April, 02 2006
TATA Steel ranked world's best steel maker
TATA Steel has been ranked as the best steel making company in the world by World Steel Dynamics Inc in the US. TATA Steel has been ranked first with a weighted average score of 8.51, POSCO of South Korea ranked second with score of 8.41 a TATA Steel statement said. TATA Steel has been ranked best steel makers in the world three times so far.
WSD report of February 2006 covers the study of 22 top steel makers across the globe including POSCO, Arcelor, Nippon Steel, Bao Steel and Thyssen Krupp. The final announcement was made after the assessment of 20 different parameters.
TATA Steel, Bhushan Steel & Strips and JSW Steel hikes price
TATA Steel has announced increase of its HR coil prices by Rs 2000 to 2500 per tonne. The price rise was due to market factors, a company spokesman had said.
Bhushan Steel & Strips Limited has also announce price increase of its galvanized products by Rs 3000 per tonne, citing increase in prices of Zinc and HR Coils with immediate effect, as per a company release.
JSW Steel Ltd announced a hike in the price of its HR coils by Rs 2,000 to Rs 2,500 per tonne and by Rs 3,500 per tonne for galvanized steel. The price hike in the HR segment is influenced by the trend in the international market and that Zinc is on an upward spiral on LME said Mr MVS Seshagiri Rao Director Finance of JSW Steel said and hoped that the markets would be able to absorb the hike.
SAIL produces 12 million tonnes of steel in 2005-06
Breaking its previous records, Steel Authority of India Limited has achieved an all time high saleable steel production of over 12 million tonnes during 2005-06 besides registering a sale of 11.2 million tonnes. Exports of steel by SAIL at 0.5 million tonnes registered a growth of 32%.
"In tune with its corporate plan 2012, SAIL operated all blast furnaces in 2005-06 at record breaking 107% average capacity utilization, enabling best ever production of hot metal at 14.6 million tonnes an 11% increase YOY and crude steel at 13.5 million tonnes an increase of 8% YOY leading to 6% increase in saleable steel output," according to a SAIL release.
In addition the company attained new heights in efficiency parameters during the year by adopting new operational initiatives like alternate fuel injection etc. For the first time sail developed and supplied special steel as an import substitute for building naval warships. Rails of 230 meter length were also produced for the first time for the Indian Railways.
Chhattisgarh government warns industrial units about Maoist attacks
It is reported that Chhattisgarh government has asked five leading industrial houses of the central government to guard against Maoist attacks and be in constant touch with the administration after a series of Maoist attacks on the iron ore mining facilities of National Mineral Development Corporation in violence Dantewada district.
"I have written letters to the central government's five industrial houses having units in the state asking them to be extra careful in the wake of rising Maoist violence and be in regular touch with police as well as district administrations to deal with any Maoist attack," Mr BKS Ray, additional chief secretary home told IANS.
A senior police officer said the directives were issued on the basis of intelligence inputs that warned of more attacks on state run business establishments in the coming months.
The public sector companies include NMDC, SAILs Bhilai steel plant, National Thermal Power Corporation at Korba, BALCO Korba and Coal India Limited's subsidiary South Eastern Coalfield Limited at Bilaspur.
Jharkhand CM assures Mittal Steel for all help
It is reported that Jharkhand Chief Minister Mr Arjun Munda met Dr Sanat Mishra CEP of Mittal Steel Jharkhand and had discussions on various issues regarding proposed Greenfield plant in the state and assured that Jharkhand government would meet all requirements of Mittal Steel including water, iron ore, coal and land.
Mr Munda is reported to have suggested Santhal Paragana as ideal location for the plant as it was close to Ganges River and nearer to Haldia port.
CM has also directed the state development commissioner to constitute a core committee to monitor the progress of the works.
TATA Steel hot metal production up by 19% in 2005-06 YOY
TATA Steel has announced that the company witnessed record production in hot metal, crude steel and saleable steel during 2005-06. Hot metal production was at 5.177 million tonnes an increase of 19% over 2004-05, production of crude steel and saleable steel was 4.72 and 4.52 million tonne, representing a rise of 15% and 10% respectively over 2004-05.
The raw materials division of the steel major also performed better. The iron ore production by the mines division was at 10.3 million tonne.
Tata Steel sold 680,000 tonne of flat products to auto industry. The production of cold rolling mill achieved over 100% capacity to 1.49 million tonne.
The tube division surpassed the Rs 1000 crore for the first time during the year. The bearing division produced 28 million bearings or 12% higher compared to that of last financial year.
Mittal Steel appoints Mr S Sengupta as GM of Jharkhand plant
It is reported that Mittal Steel has appointed Mr Sanjib Sengupta as its GM of Jharkhand plant. Sengupta will look after Mittal Steels operations in Jharkhand.
Mr Sengupta was Hindalcos senior VP administration and corporate affairs before joining Mittal Steel.
Illegal mining in Bellary to be investigated soon
Minister for Environment and Forests Mr C Chennigappa has drawn attention of Karnataka Chief Minister Mr HD Kumaraswamy to the illegal mining of iron ore in Bellary district stating that the illegal mining has resulted in the destruction of hundreds of hectares of forest land that has been encroach upon by miners. He expressed shock over the brazen manner in which some officers of the Forest, Police, Mines and Geology, Revenue and Environment departments are conniving with unscrupulous mine owners who have been defrauding the exchequer for decades.
Mr Chennigappa along with two principal chief conservators of forests and other forest officials inspected the mines on February 22 and 23 and later informed CM that the mining companies have not only flouted all the rules but they have even forged the signatures of officials to carry out their illegal mining and transportation operations.
Chief Minister reportedly stayed Mr. Chennigappa's order stopping mining in the district till a survey of the area is completed but assured the assembly that there is no question of protecting any erring mine owner and he would order a result oriented inquiry into the points raised by the Minister as well as the Opposition.
Bharati Shipyard bags contract from French Bourbon Supply
Bharati Shipyard Ltd has informed BSE that the Company has successfully bagged a contract from M Bourbon Supply Investissements of France for export of 5 120 Tons Bollard Pull Anchor Handling Tug cum Supply Vessels.
Total value of these five vessels is Rs 4000 million approx.
More calls for steel regulator in SA
It is reported that the idea of a steel regulator was put up again as a remedy to Mittal Steel SA's pricing practices, after more questions arose around the appropriateness of intervention by the Competition Tribunal as some commentators have questioned whether there is scope under SA's competition law for the tribunal to find a mechanism to address concerns over alleged excessive pricing by the steel maker.
Tribunal chairman Mr Dave Lewis said it appeared from evidence submitted that steel regulators rather than competition authorities, regulated prices in other markets.
Mr Simon Roberts economics professor at University of the Witwaters, who appeared on behalf of the complainants as a witness, said that there was no need to set up a complex system of state regulation and suggested it was appropriate for competition authorities to intervene. Mr Roberts said that a remedy in the form of a single ex-works price was appropriate and described Mittal Steel SA as a super-dominant monopoly with more than 80% of the flat steel market.
Uncertainty around the role of the tribunal does not bode well for a favorable outcome for complainants Harmony and DRDGold.
Market should set steel price UBS
Investment research firm UBS said that market forces rather than government intervention could remedy steel price concerns in SA as happened in case of BluScope Steel in Australia. Both BlueScope and Mittal Steel SA have market shares in excess of 70% in their respective markets and their prices for benchmark hot rolled coil as estimated by UBS have moved in tandem over the past two years or so. Lower-priced Asian imports eventually resulted in domestic customers switching to imports, leaving BlueScope with little choice but to lower its domestic prices earlier this year, says UBS.
"In the end it was market forces that forced BlueScope's hand and not direct government intervention. This is how we believe it should be with Mittal SA as well," says UBS. It expected Mittal Steel SA to respond with a similar reduction.
However, some commentators also say that SA is geographically too far from other main steel producing markets for imports to compete effectively with Mittal Steel SA.
There are three attempts under way aimed at forcing Mittal Steel SA to lower its steel prices. The trade and industry department initiated talks with the steel maker late in 2004 to develop a more favorable pricing system for local buyers. The talks have not been finalized. In a separate process, the department this week announced measures to narrow the differential between domestic and export prices of certain intermediary outputs. In the third attempt, Harmony Gold and DRDGOLD are challenging Mittal Steel SA's pricing before the Competition Tribunal.
China CITIC buys Australia iron ore
Beijing based conglomerate CITIC Pacific, which is headed by mainland China's richest businessman Mr Larry Yung will buy two Australian iron ore mining firms for $US415 million ($A582 million) and devote $US2.5 billion ($A3.5 billion) more in capital spending on its first overseas project. Mr Larry Yung said CITIC has finalized an agreement with Australia's Mineralogy Pty Ltd to buy Sino Iron Pty Ltd and Balmoral Iron Pty Ltd, both of which control resources in Pilbara region in Western Australia. Both firms mines together hold an estimated 2 billion tonnes of reserves. CITIC MD Mr Henry Fan told that the first mine should start up in 2009.
Most of the ore would eventually be shipped to China. Mr Fan said Beijing would arrange for a Chinese iron and steel manufacturer to take 50% of the entire project. Mr Fan did not name the company, saying that decision lay with China's central government. "China is such a rapidly developing country, and natural resources are needed" Mr Fan told reporters. "It would like to see companies go outward and secure long-term resources for the country" he said. Chinese financial institutions would arrange financing for the overall deal, Mr Fan said without elaborating.
CITIC Pacific would manage the projects. Of the projected capital expenditure, $1.37 billion ($A1.92 billion) would be spent on Sino-Iron, which would have an estimated annual capacity for 12 million tonnes per year of product. Balmoral would get $1.1 billion ($A1.54 billion) in capital spending.
CITIC Pacific expects to take about 8 million tonnes of ore every year from the Australian project for its special steel division, which has enjoyed a rapid rise in capacity in past years and is fast becoming a major contributor to the bottom line.
China Coal to produce over 100 million tons in next year
China Coal Group Corp, China's second largest coal producer, aims to produce over 100 million tons of coal next year, the Economic Information Daily reported.
The corporation's 11th Five Year 2006-2010 development plan aims to increase the group's coal production capacity to 150 million tons by 2010 said an official with the group at a meeting attended by NDRC, State owned Assets Supervision and Administration Commission and the Ministry of Land and Resources. The official said the group's sales revenue and profits will double that of 2005.
Five missing in coal mine gas explosion in SW China
5 people were trapped underground as a gas explosion jolted a coal mine in Southwest China's Chongqing Municipality Saturday. The accident occurred at about 10AM on Saturday when seven miners were working underground in Daxing Colliery in Fengjie County according to sources with the county's government.
Two managed to escape after the gas outburst, and the fate of the other five, including the owner of the mine and his son, remains unknown.
The owner has illegally resumed the operation of the mine, which had been closed by the local government, for several days.
Rescue operation is underway.
SMS Demag opens an equipment servicing facility in China
SMS Demag Metallurgical Equipment Shanghai opened a new workshop in Shanghai Chemical Industrial Park in Fengxian China on February 15th to serve as a service and repair workshop for SMS Demag products on the Chinese market. The new workshop is highly advantageous for the customers in that it is directly in their neighborhood, offers a uniform worldwide standard of quality and allows payments to be transacted in Chinese national currency.
SDME is carrying out repairs and assembly work using modern equipment. Such equipment includes CNC machine tools imported from Germany, small machines of local origin, submerged arc welding machines and a heat treatment furnace. SDME has started functioning with several jobs including coiler mandrels and AGC hydraulic cylinders repair. Machining is also to be performed in the near future on bending and CVC blocks, drive spindles and strand guide rollers.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology.
Severstal appraised to worth $6.2 billion.
Russian Rosexpertiza appraised Severstal and mining assets of the Cyprus based Frontdeal Ltd which is assumed to be consolidated by Severstal worth $6.2 billion with crude assets amounting to $4.1 billion.
At the special meeting of holders Mar. 27 the holders approved the decision to issue 397.518 million stocks to consolidated mining assets. The issue will be placed in favor of Frontdeal Ltd.
Siemens to upgrade control systems in Hyundais Danjin plant
The Siemens Industrial Solutions and Services Group has received an order from the Korean company Hyundai Steel to supply parts of the electrical and automation systems for a casting & rolling plant at its Danjin site. Both parties agreed not to disclose the volume of the order. Commissioning is scheduled for October 2006. The project is being processed in close cooperation between the Siemens Competence Center for hot strip coilers in Vienna, the Siemens Regional Company in Korea and Siemens I&S in Erlangen.
As part of the stage by stage modernization of the existing electrical equipment, Siemens is supplying new drive technology and automation systems for the two hot strip coilers, along with new drives for the delivery roller tables. Siemens is also responsible for supervising installation of the equipment, commissioning and customer training.
The Dangjin steelworks complex in Asan Bay, southwest of Seoul, is now operated by Hyundai Steel, which took it over from Hanbo Steel. After a period of several years out of commission, the first plant to recommence operation at the site at the beginning of 2005 was the combined casting & rolling plant, with a nominal capacity of two million tons per year. Siemens provided support at the time with the reactivation of the electrical equipment.
Turkish economy grew at record 7.6% in 2005
The Turkish State Institute of Statistics announced that the Turkish economy reached a growth figure much above the expectations last year. The economy grew 10.2% in the last three months, reaching overall 7.6% during 2005. It also announced that the national per capita incomes exceeding $5,000 creating an all time record. Construction sector boomed in the last quarter and became the locomotive of the growth.
World Bank Turkey Director Mr Andrew Vorkink said that the economic growth in Turkey is five times bigger than in Europe. "The Turkish economy showed its basic power in 2005 even during periods when international uncertainties such as increasing interest rates and oil prices took place. The structure of the growth promises a good future in terms of the high amount of investment to be headed towards Turkey as well."
Ankara Chamber of Industry Chairman Mr Zafer Caglayan said the growth that exceeded the target by 50% can no longer be held down. He emphasized Turkey exceeded the psychological threshold of $5,000 in the national per capita income.
Puda Coal reports record revenue of $51.7 million
Puda Coal Inc announced record operating results for the year ended December 31, 2005. Puda reported revenue of $51.7 million for the year ended December 31, 2005 a 162% increase over 2005. Puda also reported operating income for the year of $9.2 million -- a 65% increase over 2004. Puda incurred a net loss of $3.2 million in the year ended December 31, 2005 compared to net income of $3.7 million in 2004.
The growth in revenue was attributable to increased orders of cleaned coal from both existing and new customers as well as an increase in the per ton sales price of cleaned coal. Puda sold 680,000 MT of cleaned coal in 2005 a 116% increase over 2004. The YOY increase in the number of tons of coal cleaned is consistent with Puda's strategic decision to nearly quintuple its cleaning capacity from 500,000 MT at the end of 2004 to 2.7 million tonnes by early 2006.
Puda Coal, through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently processes 1.5 million tons of coking coal annually, and management believes it is one of the largest coke coal cleaning companies in terms of capacity in Shanxi Province of China. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.
Coal mining accident kills two in Vietnam
Partial collapses of a coal mine in the northern province of Quang Ninh on March 31 killed two miners. Of the 18 workers stranded in mineshafts at the moment of the accident, four were rescued immediately leaving 14 others remaining in the mine.
The Coal and Mineral Group immediately sent rescue forces to the scene to remove debris and operate two air pressure systems installed in mineshafts for round the clock air circulation. Rescuers said they may have to dig another 70 meters deep to reach the victims.
BNSF 2006 Capital Program to Expand Missouri Rail Capacity
BNSF Railway Company, a subsidiary of Burlington Northern Santa Fe Corporation, plans to invest an estimated $13 million from its 2006 capital program on rail capacity enhancement and expansion projects alone in Missouri. The capacity expansion investments are in addition to the significant 2006 capital maintenance investments BNSF will make in Missouri. In 2005 BNSF invested an estimated $96 million for both capital maintenance and capacity expansion in Missouri.
BNSF's 2006 expansion projects in Missouri include $10 million for line expansion on the Thayer North subdivision and $3 million for line expansion on the Thayer South subdivision. The two subdivisions link Springfield to Memphis and the Southeast. In addition, about $550 million of BNSF's 2006 capital program will be used to acquire 310 low emissions locomotives, many of which will operate through Missouri. The 2006 capacity enhancements are part of the 10 percent increase BNSF announced in January to its 2006 capital program to $2.4 billion.
A subsidiary of Burlington Northern Santa Fe Corporation, BNSF Railway Company operates one of the largest railroad networks in North America, with about 32,000-route-miles in 28 states and two Canadian provinces.
International Ferro Metals reports loss in H1
International Ferro Metals has reported a un audited before tax loss of ZAR208 million compared with ZAR16 million YOY for the first half till December 31. The loss is in accordance with budgeted expenditure for this period in which IFM commenced construction of its ferrochrome facility in South Africa.
Construction commenced on Oct. 17, 2005 with an estimated construction period of 18 months. Construction of the ferrochrome facility at Buffelsfontein is within its 5th month and is 28% complete. The project remains on target to begin production in 2007, reaching a production level of 267,400 tonnes per annum by the end of that year.
IFM has two guaranteed off take agreements for sale of its ferrochrome production. JISCO, a Chinese Stainless Steel producer and a major shareholder of IFM has guaranteed to purchase 120,000 tonnes per annum and CoMetals a New York listed metals trading company has guaranteed to purchase 50,000 tonnes per annum.
National Coal Corp reports 2005 financial results
National Coal Corp, a Central Appalachian coal producer, reported that during the year ended December 31st 2005, it generated total revenues of $66 million up over $17 million on sale of 1.216 million tons a 241% increase over 357,000 tons in 2004.
National Coal had an operating loss and a net loss of $2.6 million and $6.8 million respectively, versus $7.0 million and $10.4 million a year ago. These losses reflect an accounting change in estimate wherein National Coal changed the depreciation life of its mining equipment from seven years to approximately three years increasing both the 2005 operating loss and the 2005 net loss by $3.6 million.
NCCs assets include two active mines include three underground mines, two surface mines and one highwall miner in addition to two preparation plants and two unit train loading facilities.
Earle M. Jorgensen stockholders approve merger with Reliance
Earle M. Jorgensen Company announced that its stockholders adopted and approved the agreement and plan of merger with Reliance Steel & Aluminum Co. As per the agreement, Earle M. Jorgensen shareholders would get for each of their shares, $6.50 in cash and between 0.0892 and 0.1207 of a share of Reliance common stock, depending on the average trading price per share of Reliance common stock on the New York Stock Exchange during a 20 trading day period ending with and including the second trading day prior to completion of the merger.
If the merger is completed as expected on April 3, 2006, each outstanding share of Earle M. Jorgensen common stock will be entitled to receive merger consideration consisting of $6.50 in cash and 0.0892 of a share of Reliance common stock.
The company said the issuance of the Reliance common stock pursuant to the merger was registered under the Securities Act of 1933, as amended, pursuant to Reliance's registration statement on Form S-4, as amended, filed with the Securities and Exchange Commission and declared effective on March 1, 2006.
Tarpon Industries announces CFOs resignation
Tarpon Industries Inc announced that Mr John A. Mayfield CFO has tendered his resignation to be effective after the filing of Tarpon's 10 K Report. Mr. Mayfield's decision to leave is strictly due to family circumstances.
"We are disappointed about losing an employee of John's caliber and were not expecting his resignation, however we respect his decision and recognize the importance of family," said Tarpon Chairman and CEO Mr J Peter Farquhar. "John's expertise will be missed. During his tenure John made significant improvements to the financial management and systems of our company. We have engaged Tatum Partners LLC to provide Tarpon with interim financial support and are confident that this will afford a smooth transition. We have commenced our search for a new Chief Financial Officer."
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.
Outokumpu appoints Audit & Compensation committees
The Board of Directors of Outokumpu has at its first meeting appointed two permanent committees consisting of Board members the Audit Committee and the Nomination and Compensation Committee.
Members to the Board Audit Committee elected are Mr Ole Johansson Chairman, Ms Leena Saarinen and Mr Taisto Turunen. Members to the Board Nomination and Compensation Committee elected are Mr Jukka HmChairman, Mr Evert Henkes and Ms Anna Nilsson-Ehle.
