January, 24 2006
TATA Steel Q3 net dips by 15.35%
TATA Steel posted a 15.35% decline in net profit of Rs 753.74 crore for the quarter ended December 31, 2005 as compared to Rs 890.51 crore for the corresponding period last fiscal. Total income has decreased 1.14% to Rs 3722.08 crore for the third quarter in current fiscal from Rs 3765.09 crore in the year ago period
TATA Steel has posted a profit after minority interest and share of profit of associates of Rs 824.76 crore for the quarter ended December 31, 2005 as compared to Rs 917.99 crore for the corresponding quarter in 2004-05.
Total income has increased to Rs 4961.64 crore in the third quarter from Rs 4032.59 crore in the same period last year.
POSCO India keen to buy coking coal from BCCL
POSCO India has expressed keen interest in procurement of coking coal from the mines of Bharat Coking Coal Ltd for its proposed steel project in Orissa. It is reported that a 9 member of the Korean team recently visited the Muraridih Colliery of the BCCL to ascertain the quality of the coking coal being produced in the BCCL mines.
According to sources in BCCL, POSCO needs nine million tonne of coking coal per annum for its steel project in Orissa. They said the team said it was satisfied with the coking coal quality being produced in BCCL mines.
Further discussions in this matter would be held after the team submitted its report to the top management of POSCO.
Steel units in MP facing trouble
High power tariffs, taxation and shortage of raw materials have resulted in the closure of almost 50 % of rolling mills and induction furnace units in Madhya Pradesh. The steel units are not able to compete with units from neighboring Gujarat, Maharashtra and Chhattisgarh which enjoy high degree of the government support.
In the last two three years, some 40 Rolling Mills of MP have been shut down and thousands of laborers have become unemployed. The state is also loosing out a major source of revenue, said
Mr SM Jain president of All India Induction Furnace Association said Both the state government and the Madhya Pradesh State Electricity Board MPSEB are not only ignoring the problems of the industry but implementing such polices, which are threatening the very existence of the industry.
The steel units have been put in the category of intensive power users. Due to this they have to pay 25% on the total power bill and MP has one of highest power rates around Rs 5.45 per unit, Mr Jain pointed out.
Rajasthan plans to undertake coal mining in other states
The Rajasthan government plans to undertake coal mining work in other states to tide over the demand for coal for producing electricity in the state. The state government has decided to tender an application for the allotment of coal mines in the major coal producing states of Madhya Pradesh and Chhattisgarh among others. The sources informed that the state government is considering entering into a partnership with a private company to carry out the mining work.
Rajasthan Vidyut Utpadan Nigam RVUN the state government owned power Generation Company has already invited bids for establishing a joint venture.
Once the scrutiny process of the private entity is over, the JV would be formed in which the state government would hold 26% of the equity. The private firm would be entrusted with the mining and transportation of the coal to the state.
The state governments decision to directly enter into coal mining was taken to avert the increasing problems pertaining to coal import in the state. At present, the state government meets its coal demand by either importing it or by purchasing it from Coal India Ltd. ''The decision would serve as a dual benefit to the state government. Not only would it provide low-cost coal to the state government but it would also help the state government to have direct control over the supply of the coal to the various power-producing units in the state,'' sources in the energy department said.
BCCL to excavate seam no 15 at Moonidih for coking coal
BCCL management has decided to launch a giant coking coal extraction project in the No.15 seam of the Moonidih Colliery with an initial investment of Rs 500 crore. BCCL sources said that the proposed seam in the Moonidih Colliery was a virgin one and contained nearly 38 million tonne of steel grade coal.
The mining of the seam will be carried out using the latest technology in the filed, called the power supported long wall PSLW mining. The technology was expected to have a life cycle of not less than 15 years.
The coal contained in the seam has very little ash percentage in content.
Out of the two million tonne of coking coal in hand, 1.5 million tonne will be available after washing of the mined material.
Sources said funds for the proposed project would be provided by either by SAIL or would come from Coal India Ltd the parent company of BCCL. SAIL had earlier provided funds to BCCL for a similar PSLW project at the Moonidih Colliery for the development of the No.16 seam. Coal was being supplied to SAIL from that seam.
Indian Railway earnings up in December due to coal movement
Indian Railways earned Rs. 3251.41 crore from freight traffic last month, compared to Rs.2874.56 crore earned during the corresponding period in 2004, with the major portion coming from coal transportation. Railways carried 59.14 million tonnes of freight traffic during the month, registering an increase of 5.45%, which is also 0.81% more than the target of 58.33 MT set for the same period.
Coal continued to be the biggest contributor to freight earnings, providing Rs 1300.62 crore from transportation of 26.22 million tonnes of the product.
Transportation of 3.75 million tonnes iron ore for exports contributed Rs 213.22 crore earnings. Rs 170.98 crore came from 4.82 million tonnes of raw material for steel plants and Rs 153.97 crores from 1.55 million tonnes of iron and steel for steel plants
Texmaco Q3 net dips 25.79%
Texmaco Limited, a KK Birla group company registered 25.79% decline in the profit after tax of Rs 4.46 crore in the third quarter of the current fiscal as compared to Rs 6.01 crore in the same period last year. Total income of the company also decreased 14.33% at Rs 74.23 crore from Rs 86.65 crore in the corresponding period.
For the nine months ended December 31, 2005, total income was Rs 246.87 crore as compared to Rs 192.40 crore in the same period of 2004-05.
The company said the working results had been adversely affected due to delay in release of wagon orders by Indian Railways.
Dofasco Duel - ThyssenKrupp gives up
The Executive Board of ThyssenKrupp AG has decided not to submit a higher offer to purchase the Canadian steel manufacturer Dofasco Inc, as an offer of more than C$68 per share would go beyond the point of creating economic value. ThyssenKrupp is thus waiving its "right to match". The time limit for this ends today 24 hrs EST/Tuesday, January 24, 2006, 6 hrs CET.
ThyssenKrupp's offer to buy Dofasco's shares at C$68 per share expires January 26, 2006. Then, if the transaction fails to come about, ThyssenKrupp will receive a break fee of C$215 million.
China becomes a net steel exporter & coal imports up
China, the world's top steel maker, became a small net exporter in 2005 for the first time as mills produced a little more steel than the country could use, Customs data showed yesterday. The data showed China exported 27.59 million tons of semi finished steel and steel products last year, while imports reached 27.13 million tons, making China a net exporter with 460 000 tonnes. China's net steel imports reached 12.87 million tons in 2004.
China produced 371 million tons of steel products in 2005, up 24.1% on the year earlier. Crude steel output rose 24.5% to 349 million tons, said analyst Mr Xu Aihua of state backed metals consultancy Antaike Information Co, citing figures from the China Iron and Steel Association. China's annual steel capacity reached 470 million tonnes by end 2005, compared with domestic demand estimated at about 350 million tons, state media said. "The surplus is a major reason behind rising steel exports," Mr Xu said.
The official figures also showed Chinese 2005 coal imports had jumped 40.1% to 26.17 million tons, while exports fell 17.3% to 71.68 million tons. Exports of coke and semi coke fell 15% to 12.76 million tons.
China also produced 25.4% more iron ore in 2005 at 421 million tons.
China's commerce ministry said that rising steel stocks and the introduction of new capacity would continue to depress domestic prices of steel products. Prices were already down more than 30% from the year earlier. Rapid expansion by Chinese steel mills and growing exports have threatened margins for global steel players, and helped push up the cost of raw materials, including iron ore.
Mittal Steel denies link with Chinese Bayi Steel
Mittal Steel denied Monday that it is involved in talks with China's Bayi Co and said that there was no truth to news reports linking it with Bayi.
The Times of India earlier reported from Beijing that Mittal was competing for a part of Xinjiang Bayi Iron & Steel Co. Ltd. (Bayi), which is located across the border from Kazakhstan, where Mittal Steel runs a steel plant.
BHP Billiton H1 output jumps to record levels
BHP Billiton said its output of aluminum, copper, nickel and liquefied natural gas reached record levels in the December half supported by strong market conditions. The world's largest diversified resources group said half year production of copper rose 24% to 637,300 metric tons from the previous first half and nickel was up 137% at 93,100 tons following the A$9.2 billion acquisition of Australian base metals and uranium miner WMC Resources Ltd in June last year.
Iron ore output at the group's Western Australia operations recovered in the second quarter from weather and derailment interruptions in the previous quarter, lifting output for the half 2% to 48.2 million tons.
Metallurgical coal output from the group's east coast Australian mines slipped 5% to 17.9 million tons, due to reduced production across the Bowen Basin mines in the state of Queensland. BHP Billiton said reserves depletion at the Riverside mine, scheduled dragline outages and maintenance contributed to the lower output which was partly offset from the ramp-up of the Broadmeddow mine, commissioned in August.
TMK to maintain pipe sales in 2006
TMK also aims to maintain pipe production in 2006 at last year's levels as per Mr Yury Chernyshev, Marketing Director. He said that the company would concentrate on improving its sales and marketing and increasing its presence on viable markets in the CIS and elsewhere. TMK also intends to boost sales of value added high tech pipes as the result of its modernization program.
TMK increased pipe sales tentatively 14.5% in 2005 to 2.858 million tonnes in 2005. Its share of the domestic market grew by 4% to reach 35%. TMK's share of the Russian market for large diameter pipes, where sales soared 92%, was 28% at the end of 2005. TMK shipped 445,000 tonnes of large diameter pipes to Gazprom
TMK exported 747,000 tonnes of pipe. Exports accounted for 26% of sales, with Europe taking 38% of the exports, the CIS around 30% and the Middle East and North Africa around 29%.
Mr Chernyshev said exports to Western Europe fell slightly as TMK restricted shipments to the region. But exports to the US jumped seven fold in line with the holding's strategy of increasing its commercial presence on what it sees as a vast North American market. TMK opened a subsidiary in the US in 2005 and has a commercial partnership with Lone Star to sell pipes to the oil industry.
TMK represents the Volzhsky, Sinara, Taganrog and Seversky pipe mills in Russia. TMK is the world's second biggest pipe producer and is a leading producer of seamless pipes for the fuel and energy sector. It is estimated to control 42% of Russia's overall market for steel pipes, and more than 60% of the Russian market for seamless oil and gas piping.
West Virginia passes new mine safety rules
West Virginia lawmakers passed a bill Monday that would require mines to use electronic devices to track trapped miners and stockpile oxygen to keep them alive until help arrives. The Senate and House both acted at the urging of Governor Joe Manchin, who pressed lawmakers to pass the legislation by the end of the day. "We can't afford to wait any longer," Manchin said after two miners were found dead over the weekend in a mine fire in Melville. Three weeks ago, 12 miners died after an explosion at the Sago Mine.
Governor Manchin's legislation would require improved communications and the electronic tracking of coal miners underground, as well as faster emergency response and the storage of additional air supplies underground.
Governor Manchin's proposal also would create a new rapid response system for mine and industrial accidents, and require coal operators to issue emergency communicators and personal tracking devices to all underground miners.
Most mines in the United States still rely heavily on hard wired communication systems, which can be damaged in explosions and fires. Mr Doug Conaway, director of the state Office of Miners' Health Safety and Training, envisions a wireless system that connects miners to the surface through a series of transponders. The system would provide one way, low frequency communication to miners, sending text messages to inform them of an emergency and the best evacuation route. It is used in about 40 mines nationwide, Conaway said. Two-way devices are not reliable, he said.
The electronic tracking devices would be similar to a system in use in Australia. It uses transponders in the battery covers on miners' head lamps to transmit a unique identification number. Devices mounted within the mine convey that signal to the surface. The system runs on internal batteries, so a power failure would not interfere with it.
Governor Manchin also proposed to fine coal companies $100,000 if they fail to report an emergency within 15 minutes.
Russia levies 21% duty on Rebar imports from Ukraine
It is reported in a local daily that Russia will start levying a duty of 21% on Ukrainian steel bars for reinforced concrete on January 22 citing Russian Federal Customs Service
TopPolish government to stop privatization of mining sector
Polish ministry of economy is not planning the privatization of the mining industry this year even though investors are ready to engage in Polish mines.
According to the strategy of the privatization of the mining sector prepared by the former government, JSW was to be privatized via the stock exchange while Budryk was to be merged with either JSW or Kompania Weglowa. JSW privatization advisor has already submitted the issue prospectus to the Ministry of the Treasure.
Mr Tomasz Wilczak, the deputy Minister of Economy said Ive met trade unions in JSW. They are against privatization. According to him, the sector will not be privatized this year although he did not talk about it with representatives of the Ministry of the Treasure.
Mr Zdenek Bakala, who in 2004 acquired a controlling stake in OKD coal mines via his RPG Company, is reported to be interested in the privatization of Jastrzebska Spolka Weglowa JSW and Budryk mine. JSW has similar activity to the Czech mines. We expect synergies so we are interested in the privatization of the Polish company Mr Jiri Polak, Mr Bakala advisor said.
Mittal Steel Poland is also reported to be interested in acquisition of JSW and Budryk.
Carpenter Technology Reports Record Second Quarter Results
Carpenter Technology Corporation quarterly net income is up by 32% to a second quarter record of $42.9 million, which is second highest overall quarterly net income in Company history. Operating income is up by 42% from a year ago over record second quarter revenues of $345.7 million. The Company continued to experience strong demand for its higher value materials, particularly in the aerospace and medical markets, and to benefit from its lean and variation reduction initiatives.
Net sales for the second quarter ended December 31, 2005 were $345.7 million, compared with $312.1 million for the same quarter a year ago. Net income in the second quarter was $42.9 million compared to net income of $32.5 million a year ago.
Net sales for the first six months of the current fiscal year were $691.7 million, compared with $609.7 million for the same period a year ago. Net income for the first six months of the current fiscal year was $83.0 million compared with net income of $52.4 million for the same period a year ago.
"Results this quarter reflected solid demand for our higher value materials across several key end-use markets worldwide," said Mr Robert J. Torcolini, chairman, president and CEO. "The ongoing strength of the aerospace market drove increased demand for our special alloys, titanium and ceramic materials. In addition, the pursuit of operational excellence through our relentless focus on lean initiatives and variation reduction contributed to the increased profitability. "This was the second most profitable quarter in Carpenter's history despite what has historically been one of our seasonally weakest periods," Mr Torcolini added. "Our performance this quarter represents further progress in creating an operating model that should sustain returns above our cost of capital and build shareholder value through all phases of a business cycle."
Mittal Steel Saldanha reports weak Q3 results
Mittal Steel Saldanha reported operating income of R74 million for the third quarter compared with R370 million in the corresponding period the previous year and R270m in the June quarter. Sales also showed a marked weakening with September quarter sales coming in at R837 million. In the same quarter the previous year sales were over R1 billion and R 936 million in the June quarter. Liquid steel production at Saldanha was 329 000 tonnes much better than the 298 000 tonnes the previous quarter
It seems Saldanha Steel was smacked by a combination of lower international steel prices, lower local volumes and increases in the prices of input materials. It seems safe to assume that full year sales for Saldanha will be well off the R3.6bn recorded the previous year.
Yuzhkuzbassugol to buy 3 Voest Alpine tunneling machines
Russian coal major Yuzhkuzbassugol will buy three tunneling machines from Austria's Voest-Alpine for its Yubileinaya underground mine in Novokuznetsk this year. Yuku said that the Austrian machinery was better suited to hard rock found in the Yubileinaya mine than the Ukrainian and Russian machinery currently in use. These machines will enable the mine to produce 1.7 million to 2 million tonnes of coal, much more than its 2006 target of 1.65 million tonnes.
Yuzhkuzbassugol estimates that it accounts for 24.5% of the coal produced in underground mines in the Kuznetsk Basin and 18.5% of Russia's entire coal produced that way. It has 25 enterprises, including 11 underground mines and supplies most of its coal to steel mills from the Evraz Group, Mechels Chelyabinsk Iron & Steel Works, Magnitogorsk Iron & Steel Works and Severstal
Yuzhkuzbassugol reduced coal production by 5.5% to 17.1 million tonnes in 2005. The company exported 30% of its coal and sold 70% in Russia
Evraz Group reached an agreement to buy 50% of Yuzhkuzbassugol from Crosland Limited for $675 million towards the end of last year. Crosland Global Limited is the core shareholder of Evraz Group.
Indonesia may raise its coal exports 5% this year
Indonesia, the world's biggest exporter of thermal coal may increase exports of by only 5% this year, the slowest pace in five years, as domestic demand rises. Shipments may climb to 117 million tons in 2006 and to 121 million tons next year, Mr T Soedjoko ED of the Indonesian Coal Mining Association, said at a conference in Singapore, citing forecasts by the energy ministry.
The country might export 5% less than the 122 million tonnes forecast this year, the chairman of Indonesia's Coal Mining Association Mr Jeffrey Mulyono, said. "Producers are going to be supplying more to the domestic market, where demand is surging because three new power plants are starting up this year," Mr Mulyono said. "Local consumption may reach 35%t of total output next year compared with 30% this year."
The country's exports rose 18% to 111 million tons last year, from 93.8 million tons in 2004, Mr Soedjoko said.
Indonesia's coal production may gain 8.6% this year to 164 million tons, and rise to 175 million tons in 2007, he said. Production may rise an average of 13 million tons a year between 2005 and 2009 as producers mine more coal, Mr Soedjoko said. The growth is forecast to slow to 5.6 million tons in 2010 to 2015 because of aging mines, he said.
Indonesia, which last year overtook Australia as the world's largest coal exporter for utilities, has doubled shipments since 2000. Companies including PT Bumi Resources, the nation's biggest producer, and PT Adaro Indonesia boosted investment in output last year as prices jumped.
Siemens to supply SVC to Jordanian steel mill in Az-Zarqa
The Siemens Industrial Solutions and Services Group I&S have bagged an order from Consolidated Jordanian Company for Steel Industry Ltd Az-Zarqa to supply a static var compensation SVC for a new steel plant. This will improve the security of supply and power quality. The order is worth Euros 1.8 million. The project will be completed in January 2007.
To improve the total power factor and minimize the system perturbations, the new steel plant will be fitted with a SVC system with filter circuits. The power rating will be 65/60 Mvar. The systems to be implemented in this project are part of the Simelt plant concept specially developed for steel plants. Siemens will also perform the installation supervision and commissioning.
The Consolidated Jordanian Company for Steel Industry Ltd. operates a steel plant with a capacity of around 200,000 metric tons per year in Az-Zarqa, northeast of the capital, Amman. The company produces structural steel for the Jordanian market. In November 2005, Consolidated Jordanian founded a Joint Venture with Jordan Steel plc to meet its raw material requirement from domestic sources. A new electric steel plant is being built for this purpose in which an electric arc furnace is used to smelt a tapping weight of 30 metric tons of scrap.
The project is the second of this kind in Jordan. In spring 2005, Siemens received the order to equip the steel plant of United Iron & Steel MfG Co in Jizza with a SVC system and new switchgear.
Thai Samchai Steel eyeing larger dia pipes for growth
Thailand based Samchai Steel Industries Plc projects to gain 30% of the total revenue it targets this year from the sales of new steel products that will be mainly used in government mega projects. The firm forecast that revenue would reach seven billion baht this year, from an estimated 4.2 billion baht in 2005.
Vice chairman Mr Pachawat Kunchayangkul said Samchai was investing 960 million baht to expand its capacity to 350,000 tonnes per year from the existing 280,000. The company aims to produce larger steel pipes, with diameters ranging from 6 to 18 inches, to take advantage of government infrastructure projects. The expansion at its steel mill in Samut Sakhon would be ready for commercial production in March.
''Larger steel pipes cannot be produced locally, so far the demand is met by imports with volume totaling 104,000 tonnes last year,'' said Mr Pachawat. ''The mega projects such as Suvarnabhumi Airport are designed with large steel structures in mind. In line with the condition that we have no local competitors for the new products, this would help increase our market share to 25-30% this year from 15-20% last year,'' said MD Prawas Sontawakul. When Samchai's larger steel pipes are available, the prices of the product would be 30% cheaper than those of imports.
Samchai aims to sell larger pipes to the petroleum industry over the next two years. Contractors Italian Thai Development Ch Karnchang and Sino Thai Engineering and Construction will be prospective customers for the new steel products.
Revenue will also come from existing products: round black steel, square, rectangular, C-channel and high pressure-resistant steel pipes. Samchai will set aside 80% of its total steel output for domestic sales, exporting the rest to markets like Australia, the Middle East, the United States and Europe, said Mr Pachawat. Competition in the domestic steel pipe market would be tougher this year because some manufacturers have recently expanded capacities. The construction industry requires approximately one million tonnes of small steel pipes each year.
Integrated Steel Complex to be built in Abu Dhabi
An EPC Contract governing the construction of what will be one of the largest integrated steel complexes in the region was signed yesterday between General Holding Corporation GHC of Abu Dhabi and Danieli of Italy. Sheikh Hamed Bin Zayed AI Nahyan, Chairman of the Department of Planning and Economy, acting in his capacity as Chairman of the Board of Directors of GHC, stated that the complex will be an expansion to the existing steel rolling operations undertaken by Emirates Iron and Steel Factory located in Musaffah, the Industrial City of Abu Dhabi. Once completed, annual output capacity will reach a total of approximately 2 million tons of rebar and wire rod.
The expansion will be built on land adjacent to the existing operations and will include two new rolling mills and an integrated steel plant comprising a direct reduction plant utilizing HYL technology and associated steel melt shop.
Danieli will complete the design, engineering, procurement and construction of the facility under the terms of the EPC Contract. Commissioning is expected to commence within the next two years. In addition, a jetty dedicated to the handling of raw materials will be constructed.
GHC has appointed Atkins, a well-Known UK based engineering consultancy, to act as its Project Management Consultant with respect to the steel complex.
The General Holding Corporation GHC is a wholly owned entity of the Government of Abu Dhabi. GHC, together with the Higher Corporation for Special Economic Zones, is responsible for devising and implementing the industrial diversification strategy of Abu Dhabi and the establishment of specialized clusters of industry within the Special Economic Zones. GHC owns, in addition to Emirates Iron and Steel Factory, Emirates Cement Factory in AI Ain, Anabib Pipe Factories and Emirates Food Industries
Danieli & C Officine Meccaniche SpA is the world's leading supplier of plant and equipment for the steel industry.
Severstal to spend rubles 1.6 billion on environment projects in 2006
Severstal plans to spend more than 1.6 billion rubles on environmental projects in 2006, a press release said citing technical director Mr Alexander Stepanov. These will be direct investments in reducing the company's impact on the environment and do not include spending on repairs and technology Mr Stepanov said.
Key projects include construction of a dust free coke discharge system as part of an overhaul of the No 3 coke battery, a filtration station to retreat water from steel rolling divisions; and an overhaul of the aspiration system of the central ferroalloys warehouse.
Mr Stepanov said one of the biggest environmental projects carried out in 2005 was the overhaul of a pickling line and construction of facilities for regeneration of acid
Severstal also overhauled the No 2 heating furnace in its second sheet rolling division, which reduced emissions of pollutants by more than 222 tonnes per year and completed construction of a central exhaust station for its first and second blast furnaces.
Steelscape places contract for coating system on Inductotherm
Inductotherm has been contracted by Steelscape Inc. to supply coating pots for the continuous galvanizing line the coil coater is installing in Shreveport, LA. The Rancocas NJ based supplier of mass heating systems is supplying two channel type coating pots mounted on bogie systems for rapid process changes, in order to accommodate for the fact that the line will offer galvanized and Galvalume coating options.
A single stationary pre-melting pot is being supplied, too. Also, Inductotherm will supply a 1,200-kW induction drying system to dry organic coatings.
In June 2005 Steelscape announced plans to relocate its galvanizing and painting lines from an idle plant in Richmond, CA, to Shreveport, in order to extend its market reach. The 54 inches wide 280,000 tons per year line is due to be commissioned in the third quarter of 2006. A 54 inches wide coil painting line is being relocated to the site, too.
Hyundai Heavy to establish holding company in China
Hyundai Heavy Industries Co, the world's largest shipbuilder, plans to establish a holding company in China to oversee the efficient operation of its existing and future businesses in the world's fastest-growing country, the company said
To be capitalized at US$30 million, the holding company will be located in the Chinese financial and commercial hub of Pudong in Shanghai, it said
Steel Dynamics fourth quarter profit drops
Fort Wayne Indiana based steel manufacturer Steel Dynamics Inc said that its fourth quarter profit fell, as a result of a 5% drop in sales and a 13% slide in the average selling price of its products.
Net earnings were $65 million compared with $82 million in the same quarter of 2004
Diana Shipping announces time charter agreement with BHP Billiton
Diana Shipping Inc, a global shipping company specializing in the transportation of dry bulk cargoes, announced that it has entered into a time charter with BHP Billiton Marketing AG for its Panamax dry bulk carrier, the Clio, for a period of 11-13 months, at a rate of US$850 per day above the average rate of four pre-determined time charter routes as published by the Baltic Exchange. The charter is expected to commence on February 2, 2006.
The initial charter payment will be made on delivery of the vessel to BHP Billiton based on the average of four pre-determined time charter routes for the 15 days preceding vessel's delivery date. Thereafter, each time charter payment will include an adjustment to reflect the actual average of the four pre-determined time charter routes, for each preceding 15 day period.
The Clio is a 73,691 DWT Panamax dry bulk carrier built in 2005.
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.
Insteel Industries reports strong Q1 financial results
Insteel Industries Inc announced record first quarter results for the three months ended December 31, 2005. Net earnings for the first quarter increased 50% to $7.7 million compared with $5.1 million for the same period last year. Sales for the first quarter increased 12% to $83.5 million from $74.7 million in the prior year quarter. Shipments for the first quarter increased 24% while average selling prices decreased 10% from the prior year levels.
"Insteel's first quarter results are encouraging, particularly in view of the usual seasonal downturn that we experience during the period," said Mr HO Woltz III, Insteel's president and CEO. "We believe that the inventory imbalances within our customer base which negatively impacted our order book through most of fiscal 2005 are behind us and shipment levels are now more closely aligned with the actual rates of consumption for our products. The usual drop off in business that we experience during November and December was not as pronounced this year as evidenced by the favorable shipment comparison versus last year and the expansion in the year-over-year growth in sales that occurred within the quarter. The higher shipments and low finished goods inventories allowed us to maintain full operating schedules at most of our facilities through the quarter which favorably impacted unit conversion costs."
Insteel Industries is one of the US's largest manufacturers of steel wire reinforcing products. The Company manufactures and markets standard and engineered reinforcing solutions for a broad range of concrete construction and industrial applications. Insteel's concrete reinforcing products business unit manufactures PC strand and welded wire reinforcement products including standard welded wire reinforcement, concrete pipe reinforcement and engineered structural mesh. The Company's industrial wire products business unit manufactures tire bead wire and other specialty wire products. Headquartered in Mount Airy, North Carolina, Insteel operates seven manufacturing facilities located in the United States.
CVRD Announces Stock Merger with Caemi
Companhia Vale do Rio Doce CVRD announced that the shareholders of Valepar SA, the controlling shareholder of CVRD and acting under the existing shareholders agreement of Valepar, approved a proposal of CVRD senior management to exchange all preferred shares of Caemi Mineracao e Metalurgia SA owned by its non controlling shareholders for new CVRD preferred shares to be issued. Using a procedure under the Brazilian corporate law called "incorporacao de acoes," or stock merger, Caemi will become a wholly-owned subsidiary of CVRD.
The proposal will be ratified by the CVRD Board of Directors at the meeting to be held on January 26, 2006. All 1,558,963,806 publicly-held Caemi preferred shares, which trade on the Sao Paulo Stock Exchange (Bovespa) will be exchanged for new CVRD (PNA) shares.
Each non controlling Caemi shareholder will receive 0.04115 preferred shares PNA of CVRD for each Caemi preferred share. This exchange ratio reflects the stock market price behavior of both shares over the last 90 days.
CVRD currently owns 100% of Caemi's common shares and 40.06% of Caemi's preferred shares, for a total of 60.23% of its total capital. After the completion of the stock merger, CVRD will own all Caemi shares.
Slovenian Steel Group expects level performance in 2006
The Slovenian Steel Group expects net profits of SIT 4.4 billion (Euro 18.4 million) on sales of SIT 110 billion (Euro 495.1 million) in 2006, according to a 2006-2011 strategy paper that the company's supervisory board reviewed on 19 January. The figures are level with preliminary projections for 2005 made by Chairman Mr Tibor Simonka in mid-December 2005.
The figures are based on a presumed decline in purchase prices, slower demand and the resulting pressure on producer prices, the company's press release reads. The company expects to maintain the present unit output and relatively high margins, which however will be lower than last year due to the cooling market.
By 2011, the group expects sales to top SIT 132 billion (Euro 551 million), with average net profit of SIT 4.8 billion (Euro 20 million).
Mittal Steel announces change to its shareholding in Hunan Valin
Mittal Steel announced that its shareholding in Hunan Valin Steel Tube & Wire Company Limited has been diluted to 29.49%. Mittal Steel completed the acquisition of a 36.67% stake in Hunan Valin on 28 September 2005 for a total consideration of US$338 million.
As a result of publicly held outstanding convertible bonds being converted into shares the shareholding of both Mittal Steel and Valin Group have been diluted to 29.49% and 30.29% respectively, as on 20 January 2006. The remaining shares are traded on the Shenzhen Stock Exchange.
Additionally, from May 2005 onwards, all companies listed in China have been required to undertake the 'share segmentation reform', meaning that all non listed shares are converted into listed and fully tradable shares. Currently, both Mittal Steel and Valin Group hold non-listed shares in Hunan Valin. As part of this reform, the holders of non-listed shares are required to submit a compensation proposal to the public shareholders.
As such, a plan, based on discussions with representatives of Hunan Valin's major public shareholders, was finalized in December 2005 whereby Mittal Steel and Valin Group will issue two year put warrants to all holders of listed shares who were to register on or before 20 January. A shareholders' meeting of Hunan Valin is set for 9 February 2006 in order to approve the plan, which will then be submitted to the PRC government authorities for approval. Mittal Steel and Valin Group will issue 7.19206 warrants for every 10 shares held by the minority shareholders. The warrants will be listed on the Shenzhen Stock Exchange subject to completing other required procedures. If all the put warrants were to be exercised Mittal Steel and Valin Group's shareholding would increase to 43.7% and 44.9% respectively.
Hunan Valin is one of China's largest steelmakers with annual steel production capacity of 8.5 million tons.
Elk Valley Coal reaches 4 year labor agreement at Line Creek
Fording Canadian Coal Trust announced that Elk Valley Coal and Local 115C of the International Union of Operating Engineers agreed to a new four year collective agreement at the Line Creek operations in southeast British Columbia. The agreement covers the period from June 1, 2005 to May 31, 2009.
The Line Creek operations have an annual production capacity of approximately 3.5 million tonnes of coal.
Fording Canadian Coal Trust is an open-ended mutual fund trust. Through investments in metallurgical coal and industrial minerals mining and processing operations, the Trust makes quarterly cash distributions to Unit holders. The Trust, through its wholly owned subsidiaries, holds a 60% interest in the Elk Valley Coal Partnership and is the world's largest producer of the industrial mineral wollastonite. Elk Valley Coal, comprised of Canada's senior metallurgical coal mining properties, is the world's second largest exporter of metallurgical coal, supplying high-quality coal products to the international steel industry.
Guangdong reports record volume of coal imports
South China's Guangdong Province, an economic powerhouse, has imported more than 10 million tons of coal last year, the provincial customs statistics revealed. According to statistics, the volume of coal imports hit a record 10.52 million tons, up by 69.3% over the previous year. The customs attributed the surge of coal import to the domestic coal mine rectification and a brisk demand in the region.
In December alone, Guangdong Province imported 1.456 million tons of coal, setting the record of coal import for a single month.
Guangdong Province has a demand of 80 million tons of coal a year. It has an annual shortage of 70 million tons. Its coal import volume has been on the rise over recent years due to the impediment of domestic transport conditions.
Rail projects expected to boost coal business in Powder River Basin
Two rail projects are expected to increase the capacity of coal shipments out of the Powder River Basin by the end of this summer. One project is a 19 mile track expansion from Reno Junction to Shawnee Junction in southern Campbell County. The other is a staging yard west of Rozet. Both projects could be finished by the third quarter of 2006, according to Burlington Northern Santa Fe BNSF spokesman Mr Gus Melonas.
Mr Greg Schaefer, a spokesman for Arch Coal. "Capacity is pretty constrained. It's pretty tight right now. If capacity on the rail system improves, it will help our ability to get the coal to market."
Mr Greg Smith, a Babcock & Brown Infrastructure general manager of operations for Dalrymple Bay, said spare capacity would be found from queue management or swapping with existing terminal users. He said yesterday there were just eight ships waiting offshore to load coal and another 10 to 15 could easily be accommodated.
About 35 million tonnes of coal was shipped through Hay Point last year.
The major repair work is expected to slice capacity by about two million tonnes, valued at $US200 million. BMA plans to spend $157 million to lift capacity to 40 million tonnes this year.
TMK to publish 2005 financial report to IAS
Russian pipe maker TMK is planning to publish an audited 2005 financial report to International Accounting Standards IAS at the end of May or early June Mr Sergei Ilin foreign relations director, told press.
The company's audited financial report to IAS for January September 2005 could be published already next week, he said. TMK plans to post net profit to IAS of $220 million in 2005, up almost 10 fold from 2004. Sales revenue to IAS is forecast at more than $2.6 billion.
New Siemens drives for Voist Alpines plate mill
Austria's voestalpine Grobblech GmbH chose Siemens to outfit its 4.2 meter heavy plate rolling mill at Linz with a new main drive system. The goal is to increase performance and availability. Siemens is supplying two synchronous machines, each with a rated output of 7,200 kilowatts and a surge power output of 18,000 kilowatts, to replace the existing direct-current drives. The new motors will be powered by Simovert D cyclo converters.
The scope of supply also includes transformers and three-phase feeder units, as well as a control and visualization system for the main drives. Also, Siemens is responsible for all the detailed engineering and installation and commissioning of all the electrical components.
According to the contractor, the new main drive system will have twice the output of the previous direct-current drives, and synchronous motors will increase the availability of the drives and reduce maintenance expenses.
