finished products. The company conducts these operations through a worldwide business network of 124 offices in 74 countries. . For the year ended 31 March 2005, Marubenis consolidated gross sales were US$74.2 billion with net profit of US$385 million.
Aztec is the owner of the Koolan Island high quality iron ore project which has a resource of 53 million tonnes. In August 2005, Aztec announced the successful completion of a Bankable Feasibility Study. Capital costs of A$108 million, inclusive of mine development costs support a forecast annual production of approximately 4.0 million tonnes per annum and signed MOUs/LOI account for total sales of 4.0 million tonnes per annum, on average. The project has an initial nine year life with ongoing drilling exploration providing potential upside for the project. In 2000, Aztec was granted an exploration lease of the previously BHP-owned and operated Koolan Island project, located 130 kilometers north of Derby off the West Australian Kimberley coast. Koolan Island has remnant resources and previously produced 68 million tonnes of high grade (Fe @ 67%) and low impurity iron ore.
TMKs pipe shipment up by 14% in 2005
Russian pipe maker TMK has shipped 2,855 million tones of pipes in 2005, up by 14 % from the same period in 2004. The delivery of 246,000MT of pipes by TMK in December 2005 was up by 17% as against the same month in 2004
TMK is the largest Russian producer of pipe produce with market share of over 42% and is one of top three pipe makers worldwide
Kansai Electric to pay 24% less for coal in 2006- JPMorgan
Kansai Electric Power Co., Japan's second-biggest electric utility, agreed to a 24% cut in coal prices for 2006 with Australian and Indonesian suppliers, JPMorgan Chase & Co. said. Kansai agreed to pay $41 a metric ton, compared with $54 a year ago, London-based analyst Anindya Mohinta said today in a note sent to clients. He didn't say where the information came from. It is likely that $41 a ton will become the benchmark Japanese contract price,'' Mohinta said.
Utilities are trying to negotiate lower contract prices for 2006 because of increased exports from Indonesia, Australia and South Africa. Kansai's price fell below JPMorgan's forecast of $45 a ton.
Prices for coking coal, used in steelmaking, may follow the example set by thermal coal burned at power plants, Mohinta said. JPMorgan forecast 2006 coking coal contract prices will be settled at $112.50 a ton, compared with last year's record $125.
Ship brokers see rates moderating
Forecast freight rates for the dry bulk, tanker and container shipping sector are less than promising with most ship brokers expecting rates to moderate over the next two years as new ships are added to the global fleet with supply outstripping demand.
OSK Research Sdn Bhd manager Chris Eng said the run-up in dry bulk shipping rates as indicated by the Baltic Dry Index in 2003 and 2004 was due to a surge in Chinese demand for commodities, particularly iron ore and coal for its steel production facilities. However, since the second quarter of 2005, China has put the brakes on its steel-making industry, given a glut in steel-making capacity. Stockpiles of iron ore and coking coal which were built up by steel manufacturers were also gradually drawn down. This has resulted in rates dropping as demand for dry bulk commodities tapered off, he said in a note.
Looking forward, as China continues to constrain the production of its steel products, demand for such dry bulk commodities will remain muted and therefore demand for dry bulk shipping will similarly remain muted, said Eng.
The supply of dry bulk vessels, which grew 7 per cent in 2005, is expected to grow by another 6 per cent this year. Compared with demand growth forecast to be 4 per cent for 2005 and 2006, we can see that supply has exceeded demand, particularly with port congestion easing.
Severstal surged steel output in 2005.
Severstal has produced 10.8 million tones of steel in 2005, representing an increase of 3.5% from the year 2004. The production of rolled metal raised 5.8% up to 9.8 million tones, the volume of coke output soared by 100.1%, the production of agglomerate surged 101.9%, the cast iron production climbed 100.7%
Severstal produced over 10.4 million tones of crude steel and over 9.2 million tones of rolled products in 2004. Based on the results of 2004 business, Severstal was number 12 among the top global steel producers.
Severstal as an integrated iron & steel works manufactures a wide range of products: hot and cold rolled steel, roll-formed shapes and pipes, rolled sections, a large group of coke products and by-products.
Malaysian PN Plate Mill puts focus on special grades
LPN Plate Mill Plc, a hot-rolled steel manufacturer, will produce more specialty-grade steel than existing commercial grades this year to avoid volatile product prices.
MD Mr Sunate Wuthisak said the company would raise minimum production this year to 230,000 tonnes from 144,000 tonnes last year, of which 57% would be special grade and the remaining 43% commercial grade, lower than 70% last year. ''We will focus on making more specialty-grade steel because its margin of 20-25% is more attractive than for commercial grades that have a margin of only 13%,'' he said.
Mr Sunate said local demand for specialty-grade steel amounted to 200,000 tonnes last year with LPN and Sahaviriya Steel (SSI) the only two suppliers. ''Competition is not tough for specialty-grade steel because the combined capacity of two suppliers is still insufficient to meet the local demand,'' said Mr Sunate.
Currently, some specialty-grade steel is imported from the United States, Japan and Europe, according to Mr Sunate.
Ukraine steel industry less competitive on higher gas prices
Some of Ukraine's major industrial companies have an extremely negative opinion of the Ukrainian-Russian gas agreement. The industrialists appeal to President Viktor Yushchenko says that the recent gas crisis has put the Ukrainian economy under the threat of collapse and loss of market competitiveness.
The appeal was signed by officials from 24 industrial enterprises, including the MMK Ilyicha metallurgical enterprise, Azovstal, Makeevka, Novokramatorsk machine-building plant, Frunze Production Corporation in Sumy, Nikopil Ferro-alloys plant, Zaporizhstal, Alchevsk, Severny and Inguletsk mining and ore dressing enterprises.
Ukraine's biggest steel mill, Kryvorizhstal, which produces 20% of Ukraine's metal output, said Tuesday that it would switch to using more coke and higher-grade iron ore and less gas. "Kryvorizhstal is currently fine-tuning technologies that will partly replace the use of natural gas with solid fuel in the production process," Kryvorizhstal energy director Mr Vladimir Romanenko said in an e-mailed response to questions about the impact of higher gas prices. At present, 7% of Kryvorizhstal's production costs are gas-based, he said.
In Moscow, however, some industry analysts cast doubt on the company's figure. "Considering how uneconomic most Ukrainian metallurgy plants are, a 10% to 12% figure is much closer to the truth," said Mr Denis Nushtayev, an analyst with brokerage Metropol.
A loss in profitability for Kryvorizhstal would work to the advantage of Russian steelmakers making foreign acquisitions, said Mr Timothy McCutcheon, a metals and mining analyst at brokerage Aton.
One feared trapped in Kentucky coal mine accident
Rescue crews were called to a coal mine in eastern Kentucky after a roof collapsed Tuesday, possibly trapping one miner, a state official said. The rock fall occurred about 900 feet inside the Maverick Mining Co. LLC mine in Pikeville, near the Virginia line, said Chuck Wolfe, spokesman for the Kentucky Office of Mine Safety and Licensing.
The condition of the person in the mine was uncertain, according to Suzy Bohnert, a spokeswoman for the U.S. Mine Safety and Health Administration. She said federal officials were on the scene.
Output Of Datong Coal Group Hits 100m Tons
Datong Coal Group in north China's Shanxi Province produced a total of 100.16 million tons of coal in 2005, becoming the country's second super large coal enterprise with output exceeding 100 million tons. The biggest coal producer in China is the Shenhua Group.
The increased output of the Datong Coal Group is due to its restructuring, integration of resources and technical upgrading.
Kunming Steel to build iron mine in northern Vietnam with VSC
The Kunming Steel Co Ltd, the largest steel maker in western China's Yunnan Province, plans to start building Vietnam's Quy Xa iron mine jointly with the Vietnam Steel Corporation this year.
The construction of the mine and the proposed smelter is scheduled for operation in 2008. Located in northern Vietnam's Lao Cai Province, the Quy Xa iron mine has 120 million tons of iron ore reserves. It is expected to produce 1.5 to 2 million tons of iron ore per year, with investment required for the project estimated at $50 million.
It is reported that Kunming Steel and VSC will build an iron smelter near the mine and export part of the products to Kunming Steel in exchange for bituminous coal and coke from Yunnan. Besides the products used by Kunming Steel, the Quy Xa mine will export 1 million tons of iron ore to China annually for 350,000 tons of coke. In addition, it will also supply 500,000 tons of iron ore to the Thai Nguyen steel plant during the second phase.
Severstal starts BF 4 "Vologzhanka" after overhaul
On December 21st during the ceremony, Mr Kruchinin, GD of JSC Severstal, pointed out that 'BF-4 start up, with the reconstruction investment budget of 5.9 billion rubles, is a remarkable event giving good ground for 2006 both to fulfill a production program of the company, and to continue hot metal facilities renewal'. Severstal workers decided to follow the tradition established during the start-up & commissioning of BF-5, the largest in Europe, when it was named 'Severianka' Maiden of the North and accordingly the restored blast furnace was named 'Vologzhanka' Maiden from the Vologda region.
The implemented innovations will ensure the production of 2200 to 2300 thousand tons of hot metal with reduced coke consumption per ton, as well as blast furnace failure-free operation during 15 years without Class 2 intermediate repair.
BF-4 of 2700 cubic meters volume was blown in March, 1969. It was the biggest BF not only in the USSR, but also in Europe. Based on the experience acquired in the course of BF1, 2 and 3 operation, it was decided to make some modifications in the BF-4 design at the construction stage, that would allow to achieve high operating factor of the furnace working volume (KIPO), increase the number of taps, with considerable improvement of the furnace maintenance conditions as well as blast-furnace keepers conditions of work. In 1984, after 15 years of operation, the BF was stopped for complete overhaul with reconstruction, when a number of technological innovations were implemented. After the overhaul in the first year of BF-4 operation, the BF operated with the highest output in its history.
BF-4 has been built anew and practically all world modern solutions of present years have been implemented here. In particular, a closed cooling system has been used with Danieli Corus copper coolers in taphole zones and at the bottom of the furnace stack, and modern iron coolers are installed above up to the furnace top. The furnace is equipped with a Paul Wurth bell-less top parallel hopper, TMT hydraulic guns and drilling machines. The number of different process parameters measurements has been increased, which together with Voest Alpine (expert system will ensure timely diagnostics of any deviations in the blast furnace run at an early stage.
Lengipromez acted as general designing company at BF-4 reconstruction whereas Domnaremont was general contractor responsible for BF repair. JSC 'Corporation Montazhspetsstroy' was responsible for erection of the central exhaust station.
According to Mr. Kruchinin, 'in 2006, JSC Severstal intends to pass the 11 million level in steel melting and to produce over 9.8 million tons of rolled products'.
Bekaert to acquire Conflandeys business in US
Bekaert announced that it had purchased machinery and equipment from US based Conflandey Inc an affiliate of the French Trileries de Conflandey SA at $ 4.5 million. Furthermore, Bekaert will act as Conflandeys exclusive agent within the US and Canada.
Mr Henri-Jean Velge, Group Executive VP stated: With this acquisition, Bekaert will strengthen its position in advanced wire products for the North-American markets while continuing its focus on more value added applications. Our objective is to reach the highest level of efficiency in service and delivery, which are key parameters in order to successfully serve our broadened customer base.
Conflandey Inc located in Whiteville North Carolina, is the single most important supplier of stitching wire, supplying most of the printing companies and binderies in North America. The company is also an important supplier of wire for the industrial staples market.
Rio Tinto Pannawonica iron ore mine closes due to Clare
Rio Tinto said that tropical cyclone Clare had stopped production at the Pannawonica iron ore mine in Western Australia's Pilbara region.
"All the communications are out, so we're not sure exactly what the situation is at the moment," a Rio Tinto spokesman said. "We went to yellow alert was the last we heard, which means they shut down the mine," he said.
Quanex expands heat treatment facilities at Indiana
Quanex Corporation an industry leading manufacturer of value-added engineered materials and components for the Vehicular Products and Building Products markets announced that its Board of Directors approved a $6.2 million expansion at the MACSTEEL Heat Treat operation in Huntington, Indiana.
The approved expansion will add a fourth quench & temper line with induction heating similar to the facility's existing three lines. It will also involve a building expansion and a new high speed, state-of-the-art, precision cutting line for specific product applications.
Mr Mark A. Marcucci, president of MACSTEEL, noted, "MACSTEEL's Heat Treat business has grown significantly in recent years because of its commitment to meeting customer needs. This expansion project, scheduled for completion in early 2007, will add 16,000 tons of additional bar and tube capacity, increase the size range of our products, and expand our value-added services."
MACSTEEL, part of the Vehicular Products segment of Quanex Corporation, is headquartered in Jackson and operates manufacturing facilities in Jackson and Monroe, Michigan and Fort Smith, Arkansas, and processing facilities in Huntington, Indiana and Pleasant Prairie, Wisconsin.
Novamerican Q4 profit falls by 41%
Canadian Novamerican Steel Inc, which processes carbon steel, stainless steel and aluminum products, reported its fourth-quarter profit slid 41% weighed by lower gross margin resulting from lower steel prices. For the three months ended November 26, net income totaled $13.9 million compared with a year-earlier profit of $23.7 million. Sales edged up 2 percent to $219.2 million from $215.2 million a year ago.
For the full year, the company's net income slid 49% to $36.9 million from $72.9 million a year earlier. Revenue expanded 9% to $834.7 million from $768.6 million.
Novamerican forecast "steady" demand and stable steel prices in the current first quarter, driven by the energy, mining, transport and non-residential construction sectors.
Bulgarian shipbuilder Bulyard to upgrade facilities in 2006
Bulgaria's Bulyard Shipping Industry BSI, a unit of the Bulyard consortium, plans to invest a Euro 2 million in refurbishments and new equipment in 2006, said ED Mr Friedrich Katzer. The consortium will use bank loans to finance its investment program.
The bulk of the money will go to purchase new blasting and painting chambers, forklifts, welding and painting equipment, a second plasma cutter, as well as ship design software.
BSI occupies the facilities of the former Varna shipyard and the Bulyard consortium owns 75% of BSI.
Russian steel gets bigger window on Europe
The EU countries have had a quota on Russian steel imports since 2002. That was when an agreement was signed between Russia and the EU under which deliveries of Russia steel to Europe were set at 1.38 million tons. That agreement was in force until 2004 and that year the quota was raised to 1.82 million tons in connection with the expansion of the EU. No agreement was signed for 2005 and the quota from 2004 remained in force. In November, Russia and the EU signed an agreement on steel to replace all agreements written in the last ten years.
The new agreement raises the quota to 2.27 million tons, with the quota for rolled steel set at 930,000 tons, thick steel plates at 195,000 tons and steel alloy at 224,000 tons. Now the largest suppliers of rolled steel in the EU is Novolipetsk Steel, which sells 30% of its production there, Mechel, which also sells 30% of its production on that market, Severstal, selling about 25% of its product, and MMK which sells about 20% of its output there. The Economics Ministry notes that the quota ensures Russian metallurgists a European market of over $870 million over year.
But the metallurgists say that they did not receive any significant benefits from the enlargement of the quota.
Cleveland-Cliffs board approves Mesabi Nugget investment
Cleveland-Cliffs Inc announced that its Board of Directors has approved Cliffs' capital investment in the Mesabi Nugget Project. The investments and capital expenditures authorized by the Board total approximately $50 million and are contingent upon the Project: obtaining non recourse financing for its capital requirements in excess of equity investments made by the Project participants; and further, the Project's participants reaching mutually agreed upon terms. Cliffs' equity interest in the joint venture is expected to be approximately 23%.
Capital expenditures to expand concentrate production at Northshore to support sales to the Project are expected to be $25 million. In addition, capital expenditures of approximately $4 million have been authorized for rail transportation of concentrate from Northshore to the nugget plant.
Mr John Brinzo, Cliffs chairman and CEO commented, "We are optimistic about the future potential for this nugget technology. Today's action by the Board reaffirms Cliffs' commitment to Minnesota's iron range and to moving this Project forward."
Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. Cleveland-Cliffs Inc operates a total of six iron ore mines located in Michigan, Minnesota and Eastern Canada. The Company is majority owner of Portman Limited, the third-largest iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore.
Arcelor Dunkirk opts for automatic steel quality inspection
Thermo Electron Corporation announced that Arcelor Dunkirk, the leading global producer of flat carbon steel, long carbon steel and stainless steel, has chosen the Thermo ARL 4460 optical emission spectrometer as part of its steelworks modernization program of progressively increasing the company capacity from 6.7 million tones to 7.2 million tones by 2010.
With the Thermo ARL SMS-2000 automation system, the ARL 4460 metals analyzer provides fully automatic sample preparation and analysis. It allows for increased productivity and shorter response times while keeping steel quality in specification even for the most demanding applications, including automotive.
The Arcelor Dunkirk steelworks modernization program required a much greater number of analyses than were previously performed, with the analytical control laboratory needing to work 7 days a week and 24 hours a day, and requiring 250,000 analyses per year or around 700 per day. It was therefore necessary for the company to invest in market leading solutions to increase the laboratory capacity, reduce delays in analyses and improve measuring uncertainties.
SA first quarter ferrochrome prices slide 7%
Ferrochrome producers in South Africa, the world's biggest producer of the alloy, are being forced to accept another cut in prices, causing losses as the rand strengthens, industry sources said. Producers of stainless steel, which uses ferrochrome as an anti-corrosive element, have reduced buying to pressure prices lower, but they will have to come back to the market soon, the sources told
First quarter European base contract prices for charge chrome, the highest grade of ferrochrome, are due to fall by five cents or 7.4% to 63 US cents per lb.
A decline would mean the third consecutive fall in quarterly prices after they slipped by five cents each in the third and fourth quarters last year. Prices rose by five cents in the second quarter of 2005.
Ferrochrome prices nearly doubled in 2004 on supply difficulties but have come under pressure as stainless steel producers resist high prices and trim their output growth.
South Africa is the world's biggest producing country of ferrochrome and also has around 70% of global chromite reserves. Mining group Xstrata is the world's top ranking producer.
Baffinland announces additional thick intervals of high grade iron
Baffinland Iron Mines Corporation has reported on some thick intervals of high grade iron assays from the second batch of drill core from the Company's 2005 drill program on its wholly-owned Mary River iron ore deposits, located on Baffin Island, Nunavut Territory, Canada.
The total high-grade iron intercepts contained in the holes released today is 1,330.5 meters at an average grade of 65.8% iron. The total of the multiple intervals in a single hole is as much as 229.8 meters in four intervals at an average grade of 64.8% iron. The thickest continuous interval is 128.1 meters at an average grade of 67.7% iron. The highest grade of the thick and continuous intercepts is 68.8% iron over an interval of 102.0 meters.
Mr Gordon A. McCreary, President and CEO of Baffinland stated that, "At the risk of sounding too blase about the high grade assay results of the holes released today, it is fair to say that these results are more of the same and that is a good thing. The total intervals of assays being released is 1,330.5 meters at an average grade of 65.8% iron, bringing the total released to date for the 2005 drill program to 3,081.8 meters at an average grade of 65.7% iron. If you include the 2004 drilling on Deposit No. 1 with the drill results released to date for the 2005 program, the total is 4,190.1 meters at an average grade of 65.7% iron"
Gerdau finalizes Sidenor acquisition
Brazilian steel giant Gerdau reported that it has finalized the acquisition of Spanish steel group Sidenor in a move that will give it partial control of local steelmaker As Villares and access to the European market.
Gerdau and Spanish bank Santander agreed on November 15 to acquire 40% each of Sidenor in a deal worth 444mn euros (US$536mn). The remaining 20% will go to Sidenor executives.
In addition, the new Sidenor owners will divvy up the Spanish steel group's 58% ownership of As Villares, Latin America's largest producer of specialty steel used in mechanical construction.
Gerdau is the largest producer of long steel in the Americas. The company has operations in Argentina, Brazil, Canada, Chile, Colombia, Uruguay and the US, while the Sidenor move will give it a foothold in the European automobile industry.
12 trapped coal miners confirmed dead in Anhui
The 12 trapped miners in the last Thursday gas explosion in east China's Anhui Province have been confirmed dead, according to sources with the rescue headquarters Tuesday. At 2:45 PM on Monday, the rescuers reached the disaster site and found all the trapped miners buried in exploded coal powder, no chances of survival.
The blast occurred at 1:49 p.m. last Thursday at the Wangfenggang Coal Mine in Huainan City, which was under construction at the time of explosion.
Green group left out of Sydney climate meet
US, Japan, China, India, Australia and South Korea, and some of the world's biggest resource and power companies such as Rio Tinto, Peabody and Nippon Steel will be meeting during two day Asia Pacific Partnership for Clean Development and Climate at Sydney. It is a new co-operative between governments and businesses to reduce global pollution through cleaner technology.
But no green groups or scientific organizations have been invited to the talks. International environmental group Greenpeace has labeled the meeting a "coal pact" dominated by coal exporting and importing nations and producers. "The meeting's agenda leaves no room for scientific evaluation of the best energy technology policies to reduce greenhouse pollution," Greenpeace clean energy campaigner Ms Catherine Fitzpatrick said.
Green groups said the Sydney climate conference should focus on renewable energy such as solar, wave and wind power and not on existing polluting technologies or technologies that still do not exist except on the drawing board. Hundreds of green activists are expected to stage protests outside the conference
US and Australia have refused to sign the Kyoto Protocol, which sets targets for reducing greenhouse gases blamed for global warming, saying it would threaten growth. Developing nations China and India back Kyoto but have nonbinding commitments. However, Japan has binding agreements.
Corus appoints TDG as logistics partner
Corus and TDG have announced the start of a seven-year partnership encompassing the management of Corus' UK road transport services, reports Transport News Network. It is intended that Corus' hauliers will in future be contracted and managed by TDG in what is believed to be one of the largest such arrangements in the UK road transport sector.
Corus currently dispatches by road around 1,500 loads of steel products a day from over 40 sites throughout the UK. To optimize Corus' road transport logistics, TDG will create a centralized planning platform, based at Corus' Scunthorpe site, in order to plot the most favorable routes and loads based on the company's current customer order pool.
Mittal Steel moves to increase Kryvorizhstal wages
Mittal Steel increased wages at Kryvorizhstal, Ukraines biggest steel mill that it had acquired last year, meeting one of its acquisition commitments, the company said.
The increase in the wages, apparently by more than 10%, comes after Kryvorizhstal workers have staged a rally last month demanding the increase and threatening with a strike.
ISTIL reports 7.6% increase in production in 2005
ISTIL, a Donetsk based steel company, saw a 7.6% rise in rolled stock output in 2005 from 2004, to 740,000 metric tons, according to rough estimates, the company reported.
In the 12 months, the mill boosted steel production by 7.1%, to 812,000 tons, the company said. In December alone, the company produced 69,000 tons of rolled stock and 75,000 tons of steel.
Mr Myburgh is the new CEO for Kumba Iron Ore
Mining major Kumba Resources has announced that Mr Ras Myburgh has been appointed as the designate chief executive of Kumba Iron Ore and general manager of Sishen Iron Ore Company. Mr Myburgh is currently Kumba's general manager responsible for transformation and empowerment.
This senior appointment follows the announcement of Kumba's empowerment transaction in October 2005 and the planned unbundling of Kumba Resources into two separately listed entities Kumba Iron Ore and Newco.
Mr Matie von Wielligh, Kumba's current general manager in charge of iron ore, has decided to follow other career and business interests.
CVRD pays $749 million for Canico
Brazils Companhia Vale do Rio Doce CVRD has paid $749 million in cash for a 93% stake in nickel company Canico.
CVRD originally made an offer to buy the Canadian company in September at C$17.50 but later increased its offer to C$20.80 after the bid was rejected by Canicos board.
Resource Finance announces new Source of Chromite in the USA
Resource Finance & Investment Limited has reported that its wholly owned subsidiary Oregon Resources Corporation ORC is proceeding with the development of a mining operation in south western Oregon.
The Company recently completed and announced results from the tests on its garnet product and has now completed a major report compiled from the test procedures and results carried out on the chromite product. The tests produced overall excellent results and confirmed the unique characteristics of the ORC chromite sand compared to a South African chromite product which currently supplies 100% of the USA chromite foundry sand market.
To provide a credible comparison, between the foundry sands currently used in the metal casting industry, Oregon Resources Corporation funded an extensive study comparing the two current chromite sands, Australian zircon sand, a ceramic sand and a silica sand with the ORC chromite sand for core and casting properties.
It is anticipated that a 10 tph pilot plant will be in operation in the spring of 2006, producing 2.5+ tons of HMC heavy minerals concentrate per hour, with a full mineral sand operation, capable of processing 400,000 tons of ore per year, including the various heavy mineral constituents, in 2007.
Austro-Italian Consortium to Construct Gas Pipeline
A consortium of Austrian construction company Habau and Italian pipeline company Ghizzoni announced plans to build a 195 km natural gas pipeline between two Croatian towns. The consortium needs to sign a contract worth 90 mln with gas transportation company Plinacro on January 10, 2006.
The pipeline construction is set to start in mid-January 2006 and is expected to be completed within six months. The pipeline will transfer gas from the northern Adriatic region to the mainland.
Currently, Croatia imports natural gas from Italy and Slovenia. After the completion of the projects, Croatia will have added 394 km of gas pipelines to its existing network of 1,657 km.
