April, 01 2006
Indian steel makers announce price hike
Uttam Galva Steels Ltd announced that it would increase the prices of its products by 3,000-4,500 rupees per ton from April 3.Company is raising its product prices for the second time in less than a month. It increased them by 1,500-2,500 rupees per ton on March 13.
Tata Steel will raise prices of hot rolled coils in April, the second time since September 1, for immediate delivery by as much as 2,000 rupees a ton to about 24,000 rupees.
Other producers including SAIL are also likely to make price hike announcements soon.
Tata Sponge commissions 3rd kiln to increase capacity by 62.5%
Tata Sponge Iron Ltd has informed BSE that the installation of kiln no 3 of 500 tonnes per day and an annual capacity of 150,000 tonnes has been completed. The raw material charging was started from March 28th and production started on March 30th.
After this commissioning the annual installed capacity of the Company for manufacture of sponge iron has increased from 240,000 tonnes per annum to 390,000 tonnes per annum, an increase by 62.5%.
BEML to float joint venture for coal mining
Bharat Earth Movers Ltd is setting up a joint venture to undertake coal mining on contract for coal companies and power utility providers, a top company official said. We are waiting for the government approval for finalizing the JV with a Hyderabad based mining firm and a leading Indonesian mining firm Sumber Mitra Jaya BEML CMD Mr VRS Natarajan told reporters.
The JV will bid for de blocked coal mines of one million tonnes and above. The workforce will be hired on contract basis for the mining projects Mr Natarajan said. In the proposed JV, with an authorized capital of Rs.1 billion, BEML will have a 45% equity stake, the Hyderabad firm will have 46% and Sumber will have the remaining 9%.
POSCO to set up training centre in Paradeep
POSCO is planning to set up a human resource development centre in Paradeep to provide vocational training to locals to facilitate job opportunities for them as per a POSCO India press release. The company has earmarked an estimated investment of about $10 million for setting up the training centre from June. The centre will be able to train about 250 people at a time, it said.
A company official said its proposed plant would generate direct employment for 13,000 people and indirect jobs for 35,000. It claims the plant will displace only 400 families although unofficial estimates put the number at over 10,000.
RPG secures new order for ADB funded TLT line in Kerala
RPG Transmission Ltd announced that the Company has received a new order worth Rs 1190 million from Power Grid Corporation of India Ltd for a Transmission Project funded by Asian Development Bank.
The scope of work includes supply and construction of 35 kilometers long 400 KV Multi Circuit Transmission Line from Tenakasi to Edamon which is a part of Tirunelveli-Edamon Transmission Line associated with Grid strengthening of Kerala. The line passes through the hilly and rocky regions of Tamilnadu and Kerala. The line, which involves two circuits of 400 KV Quad Bundle conductors on the same tower, is a first for the Country and is scheduled to be completed by March 2008.
RPG is a leading player in the Indian transmission market and is already executing various orders for Power Grid, CSEB, RRVPNL etc. In the International market, the Company is engaged in constructing a 132 kV line in Nigeria. The Company is also engaged in Railway Electrification and Telecommunication Tower projects. With these orders the current order book position of the Company stands at around Rs 4300 million.
S&P assigns 'BBB' rating to TATA Steel's $ 500 million loan
TATA Steel Ltd has been assigned 'BBB' rating by global rating agency Standard & Poor's for its $500 million equivalent unsecured bank loan facility. The company plans to use the seven year loan proceeds to fund the expansion of its steel production capacity and acquisitions.
The rating on TATA Steel reflects its globally competitive position in the steel industry and its overall moderate financial profile. However, the rating remained constrained by the inherent industry risk and large capital commitments for its steel operations.
The company has been assigned a stable outlook, which reflects the expectation of a successful expansion of TATA Steel's domestic operations, which would strengthen future cash flows and provide some cost savings due to economies of scale.
PSE interviews three for the post of CIL CMD
It is reported that CIL has evoked a poor response from potential candidates as only three candidates, out of the six candidates short listed, turned up for the interview being conducted by Public Enterprise Selection Board recently for the post of CMD of Coal India Limited. It is also reported that even among the three interviewed by PESB, none had a technical background, considered a must for the top job at CIL.
The term of current CMD Mr Shashi Kumars term ends in September.
It is understood that CMD of Bharat Coking Coal Mr Partho Bhattacharya, director finance of Mr Nevyeli Lignite Prasanna Kumar and commercial director of Kudremukh Iron Ore Company Mr NS Sreeman were interviewed by PESB.
Mr LN Mittal acquires 8% in Indiabulls Credit Services
Mittal Steel CEO Mr LN Mittal promoted LNM India Internet Ventures will acquire an 8.2% stake in Indiabulls Credit Services for Rs 90 crore. Indiabulls Credit Services is a subsidiary of Indiabulls Financial Services. The deal values ICS at Rs 1,100 crore. LNM-IIVL will pay approximately Rs 62 per share for the stake.
Mr LN Mittal through LNM-IIVL had invested in Indiabulls Financial Services in 2000 when he bought 61.3 lakh shares, representing approximately 7.52% stake in the company. LNM-IIVL continues to be a shareholder in Indiabulls.
After the deal, Indiabulls stake in ICS will come down from 55.3% to 53.3% and the shareholding of Farallon will decrease to 32% due to the issuance of new shares. With the latest deal, ICS will have an enhanced equity capital base of approximately Rs 460 crore.
USs Bessemer Venture buys 33.33% in Shriram EPC
Bessemer Venture Partners, a private venture capital company from the US, has picked up a 33.33% stake in Chennai based Shriram EPC Ltd for a consideration of Rs 100 crore. Mr T Shivaraman MD said that the company needed the resources because the business was growing.
Shriram EPC is into construction of steel plants, biomass and wind based power projects, water treatment plants and cooling towers.
PSMC Privatization MMK Al-Tuwairqu Arif Habib consortium wins
Consortium of Russias Magnitogorsk Iron & Steel Works Open JSC, Saudi Arabia based Al-Tuwairqi Group of Companies and Pakistani firm Arif Habib Securities, made a winning bid of $362 million (RS 21.68 billion) for a 75% stake in Pakistan Steel Mills at an open auction yesterday to take control of Pakistans only integrated steel manufacturing plant. Bidding had begun at 10.17 rupees per share and closed at 16.8 rupees per share.
The price is within the range approved by the Cabinet Committee on Privatization and thats why we accepted the offer" Mr Awais Khan Laghari, Pakistans newly appointed Minister for Privatization, told journalists after the auction held in an Islamabad hotel. He said that the bidding of the steel mills was held in a transparent manner and 4457 acre land of steel mills would be given to the successful bidder and more than 14000 acre land would remain in the control of government. "We have prepared a special package for the employees of the steel mills and government will give this package to the employees," minister said adding the employees will be given protection.
Minister said that the successful bidder would submit the 25% amount to the government within 20 days and the rest of the amount would be handed over to the government within 40 days. "The acceptance letter to the successful bidder will be given within one or two days," he added.
The losing consortium included Al-Jomaih Holdings of Saudi Arabia, the Emirates government of Ras Al-Khaimah, Kuwait-based Noor Financial Investment Co and Ukraine based Industrial Union of Donbass.
ATI Allegheny Ludlum raises stainless steel prices
Allegheny Technologies Incorporated announced that ATI Allegheny Ludlum is increasing selling prices for most cold-rolled and hot-rolled stainless steel sheet and strip products, continuous-mill plate products, and duplex alloys. The price increases are necessary to offset rising costs and to support continued capital investments and growth.
The following price increases are effective with shipments beginning May 1, 2006
1. Selling prices for most hot-rolled and cold-rolled stainless steel sheet and strip products are being increased by approximately 6%.
2. Selling prices for stainless steel continuous-mill-plate products are being increased by approximately 9%.
3. Selling prices for AL 2003(TM) lean duplex alloy and AL 2205(TM) duplex alloy sheet, strip, and plate products are being increased by approximately 6%.
All surcharges remain in effect.
Laiwu steels shareholders approve Arcelor investment proposal
China's Laiwu Steel Corp announced that its shareholders approved a planned investment in the company by Arcelor. "Our shareholders have approved the proposal on Arcelor's investment, but we still need to get the approval of Chinese regulators," an official at Laiwu Steel's securities affairs office said.
All the shareholders that attended a special shareholders' meeting Thursday voted for the proposal, Laiwu Steel said in a statement published in the China Securities Journal Friday.
Laiwu Steel said that its controlling shareholder, Laiwu Steel Group, signed an agreement with Arcelor to sell a 38.41% stake in the listed unit. Laiwu Steel Group has 76.82% holding in Laiwu Steel Corp. Arcelor will acquire a total of 354,236,546 shares in Laiwu Steel Corp. for CNY2.09 billion ($259 million).
Severstal net profit in down by 13.3% in 2005
Russia's largest steel company, Severstal, recorded a 13.3% YOY fall in net profit in 2005 to total 34.312 billion rubles ($1.24 billion), the company's annual financial statements under Russian Accounting Standards said Friday.
Severstal's earnings for the period grew by 9.7% to 143.11 billion rubles ($5.15 billion), gross profit decreased by 10.3% to 53.38 billion rubles ($1.92 billion) and sales profit fell 11.9% to 50.4 billion rubles ($1.82 billion).
Pilbara unscathed by cyclone Glenda
The Pilbara region has emerged virtually unscathed from one of the worst tropical cyclones ever to cross the West Australian coast, but widespread flooding is still feared. Glenda, a category four cyclone and the sixth tropical storm to hit WA this season, pounded the small Pilbara fishing town of Onslow, 1,390 kilometers north of Perth. Trees were felled, roads flooded and power lines bowled over as a three kilometer tidal surge and winds of up to 179 kilometer per hour battered the town. Glenda left no injuries and only minimal damage in its wake, and the cyclone ran out of steam shortly after crossing the coast.
Major resource companies breathed a sigh of relief after tropical cyclone Glenda passed over resource and energy operations in West Australia's Pilbara region causing minimal damage and disruption. Major resource operations started battening down ahead of the storm, shutting down processing facilities and sending ships out to the safety of the sea.
Rio Tinto spokeswoman Megan Crust said most of its staff at the operations had returned to work on Friday. "There are no reports of injuries and no indication of significant damage to operations and rail," Ms Crust said. "Inland sites received significant rainfall overnight and further assessments will be carried out today." Damage assessment at the ports and mining operations at Pannawonica is now underway and Rio Tinto hopes to progressively restart operations.
BHP Billiton fared the best with its operations at Port Hedland, missing the centre of the cyclone. The Port Hedland port was reopened on Thursday night once the storm had passed, with minimal damage reported. "Port and rail operations are being progressively brought back on line," BHP Billiton spokeswoman Sam Evans said. "Some activities are still being impacted by high winds. She said there had been some impact on the mining operations from the heavy rains but mining had not been suspended.
Pakistan PM lays stone for Tuwariqi Steel in Karachi
Pakistan President Mr Pervez Musharraf while addressing the foundation stone laying ceremony of Tuwariqi Steel Mills in Karachi said that the construction of the new mill was in consonance with his government's vision of shifting the focus of trade from agriculture and textile to heavy industry and engineering. He said that the country will shift focus from farming to heavy industry and will collaborate with developed nations in technical education to achieve a quantum jump in exports.
Tuwariqi Steel Mills is a project of Al-Tuwariqi Group of Saudi Arabia. It is being set up over an area of 220 acres at Bin Qasim, Karachi with a production capacity of one million tonnes. The capacity can be expanded to three million tonnes. The mills will start functioning within 18 months.
Tarpon Industries terminates agreement to acquire Midwest Tube
Tarpon Industries Inc announced that it has made the decision to terminate its Definitive Agreement to acquire Midwest Tube Mills Inc, based upon Midwest's inability to provide audited company financial statements and its written advice to Tarpon of a material adverse change in its business and operations.
The definitive agreement to acquire Midwest, signed in August 2005, was subject to a number of closing conditions, including the requirement that there not be a material adverse change in the operating results of the acquisition target and Midwest's responsibility to deliver audited financial statements.
"The inability of Midwest to provide audited financial statements in accordance with the agreement, combined with a downturn in the operating results of Midwest, precluded us from reaching a successful conclusion to this acquisition," said Mr Peter Farquhar, CEO of Tarpon Industries.
Tarpon Industries, Inc., through its wholly owned subsidiaries within the United States and Canada, manufactures and sells structural and mechanical steel tubing and engineered steel storage rack systems. Through an aggressive acquisition-driven business model, the company's mission is to become a larger and more significant manufacturer and distributor of structural and mechanical steel tubing, engineered steel storage rack systems and related products.
Changzhi Steel to start beam production in August 2006
Changzhi Steel in Shanxi province will put a H section production line into production in Aug 2006. The medium H section rolling mill has adopted advanced technology. Changzhi Steel has totally injected 526.12 million Yuan on the production line with designed annual output of 0.6 million tons.
It is predicted that the whole production line equipment will be fully installed and reach the standard of commission under load at end June. After operation, the H section line will mainly produce H section, channel, angle and flat steel. In addition, the major H section grades are carbon structural steel, beam structural steel, low-alloy steel, mining steel and weather-resistance steel.
Polish seamless tube makers hope for EUs action
It is reported that EU is seriously considering introducing a customs duty on the import of seamless pipes from Ukraine and Russia. The final decision is to be made at the beginning of April and the polish seamless tube makers
According to sector analysts, the introduction of the customs duty will have a significant effect on domestic companies. Comparing figures from 2004 with 2005 shows that imports of this product from Russia grew by 123% while they increased by 30% from Ukraine.
On the other hand, domestic manufacturers fear that the Eastern companies will now invest in production facilities on the Polish market, such as Sinara which plans to acquire the Walcownia Rur Jedność pipe rolling facility and lead to a price war.
Mr Marek Misiakiewicz President of Batory Steel Mill said "In cooperation with the Metallurgical Chamber of Industry and Commerce we tried to receive securing programs. The share of seamless pipe imports stands at 45-50% of domestic production. With regard to our market segment it amounts to 20%". The company has an annual production capacity of 70,000 tons of seamless pipes.
Finland's Rautaruukki buys Russia's Ventall
Finnish steel maker Rautaruukki said in a statement Friday it had reached agreement on the purchase of Russian steel constructor Ventall from the firm's operative management for 97.5 million euros.
The deal, pending approval by competition authorities, includes a possible supplement of up to 27.5 million euros, which depends on the financial performance of Ventall.
Located in Obninsk, some 100 kilometers south of Moscow, Ventall had net sales of about 70 million euros in 2005.
Rautaruukki estimates that the value of the Russian steel construction market is about 700 million euros, with Ventall having a slice of about 7%.
Ukraine plan to sell electricity at discounted rates to steel mills
It is reported that the Ukrainian government plans to allow more than 20 large industrial enterprises to buy electricity at discount rates citing Prime Minister Mr Yuriy Yekhanurov.
TopChina Shipping drops dry bulk cargo spin off plan
China Shipping Development, China's largest carrier of crude oil, has dropped plans to inject its dry bulk cargo carrier operations into a new firm to be listed on the Hong Kong Stock Exchange. "We have no plan to spin off the dry bulk business now" chairman Mr Li Shao de said. "We will focus more on our core business."
The company has earlier said that it was considering such a spin-off. But many large shareholders, which include fund managers, opposed the spin off on concern their holdings would be diluted.
Sino Steel & Tianjin Port sign agreement for increased cooperation
Sino Steel and Tianjin Port Group have signed a strategic cooperation contract in Tianjin. According to the contract, Tianjin Port Group will offer qualified & efficient port operation service to Sino Steel Group in consideration of its shipping and forwarding business at Tianjin port, provide more beneficial policies and shorten the halt period of ships at the harbors. Both sides also agree to strengthen the cooperation in the fields of capital, assets and investment, constantly push the further strategic cooperation of both enterprises, revitalize the economic circle around Bohai Sea and make greater contribution for the economic prosperity in local areas.
Sino Steel and Tianjin Port further strengthened their all-round, multi-level and comprehensive cooperation build the strategic cooperation relationship, which is significant to realize the cooperation, complimentary advantages and win-win development between both sides.
Sino Steel takes the advantage of integrated superiority and further expands the shipping transaction volume at Tianjin port, fully takes the advantage of Tianjin port and rely on its large throughput of iron ore, coal & container to expand the domestic & international business in iron ore, coke, steel products, chrome ore & manganese ore etc. fields, as well as provides the powerful support for the sustainable development of the logistics.
As a modern international deep water port with advanced equipment, perfect function, scientific management, efficient operation and environment friendly culture, Tianjin port is striving to construct itself to be hinge port of container transportation for Northeast Asia and Middle & West Asia, the biggest bulk cargo port in North China and the largest bounded port in North China with the widest opening.
Mittal Steel Krivy Rih seeks support from Romania on Krivy Rih mining project
Interfax Ukraine has reported that Mittal Steel Krivy Rih hopes for the support of Romania in deciding the fate of the Krivy Rih Mining and Dressing Mill of Oxidized Ores citing Mr Frank Pannir, a member of the Directors' Council of Mittal steel Krivy Rih.
TopEndangered snail effects development of New Zealand coal mine
The fate of a unique couple of inches long brown snail named Powelliphanta Augustus, a unique species which is threatened by extinction, in Happy Valley on the west coast of New Zealand hangs in the balance and is holding up the mining of coal in the region. "This is a classic dilemma between economic development and environmental conservation. These are never easy questions," Mr Chris Carter New Zealands conservation minister told Reuters.
State owned company Solid Energy has offered plans to save the snail. The company is eager to mine an estimated $300 million to $540 million in high grade coal that lies beneath the surface. Solid Energy Company has suggested lifting topsoil from the snails 12 acre habitat of shrubs and moving it away from the lunar landscape of mines surrounding it. The company might also build a fence to protect the snails from predators in the new area and start an incubation project to breed them.
Mr Carter has yet to decide on this plan and will not sign off on the companys plan, which he called a generous offer until scientists conclude whether the snail population would survive the move or if it should be left untouched in its habitat above the coal. "The question is if this mitigation will be enough to save the species," he said.
Grande Cache announces extension of Secured Credit Facility
Grande Cache Coal Corporation has announced that the Corporation has amended and extended its secured credit facility with Brookfield Bridge Lending Fund, principally to increase the size of the revolving facility from $10 million to $15 million and to extend the maturity date of the facility to April 8, 2007, subject to a further one year extension option. The restated credit facility consists of a $10 million term facility and a $15 million revolving facility.
Grande Cache Coal is an Alberta based metallurgical coal mining company whose experienced team of coal professionals have developed a sustainable, long-term mining operation to produce metallurgical coal for the export market from coal leases covering over 18,200 hectares in the Smoky River Coalfield located in west-central Alberta.
Mechel to place bonds for 10 billion rubles on MICEX
Mechel OAO has announces the resolution adopted by the Board of Directors to place two issues, Series 02 and 03, of documentary interest-bearing inconvertible bonds with the par value of RUR 1,000.00, the amount of each issue to be RUR 5 billion, at the Moscow Interbank Currency Exchange.
The funds from the bond placement are planned to be utilized to refinance the debt under the previous bond issues and to finance the long term investment programs of the Company's subsidiaries.
Placement of the bonds shall be started not earlier than two weeks following the announcement of the information on the bond issue state registration and the procedure of obtaining access to the information included in the prospectus of the securities issue.
Mechel Trading House OOO acts as the guarantor under the bond loan. JS Bank Gazprombank is appointed to be the manager of the issue.
Maverick picks Mr Talley to head steel sourcing
Maverick Tube Corp has announced appointment of Mr Brion Talley as its vice president of steel sourcing effective April 3rd. Mr Talley has been in the steel industry for 22 years, most recently as vice president of the steel division with JFE Shoji Trade America in Long Beach California.
Maverick Chairman and CEO C Mr Robert Bunch said "As an experienced and well-respected member of the steel community, we expect him to be instrumental in directing and executing our raw material strategy."
St Louis based Maverick Tube Corp manufactures tubular products used in the energy industry.
Malaysian Sarawak starts job cuts before closure
Loss making CMS Steel Bhd, a subsidiary of Cahya Mata Sarawak Bhd, retrenched 102 employees as part of its exit from the steel business following continuous losses for the past three years. CMSB's Group Corporate Affairs Department said the retrenchment followed an announcement made by CMSB in January this year to exit the steel business and close its steel rolling mill located at Sejingkat near here by the end of first quarter of this year.
"The 102 employees are the first stage of a total 152 employees of CMS Steel Bhd to be retrenched. The balance of the employees will be released in stages during the month of April," it said in a statement Friday.
As part of the retrenchment exercise, those retrenched had been compensated with a "fair termination package" based on the Employment Act, the company said.
Being the largest steel industry producer in Sarawak ,it has a 300,000 tonnes per annum capacity mill producing steel wire rods, high-tensile deformed and mild steel round bars for the East Malaysian market.
