May, 10 2006
Indian iron ore spot prices soften
Prices for imported Indian iron ore have fallen towards $65 a tonne on CFR basis down from $70 in early April, in line with a drop in domestic iron ore prices due to expanding Chinese production. Softening in spot prices has raised hopes among steel mills that they might be able to avert a major rise in 2006 term prices sought by the world's top three miners. A senior official at a Chinese shipping company said "More and more steel mills believe the prices this year will come down."
Steel mills are drawing down inventories accumulated during the first quarter in anticipation that prices would rise from April. Meanwhile, domestic production rose nearly 33% in the first quarter of 2006 compared with the year before. A trader said "In the short term, supply looks huge. In past, every mill had inventories for a month at least. Now suddenly they want to reduce it to one week. They are releasing inventories for more than three weeks." Xinhua news agency said on Monday iron ore stocks in China reached 60 million tonnes, including 40 million at ports.
Spot prices also have been hurt by market talk that CVRD, the world's top iron ore supplier, would offer spot cargo if China turned down its demand for a 24% price rise. The delivered price for a spot cargo of CVRD ore had slipped to $68 a tonne this week, down from an initial offer in late April of $70 or the equivalent of 24% over term prices in the last marketing year.
Traders and industry officials had expected spot prices to stay strong as Chinese steel mills, headed by Baosteel Group, and the miners deadlocked over term prices for the year that began on April 1, 2006.
Reliance Industries awards sub sea contract to Aker Kvaerner
Reliance Industries Limited has awarded Aker Kvaerner an engineering, procurement and construction contract to deliver an 18 well subsea production system for the deepwater Block KG-D6 gas development located offshore the east coast of India. The contract is one of the worlds largest subsea contracts ever awarded. The initial contract value is approximately $ 400 million.
Aker Kvaerner Subsea will supply a complete subsea production system including subsea trees, manifolds, steel tube umbilicals and power cables, controls system and associated connections to tie the subsea production system to an onshore gas terminal. The subsea production system will be installed in water depths from 700 to 1700 meters. Engineering has commenced in Aker Kvaerners offices in Norway, following on from the completion of the front-end engineering and design there in 2005. First deliveries are scheduled for July 2007.
Mr Raymond Carlsen EVP of Aker Kvaerner Subsea said We are extremely proud to be selected to deliver this contract for Reliance, which demonstrates our customers confidence in our ability to deliver a fully integrated subsea solution and positions us for growth in the Indian subsea market. Reliance has an excellent track record of success within their core business areas and also in exploring new opportunities within the energy sector - we look forward to working with them on the first phase of this exciting new development.
Aker Kvaerner Subsea is a leading provider of a complete range of surface and subsea solutions for the oil and gas industry from concept screening and design through manufacturing, fabrication and commissioning.
ISMT places order for import of tube mill
Further to the announcement regarding its expansion project aimed at increasing the tube capacity to 475,000 tonnes per annum, ISMT Ltd has announced that it has commenced implementation of the project and has accordingly placed firm orders for import of the main Mill at a cost of Euro 17.305 million.
ISMT would be shortly opening LCs of Euro 15.575 million and make advance payment of Euro 1.73 million. The Company has been able to compress the delivery of this critical equipment to 12-15 months to ensure commissioning during 2007-08.
PSL to reach 1.5 million tonne capacity by 2007-08
PSL has been consistently increasing its capacity over the last 10 years going from an initial pipe manufacturing capacity of 75,000 MT per annum in 1997 with 1 pipe mill to its current capacity of 1.1 million tonnes per annum with 12 pipe mills. PSL envisages an established global capacity of 1.5 million tonnes per annum by 2007-08.
PSL Ltd is a manufacturer of steel pipes and anti-corrosion coating for pipelines both on internal as well as external surfaces. These are widely used by companies in sectors such as oil and gas, refinery, power, petrochemicals, fertilizers, shipping and infrastructure. The company has an annual sales turnover of Rs 1,440.54 crore.
CCEA approves Amlohri coal mine expansion plans to 10 million
Indias Cabinet Committee on Economic Affairs gave its approval for sanctioning of Amlohri Opencast Expansion Project of Northern Coalfields Limited from 4 million tonnes per year to 10 million tonnes per year for additional capital investment of Rs.1352.04 crores for departmental implementation of both coal production and overburden removal.
CCEA also approved tenders for outsourcing overburden removal for first three years and also outsourcing additional Shovel-Dumper OB removal on long-term basis and for floating tenders for procurement of equipment for departmental operations.
The Amlohri Opencast Project is located in Sidhi district of Madhya Pradesh. Additional coal production will meet the demand of 2nd phase of Rihand State Thermal Power Station of NTPC.
Facor Steel appointment two directors on board
Facor Steels Ltd has informed BSE that Mr ND Saraf and Mr P G Chitale has been appointed as additional director on the Board of the Company in its meeting held on April 28, 2006.
KEC International director resigns
KEC International Ltd has informed BSE that Mr Murli Ramchandran ceased to be a director of the Company with immediate effect.
TopCoal mine cave in leaves two dead in northeast China
Two miners were killed and another missing in a coal mine cave in taking place in Tieling County, northeast China's Liaoning Province. The cave in happened around 9PM on Monday when five miners were working at an underground passage of Gaojia Coal Mine a state owned local coal mine. Two miners escaped the mishap, one unhurt and another injured.
Rescue for the missing miner is still going on. And cause of the accident is under investigation.
Mittal Steel willing to revise offer for Arcelor
Mittal Steel said it's willing to revise its 22.8 billion euro ($28.9 billion) bid for Arcelor SA following the first contact between the company's executives since the offer was announced more than three months ago.
Mr LN Mittal chairman and CEO said We have said from the beginning of this transaction that we would like to enter into a friendly dialogue with Arcelor. With this in mind, we have made various efforts in recent weeks to initiate discussions and have indicated that, in the event of a recommended deal, we would be willing to revise our offer and make significant changes to our corporate governance. This move does not signify any belief that the underlying value of Arcelor has changed, but rather that additional value would be attached to a recommended offer.
He added I am disappointed that at this stage I do not discern a willingness on the part of Arcelor to enter into meaningful discussions to reach a recommended transaction, which would surely be in the best interests of all stakeholders. Mr Mittal said We remain completely resolute in our intention to pursue this transaction to its successful conclusion.
However Mr Mittal said that it won't revise Arcelor offer unless Arcelor backs it.
Arcelor's board has repeatedly rejected Mittal Steel's 18.6 billion euro cash and share bid in its current form, while Mittal Steel has insisted the offer would not be improved.
MEPS forecast 4.1% increase in global crude steel production in 2006
MEPS estimate for world crude steel output this year at 1176 million tonnes an increase of 4.1% over the 2005. BF iron production is predicted to reach 827.5 million tonnes an increase of 5.4% with modest gains for direct reduced iron making.
The majority increase o will take place in China and India, where BF-BOF route is dominant. MEPS estimate that 85% of the increase in global crude steel output will come from the Asian continent with Chinese mills accounting for almost 80% of the total despite the anticipated slowdown in the rate of growth in steelmaking in the China in 2006 as compared to recent years. MEPS expect total Asian steel production to increase by 40 million tonnes in 2006, out of which 36 million tonnes increase would be from BF route.
Steel output in the EU-25 member states is picking up faster than anticipated as the threat from Asian imports has not materialized and is not likely to be significant in the next few quarters. MEPS have, therefore up rated our forecast production this year to 188.5 million tonnes 2 million tonnes up on the prior twelve month period. Blast furnace iron making is also expected to rise as the flat products market improves. It should be noted that approximately half of this years anticipated higher steel manufacturing is likely to come from the new entrants from Eastern Europe. Crude steel production in Europe (excluding EU and former USSR) is predicted to increase by 0.7 million tonnes this year compared to 2005. This equates to a rise of 2.2%. Improved output is likely in Turkey as new capacity is commissioned.
Steel output in the former USSR is forecast to expand by 1.3 million tonnes in 2006 relative to the previous year. Blast furnace iron making is likely to improve by 0.75 million tonnes.
North American crude steel output is expected to increase by almost 2.5 million tonnes or 2% this year in comparison to 2005. Most of the improvement is expected to occur from the integrated producers. Blast furnace iron making is, therefore, predicted to expand quite significantly.
Total steel making in South America is not likely to increase in 2006. The main reason for this situation is a major plant breakdown at CSN.
African steel manufacturing is forecast to hold up in 2006 at a figure close to the outturn in the previous twelve months. The year should start off well but a planned blast furnace outtage in the second half in South Africa should limit any possible improvement.
In case of Middle East an increase of 5%.The majority of the gain is likely to come from steel manufacturers in Iran.
BF relines and increased import volumes are likely to restrict steel manufacturing in Oceania in 2006.
| MEPS - Global Crude Steel Production Estimate ('000 tonnes) | ||
| Region | 2005 | 2006 |
| EU 25 | 186500 | 188600 |
| Other Europe | 32100 | 32900 |
| Former USSR | 112700 | 114000 |
| NAFTA | 126800 | 129300 |
| South America | 45400 | 45200 |
| Africa | 17900 | 17800 |
| Middle East | 15300 | 16000 |
| China | 349300 | 386000 |
| Japan | 112500 | 111000 |
| Other Asia | 122000 | 126800 |
| Oceania | 8600 | 8500 |
| Total (rounded) | 1129200 | 1176000 |
| Source: MEPS - World Steel Outlook | ||
Arcelor wraps up Laiwu Steel deal
Laiwu Steel Corp announced that the Shandong provincial government has cleared Arcelor's plan to purchase 38.41% of the Chinese steelmaker for $258 million. In a statement filed to the Shanghai Stock Exchange, Shandong based Laiwu said the provincial government has granted permission to Laiwu Steel Group to sell 354.24 million state owned shares to Arcelor. The details of the deal are likely to be made public soon. Laiwu said the plan still needs to be reviewed by the China Securities Regulatory Commission.
Arcelor is the world's largest H section steel maker and Laiwu Steel Group is China's largest H section steel maker. Laiwu Steel wants Arcelor's advanced technology for producing H section steel to help build the largest H section steel production base beside the Rizhao port in Shandong Province.
China has a huge potential for high end construction steel products, as many large infrastructure projects are under construction, including the stadiums for the 2008 Beijing Olympic Games, the West East gas transmission project, and the South North water transmission project. However, China's supply of high end construction steel products such as H section steel is far behind the surging demand.
Laiwu Steel Group, based in Shandong, produced 10.336 million tons of crude steel in 2005 up by 57.01% YOY and ranks eighth in China. Laiwu Steel Group currently holds 76.82% of the listed company.
Delong targets 10 millions by expansion & acquisitions
Singapore based Delong Holdings Ltd said that it plans to be one of the top ten steel makers in China in the next five years, producing more than 10 million tonnes a year and to achieve that target, the firm will buy steel makers and iron ore mines in China, and is already in talks with several companies, both state owned and private. Mr Ding Liguo Delong's executive chairman said "To be among the top ten steel producers in China you have to have at least 10 million tonnes of production."
Mr Ding said the steel industry in China was suffering from overcapacity but that with stringent technological and environmental standards introduced by the government last year several smaller mills were likely to sell out to bigger players. He said a technical enhancement program launched by his firm would boost production to 2.4 million tonnes a year by the end of 2006, from 1.4 million tonnes in 2005."But to grow beyond that, acquisition is the only way" he said.
Corus sees steel demand improvement in Europe & North America
Corus Group Plc said that steel demand is improving in Europe and North America and continues to be underpinned by China. Company said that forecast for balance between steel supply and demand remain tight by historical standards and demand remains robust.
Corus raised its third-quarter steel prices on May 2 because of growing European demand and higher raw material costs. Corus will also raise prices for specialty steels such as galvanized steel and coated steel by between 15% and 25%.
Mittal Steel to appoint Monsieur Francois Pinault to board
Mittal Steel announced that the Board of Directors has recommended the appointment of Monsieur Francois Pinault as an Independent Non Executive Director, subject to election by the shareholders. This election will take place at an extraordinary general meeting to be convened following annual general meeting.
Monsieur Francois Pinault, 69, is the founder and former president of the Artemis Group and PPR. The Artemis Group is a 25 billion global investment holding company with wide-ranging interests, including 42% of the listed company PPR. PPR includes retail brands such as FNAC, La Redoute, Le Printemps, Conforama and luxury brands such as Gucci Group, which includes Gucci, Bottega Veneta, Yves Saint Laurent, Boucheron, Balenciaga. Artemis also owns Chateau Latour vineyard in France and Christies auction house. Monsieur Pinault also own insurance and media businesses and holds minority shares in the French group Bouygues. Monsieur Pinault serves on the Board of Directors for Financiere Pinault and Artemis. His board appointment with Mittal Steel marks Mr. Pinaults only board appointment for a company in which he does not have significant business interests.
Mr LN Mittal chairman and CEO said Monsieur Pinault brings a wealth of management skills and experience from the various senior executive positions he has held. Monsieur Pinault is one of Europes most successful entrepreneurs and his guidance and business knowledge will prove an invaluable asset to Mittal Steel.
Tubacex Q1 net climbs by 21.5%
Spanish Tubacex SA announced that its net profit grew by 21.5% to Euro 7.47 million in the first quarter from Euro 6.15 million in Q1 of 2005 driven by a 20.1% rise in sales to Euro 128.85 million from Euro 107.25 million in Q1 pf 2005. EBIT rose by 18.4% to Euro 11.54 million from Euro 9.75 million.
Tubacex said that the first quarter figures reflect strong demand for seamless stainless steel tubes worldwide, driven by ongoing investment in the energy sector.
Salzgitter to hike full year guidance
Mr Wolfgang Leese CEO of Salzgitter AG told Focus Money that his company will likely hike its full year guidance at the May 12 first quarter earnings presentation due to strong order volume. He said If the current trend that we are seeing on the steel market remains the same, then our operating result will not be much worse than last year. Mr Leese said that new orders are at a very high level. He said We are being swamped with new orders.
Salzgitter had earlier said that this year's result would be distinctly lower than last year's because of unpredictable sales and rising raw material costs.
Mr Leese also told the magazine that Salzgitter was likely to join in the M&A activity sweeping the steel sector, though this might be confined to acquiring parts of other firms as opposed to major acquisitions. He said A few of the majors have said they want to dispose of some of their non-core assets.
Mittal Steels proposal for improvements of recommended offer
As per a media release on Mittal Steel web site following improvements were proposed by Mittal steel on April 25th to Arcelor Chairman.
Board Composition:
Enlargement of Mittal Steels Board of Directors to 14 members: 6 from Mittal Steel, 6 from Arcelor (including employee and Luxembourg government representation) and 2 independent directors, to be mutually agreed by Mittal Steel and Arcelor; these two directors would be of European industrial background to reinforce the European representation on the Board. The Board of Directors would have a majority of independent directors. Three committees of the Board would be maintained, namely Audit, Nomination and Remuneration.
Nomination Procedure and Term for Directors:
Removal of the right of holders of Class B common shares to make binding nomination for appointments to the Mittal Steel Board of Directors. Directors to be elected by the general meeting of the shareholders, by a simple majority of the votes of all shareholders present or represented at the meeting, for a three-year term.
Voting Rights:
Voting structure that satisfies two objectives: (1) a one shareone vote principle for all shareholders, and (2) rewarding long-term shareholder ownership and loyalty through enhanced voting power. The latter objective could be accomplished, for example, through the adoption of a structure where shares held beyond a certain period of time would have their voting rights doubled.
Management Board:
Management Board composed of 6 people of whom 3 from Mittal Steel and 3 from Arcelor.
Offer Value:
In the context of a recommended transaction, Mittal Steel is prepared to revise the value of its offer. The extent of such revision would depend on the nature and extent of other changes to Mittal Steels overall proposal and, hence, on Mittal Steels ability to enter into discussions with representatives of the Board of Directors of Arcelor. Mittal Steels offer has already created significant value for both sets of shareholders.
China iron ore import likely to slow down due to inventory build up
Xu Zhongbu, CEO of Beijing Metal Consulting Ltd said that China's iron ore import growth is expected to slow down from first quarter levels as inventories pile up. Mr Xu said that China steelmakers only buy enough iron ore for current production so there is plenty of inventory piling up at ports. The old practice of domestic mills building up massive on site iron ore storage facilities and keeping them fully stocked year round is a thing of the past.
Mr Xu said Roads and railways as well as river and coastal transport have improved markedly over the years and currently transportation from ports to mills is fast and efficient. In the past, mills often had their own inventories but now most just have a small safety inventory and rely on small frequent supplies to meet real time production needs.
He added that concerns over the possibility of significantly higher long-term import contract prices this year coming out of the ongoing pricing negotiations also led to a jump in purchases earlier this year. Mr Xu said Because many traders are forecasting iron ore import price hikes, they tried to beat the bell. However, spot prices of iron ore are in fact showing a declining trend so these traders may end up on the losing end of things.
Mr Xu said that spot and contract prices should converge over time around a rational middle ground. I see long term contract prices staying the same or increasing, but spot prices are likely to decrease going forward' Mr Xu said.
Bekaert sells handling activities in UK & Denmark to K Hartwall
Belgian steel wire and cord manufacturer Bekaert SA announced that it has sold its 50% stakes in its handling JVs Bekaert Handling AS in Middelfart Denmark and Bekaert Handling Ltd located in Glenrothes & Spennymoor UK to K Hartwall for Euro 13.6 million. This agreement is, amongst others, subject to regulatory approvals, but both parties anticipate a timely closing of the transactions.
Bekaert Handling AS and Bekaert Handling Ltd, which produce handling materials for logistical applications in Europe, have combined annual sales of around Euro 55 million.
Bekaert said it wants to continue to focus on its core operations and become market leader in selected segments worldwide. Bekaert wants to continue to focus strategically on its core competences and to become market and technological leader in selected market segments worldwide. The handling activity, which was an extension of the previous European fencing activities, is no longer one of the companys core businesses.
K. Hartwall is a leading European company specialized in roll containers for the logistic sector.
Mittal Steel discloses recent contacts with Arcelor
In accordance with its regulatory obligations Mittal Steel announced that it has initiated contact with the Chairman of Arcelors Board of Directors, Mr Joseph Kinsch, with a view to discussing the terms of an offer that could be recommended by Arcelors Board of Directors.
Despite several attempts, Mittal Steel has been unsuccessful in engaging Arcelor in a constructive dialogue at this stage. Mittal Steel reiterates its desire to pursue the proposed combination between the two groups in an agreed and amicable way once the offer is formally open.
Summary of contacts since April 19th are available in a press release in the news sections of Mittal Steels web site.
AK Steel and UAW reach new labor agreement for Zanesville
AK Steel said that members of the United Auto Workers Local 4104 have overwhelmingly ratified a new six year labor agreement covering about 200 hourly production and maintenance employees at the company's Zanesville Works. AK Steel said UAW officials informed the company this afternoon that the new contract had passed by a vote of 130 to 45.
AK Steel said the new Zanesville contract includes 5 job classes, workforce restructuring and no workforce size quotas or guarantees, current and future retiree health care cost sharing, wage increases, $1,000 signing bonus for ratification prior to current contract expiration and lock & freeze traditional pensions convert to a per-hour defined company contribution.
Mr James L Wainscott chairman, president and CEO of AK Steel said "This new-era agreement will serve our company and its employees well. I commend the leadership and the members of the UAW for recognizing and addressing the very real and significant challenges AK Steel faces against competitors who have gained cost advantages through the bankruptcy process. This agreement helps address those issues while preserving good wages and benefits for our employees."
AK Steel's Zanesville Works processes stainless and electrical sheet steel products. Headquartered in Middletown Ohio, AK Steel produces flat rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
WCI Steel to invest in a new slab reheating furnace
WCI Steel Inc is investing $36.7 million in a new walking beam slab reheat furnace at its hot strip mill that will increase quality and productivity while reducing operating, maintenance and energy costs. The new furnace will employ state of the art combustion control technology that will reduce electricity usage by 25% per ton produced and, overall, reduce fuel consumption by 37.5% per ton produced. Construction is expected to begin immediately, with project completion set for January 2008.
The new walking &beam furnace will replace three pusher-type furnaces now in operation at the strip mill. During construction, the strip mill will operate with two of its three existing furnaces.
Also included in the project scope is the expansion of existing heat retention boxes to accept larger steel slabs, an upgrade of existing shipping cranes and an upgrade to the shipping floor online coil scales.
Mr Patrick G Tatom WCI President said "The walking beam furnace is the centerpiece of our strategic plan to increase margins, grow our custom product business and enhance our operational efficiency. Operating costs will be reduced through improved energy efficiency, better material yields and lower maintenance costs while our product offerings will increase due to the furnace's expanded capabilities."
Mr David A. Howard WCI VP commercial said that the walking beam furnace will allow WCI to roll longer slabs from 28 feet to up to 33.5 feet and meet market demand for 1,000 PIW coil sizes as compared with the existing 850 PIW maximum. In addition, the furnace will enhance quality by providing consistent, uniformly heated slabs for rolling and reducing surface defects such as scale and skid tears.
EC to extend review of Mittal Steels bid by 10 days
Reuters have reported that European Commission will extend by 10 working days its review of Mittal Steel's unsolicited 20 billion euro ($25.5 billion) bid for Arcelor citing a source familiar with the situation.
The delay beyond the original May 19 deadline will allow competitors and customers to look at a divestiture that Mittal steel has proposed to remedy a relatively small overlap in Europe, the source said.
Mittal Steel has told the Commission that it will divest the heavy sections portion of one of the firms long products business, the source said.
UK Coal threatens to close five coal pits
Britain's biggest coal producer UK coal is threatening to close five of its seven pits and cut 1,500 jobs unless it can force through price rises with major customers like Eon, Drax and Electricite de France. Pits that could close in the near future are Thoresby, Welbeck and Kellingley, in addition to Harworth and Rossington, accounting for 233 million tonnes of coal reserves. The firm says 300m tonnes of coal can be recovered from its remaining seven underground mines.
Despite the coal prices doubling in the past two years UK Coal has been unable to take advantage of these rises because it is locked into long-term contracts. UK Coal complains that generators have adopted a policy of only buying indigenous coal if it is priced at or below the international price of coal.
UK Coal is understood to be pushing for 40pc rises in the price it can charge for its coal. One source said: "Someone must decide do they want these power sources on their doorstep for the next 20 years or do they want them to be closed in the next three to four years."
Drax said "The Company will continue to source its coal in the most commercially sensible way." A source added: "It is a marketplace and you can buy coal from wherever you want to. An Eon spokesman added: "We get our coal from a variety of sources when we take a look at our coal requirements."
ILO to discuss new Code of Practice on coal mine safety
In an effort to modernize safety and health regulations in underground coal mines, representatives of workers, employers and governments will meet during 8th to 13th May to discuss a draft Code of Practice for coal mining. The new draft code would update 20 year old occupational and safety recommendations, reflecting major developments in underground coal mining that have seen new technologies, investment, training and regulations cut the mine death toll in some countries, especially in the developed world.
The second part of the code deals with the different facilities used and dangers encountered in the production of coal from underground mines from means of access and egress, roads, haulage and transport, support of roofs and walls, ventilation and lightning to the dangers resulting from coal and other dust, mine fires, inrushes of water, gas or other materials as well as from the use of electricity, machinery and explosives. It also covers transport, competence and training, personal protective equipment, emergency preparedness, and special protection and hygiene issues.
The practical recommendations of ILO codes of practice are intended for the use of all those, both in the public and private sectors, who have responsibility for safety and health management. Codes of practice are not intended to replace national laws or regulations or accepted standards.
The incidence of coal mining fatalities reveals considerable differences between countries. While the United States, the United Kingdom and Australia have significantly reduced fatalities, rates in India and China are higher.
Xstrata open to options for Falconbridge
Mr Willy Strothotte Xstrata Plc Chairman at the company's annual shareholder's meeting in Zug Switzerland said the it is considering all its options in regards to Falconbridge Ltd. He said that the company is continuing to assess a range of potential opportunities in a number of commodities.
Xstrata acquired a 20% stake in Falconbridge in August, and hasn't ruled out making a bid for the rest of the shares. Yesterday Canadian zinc miner Teck Cominco Ltd announced a hostile C$17.8 billion takeover bid for Inco, conditional upon Inco shelving its offer for Falconbridge.
AISI awards Gary Memorial medal to Mr Surma
The American Iron and Steel Institute have announced that Mr John Surma is the 2006 recipient of the Gary Memorial Medal. Mr Surma, former AISI Chairman and Chairman and CEO of United States Steel Corporation were honored at the AISI General Meeting in Boca Raton held during May 7th to 9th .
Established in 1927, the Gary Medal is named for Judge Elbert H Gary, the first president of AISI. The medal recognizes an individual for his or her remarkable lifelong contributions to the North American steel industry.
The medals inscription reads In recognition of his outstanding leadership and achievement in a vibrant, global steel industry, of his tireless efforts to improve investor, media and governmental understanding of the new North American steel industry, of his commitment to fair trade, attracting new talent to the industry and building a strong, effective AISI.
Mr Lou Schorsch AISI Chairman and CEO of Mittal Steel US said that he was impressed with Mr Surmas leadership on many fronts, including his role in helping to reposition the image of the North American steel industry and his ability to lead in a collaborative manner that achieves greater impact for the industry.
Mr Andrew G Sharkey III AISI president said Johns leadership was tireless in speaking out to policymakers on the critical need to strictly enforce our trade laws and address foreign government steel subsidies that are detrimental to the ability for free and fair trade to flourish.
Chinas coking coal imports drop 44% in Q1
The Customs General Administration of China said that China imported 44% less coking coal in the first quarter as growth in domestic demand slowed. China imported 1.05 million tons of coking coal. The import bill dropped 21% from a year earlier to $130 million.
Overcapacity in the coking coal industry has caused coke export prices to drop to $121 a ton during the first quarter from $205 a ton a year earlier.
OMK eying gas & oil pipe market in Iran
It is reported that United Metallurgical Company held negotiations with Iran's largest oil and gas companies during Iran Oil Show in Tehran. The negotiations dealt with issues related to the delivery of medium diameter pipes. Mr Nikolay Zaitsev ED of OMK said that Iran plans to implement several major pipeline projects and OMK will participate as a pipe supplier.
OMKs Vyksa Steel Works is in the middle of a large scale reconstruction process involving its medium diameter pipe facility. After the implementation of this program, VSW will have a high tech facility for the production of oil and gas pipeline pipes and casing pipes with the annual capacity of 950,000 tonnes.
Iran is the world's largest energy resource supplier and ranks among top five countries for the volume of its explored and proved oil and gas reserves.
BNSF & Union Pacific see 10% growth in coal transportation
USs two largest railroad operators Burlington Northern Santa Fe Corp and Union Pacific Corp are on track with earlier forecasts to increase coal delivery by about 10% this year.
Late Monday, the two railroads announced plans to begin an additional $100 million capacity expansion on their jointly owned rail line serving the Southern Powder River Basin coal fields in Wyoming. The two-year project will speed up earlier growth plans to add third and fourth tracks to the congested line.
During the conference, sponsored by Bear Stearns in New York, Mr Matthew Rose chairman, president and CEO of Burlington Northern, said the long term outlook for Powder River Basin coal is excellent because the low sulfur coal remains cheaper to deliver to power plants than other energy sources. The US government has forecast a need for an additional 225 million tons of the coal by 2025. "The railroads will be able to handle more and more tons" Mr Rose said. Any capacity constraint for delivering coal will come from mine production and not rail track or coal car concerns he added. Mr Rose also said that the rail industry doesn't need government trust funds, as are used for highways and airports, to help it grow.
Mr Pfeiffer to head VAI division of Siemens ISS group
Mr Richard Pfeiffer has been named to take over as head of the VAI division of the Siemens Industrial Solutions and Services group and chairman of the board of Voest-Alpine Industrieanlagenbau. Hell assume both positions on July 1. Mr Pfeiffer is succeeding Mr Gerhard Falch, who was named to join the VAI Supervisory Board.
Mr Pfeiffer joined Siemens in 1989 and held managing positions in various business areas, and was named to head the Industrial Plants unit in October 2002. Mr Pfeiffer is now the head of the Industrial Plants division in the I&S group.
Mr Falch, who was appointed chairman of VAI in 1999, also will remain as a member of the board of Siemens AG Austria, and will take over additional supervisory board roles with Siemens Hungary and other Siemens companies.
Siemens VAI is the former Voest-Alpine Industrienlagenbau, the metallurgical equipment and plant builder that was consolidated into Siemens AGs Industrial Solutions and Services group in 2005.
Mittal family to keep majority in company CFO
Reuters have reported that Mittal Steel's CFO MR Aditya Mittal said on Tuesday that there were no plans to cut the family stake in Mittal Steel below 50% after the group said it was prepared to revise its bid for Arcelor. Mr Aditya Mittal said at a news conference "At this point in time there is no plan to reduce the family stake below 50%."
The Mittal family currently holds around 87% of Mittal Steel. Under the current offer for Arcelor, the Mittal family stake would fall to 50.7%.
Total Coal SA charged by Xstrata
A mining journal has reported that the dispute between Total Coal South Africa a subsidiary of France based Total SA and Xstrata Plcs has taken a new twist with TCSA facing corruption charges for the theft of documents from Xstrata Plcs Johannesburg offices. Mr Jean Marc Otero De Val MD of TCSA and two security consultants are to appear in court on May 19 to face the corruption charges.
According to the newswire, which cited filings by prosecutors, the two consultants hired by TCSA allegedly paid cleaners at Xstratas Johannesburg offices in August 2004 to steal bags of discarded confidential papers.
Xstrata spokeswoman Ms Claire Divver said that the theft was one of the factors that triggered the company's statement in December 2004 stating the joint venture at the Arthur Taylor collieries with TCSA had been dissolved.
Mr James Duncan TCSA spokesman said TCSA has investigated the allegations of theft of documentation and is satisfied that the charges made against its managing director are groundless.
Wheeling-Pitt Steel parent loses $2.1 million
The parent of Wheeling Pittsburgh Steel Corp reported that it lost $2.1 million in the first quarter as it struggled with lower selling prices even as demand for its products rose. The company also wrestled with higher natural gas and zinc costs.
In the first quarter, its net sales of steel products totaled $422.2 million on shipments of 620,688 tons, which works out to a price of $680 per ton. In the same period last year, its net sales of steel amounted to $386.6 million as it shipped 522,803 tons of steel or $739 per ton.
Wheeling-Pitt makes rolled, galvanized and pre-painted steel sheet products, as well as corrugated roofing and other construction materials.
Cleveland-Cliffs CEO to retire on September 1
Iron ore pellet producer Cleveland-Cliffs Inc announced that its CEO Mr John Brinzo will retire on September 1. He will be replaced by president and COO Mr Joseph Carrabba.
Mr Brinzo has been CEO of the company for nine years and has been with the company for 37 years since starting as a financial analyst. He will continue as company chairman until the annual meeting next year.
Mr Carrabba has been with Cleveland Cliffs for a year. Before that, he spent 20 years with mining company Rio Tinto, most recently as president and chief operating officer of the Diavik diamond mines in Canada's Northwest Territories.
MM CAP acquires 5.9% of NEMI shares
MM Asset Management Inc. announced that one fund it manages or advises, MMCAP International Inc SPC has acquired an aggregate of 3,341,200 common shares of Nemi Northern Energy and Mining Inc since a take over bid was filed by Western Canadian Coal Corp for all of the shares outstanding of Nemi with the securities regulatory authorities on April 10, 2006.
The Shares were acquired in a series of transactions conducted through the facilities of the Toronto Stock Exchange representing approximately 5.903% of the outstanding Common shares of Nemi and were purchased at market prices ranging from C$1.30 per share to C$1.45 per share. MMCAP now beneficially owns 3,341,200 Common shares of Nemi, representing approximately 5.903% of the outstanding Common shares of Nemi based on 56,601,192 outstanding Common shares as reported by Nemi.
MMCAP does not act jointly or in concert with any person or company in respect of ownership of securities of Nemi. MMCAP has acquired the Nemi shares for investment purposes only. Depending on market conditions and other factors, MMCAP may from time to time acquire additional securities of Nemi or dispose of such securities in the open market, by private agreement or otherwise .
