April, 14 2006
2005-06 a year of records for TATA Steel
TATA Steel finished 2005-06 with numerous records and remarkable achievements. The financial year witnessed record production of hot metal, crude steel and saleable steel. Hot metal at 5.177 million tonnes, crude steel at 4.729 million tonnes and saleable steel at 4.520 million tonnes, an increase of 19%, 15% and 10% respectively as compared to the figures of 2004-05. Many major milestones, like crossing the 5 million tonnes mark for hot metal and 3 million tonnes for hot strip mill were also achieved during this financial year.
TATA Steels raw materials division continued their outstanding performance. West Bokaro reduced the clean coal ash from 15% to 13%. The impact was seen in the reduction of the use of imported coal from 46%in 2004-05 to 31% in 2005-06. The mines division achieved the best ever iron ore production and dispatch of 10.3 million tonnes and 10.5 million tonnes respectively.
Most of the units and facilities under the million tonne expansion project were commissioned during the year. It was indeed a challenge to handle so many commissioning in a running plant and yet, dramatically increase the production.
TATA Steels units also achieved many records. The gross turnover of Tubes Division surpassed the Rs 1,000 crore marks for the first time in history. At 0.225 million tonnes, the total finished production from tubes was 23% higher as compared to 2004-05. The Bearings Division produced 28 million bearings, an increase of 12% as compared to that of 2004-05. The Ferro Alloys and Mineral Division has also surpassed its previous best performance by producing 3.023 million tonnes of minerals in 2005-06 against 2.026 million tonnes in 2004-05 and 0.224 million tonnes of Ferro Alloys in 2005-06.
Vallourec buys 75% stake in Indian tube maker CST
The $5.2 billion French seamless steel tubes maker, Vallourec, has taken over Hyderabad based tubes maker CST for an undisclosed amount. In a deal, sealed last week, Vallourec subsidiary Valtimet acquired 75% of CST, which has been renamed CST Valinox Ltd. CST Valinox aiming its first year sales at around Rs 90 crore.
In a press release posted at its website, Vallourec said that the new company would produce tubes for power plant condenser and feed water heater. The Indian company focuses on the power sector and has bagged BHEL orders from for three years. This fits into Valinoxs profile as it claims to be the world leader in welded stainless steel and titanium tubes for power plants.
Under the new management, CST Valinox will see its capacity rise from the present 1,200 metric tonnes per year to 3,600 metric tonnes. For the expansion, said the CST official, the company is sourcing mills from Germany. These would be transported by the month end and production would commence in the first week of July said the official.
CST was formed in 1996 and began commercial production four years later. The company, with a manufacturing facility in Hyderabad, was set up in technical collaboration with Canadian major Associate Tube Industries.
Vallourec products include hot-rolled seamless tubes and precision tubes for the automotive, mechanical, power generation and petrochemicals industries. The energy sector contributes almost 60% of its sales. More than half of the companys revenues come from non European markets and has presence in Southeast Asia, China and West Asia.
Orissa government cancels MoU for 7 million tonnes
It is reported that the Orissa government has decided to cancel the MoU signed with five companies which planned to set up steel plants in the state, as there had been no progress on the projects citing official sources. At a review meeting chaired by the Steel and Mines Minister, Mr Padmanav Behera it was decided to cancel MoUs with those companies which lacked initiative and were found not to have taken any steps to acquire land or get environmental clearance for their projects, sources said.
The state government had signed 43 MoUs with different companies for setting up steel and aluminium projects. However, a few companies that signed the MoU had completed construction of their plants and some had gone into trial production, sources said.
Four of the companies had signed the MoU in the latter half of 2004 while the other had done so in November, 2005.
1. Sterlite Iron and Steel Ltd which had signed a MoU on October 15, 2004 for establishing a 5.1 million tonne steel plant at Palaspanga in Keonjhar district with an investment of Rs 12,500 crore.
2. AML Steel and Power Ltd planned to have its 0.275 million tonne industry at Kalinga Nagar at a cost of Rs 209 crore.
3. Maharashtra Seamless Ltd proposed to invest Rs 450 crore at the same place for erecting a 0.48 million tonne project in two phases.
4. Sunflag Special Steels Ltd has chosen Bomlai in Sambalpur district as its site for setting up a one million tonne steel plant at an investment of Rs. 937.49 crore.
5. Stats Steel India (P) Ltd proposed to have a 0.50 million tonne steel project at Tangi in Cuttack district.
Jharkhand CM blames center for hampering states growth
It is reported that according to Jharkhand CM Mr Arjun Munda Centers policy on mining and forests is standing in the way of Jharkhands development. The government of India has not accepted any of the state governments proposals that can help Jharkhand grow as a major manufacturing hub, and thus draining of the states mineral resources continues, Munda said.
Mr Munda at the annual regional meeting of the Confederation of Indian Industry ER said although Jharkhand has 40% of the countrys total coal reserves and 32% of iron ore reserves, it has not been able to turn into a manufacturing hub owing to the Centers policy that has allowed the carrying away of their natural resources, ignoring the needs of the state.
He said that there are certain central public sector undertakings that have taken an enormous amount of leases for iron ore, but have not used them for more than 50 years. Allotment of coal and other major mineral mining blocks is in the hands of the Centre.
He said that Industries in Jharkhand are not given adequate coal linkages and that the land acquisition for them is a hassle under the land acquisition act of 1994. In Jharkhand one third of the total land area is forest. No stretch would be available to a mega investor without a patch of forest in it. But to get forest land, one has to get clearance from the Centre.
Monnet Ispat to set up 600MW plant in Orissa
Monnet Ispat and Energy Ltd have firmed up plans to set up 2x300MW coal based power plant in Orissa at a total investment of Rs 2,400 crore. The plant will source coal from the Utkal B2 captive coal block in the Talcher coalfields that was recently awarded to the company.
It plans to start work on the plant by July this year and expects the first 300 MW unit to be commissioned by 2008, at an investment of Rs 1,200 crore. The company has got possession of 350 acres of land and is scouting for an additional 100 acres.
MSPL eying iron ore mines in Brazil and Australia
It is reported that MSPL Limited of the Baldota Group is looking at acquisition of iron ore mines in Brazil and Australia besides expanding into other markets such as Korea and Taiwan. At present, China is the principal market for MSPL.
Besides acquisition, the Baldota group is planning, under RS Industries, to put up a steel plant of 1.2 million tonne capacity and a pellet plant of 1.1 million tonne capacity in Koppal in Karnataka during the year, with an investment of Rs. 2,200 crore.
Elecon Engineerings 2005-06 turnover up by 60%
Elecon Engineering Company has posted an increase of 60% to Rs 445 crore in its turnover for 2005-06 as compared with Rs 278 crore in 2004-05.
The material handling equipment division has achieved 3 fold increase in turnover at Rs 209 crore during 2005-05 as compared with Rs 76 crore in 2004-05. The gear division posted 17% increase in turnover at around Rs 236 crore as compared with Rs 202 crore last year.
Elecon supplies material handling equipment to core industrial sectors such as steel, fertilizer, cement, coal, mining, power generation and port mechanization.
Arcelor and Severstal inaugurate Severgal
Arcelor and Severstal have inaugurated their joint galvanizing line, Severgal, located at Cherepovets, 400 kilometers north of Moscow, during a ceremony held on 13 April 2006. This JV produces high end coated steel for the dynamic Russian automotive market. Severstal Group holds a 75% stake and Arcelor a 25% stake in Severgal, which, after ramp up, will have an annual production capacity of more than 400,000 tons of galvanized steel.
Severgal, which is located next to Severstal's facilities, will produce ExtragalTM, an Arcelor proprietary technology. It will employ 300 staff. It represents an investment of $210 million. Eventually, Severgal will also produce Galvalia iron and zinc coating. In the future, Severgal plans to become one of the key suppliers of hot dip galvanized sheet to the automotive industry present in the Russian Federation.
Mr Aleksey Mordashov Head of the Severstal Group holding expressed his satisfaction at the cooperation between Severstal and Arcelor, pointing out that Severgal received zinc coating technologies that are unique for the Russian market, as well as an access to the European steel products distribution network due to alliance with Arcelor. He added I consider that the most valuable Arcelor contribution to our joint project is experience, knowledge and responsibility, as well as highest management and production standards that were shown to us by our European colleagues".
Mr Christophe Cornier deputy Senior Executive VP of Arcelor responsible for the Flat Products activities in Europe and Automotive World wide praised the Arcelor-Severstal partnership saying "By entering this venture to jointly produce state of the art galvanized steel, within a highly competitive configuration and on a very promising market, the two outstanding steelmakers have created a win situation. Severgal is one of the lines designed to produce steel for the outside body panels of cars built around the world, as Arcelor does in Brazil, Canada, China or Turkey, thus strengthening our worldwide automotive leadership".
Rio Tinto plans $3 billion investments in 2006 & 2007
Rio Tinto Limited announced plans to spend in excess of $3 billion on brownfield and greenfield projects in 2006 and 2007. The group reported that in iron ore alone, they have embarked on the largest development project in Rio Tinto's existence with nearly $3 billion committed to mine, rail and port expansion in Western Australia to meet strong demand.
At their annual general Rio Tintos CEO Mr Leigh Clifford said that the company expects the strong demand to come principally from China, which will continue to support metal prices above the long term trend for some time yet. It is worth noting the increasing gap between demand and supply of key mineral resources in China. To illustrate, China consumes 33% of all steel, but produces only 17% of the world's iron ore Mr Clifford said.
In other developments the group advised that, following their agreement with Hancock Prospecting in the middle of 2005, it expects to proceed with the 22 million tonne Hope Downs project after they receive all necessary approvals from the Western Australian Government.
Mr Dolle convinced that he can ward off Mittal Steel\'s bid
Arcelor is convinced that it can fight off a hostile takeover bid from Mittal Steel Mr Guy Dolle said in an interview with Boersen Zeitung. We have spoken with our stockholders, who represent more than 80% of the company's share capital he told the paper. Mr Dolle continued Compare the financial statements of the two companies. The 2005 results, as well as the relative development of our shares, show that our vision for the future and the implementation of our strategy is superior to that of Mittal Steel.
Mr Dolle said that Arcelor also has the upper hand in the quality and range of its products, it is more thorough in its R&D investments, and is significantly less dependant on the cyclical steel market. He therefore considers Arcelor prospects to be better without Mittal and said Arcelor can play a decisive role in the consolidation of the steel industry.
Arcelor still rules out direct negotiations with Mittal CEO Lakshmi Mittal Mr Dolle added.
Mr Dolle also addressed Arcelor's plans for a 5 billion euro payout from its cash flow, in the event of a failed Mittal Steel bid. The resources for the payout will not only come from free cash flow but also from the money budgeted for the un realized acquisitions in Turkey and Ukraine. In addition, positive business developments in Brazil and at the recently acquired Dofasco will strengthen cash flow, he said.
South Korean domestic mills inventories fall due to high demand
Korean Iron & Steel Association said that the steel plate inventories of South Korean steel makers dropped in March due to growing seasonal demands. The industry is nearing a high demand season amid rising prices of steel imports, retailers' hoarding of stock and growing speculative demand,'' said KISA spokesman Mr Oh Keum-seok n. Inventory levels are expected to keep falling.'' He added.
Domestic companys steel plate inventories came to 902,000 tons at the end of March, down by 127,000 tons from the previous month. The inventory index for steel plates fell to 151.2 last month down by 21.3 points from February after rising for the second straight month. The index base month is January 2004, when it was set at 100. The index peaked in September last year at 190.8.
Inventories of hot rolled steel decreased by 66,000 tons on a monthly basis to 218,000 tons in March due to reduced output from POSCO and rising speculative demand.
Inventories of zinc coated products fell by 30,000 tons to 95,000 tons due to growing demand for electronics products and seasonal demands.
Inventories of cold-rolled steel were reduced by 12,000 tons to 202,000 tons due to decreased supplies, it said.
Mittal Steel Krivy Rih to go for flat products
It is reported by Reuters that Mittal Steel Krivy Rih, Ukraines largest producer of long products, will set up facilities for production of flat products as part of its $1.2 billion investment program.
Mr Narendra Chaudhary GD of Mittal Steel Krivy Rih is reported to have said in an interview that "We shall diversify the product portfolio and we will direct the additional volume towards flat products. Hot rolled coil will be stage one. Then our market study will reveal when and to what extent we should go further downstream."
Arcelor chairman says Mittal Steel should give only cash offer
It is reported that Mr Joseph Kinsch the chairman of the board of Arcelor in an interview with Luxemburger Wort said that Mittal Steel should offer all cash to shareholders because of the very small free float of the family controlled bidder. "Nobody knows exactly what the Mittal shares are worth because of the small float. That is exactly why in such a case there should be also be an all cash offer. The shareholder has, however, not that choice," Mr Kinsch said.
Mr Joseph Kinsch reiterated the fundamental differences between Arcelor and Mittal Steel, saying that Arcelor wanted to drive consolidation in the steel industry by focused expansion in key sectors while Mittal Steel just adds up tonnes. Mr Kinsch also said that at Arcelor, the board had the interest of its shareholders in mind. "Mittal Steel is controlled by Mr LN Mittal. Decisions in Arcelor are democratic, whereas Mr LN Mittal can decide according to his mood. As the owner of his business, his principal interest is his own" Mr Kinsch said.
Steel Technologies to buy auto blank maker Kasle Corp
Steel Technologies Inc has agreed to buy Kasle Corp Inc of Dearborn for about $49 million. The Kasle purchase will be financed through Steel Technologies' existing credit facility. Last year, the company raised its unsecured credit line to $200 million from $135 million. The purchase is expected to be completed by May 4.
Steel Technologies president and COO Mr Mark Carroll said that the acquisition presents an entry into exposed steel blanking, which deals with making outer parts for vehicles, such as hoods, door and fenders. The company currently has unexposed blanking operations in Kentucky, Indiana and Mexico. Unexposed blanking involves making component parts such as steel frames for vehicles. Mr Carroll said that although the automotive industry is struggling, it remains a very strong sector in the steel industry and there is still tremendous opportunity for us to grow in that area, but we also continue to expand in other segments such as appliances and HVAC. One positive aspect of buying Kasle, Mr Carroll said, is that it processes steel primarily on a toll basis, which means the company gets a value added fee without taking ownership of the steel. Mr Carroll said this eliminates some of the risk associated with volatility in the steel industry and therefore produces a more consistent revenue stream.
Privately held Kasle supplies steel blanks to the automotive industry. It ships more than 1.5 million tons annually. Kasle Steel's operations include Kasle Steel Auto Blankers Inc in Flint Mich and Kasle Steel of Canada Ltd. in Ontario Canada. It also has a 50% interest in RSDC of Michigan LLC in Holt Mich, Kasle Metal Processing LLC in Jeffersonville Ind and a 49% interest in Delaco Kasle Processing in Woodhaven Mich.
Louisville based Steel Technologies processes flat rolled steel for automotive, appliance, agriculture, railcar, construction and other industries. The company has 20 facilities throughout the United States and Mexico.
Evrazs steel production increases in Q1
Evraz Group SA, one of the leading vertically integrated steel production and mining businesses in Russia, said its steel production rose in the first quarter but that output from its mining division declined.
In the steel division, pig iron production increased by 1.3% YOY in Q1 to 3.07 million tonnes, crude steel output rose by 8.5% to 3.84 million tonnes, while production of rolled products jumped 11.6% to 3.40 million tonnes.
However in the mining division, iron ore output fell. Concentrate production dropped by 20% to 499,000 tonnes, sinter output fell by 11.4% to 2.04 million tonnes and pellets production dipped by 0.2% to 1.47 million tonnes. Production of coking coal from the Raspadskaya mine, in which it holds a 47.8%, also fell by 19.8% to 1.59 million tonnes.
Voestalpine buys Arkada Profil in Russia
Austrian steelmaker Voestalpine has bought an 80% stake in Russian maker of light steel sections Arkada Profil based in Yartsevo, near Smolensk, from its founders. A spokeswoman declined to say how much Voestalpine paid. Voestapline has a right to buy the remaining 20% in the company within five years.
Arkada had 30 million euros ($36 million) in revenues last year, and employs 300 people, Voestalpine said.
Macsteel Service Centers expands to Tucson
Macsteel Service Centers USA Inc., owned by the global steel company Macsteel Holdings of South Africa, announced plans for the construction of a new $10 million metals manufacturing and distribution facility in Tucson, Arizona. The new metals service center will be located in the Century Park Research Center in Tucson. Mr Alan Levin of Levin Family Limited Partnership will be the general contractor. Macsteel Service Centers USA will commence a groundbreaking for the new facility on April 20, 2006. The facility is scheduled to open in late 2006.
The state of the art facility will process and distribute a full array of steel and non ferrous products to customers in the Southwest US and Mexico. The operations will include a significant capital investment in the most technologically advanced metals processing equipment.
Mr Michael Hoffman Macsteel Service Centers USA President and CEO, stated, "We are seeing a steady growth in our business in the Western US and Tucson is a strategic hub for that business in the Southwest US and Mexico and a perfect fit with our current locations."
Macsteel Service Centers USA is one of the leading companies in the North American metals service center industry. The company has a network of 32 locations, which includes the former Edgcomb Metals, Regal Steel, Baldwin Steel, Ferro Union, Hokin Katz and Alpha Steel, all of which now operate as Macsteel Service Centers USA. Macsteel Service Centers USA processes and distributes carbon, stainless, aluminum and specialty metals to customers throughout North America, Hawaii and Puerto Rico. Products include a full range of flat rolled, plate, tubing, pipe, bar and structural. The company also supplies a full range of steel building products, coated and prepainted metals.
Air Liquide to build ASU at Isdemir in Iskenderun
France based Air Liquide has signed a contract with Isdemir, a subsidiary of Erdemir, to build an Air Separation Unit at Iskenderun. This new unit will begin production at the end of 2007 and will produce 1,000 tonnes of oxygen per day, as well as nitrogen and argon, thus enabling Isdemir to further develop its steel production.
Mr Franis Darchis, member of the Executive Committee of Air Liquide said These recent successes for our Engineering teams enable us to continue our expansion into new territories. The responsiveness of our teams throughout the world and the excellence of our technological solutions are the keys to this success: innovation remains an essential factor in our growth dynamic.
Present in more than 70 countries, Air Liquide is the world leader in industrial and medical gases and related services. The Group offers innovative solutions based on constantly enhanced technologies. Air Liquide sales in 2005 totaled 10.435 billion euros, with sales outside France accounting for almost 80%. The Engineering division recorded strong business activity with a 27% increase in turnover.
AK Steel increases surcharges for carbon steel for May shipments
AK Steel Holding Corp. on Thursday added a $190 per ton surcharge for flat rolled carbon steel to invoices for products shipping in May. AK Steel also said a $215 per ton surcharge will be added to invoices for electrical steel products shipped next month.
AK Steel said that the surcharges are based on reported prices for raw materials and energy used to manufacture the products. March 2006 purchase cost determines the May surcharges.
CSN to discuss Metalrgica Prada acquisition on Apr 28
Brazilian CSN informed the country's securities regulators CVM that it will discuss during an April 28 shareholders meeting plans to acquire local steel can producer Metalrgica Prada. CSN would capitalize 175 million reais ($82 million) of credit that Prada owes it and in addition the steelmaker would buy all of the Prada's shares from its controlling group for a symbolic sum of 1 real CSN added.
CSN has done business with Prada as CSN is the country's only producer of tin and chromed foils used in the steel can production process.
Mr Pedro Galdi with ABN Amro Real brokerage told that the deal would be made so the steelmaker could recover the money Prada owes it and that CSN could sell the can producer in the future. "This acquisition does not add much to CSN" he said. "It is not a strategic operation and does not have great impact, as the company would acquire a small business."
Prada was founded in 1936 and produces more than 1 billion steel cans per year. US investment fund Kiskidee holds 97.4% of Metalrgica Prada's shares. At the end of February Prada's net equity was in the red by 68 million reais CSN reported.
PTC Alliance buys Pennsylvania Cold Drawn tube mill in West Mayfield
PTC Alliance has purchased Pennsylvania Cold Drawn in West Mayfield. The acquisition also gives PTC Alliance finishing capabilities. Terms of the acquisition were not disclosed.
Pennsylvania Cold Drawn opened in 2002 in the former Babcock & Wilcox Co cold drawn mill on West Fourth Avenue in West Mayfield after Maverick Tube Corp closed the mill in just three years later after buying it in 1998, blaming lack of demand. Pennsylvania Cold Drawn produces large diameter drawn over mandrel and drawn seamless tube. Drawn-over mandrel is made by pulling steel tube through a die that shapes it into its final form.
Formed from a merger of Pittsburgh Tube and Alliance Midwest Tubular Products, PTC Alliance is an employee owned company that operates 11 US factories, including the former Pittsburgh Tube and two in Europe.
Danieli to supply wire rod finishing blocks to Beitai Beilong
Danieli Morgdshammar will supply two DWB high speed finishing blocks and other key equipment for the new high capacity two strand wire rod mill which is scheduled to come on stream within this year at Beitai Beilong Iron & Steel plant in the Bengxi Province. Product mix will include low, medium and high carbon and HSLA structural steels.
The 10 pass heavy duty wire rod blocks and the associated loop laying heads and auxiliaries are designed for finishing rolling of 5.5mm to 16mm dia wire rod in coils weighing 2,000 kg, at speeds of up to 105 meters per second and at output rates of 90 tonnes per hour per strand.
Brazilain steel can industry to grow by 5% in 2006
BNamericas has reported that Brazilian steel can industry is on track to expand sales volume by roughly 5% in 2006 as compared to 2005 partially due to expectations of decreased interest rates citing Mr Antonio Carlos Teixeira superintendent director of local can producer Brasilata. In 2005 the steel consumption by can industry totaled 680,000 tonnes as per Brazil's steel packaging association Abea.
"Brazil's steel can sector is fragmented and includes roughly 50 manufacturers, with many small regional companies" Mr Teixeira said when asked about industry consolidation. On the other hand, steel can producers deal with consolidated suppliers, as integrated steelmaker CSN is the country's only producer of the steel sheets used to manufacture cans.
Brasilata last year processed 42,000 tonnes of steel sheets and expects to expand that to 45,000 tonnes in 2006. The company reported revenues of 297 million reais ($139 million) in 2005 compared to 279 million reais in 2004. Brasilata has operating units in the states of Rio Grande do Sul, S Paulo and Goi.
Cazaly shares surge in anticipation of decision in Rio Tinto dispute
Shares in iron ore hopeful Cazaly Resources have jumped by 12.06% amid speculation that a decision on its dispute with Rio Tinto over a tenement in Western Australia will be handed down soon. WA resources minister Mr John Bowler is expected to make a decision soon on the ownership of the contested Shovelanna deposit in WA's Pilbara.
Cazaly pegged the tenement last September, four days after Rio Tinto failed to renew its exploration license for Shovelanna. If Cazaly is successful, it will immediately kick off a $6 million exploration program, sponsored by joint venture partner Echelon Resources. BHP Billiton has agreed to purchase the ore from the project, with first production expected within two to three years.
Kobe Steel estimates 23% increase in profits by 2008-09
Japan's Kobe Steel Ltd said that it expects a recurring profit of over 180 billion yen ($1.5 billion) in the year to March 2009 up by 23% from an estimated profit of 146 billion yen in 2005-06. The 2005-06 estimates do not include an inventory related gain of 24 billion yen.
Kobe Steel, Japan's 4th biggest steel maker, also said it aims for sales of 1.9 trillion yen in 2008-09 up by 14% from an estimated 1.66 trillion yen in the year ended March.
Smorgon Steel ties up with Japanese MKK for LSB marketing
Mr Graham Smorgon Chairman, Mr Ray Horsburgh, MD and CEO and Mr Mark Vassella CEO of Distribution of Smorgon Steel have signed an agreement with Maruichi Kokan during their visit to Japan for marketing of LSB. The agreement will give MKK exclusive marketing rights for the LSB in the Japanese market which, based on extensive market research undertaken by Smorgon Steel, is between 4 and 5 times larger than the Australian market.
Applications for approval of the LSB under the Japanese building code have been lodged and a manufacturing facility will be established in Japan once those approvals have been obtained.
MKK is a listed company and a leading pipe and tube maker with 5 mills in Japan, as well as production facilities in the USA, Indonesia and China. Among the products they manufacture are twenty inch diameter tube, zincalume and a range of pipe and tube products.
MKK and Smorgon Steel have an existing technology exchange agreement and this new agreement will reinforce the strong connection that has developed between the two companies, said Mr Graham Smorgon.
Masteel expects 25% growth in turnover in 2006
Malaysia Steel Works (KL) Bhd expects turnover to grow 25% to RM370 million in 2006 on rising demand and firmer steel prices as per Mr Tai Hean Leng MD & CEO. Barring unforeseen circumstances, we have targeted an average earnings growth of 10% each year going forward Mr Tai told media.
Mr Tai said the Malaysian Iron and Steel Industry Federation had estimated that demand for steel would grow 8% this year, 12% in 2007 and 15% in 2008. And global steel prices have risen 20% since January. Prices were on the upswing owing to the recovery in the local construction sector and the general increase in demand for steel globally said Mr Tai.
The domestic construction sector is likely to grow an average 3.5% annually over the next five years. Mr Tai noted that the Government had allocated RM46.8bil for infrastructure development and RM18.4bil for housing development under the recently announced Ninth Malaysia Plan. He said the company would benefit most from construction and housing projects in the central region, particularly in the Klang Valley, Negri Sembilan and Malacca, because of their proximity.
Masteel is the smallest of five integrated steel mills in the country with a 12% share of the bar steel market. Masteel made net profit of RM23.3 million in 2005 as against RM35.9 million in 2004. Masteel now exports to Australia, Singapore, the Philippines, Vietnam, Thailand and Bangladesh and planned to penetrate Indonesia this year. Mr Tai said that exports fetched about 10% to 15% more than domestic steel prices and Masteel exported about 25% of its output in 2005.
Malaysia's Ramunia teams up with S Korea's Sam Kang
Ramunia Holding Berhad has signed a MoU with South Korea's Sam Kang Industries Co Limited for a JV to provide tubular rolling services. The MOU will enable the partners to venture into the steel rolling industry to cater for regional market demand from companies in the oil and gas industry. The MOU will be in force for a period of one year commencing from 7 April 2006, the date of the MOU.
The two companies plan to set up and manage a tubular rolling facility in Teluk Ramunia in the southern Malaysian state of Johore to cater for the South East Asian market for steel tubular.
Senhua Group to build coal mining facilities in Xinjiang
Chinas biggest coal producer, state owned Shenhua Group plans to invest 37.5 billion yuan ($4.7 billion) by the year 2011 to build coal mining facilities in the Northwestern Xinjiang Uyghur Autonomous Region. The Xinjiang subsidiary of the Shenhua Group will build new mines with an annual capacity of 16 million tons.
It will also develop a 3.2 million ton per annum coal liquefaction project, auxiliary generation facilities, as well as railways to transport coal from the region, according to a statement from the National Development and Reform Commission. "These projects are scheduled to come on stream by the year 2011," the NDRC statement said.
Steel production up by 21.8% in 2005 in Serbia
Production of non ferrous materials increased in Serbia by 21.8% in 2005, which was mainly contributed by company US Steel Serbia, which has succeeded in achieving, as the largest producer of iron and steel and the greatest exporter, the greatest export growth of 25.8% during 2005 as per Serbian Chamber of Commerce officials.
Production of iron and steel is the only metallurgy sector in Serbia which has achieved a record surplus in foreign trade exchange, with total export revenues of more than $1.17 billion in 2005.
Territory to raise $12.6 million to fund NT iron ore development
Emerging Western Australian iron ore producer Territory Iron Ltd is to raise $12.6 million before issue costs to fund the development of its Francis Creek Iron Ore Mine in the Northern Territory. The placement of 35 million shares at 36 cents each will be placed, subject to shareholder approval, to institutional and clients of Euroz Securities Ltd.
Earlier this month, Territory signed an agreement with a Chinese steel mill for most of the Frances Creek 2007 iron ore production. The undisclosed Chinese customer has agreed to purchase between 600,000 and 800,000 tonnes of iron ore.
The Frances Creek iron ore mine is located 190 kilometers south of Darwin and is expected to commence production in early 2007 building up to an annual output of approximately 1.5 million tonnes.
NAGC receives Gold Industrial Wastewater Pretreatment Compliance award
North American Galvanizing & Coatings Inc announced that its Kansas City facility was selected to receive the Gold Industrial Wastewater Pretreatment Compliance Award from the Missouri Water Environmental Association during the MWEA's 77th annual meeting held March 26th - 29th.
Complete compliance is a requirement for all Gold Award Winners. The parameters for compliance include all wastewater discharge and reporting requirements, a wastewater treatment facility or pollution prevention program and a history of good relations with the nominating city or sewer district.
The Missouri Water Environmental Association is an organization dedicated to the advancement of practical knowledge in the technology, design, construction, safe operation and management of water quality control systems and facilities.
North American Galvanizing is a leading provider of hot dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coating business through a network of plants located in Canton in Ohio; Denver, Hurst, Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area.
Novokuznetsk completes gas chimney
Novokuznetsk Metal Integrated Works, a member of Evraz Group, has completed the assembling of a smoke exhauster, the system of valves and a gas escape path on the second unit of steel complex treatment currently under construction.
During a week after the completion of the assembly of a 170 meter gas escape, the unit will be connected to the gas purification unit constructed last year. In this way, the discharges of the unit, which will be put into operation in May 2006, will be caught by modern gas purification equipment from the very beginning.
