January, 14 2006
Egypt blocks Clemenceau passage through Suez Canal
France's decommissioned aircraft carrier Clemenceau has laid at anchor off the Egyptian coast waiting for Paris to give assurances to Cairo that the vessel is not an environmental hazard. It is reported that "The Suez Canal Authority requires certificates proving that the ship meets environmental standards for passing through the canal."
A former pride of the French navy, the 265 meter ship floating in the Mediterranean is destined for a scrap yard in India after leaving the coast off Toulon on 31 December. Its asbestos insulation has provoked controversy over its transit and the health of Indian workers who will dismantle it.
The Clemenceau, which was used in the Gulf war of 1991, was decommissioned in 1997 after four decades of service. It was sold to Spain in 2003, where it was supposed to be decontaminated in the northern port of Gijon before eventually being broken up in Asia. But when the military discovered that the carrier was on its way to Turkey in what looked like an arbitrage plan by Spanish entrepreneurs, it canceled the contract and tried to organize a transfer to Greece. The Clemenceau was eventually repossessed by the navy off Sicily and brought home to Toulon, where decontamination work began in mid-2004. After months of legal challenges from environmental groups, the Clemenceau left again on Dec. 31, this time headed for a yard of Shree Ram Vessel Scrap in the western Indian state of Gujarat, where it is expected to arrive in March.
But even if the path through the Suez Canal is cleared and the carrier is allowed to continue its voyage, it is not certain that it will be broken up in India. A commission monitoring the control of toxic waste for India's Supreme Court issued a report last week that said the decontamination of the Clemenceau would violate the Basel Convention. It is expected to issue a final decision next week.
Indian government invites EoI for five 4000MW power plants
Indian government has invited Expressions of Interest to set up five mega power plants of 4,000 MW each from domestic and international companies which are to be submitted by January 31. It is learnt that pre qualification bids would be due by March 31 and the projects would be awarded by December 2006.
The projects will be set up at coal pit-heads and along the coastline. The Power Ministry is planning to set up two projects at Champa in Chhattisgarh and Singrauli in Madhya Pradesh. The other two locations are likely to be Karwar in Karnataka and Surat in Gujarat. The government is also looking at sites in Maharashtra and Andhra Pradesh.
The government is currently negotiating for relevant clearance and other groundwork for setting up five mega thermal power projects through as many Special Purpose Vehicles. These SPVs, after deliberation with financial institutions and commercial banks, will prepare the groundwork for many formalities like shaping of the project report, signing of power purchase agreements, establishing coal linkages and putting in place environment clearances before selling the projects to independent power producers through an international bidding process.
It would mean the prospective buyers of these projects, initially pegged at a capacity of 800 MW, will get a package deal with all relevant issues cleared and in place. ''Initially, these projects will have a capacity of 800 MW each that will be scaled to 4000 MW each,'' sources in the Power Ministry said.
Dr Sanak Mishra to head Mittal Steel India
Mittal Steel announced the appointment of Dr Sanak Mishra as Chief Executive Officer of Mittal Steel's proposed 12 million tonne Greenfield steel plant in Jharkhand, India with immediate effect. Dr Mishra was a board member of SAIL and MD of its Rourkela steel plant till December 31st 2005.
Dr. Mishra has over 30 years experience in the steel industry, originally joining SAIL, then Hindustan Steel Limited, in 1973 as a founder member of the R & D Centre for Iron & Steel. Dr. Mishra has received numerous awards for his contributions to science, technology and industry during his academic career, including: National Metallurgist Award of the Government of India in 2003, Indias highest honor for the metallurgical industry; Udyog Ratna Excellence Award in 2003; JRD Tata Gold Medal in 1999 and the Golden Plaque of the Indian Institute of Metals in 1996.
Dr. Mishra is a Fellow of the Indian National Academy of Engineering, National Academy of Sciences, Computer Society of India, Indian Institute of Metals, Institution of Engineers and the All India Management Association, Institute of Directors and an Honorary Member of the Indian Institute of Metals. He holds a BSc Honours in Physics from Ravenshaw College, a BE degree in Metallurgical Engineering from the Indian Institute of Science, Bangalore, and a MS and PhD from the University of Illinois at Urbana-Champaign, one of the USs top ranked engineering schools.
Dr. Mishras first task will be to oversee the Detailed Project Report currently underway to identify the location of the steel plant, iron ore and coal mines and water sources for Mittal Steels proposed Greenfield mining and steel making operation in Jharkhand. The report is expected to be completed within the next two years, at which point construction of the steel facility is expected to begin, to take part in 2 stages of 6 million tonnes capacity each, taking an estimated 48 and 54 months respectively.
Commenting Dr. Mishra said I am delighted to be joining Mittal Steel, particularly in such an exciting and challenging capacity. The Group has proved that it is leading the way in driving change in the global steel industry and it is clearly one of the most dynamic companies to work for in the sector. The recent announcement of the Jharkhand Greenfield project presents a fantastic challenge and exciting opportunity. India has begun to show signs of significant progress in terms of economic reform in recent years, and this, coupled with the projected rise in steel consumption has led to an increased focus on the nations steel industry. It was logical to expect that the worlds largest and most global producer would play a part in this growth and I am delighted to be given the opportunity to head up such an exciting and strategically important project.
India Says Will Not Agree to Emissions Caps
India said that it will not agree to binding cuts to greenhouse gases under the Kyoto Protocol, but hopes boosting its nuclear industry will save its cities from choking air pollution. Speaking after the first meeting of a climate change group created by six of the world's top polluters, Indian Environment Minister Mr A Raja told Reuters on Thursday that India would accept help to reduce emissions but would not be forced into cuts.
"Neither the Kyoto Protocol nor this partnership can stipulate anything upon the government of India to reduce emissions," Mr Raja told. "We are developing countries, we have our own agendas for our development activities, so we cannot give any promise, any commitment to reduce further our emissions," he said.
India has signed the Kyoto Protocol, which obliges about 40 developed countries to cut their emissions by an average of 5.2% below 1990 levels by 2008-2012, but, along with China, is exempt from the mandatory cuts because it is a developing nation.
India is also part of the Asia Pacific Partnership on Clean Development and Climate that met in Sydney, along with the United States, Australia, South Korea, Japan and China, which hopes to tackle climate change without hindering economic growth.
TATA likely to close Bangladesh deal soon
A decision on Tata Group's $2.5 billion investment in Bangladesh for setting up power, steel and fertilizer plants will be taken by the end of January so that a deal could be sealed in February, Mr Mahmudur Rahman, the head of state-run Board of Investment and also Bangladesh government's Energy Advisor, said. "We will send TATA proposal to the Cabinet after the end of this month in whatever shape it maybe in," he told. Prime Minister Ms Khaleda Zia's Cabinet has to approve the investment proposal to launch it.
Last talks this month looked optimistic, with Mr S Manser Hussain, TATA's resident director in Dhaka, saying that "at the pace we are going now and BOI chief's encouraging words that some outcome might be coming in February we think it is very possible. Things are gaining momentum. And time has now come for a final decision," he told.
Bangladesh and Tata will start another round of negotiations on January 22.
Tata has proposed to set up power, steel and fertilizer plants worth $2.5 billion, which if approved by Dhaka would be the single largest foreign direct investment so far for this cash-hungry country. The pricing of natural gas to be supplied to plants has been a sensitive issue with Bangladeshi experts cautioning against any decision keeping in mind domestic needs unless new major gas fields were found.
Indian iron ore exporters hoping for higher price benchmark
Amidst weakening Indian iron ore prices, reports have trickled in that China is driving a hard bargain at much lower prices, while negotiating for iron ore supplies for 2006. China has already had few rounds of negotiations with some of the world's largest exporters like CVRD, BHP and Rio.
China is said to be leveraging lower demand to ensure supplies at not more than 10-20% higher than current prevailing prices. Negotiations are likely to continue through January and February before China enters into a supply agreement with ore suppliers.
China imports about 20% of its total ore requirement from India, which is the third largest exporter of iron ore in the world and around 70 million tonne was exported last year.
Chinese import prices are generally the benchmark price for Indian ore exports and Indian iron ore export FOB price has weakened to $51-52 per tonne from levels of $55 per tonne in November and peak of $65 per tonne.
Heavy Metals & Tubes expands seamless tubes machines
Indian Heavy Metal & Tubes Ltd, producer of tube and pipe in stainless steel, carbon steel and carbon alloy steel, has added two roll hot piercing mill designed to produce seamless hollows to their facilities in Gujarat India. Four cold pilger mills and bright annealing furnace are employed to produce high quality cold finished tubes.
The company is capable of producing single straight length up to 30m, U tubes as per TEMA and special shapes as per customer requirements. Their present capacity is 7,200MT of carbon steel and alloy seamless tubes and 3,600 MT per annum of stainless seamless tubes.
SAIL & Indian Railway to team up to upgrade infrastructure
SAIL, which accounts for 10% of the total freight traffic of the Indian Railways, is reported to be tying up with RITES, the engineering and consultancy arm of the Indian Railways, to upgrade rail infrastructure to carry forward its corporate growth plan for 2011-12.
SAIL carries 95% of its freight by rail and its freight movement by rail has increased by 7% to 59 million tonnes during 2005-06 from 55.1 million tonnes in 2004-05 with freight expenditure of Rs 2,400 crore. SAIL is pursuing an ambitious corporate growth plan with an annual production target of 22.5 million tonnes of hot metal by 2011-12 and the freight movement is likely to go up to 97 million tonnes.
According to Mr SC Nayak ED Operations of SAIL there is a need to augment the rail linkages from ports and mines to transport the huge volume of coking coal and iron ore to production sites. RITES has been asked to look into dedicated railway corridors for freight movement, rationalization of routes, traffic agreements, electrification of rail links from exchange yards to unloading points inside plants.
Pakistan reconsidering import of steel from India
Pakistans federal ministry of industries has asked the higher authorities to ban steel import from India or tighten its rules as closure of 22 local production units has rung alarm bells in the quarters concerned. The government recently allowed the import of steel from India.
The ministry doesnt want to discourage steel trade with India, but believes that it should not be at the cost of the local industry, said a senior official. It is reported that the ministry has not forcefully demanded a ban on steel imports from India, but it has only suggested that if a ban is not possible, there be a kind of restriction to check unbridled trade of the product.
The government last month allowed the import of mild steel structure from India, after the commerce ministry notified the decision by amending the Import Policy Order 2005. Steel was already added to the Pakistan-India positive list of trading. The governments decision was to facilitate construction of houses in earthquake-affected areas of the NWFP and Azad Kashmir. The decision, taken on continuous demand of steel traders, however was seriously resisted by manufacturers, who claimed that the decision would have a negative impact on the local industry.
A statement from the Pakistan Steel Re-rolling Mills Association said The steel millers are facing severe crisis after the reported closure of as many as 22 continuous casting plants, having the production of more than one million tons per annum. The steel industry of the country is in serious crisis these days due to over import of finished and semi-finished steel products and the governments recently announced liberal import policy.
JSPL gets land allotment in Jharkhand
The decks have been cleared to transfer about 550 acres of government land in Jamshedpur and Potka blocks of East Singhbhum to Jindal Steel and Power Limited JSPL.
East Singhbhum deputy commissioner Mr Nitin Madan Kulkarni said that following the identification, verification and valuation of government plots in these blocks, the district administration has put up a demand note for Rs 2.25 crore to JSPL. The company has to deposit the money to formally get the government plots authorized for industrial purposes. The district administration would start plotting these stretches once the money is deposited by the company, added Mr Kulkarni.
JSPL intends to set up a 5 million tonne steel plant and a 1,000 MW capacity captive power plant in the area and has signed a MoU with the state government for these projects last July.
Indian Railway carries 9.7% more freight in 9 months
Indian railways carried 9.7% more freight in the nine months over corresponding period last year, as factories increased production. Rail network transported 481.02 million tons of goods such as coal, steel and petroleum products in the period, compared with 438.36 million tons a year ago.
Production in factories and mines rose 8.3% in the eight months ending November 30 from a year earlier. Indian Railways carried 10% more freight in December, transporting 59.07 million tons of goods, the statement added.
Monnet Ispat & Italian Scandiuzzi JV
Monnet Ispat has signed a MoU with Italian company Scandiuzzi to set up a JV that will focus on energy and infrastructure sectors. The company would invest Rs 100 crore for the project. We will have a majority stake of about 65% in the JV. The new company will add value on the steel produced by Ispat Monnet. It will also enter the infrastructure and energy sectors, said Mr Sandeep Jajodia vice CMD.
The new companys name is yet to be announced and it will come under the Monnet Ispat and Energy banner. The new plant is set to start partial production in the third quarter of the 2006 fiscal and will be fully operational within two years.
The plant will be set up either at Kutch or at Silvassa. As we will mainly cater to the export markets of Middle-East, north Africa and Europe, a plant near the west cost will help logistically, said Mr Jajodia.
Chattisgarh CM for ban on iron ore exports
Concerned over supply shortages to its 100 steel units and 70 sponge iron plants, Chhattisgarh Chief Minister Dr Raman Singh has sought a ban on exports of iron ore by the National Mineral Development Corporation. "NMDC should cater to iron ore demands of domestic customers to help India become a global leader in steel manufacturing, but it's concentrating on profit income by exporting to foreign countries. I seek a ban on exports of the country's rare natural resources," he said
NMDC produced 20.7 million tonnes of iron ore during 2004-05, of which 15.75 million tonnes came from three mines in Bailadila in the Bastar region of Chattisgarh. NMDC exported nearly 5 million tonnes.
Last month, 70 sponge iron units and 115 steel units in Chhattisgarh stopped production because of the recurring iron ore shortage. The NMDC was accused of pushing domestic steel units into crisis by exporting iron ore from Bailadila. The strike ended after 15 days when Dr Raman Singh promised a solution.
While Dr Raman Singh firms his moves, the Chhattisgarh Sponge Iron Manufacturers Association has threatened to shut down again if the NMDC fails to provide all its iron ore demand. The association represents the 70 sponge iron units that account for 30% of India's total annual output of 10 million tonnes.
Railways offer relief for bulk cargo movement
Railway Ministry has decided to reduce demurrage rates to a flat rate of Rs 1,200 per day per wagon, i.e. Rs 50 per hour per wagon. The ministry has also increased the free retention time of wagons by two hours to eight to 18 hours for unloading, and by two to four hours in the range of 32-36 hours for loading. The commercial directorate of the ministry issued these directives earlier this week, and these have been effective from January 1.
It is learnt that these sops have been offered after reviewing repeated demands from the industry, especially from players in the steel sector, who have been asking for reduction in freight rates as these rely heavily on the railway network for carriage of their bulk input commodities like coal, iron ore and fluxes.
Indian Tatra in pact with Russian Kamaz for truck making
Truck maker Tatra Vectra Motors (TVM) today announced the signing of a MoU with Russia-based Kamaz. Under the pact, Kamaz will manufacture truck and bus chassis for the Indian market. The products will be rolled out later this year. The two companies have been working together for the past few months, identifying suitable products for the Indian market.
Kamaz truck components would be manufactured at the companys Hosur plant in Tamil Nadu. After procuring the required clearance certificate from authorities concerned, it would roll out heavy-duty trucks in the Indian market by this year end, Mr Rakesh Jinsi, managing director of TVM, told reporters at the 8th Auto Expo.
China and India to hold iron ore conference in April
It is reported that China Iron and Steel Association CISA and the Indian Mining Association IMA have during a meeting at the end of December agreed to have a mega conference in Qingdao the 13th and 14th of April, 2006.
The idea is to increase cooperation and improve communication between the India iron ore mills and Chinese steel companies.
Volzhsky Pipe Mill boosts pipe sales by 27.4% in 2005
Russian Volzhsky Pipe Mill VTZ a member of Pipe Metallurgical Company TMK boosted pipe sales 27.4% in 2005 to 1.002 million tonnes, the company said.
Crude steel output at VTZ rose 9.6% to 782,400 tonnes. Pipe sales in December were 3.7% higher than in November at 93,390 tonnes. Pipe billet production in December grew by 9% YOY to 78,700 tonnes.
VTZ said that it has met its 2005 sales target for large diameter pipes in 11 months. It shipped more than 470,000 tonnes of pipe to Gazprom, TMK's strategic partner, among other customers in that period.
VTZ modernized its No 1 continuous billet caster during December as a part of its plan to increase smelting capacity to 800,000 tonnes of steel annually and achieve self-sufficiency in billets to produce seamless oil and gas pipes.
TMK, Russia's biggest pipe producer, represents Volzhsky, Sinara, Seversky and Taganrog pipe mills in Russia.
Coking coal deal rumored at $120 by Xstrata
Xstrata is rumored to have signed a large coking coal deal. A trader noted. "This rumor came out last night and is gaining traction".
The deal is said to be for half a million tons at $120 a ton, whereas analysts' expectations are for $110. "A contract of that size is fairly standard, and it's the time of year for contracts to be sorted, the key is the price."
Talk of Xstrata signing a hard coking coal deal at $120 or $121 a ton "is a good number," says a London-based analyst. But "it's not enough in our view to say this is going to be the benchmark." The deal would be for only 5% of their coking coal production. There are "still quite a bit of negotiations to come," and he expects benchmark price to be agreed between the Japanese, BHP Billiton and Xstrata, rather than a Mexican steel company.
Another analyst points out an agreement at that level, "gives you comfort that people's hard coking coal estimates are not too high."
Ahmsa liquid steel output up by 7.7% in 2005
Mexican steelmaker Ahmsa produced 3.24 million tonnes of liquid steel in 2005 up by 7.7% from 3.13 million tonnes in 2004. The increased liquid steel production combined with better efficiency in slab conversion has yielded 3.1 million tonnes of slabs
It is reported that Ahmsa produced 2.85 million tonnes of finished steel products like HRC, CR and plates up by 267,000t or 10% YOY. Sales to both the Mexican and international markets totaled 2.9 million tonnes an 11% increase compared to 2004's level of 2.62 million tonnes
Ahmsa said it followed a flexible operational plan, adjusting production to meet demand. Last year, this led the company to focus on flat steel products and structural profiles used in industry and construction.
Ahmsa has its own sources of raw materials, in the form of iron ore and coal mines, which allowed the company to maintain profitability despite increased energy and input costs. The company's third quarter consolidated net profits amounted to 890 million pesos ($84 million) is down by 30% from same quarter in 2004. Ahmsa has not yet published Q4 financial results.
Monclova-based Ahmsa describes itself as Mexico's biggest integrated steelmaker and is controlled by the GAN group.
Mittal Steel Poland wants to buy JSW coke coal producer
Mittal Steel Poland MSP, formerly PHS, is interested in the privatization of Jastrzebska Spolka Weglowa JSW which comprises of five mines and produces coke coal necessary for steel production. Our strategy provides for reasonable investment in coal if an opportunity appears, Mr Vijay Kumar Bhatnagar, MSP CEO said.
The opportunity may appear soon as the Polish Ministry of the Treasury is planning to privatize JSW via stock listing. An issue prospectus is ready but the day of the IPO remains unknown.
MSP needs coke coal for its two coke plants Koksownia Zdzieszowice and Koksownia Krakow acquired during the privatization process of PHS.
Mr Augustine Kochuparampil KZ board member and MSP deputy CEO said that Mittal Steel has so far been invested Euro 45 million in KZ and further investments may follow this year. Mittal Steel Polandm which has an 80% percent stake in KZ may also consider an acquisition of 9% owned by Towarzystwo Finansowe Silesia.
Zinc hit new high on LME
Zinc has hit another record peak on Thursday on LME and was boosted by a 1,300 tonne drop in LME warehouse stocks to 387,225 tonnes, the lowest since September 2001.
"Most people agree it's the metal of the year for general fundamentals, but they are all heavily affected by massive speculation," said SG Corporate and Investment Banking analyst Mr Stephen Briggs.
Zinc used mainly for galvanizing rose by $25 to close at $2,030 a tonne a day after rising above $2,000 for the first time. It earlier hit a high of $2,040.
Krivorozhstal renamed as Mittal Steel Krivoy Rog
Krivorozhstal has been officially renamed to Mittal Steel Krivoy Rog, Mittal Steel announced. The respective decision was made at the companys EGM recently held in Krivoy Rog and during which Mr Narendra Chaudhary took up the office of the companys GD. According to the mill's press office, the mill will be given the new name after the registration of a new wording of the enterprise statute.
Kryvorizhstal is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, including steel reinforcement bars and wire rods.
Founded by the Indian Mittal family, Mittal Steel Germany GmbH acquired 93.02% in Krivorozhstal at the tender on October 24, 2005. The pre-history of the tender seems worth mentioning, as it had to overcome strong opposition of Ukrainian parliament. Supreme Rada of Ukraine twice attempted to terminate the sale of the metal enterprise, viewing it strategically vital for economy and security of Ukraine, but the tender was bolstered up by President Mr Viktor Yushchenko, who vowed nothing would stop privatization of Krivorozhstal slated for October 24, 2005.
CNMA forecasts strong tin demand and higher tin prices in 2006
China's decreasing tin exports and tighter government guidelines should lift international tin prices this year, according to the China Nonferrous Metals Association CNMA. China's tin output will be between 120,000 and 130,000 tons in 2006, according to the CNMA. China produced 112,000 tons of tin in the first 11 months 2005 up by 16.9%, according to the latest statistics received from National Bureau of Statistic.
China became net importer of refined tin and tin alloy in March 2005, showing strong demand in domestic market. In fact, the central government strengthened controls on tin mines exploration, causing domestic tin concentrate supplies come short of demand from downstream sectors, making the domestic tin price higher than international price. Furthermore, the central government announced a tin export tax rebate reduction from 13% to 8% starting May 1, 2005. Export quotas for tin and tin product were also slashed to 53,000 tons in 2006 from 57,000 tons in 2005. Export tax rebates have also been further cut from 8% to 5% in January 1 2006. Under such circumstances, it is expected that China's tin export will significantly decrease and strong domestic demand will boost international prices in 2006.
The international tin price experienced a drop in 2005 due to tin oversupply around the world, although China on its own is still experiencing a shortage.
The sharp stockpile increase on the LME represents sluggish tin consumption compared to other base metals on the LME. Small tin mines in the world's major tin producing countries such as Indonesia and Malaysia rapidly increased output last year, pushing up the world's tin supply. However, some of the major consumers started to use recoverable tin and low-grade tin concentrate, causing a rise in LME stockpile but drop in tin price, according to the CNMA.
Techint bags orders for three Consteel EAF technology
Consteel, Techints patented technology to enhance EAF production has been chosen by three new customers in three different nations during the end of 2005.
Trierer Stahl-Werke TSW Germany ordered from Techint a complete melt shop, comprising a Consteel EAF of 60 tons, a ladle furnace and a vacuum degasser for its production of special steel.
Thep Viet located in Ho Chi Minh City Vietnam has ordered a 60 ton Consteel EAF and a ladle furnace for its new 400,000 ton per year melt shop to be erected in the Phu My area.
Greek company Sovel signed an order for a Consteel to be added to its existing and already operating 130 ton furnace.
Consteel is the combination of preheating and specially the continuous feeding of scrap into the furnace with key benefits including low production costs, high productivity, flexibility, reduced environmental impact, reduced impact on the electrical network and increased safety.
Currently there are 22 Consteel references in 4 continents, among them 5 systems are at the design & construction phase.
Russian ferrous metal producers raised export sales 15.3%.
Revenue from export of Russian ferrous metals from January to November period of 2005 increased by 15.3% over $14.35 billion during the same period in 2004.
Over the eleven months it exported 45.358 million tonnes of ferrous metals. Export of carbon steel increased to 9.633 million tonnes from 9.482 million tonnes. The shipment of ferroalloys for the reporting period widened to 0.751 million tonnes from 0.596 million tonnes.
Cline Mining study announces update on Lossan coal project
Cline Mining Corp announced that a feasibility study of its Lossan coal project in northeastern BC estimates total measured and indicated coal reserves of 186.1 million tonnes. The company said the study estimated total inferred coal resources of $53.5 million. Subject to regulatory approvals and coal sales contracts, construction and commissioning are scheduled to commence in the first quarter of 2007 and plant start up in mid-2007.
The study contemplates the production of one million tonnes per year of saleable medium volatile bituminous PCI and metallurgical coking coal over a 14-year mine life.
CVRD facing rail movement constraint for coal in Mozambican
In November 2004, CVRD won the concession on huge coal reserves at Moatize in Mozambiques western Tete province. Consequently, the Brazilian company has been studying the prospects for marketing between 14 million and 15 million tons of coal a year.
A major problem with renewed exploitation of the Moatize reserves is the transportation of the coal to the sea, because the railway from Moatize to the port of Beira was destroyed during rebel war in the early 1980s. The Beira rail system is only being rebuilt by a new management of Indian RITES and IRCON International consortium.
CVRD is also said to be looking at the possibility of moving coal through Malawi, and then to the northern Mozambican port of Nacala.
Nigerian government to support domestic pipe industry
Nigerian Government has been called to fast track the resuscitation of Ajaokuta Steel Mill to provide raw materials for the growing steel pipe industry pioneered by SCC Nigeria to reduce imports from South Africa, America and other European countries. Besides, the Federal Government has also directed for giving special preference to locally manufactured products or ban imports of steel pipes into the country as a way of nurturing local production
Mr Yuval Levy MD of SCC, Nigerias spiral welded pipe company, said that the ban of imported steel pipes would not only boost local economy, but would also protect the local industry, reduce unemployment, raise skill acquisition, and save foreign exchange.
SCC Managing Director, the pioneer spiral welded steel pipes company, Mr. Yuval Levy said this while addressing newsmen on the milestone certification of its products by both American Petroleum Institute (API) and International Standards Organization (ISO), making Nigeria the other country in Africa apart from South Africa with the authority to stamp both API and ISO logo on its pipe products.
SCC located in Abuja, with a current capacity of processing 100,000 tons of steel annually, was established in 2001 for the production of pipes needed for the Gurara Water Project. It has recently obtained certification of its products by American Petroleum Institute API.
Ukraine to ship 1 million tonnes of steel to EU in 2006
Ukraine will ship 1.004 million tonnes of steel subject to European Union quotas to the EU in 2006, according to a government resolution.
TopExport of Russian coal up by13.3% in 2005
The export of Russian coal from January to November 2005 came to 71.9 million tones up by 13.3% percent from the same period in 2004, the Federal Customs Service informed. The revenue from coal export jumped 41.4% to come to $3.417 billion as against $2.416 billion for January to November 2004.
Import of coal for the reporting period also rose by 0.3% to 20.286 million tones from 20.234 million tones.
DM&E takes next step toward hauling coal
The Dakota, Minnesota and Eastern Railroad Corporation DM&E is one step closer in its objective of hauling coal out of the Powder River Basin in Wyoming US as during the last week of December 2005, the Environmental Review Board for the federal Surface Transportation Board gave its approval of DM&E's planned expansion into Wyoming.
"The report will now be sent along to the Surface Transportation Board with a recommendation that the project go ahead," said Ms Lynn Anderson VP of Sales and Marketing for DM&E. "We are expecting a favorable report back from the Surface Transportation Board in next couple of weeks." If DM&E is given the final go ahead, it will be the culmination of eight years work as DM&E started the process of expansion into Wyoming in February 1998, when it originally filed its application with the Surface Transportation Board.
"It is very important to us and to our customers this expansion goes ahead," Anderson said. "It will improve our service to existing customers and will be a huge economic draw to the region through the creation of jobs.The potential for economic development will be huge in the region." "The project will still take more time," Anderson said. "Three years of construction will be needed before we can begin to haul coal."
DM&E is upgrading some 600 miles of railroad track and crossings inside Minnesota and is planning to build an estimated 260 miles of new track inside of Wyoming at a projected cost of $2.5 billion. In addition other upgrades are going to be made to DM&E's sister company line Iowa Chicago and Eastern Railroad.
Valbruna Slater Stainless to invest in Fort Wayne facility
Valbruna Slater Stainless, Inc. has announced a reinvestment project in Fort Wayne that could reach $19.25 million with the support and assistance of the state of Indiana through the Indiana Economic Development Corporation and the city of Fort Wayne. The company plans to add stainless steel product processing and treating equipment and will make other upgrades.
The quality of our competition and the technological improvements within our industry require continual capital investment in order to maintain a competitive position within our marketplace, said Valbruna Slater Stainless plant manager Mr Tom Carlson. This expansion will enable us to become more efficient in the manufacturing of our current products and also give us the ability to manufacture additional types of products which will stimulate the diversification of our customer base.
Valbruna Slater Stainless restarted production at the former Slater Steels Corp. plant in 2004 after acquiring the Fort Wayne assets of the bankrupt Canadian company.
Harsco acquires Northern Hemisphere mill services operations
Harsco Corporation has announced it has completed the acquisition of the Northern Hemisphere steel mill services operations of Brambles Industrial Services a unit of Sydney based Brambles Industries Limited. The company paid approximately $229 million plus a working capital adjustment for the business, and is proceeding with the appropriate regulatory filings.
Announcing the acquisition, Harsco Chairman, president and CEO Mr Derek C. Hathaway said, "The addition of these high-quality operations represents an excellent strategic fit which further strengthens our partnerships with the leading producers in the global steel industry and increases our opportunities for long-term service growth. Coupled with our Hunnebeck Group acquisition last month, expanding our Access Services segment, we continue to execute on our strategic objectives for strengthening Harsco's global industrial services base and providing increasing value for our stockholders."
Harsco's Mill Services segment provides the world's leading steelmakers with a comprehensive range of services that support the entire steelmaking process, including integrated materials handling, semi finished and finished product management, and metal recovery and byproduct recycling. Similar services are provided to the makers of aluminum, copper and other metals.
Operating under long-term contracts at some 19 locations in the U.K., France, Holland and the U.S., the operations add to the global breadth and scope of Harsco's Mill Services segment, expanding its provision of on-site, outsourced mill services to the steel and metals industries to approximately 180 sites in 32 countries. The operations provide a complementary range of mill services that includes metal recovery, slag processing, and material handling, and specialty operations that include the briquetting of waste materials for recycling into the steelmaking process.
Cape Lambert plans project update
Investors are expecting an update from Cape Lambert Iron Ore Ltd on its negotiations with Chinese partners in its planned iron ore project in the Pilbara. The company requested a trading halt today pending an announcement next week.
It follows negotiations with Chinese group Shandong Yuansheng International Trading Co Ltd over the on market purchase of a significant equity stake in Cape Lambert. It said last month that Shandong could acquire up to 50 million shares or 19.9% of the issued capital in Cape Lambert. The acquisition of equity was a condition Cape Lambert had set as part of an original agreement reached with Shandong to have "first right of refusal" to negotiate an off-take agreement at the Cape Lambert Iron Ore Project.
Shandong have indicated they will buy the equity stake on market after other options including participation in a private placement and a sell down by other major shareholders were neither possible or suitable at this time.
Cape Lambert and Shandong are also negotiating to finalize an off-take agreement though Shandong is still committed to take all the iron ore concentrate that may be produced by the project. In addition, Cape Lambert has advised negotiations with another major Chinese group are still on-going.
MBR expects permits for iron ore facility in 2006
Brazilian iron ore company MBR, controlled by miner Caemi, aims to receive the construction licenses for its Itabiritos pellet and concentration plants in the first half of 2006 from Minas Gerais state environmental regulators.
Caemi's board in October 2005 cleared a US$759mn investment plan for MBR's Itabiritos project, including US$282mn for the concentration plant, US$462mn for the pellets plant and US$15mn for a pipeline to link the two.
The 10 million tonnes per year iron ore concentration plant is due to start operating in the first quarter of 2008. In addition, the 7 million tonnes per year pellet plant is due to start initial operations by mid-2008 and full production in 2010, with 65% of output going to exports.
Caemi is a subsidiary of CVRD.
Myanmar's coal production up sharply in 2005
Myanmar produced 367,025 tons of coal in 2005, up 72% from 212,949 tons in 2004, according to the latest official statistics. There are 82 coal mining blocks in the country now, up from only two 18 years ago.
Coal is being explored and mined by foreign companies investing in Myanmar and since 1998, Indonesian and Chinese companies have been engaged in prospecting, exploration and feasibility study for the development of coal resources in Myanmar's southern Tanintharyi division and northern Kachin state.
Since Myanmar enacted its New Mining law in 1994, a dozen foreign firms from Australia, Canada, Japan, Malaysia, Singapore, Thailand and the US have been engaged in mining activities in the country covering gold, copper, lead, zinc and tin, and the contracted foreign investment in the sector amounted to $534.19 million as of the end of 2005.
Bayou Steel announces strong results for 2005 fiscal
Bayou Steel Corporation has reported net income of $19.3 million for the fiscal year ending September 30, 2005. Sales for fiscal 2005 were $271.7 million while sales for fiscal 2004 were $240.8 million.
The increase in sales was due to an $83 per ton, a 19% increase in the selling price which was partially offset by a 5.5% decrease in shipments. The selling price increase has generally been related to the sharply escalating prices for scrap and the increasing prices for alloys and fuel during fiscal 2005. The Company was successful during the period in passing through several price increases for its products offsetting its higher costs of scrap, alloys, and energy.
Mr Jerry Pitts, President and CEO of the Company, commented "Overall, our fiscal 2005 performance was solid, in spite of a variety of challenges including higher natural gas and electricity prices and disruptions in production and shipments directly caused by the hurricanes which battered the Central Gulf Coast Region. Our solid earnings and cash flow performance reflect the continuation of favorable steel market demand, pricing, margins, and improved operating performance. Inventories at steel service centers, our principal customer group, have declined to their lowest level in seven years resulting in stronger order bookings and greater backlog for our products. We are optimistic that shipments will remain strong and that market fundamentals will remain favorable in fiscal 2006."
Mr. Pitts concluded, "Our scrap processing division continues to procure and prepare scrap metal at very attractive prices relative to purchasing prepared scrap on the open market. We have opened another scrap processing facility in New Orleans and are pleased with its progress. We will be collecting and processing both ferrous and nonferrous scrap metal. The New Orleans and LaPlace scrap facilities continue to benefit from the availability of scrap metal in the Gulf coast area due to the hurricane. Near term, we expect our scrap processing activities to continue to contribute to strong margins."
Bayou Steel Corporation manufacturers light structural and merchant bar products in LaPlace, Louisiana and Harriman, Tennessee. The Company also operates three stocking locations along the inland waterway system near Pittsburgh, Chicago, and Tulsa.
Mongolia's Manzhouli port steel imports up by 26.1% in 2005
Inner Mongolia's Manzhouli Port imported 158,000 tons of steel products in 2005 up by 26.1% YOY. Import value reached $33.862 million up by 41.1%, according to statistics from Manzhouli Customs.
Neighboring countries Russia and Mongolia are two steel product exporters for Manzhouli Port, which is a land-clocked trade hub, in 2005. Russia accounted for 99.7% share of imports.
Angles and steel section were two major types of steel products imported through the port, of which imports account for 87.5%. Other imported steel products include steel plate, bar and pipe.
Germany to help China to build Asia's largest windmill in Qingdao
China and Germany will collaborate to build Asia's largest wind turbines in Qingdao in east China's Shandong Province. According to the plan, five wind turbines each with a generating capability of 5 MW will be installed in the sea off Qingdao.
They will serve as power generating units for the maritime events of the 2008 Olympic Games to be held in Qingdao. Tourists will be able to go up elevators within the turbines in order to get views of the surrounding area.
Stelco develops list of new directors
The court monitor in Stelco Inc's court supervised bankruptcy restructuring said that the company has drafted a list of new directors. Stelco and some of its stakeholders hired Russell Reynolds Associates Co. to find suitable candidates for the steel producer's board of directors as it prepares to emerge from nearly two years of bankruptcy protection from creditors.
The replacement of the board is being driven by three investment funds which are helping to bankroll Stelco's pending restructuring. Stelco's bondholders are currently negotiating the new board composition with those funds, the court monitor said in a report released late Friday.
Earlier this week, Stelco revealed that Mr Courtney Pratt has been asked to step down as Stelco's CEO but will likely become chairman of the board.
Ohio Coatings promotes Mr Withum to VP Commercial
Ohio Coatings Company announced the promotion of Mr Phillip E Withum to the newly created position of VP Commercial, effective January 1, 2006. Mr Withum had previously held the position of GM Commercial. The new position reflects enhanced responsibilities, including black plate procurement and all sales activities.
Over recent months, Mr Withum has successfully transitioned OCC's distribution function from Wheeling-Pittsburgh Steel to OCC while also enhancing distributor relationships from outside distributors, including Nippon Steel Trading America and JFE Shoji Trading.
"Phil has demonstrated exemplary leadership in the initial phases of developing Ohio Coatings' direct sales activities through OCC personnel," said Mr Jim Tennant, President of OCC. "As part of his promotion to vice president, Phil also will be appointed as an officer of the company, which will entail additional duties relative to corporate dealings."
