September, 03 2006
TRL gets approval for basic refractory brick plant in China
Indias largest refractory producer TATA Refractories Limited has received approval for its proposed 30,000 tonne basic brick project at Liaoning in North Eastern China, which is known to have one of the largest reserves of magnetise in the world the raw material for making basic bricks.
Dr JJ Irani chairman of TRL and director of TATA Sons said We have got all the clearances from the Chinese government. We are all ready for the project. It is obvious now that to strengthen TRLs situation in the basic refractory field it would be appropriate to manufacture the product in China, close to where the raw material is mined.
The project is part of the TRLs Rs 282 crore expansion program. The Rs 35 crore investments for the project will be done under the TRL-China banner, the new company set up through TRL Asia, the special purpose vehicle based in Singapore. TRL Asia will be the wholly owned subsidiary of the parent company. TRL, at a later stage, could consider divesting a part of the equity to its local partner, who would ensure the supply of magnesite for the plant.
CII reports 8.3% economy growth in Q1 of 2006-07
According to a State of Economy study conducted by CII, the Indian Economy grew by 8.3% in the first quarter of 2006.
CII study revealed that the manufacturing sector maintained its growth rate at the same level as during the corresponding period of the last fiscal but there was decline in industrial growth from 10.4% to 10.1%. The other sectors which saw a decline were electricity to 5.1% from 7.7% and mining to 3.5% from 4.3%.
Mr Subodh Bhargava chairman of VSNL and chairman of Public Policy Committee of CII while expressing concerns over achieving a higher growth rate said that "The need is not to sustain the current rate of growth in manufacturing but to take it to 14% to 15%. The declining growth in mining and power sectors, and inflexibility in labor laws are concern areas in that regard."
JSW to diversify into cement sector
It is reported that JSW Steel Limited is planning to diversify into manufacturing of granulated slag based cement. The newly formed JSW Cement is setting up a 0.5 million tonne grinding unit adjacent to the steel making facility at Bellary in Karnataka. The initial investment on the cement project will be Rs 125 crore.
Mr Sheshagiri Rao director finance of JSW Steel said "The immediate objective is to add value to the slag that we produce. We are setting up a new grinding unit there is a huge potential in cement sector."
Cement would be manufactured using slag produced at its steel manufacturing facilities and as JSW is increasing its steel making capacity to 10 million tonnes from 3.8 million tonnes more slag would be available. JSW Steel currently has a 0.2 million tonne slag granulation capacity and currently the granulated slag is supplied to other cement companies.
L&T bags turkey contract from IOC for its Panipat project
Indian Oil Corporation has awarded an order worth Rs. 1,150 Crores to Larsen and Toubro Ltd for setting up a captive cogeneration power plant at Panipat in Haryana on turnkey basis. With an installed capacity of 227 MW of power and 800 tons per hour of process steam, the cogeneration plant is to be commissioned in 32 months.
The power plant which will have 5 gas turbines, 5 heat recovery steam generators, 3 steam turbines and 2 utility boilers will ensure supply of power and steam to IOCs naphtha cracker project at its petrochemical complex in Panipat.
IOC has also awarded a contract worth Rs 350 Crores to Punj Lloyd for the construction of storage facilities offsite as well as at their naphtha cracker project in Panipat. The storage facilities constructed will include double walled cryogenic storage tanks, storage spheres, mounded bullets, atmospheric tanks, heaters and pumps and is scheduled to be constructed and commissioned in 26 months.
Petronet LNG & Adani JV to build a port at Dahej
Petronet LNG Ltd and Adani Group have signed a 70:30 JV agreement for building a Solid Cargo Port at Dahej in Gujarat at an estimated coat of Rs 1,150 Crores. The project is likely to be completed within 3 years.
The JV has been incorporated as Adani Petronet (Dahej) Pvt Ltd and financial closure is expected to be achieved by the end of 2006.
The Port will have 3 fully mechanized berths for import and export of fertilizers, coal, steel and other similar cargo.
Indian government blocks Chinas entry into ports
Reports independently confirmed by Asia Times Online say that after deliberating on the issue for more than 12 months, New Delhi has decided that it does not want the Chinese investing in or managing any Indian port.
According to the reports although there is no blanket ban and matters will be considered on a case to case basis, it is unlikely that any Chinese investment in Indian ports will be allowed.
Steel Strips production of wheel in August up by 62% YoY
Steel Strips Wheels Ltd reported a YoY growth of 57% in sales and 62% in production during August 2006.
During the month of August 2006, they sold 376,183 numbers and produced 379,842 numbers of wheel rims as against 240,005 and 234,064 respectively during August 2005.
IOCs Paradip-Haldia pipeline delayed
It is reported that commissioning of Indian Oil Corporation's Rs 1,178 crore Paradip-Haldia crude pipeline including single point mooring and storage facility at Paradip is delayed till early 2007. An IOC official said "There are some technical problems and the project is now expected to be commissioned not before January or February of 2007."
The Paradip-Haldia pipeline was originally planned to be commissioned in March 2006 and was later postponed till July 2006. IOCs Haldia & Barauni refineries are expected to benefit with improved refining margins by at least $1 per barrel with the laying of the pipeline.
Mr Ankush Krishan appointed as MD of IRCON International
Mr Ankush Krishan has been appointed MD of IRCON International a Public Sector Unit under the Railway Ministry following the retirement of ex MD Mr BS Kapur.
Mr. Krishan has 30 years of experience with Indian Railways, RITES and IRCON. He last served as director works in IRCON.
Brazilian BNDES to fund modernization of Cosipa & Usiminas
Brazil's Nacional Bank for Economic and Social Development has approved the concession of a line of credit of $ 420 million for the technological modernization and environmental protection at two mills belonging to the Usiminas ironworks group. $ 190 million will be invested in Usinas Siderrgicas de Minas Gerais and $ 230 million in Companhia Siderrgica Paulista.
The credit, to be granted over the next five yeas, is part of a special financing line to make base industry more dynamic through the implementation of infrastructure projects. This is the second loan approved by the BNDES in the same area. The first was to Gerdal Group, and was also of $ 420 million.
Usiminas is a Brazilian market leader and is among the 20 largest groups in the world.
Chinas export rebate cut timetable not clear
After several months of speculation, the Chinese government has finally confirmed that they will be cutting the current export tax rebate level. The have however still not announced a date of when the new policy will take affect. Some Chinese government officials had previously said the cut could happen somewhere in September or October.
However an official with China's State Administration of Taxation, when asked for comments on a latest website which carried statement by the administration August 30th, said that the transcript of the interview of Mr Cui Junhui deputy director of the administration does not necessarily mean that export rebate system will see dramatic changes and that Mr Cuis comments can not be taken as a signal of export rebate cut coming soon. He added that "We have not yet received any official notice on readjustment of export rebates to date".
The exact reduction is also currently not clear but it is expected that the current export tax rebate level for finished steel products will be lowered by 2% to 3% from the current level of 11%.
The move is in a bid to reduce the rising export of steel products. According to the National Development and Reform Commission, a large amount of steel exported is low end steel.
Samancor clarifies on chrome ore exports to China
South Africa's leading chrome ore miner and ferrochrome producer, Samancor Chrome has clarified recent criticism by Xstrata that it was exporting chrome ore to China at the expense of the South African industry and dismissed suggestions that it was undermining the South African industry's prospects by exporting chrome ore to China.
Dr Danko Konchar chairperson told a media briefing that We are looking to grow an industry, whose profile has remain static for nearly a decade, while the ferrochrome industries of India, Russia, Kazakhstan and China have been expanding. It is true that we exported to China, but our long term focus it to add value to the chrome ore we mine in South Africa.
Mr Konchar admitted that it had been exporting to China as an economic imperative during 2006, but that these exports had ceased as the Rand to USD exchange rate made the export of charged chrome more viable. He pointed out that an analysis of South Africa's trade statistics would show that it was not alone in its exports to the Asian economy and that even some of its harshest critics had done the same.
Ugitech (Schmolz & Bickenbach) hikes SS long product prices
Due to the strong demand, Europes major producer of stainless steel long products French Ugitech (Schmolz & Bickenbach) has announced an increase in basic prices of Euro 100 per ton on Austenitic grades like 1.4305, 1.4307, 1.4404 etc and Euro 150 per ton on low nickel grades like 400 series, Duplex etc.
As per the company announcement, these measures take effect immediately on products in stock and will also apply to all orders to be delivered as of December 1st 2006.
G Steel to take major stake in NSM
It is reported that Thai G Steel announced its intention to buy $180 million worth of convertible claims from Nakornthai Strip Mill Plc's creditors, with a view to turning them into equity. G Steel would become NSM's major shareholder, with a 33% stake, within 18 months.
Mr Sawasdi Horrungruang. Chaimand said that purchase of 19% to 20% of NSM's shares by G Steel Plc would be positive for NSM because it would help enlarge its operations.
Mr Sawasdi said he agreed that setting up a holding company to handle the steel businesses of NSM and G Steel was better than consolidating both companies.
Roll Coater to set up new coating facility near Nucor mill
Indianapolis based steel coating company Roll Coater Inc plans to build a 220,000 square foot plant at Mississippi County in northeastern Arkansas five miles away from the Nucor Steel plant in Hickman. The plant is expected to be open by next July or August.
Mr Bob O'Neal president of Roll Coater said "Our goal is to have access to high quality steel, obviously Nucor provides that and then access to rail, water and good highway systems and we believe that that location more than adequately meets those criteria."
Roll Coater Inc is engaged in coating to steel and aluminum coils for metal building, appliance and automotive industries.
Arcelor Mittal included in Euronexts indexes
Euronexts Expert Commissions Indices Committee announced the inclusion of Arcelor Mittal in the CAC 40 index, the SBF 120 index and the SBF 250 index. These inclusions will take effect from Monday 18 September 2006.
Arcelor Mittal is the worlds leading steel company, by both revenue and production. The company operates 61 plants across 27 countries, employing some 320,000 employees.
Sims posts strong results for last year
Scrap steel recycler Sims Group has posted a net profit of $196.6 million for last year, just a shade lower than $197.03 million in 2005. Its sales revenue amounted to $3.8 billion up by 46% YoY.
Sims merger with Hugo Neu Corporation in November bolstered group sales revenue, but a blowout in raw materials costs and freight expenses undermined the rise in sales, causing the bottom line to be lower. Sims benefited from the price rally in the six months to June in non ferrous base metals such as tin, aluminium, copper and brass.
However, it suffered some earnings run off in June as a result of the decline in world prices for iron and steel and escalating freight costs.
Mr Jeremy Sutcliffe CEO of Sims attributed the steady bottom line to an exceptionally strong June quarter in which the group generated a record quarterly pre tax profit of $79 million. Mr Sutcliffe described the performance as excellent in difficult market conditions. He said "We have again managed our operations effectively through a volatile year and successfully extracted exceptional benefits for shareholders."
Sims has recycling operations in Australia, North America and Europe.
Yilgarn to unveil infrastructure development plans in WA
It is reported that Yilgarn Infrastructure is expected to announce Chinese backing for development of an independent port and multi user rail facilities extending east from Geraldton through Yalgoo. Yilgarn is understood to have previously held informal talks with a number of major Chinese industrial groups about joining it in infrastructure studies and ultimately development and it is believed those talks will culminate in a formal partnership with Chinese interests that will be unveiled in Perth next week.
Yilgarn is understood to have been lobbying the WA Government for several months on the need for an open tender process for the planning and development of port and rail infrastructure in the Mid West rather than letting the existing mining proponents take charge.
Such a move could have major ramifications for the Geraldton Iron Ore Alliance, which appeared on the brink of fracturing in June over competing plans for railway developments linking the planned Oakajee port and new iron ore projects in the region.
Yilgarn Infrastructure is headed by former State Labor deputy premier Mr Mal Bryce and Sydney infrastructure expert Mr John Saunders. Yilgarn is backed by private investment firm Linden Group and Sydney based MGG Capital.
Shipping firms suspend use of Chittagong port
Bangladesh's shipments have come to a virtual halt as shipping companies refused to use the nation's main port Chittagong in a protest over container fees. Mr Shahadat Hossain chairman of Chittagong Port Authority confirmed "Most private shipping companies have today suspended transporting cargoes to and from Chittagong port."
Mr Shahed Chowdhury, a representative of the shipping companies said "Our ships today have not loaded any export cargo from Chittagong. Simultaneously, no import cargo bound for Chittagong Port is being loaded at ports in Singapore, Colombo and Klang."
Shipping companies launched the protest after the Banladesh High Court ruled that a $130 surcharge they imposed in June on every container transported by the ships was illegal and told them to return the money. The companies said the surcharge levied on local exporters and importers was needed to recover delay costs caused by huge port congestion.
Located in southeastern Bangladesh, Chittagong is the nation's biggest port. In the year ended June 30, the port handled 90% of the country's 24 billion dollar foreign trade.
Kobe steel plans to increase production of auto grade wire rods & bars
Japanese steel maker Kobe Steel Ltd is planning to increase its production of wire rods and bars used in automotive parts by 15% by fiscal 2008 end. Kobe Steel also aims to boost sales of steel material for automobile springs by 20% to 30%.
Kobe Steel will raise combined monthly production capacity at two domestic plants to about 250,000 tons with the addition of new equipments. It plans to install at its Kobe plant additional equipment used to heat steel bars during cutting and will fortify the final inspection line and increase production speed as well.
As per reports Kobe Steel is installing continuous casting equipment with enhanced cooling technology for about 8.5 billion yen and is likely to begin full fledged operations by next month.
Smart Group wins tender for last unsold mine of Ukrrudprom
Interfax Ukraine has reported that the Ukrainian State Property Fund has declared Smart Group the winner of a tender for a 93.83% stake in Balaklava Mine Administration.
Balaklava Mine was the last one, out of 10 mines of state mining company Ukrrudprom.
Mincor to develop South Miitel nickel mine
Nickel miner Mincor Resources NL announced that its board has approved a major expansion of its Miitel mining operation following the completion of a positive feasibility study on the proposed $24 million development of the South Miitel orebody.
Mincor is in the final stages of implementation planning, and will make a final decision shortly on whether to develop and mine the ore body on an owner operator or contractor basis. The development of South Miitel will involve an extension to the existing Miitel decline and the excavation of a ventilation shaft to surface. Mining will use mechanized flat back cut and fill mining method.
Mr David Moore MD of Mincor said that, in addition to the attractive financial returns from the project, the development of South Miitel would create the opportunity for further substantial expansions to the Miitel operation. He said "This represents the sixth substantial mining operation or expansion to be developed by Mincor at Kambalda, and will further enhance our asset base and production profile in this prolific nickel belt."
South Miitel is located immediately south of Mincor's flagship Miitel Mine, its first Kambalda nickel mine.The South Miitel development is based upon an initial Probable Ore Reserve of 376,000 tonnes with 2.6% nickel for 9,790 tonnes of nickel metal. Capital development costs are estimated at $24 million over the life of the operation.
PSMC Privatization Board devoid of 5 directors
Dawn has reported that 3 members of the board of directors of Pakistan Steel Mills have resigned. Mr Tariq Sehgol, Mr Iqbal Khawaja and Mr Sohail Wajahat belonged to the corporate sector. The reason cited is interference by the government in the affairs of the mills.
In addition, 2 other members have retired. Mr Chaudhry Hafeez joint secretary of the ministry of industries and production has been transferred to the ministry of sports, culture and tourism while the former chairman of Pakistan Ordnance Factories Major General Mohammad Javed retired from the army.
The 11 member board was constituted on February 7th 2005 and is left with only 6 directors.
The report quoted some sources as saying that The purpose of reconstituting the board was to improve the mills performance and to make sure that there will be regular commercial and external audits. But now when this board is not complete, it cannot hold any meeting and therefore cannot deliver.
Assores earnings down by 10.2% YoY
South African mining group Assore said that attributable profit for the year to the end of June had decreased by 10.2% to R457.4 million YoY over R509.4 million in 2005, despite an increase in turnover to R3.4 billion by 9.3% YoY over R3.1 billion in 2005. Assore added that after adjusting for the non recurring profit on disposal of investments and the discount on the sale of Assore shares, the profit for the year on normal operations would have been R364.1 million a YoY decrease of 28.5%.
Assore said that this was mainly due to a lower profit contribution from Assmang Limited in which company the group holds a 50% interest.
Assmang's after tax profit for the year decreased to R666.6 million as against R949 million in 2005 largely attributable to lower prices for manganese ore and alloys as well as for charge chrome, which could not be nullified by the higher profit generated by iron ore.
ICEC commissions structure plant in Rio de Janeiro
BNamericas has reported that Brazilian metallic structure manufacturer ICEC has invested 5 million reais ($2.3 million) to install its first factory in Rio de Janeiro state and has commenced production last week. Production of metallic structures at the plant in the state's Campo Grande area is expected to total some 15,000 tonnes per year for will go to sectors such as petrochemical, oil and other industries.
Mr Alexandre Oliveira marketing coordinator of ICEC told BNamericas "At first, the plant will meet the needs of the local market, and will export in the future, although it is too soon to talk about shipments abroad." ICEC is also keeping an eye on the under construction CSA steel mill in Rio de Janeiro as this project will demand a large quantity of metallic structures.
In addition to the Rio de Janeiro plant, ICEC has four facilities in the southeast Brazilian states of S Paulo and Espito Santo.
Esmark continues quest for Wheeling-Pittsburgh
Esmark Inc continues to fight for its proposed merger with Wheeling-Pittsburgh Steel, even as Wheeling-Pitt is moving forward on a merger plan with Brazilian steelmaker Companhia Siderurgica Nacional. Mr Craig T. Bouchard president and CFO of Esmark released a statement blasting Wheeling-Pitts management, in particular chairman and CEO Mr James G Bradley, and the suitability of CSN as a business partner.
Mr Bouchard said "We have followed with great interest the comments made by executives from Wheeling-Pitt, CSN and representatives of the United Steelworkers in recent days. We are pleased that the United Steelworkers have announced their strong support for the proposed Esmark transaction and their plans to defend the rights of the United Steelworkers from Wheeling-Pitt management and its proposed merger with CSN.
He said We were troubled as we imagine many of Wheeling-Pitt's shareholders were to learn in the August 29 edition of the Pittsburgh Tribune-Review that Mr. Bradley has developed a 'Plan B' for reorganizing Wheeling-Pitt in the event his proposed merger with CSN fails to materialize. Yet Mr. Bradley refuses to divulge any details of his 'Plan B' to Wheeling-Pitt shareholders, employees, retirees or the Ohio Valley community.
He said We were also interested to learn additional information regarding Mr. Bradley's Plan A - the proposed merger with CSN. CSN purchased its Heartland facility in Terre Haute, Indiana in 2001 out of bankruptcy for $50 million, plus the assumption of $19.8 million in debt. In the August 29 edition of the Steubenville Herald-Star, CSN admitted that its Heartland facility continued to suffer losses. This is the key asset in Mr. Bradley's Plan A that CSN is contributing for its initial 49.5% stake in the new company. The shareholders, employees and other stakeholders have a right to know the extent of the losses suffered at Heartland, the true value of this facility and other key performance metrics.
He said "In contrast to the Heartland facility, Esmark is a well-run and profitable company. Our company is on track to record pre-tax income of over $32 million in 2006. By an independent analysis, the replacement value of Esmark's property, plant and equipment has been estimated to be well over $400 million.
He concluded "We continue to believe that the proposed combination of Wheeling-Pitt and Esmark provides superior value to the shareholders, employees and other stakeholders of Wheeling-Pitt. For this and other reasons, we have nominated a slate of directors to be elected at the upcoming annual meeting of shareholders on November 17."
Esmark was formed in 2003 and has consolidated nine processing and distributor companies since then. Its operations process and distribute hot rolled, cold rolled and coated steel to approximately 2,000 customers in the Midwest. It made a friendly takeover offer for the Wheeling-Pittsburgh in April and launched a bid to replace Wheeling-Pitts board of directors. A slate of new directors that Esmark proposes has been nominated for election at a shareholders meeting in November.
Alpha Natural Resources promotes Mr Porco
Leading Appalachian coal producer Alpha Natural Resources Inc announced that it has promoted Mr Jack Porco to vice president of the company and president of its Alpha Coal Sales Co LLC subsidiary. He will replace Mr D Scott Kroh, who has been president of Alpha Coal Sales Co since its formation in 2002. Mr Kroh will remain with Alpha in a part time capacity so he can devote more time to family matters.
Mr Porco is a 30 year veteran of the coal industry and was most recently executive VP of Alpha Coal Sales Co. where he was responsible for all domestic and international metallurgical coal sales. Mr Porco began his career in the coal industry with CONSOL Energy in 1974 and has worked with American Metals & Coal International Inc also.
Mr Michael J Quillen president and CEO of Alpha Natural Resources said "Together, Scott, Jack and the entire sales team have worked diligently to make Alpha America's leading producer and international supplier of high quality metallurgical coal. In addition, they have earned recognition from all of our customers in the utility and steel markets here and abroad as a company that delivers on its promises."
Alpha Natural Resources is a leading producer of high quality Appalachian coal. Approximately 91% of the company's reserve base is high Btu coal and 84% is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the US's largest producers and exporters of metallurgical coal. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 67 mines feeding 11 coal preparations and blending plants.
Worthington workers vote to join USW
Worthington Steel's hourly workers voted last week to affiliate with the United Steelworkers union. The National Labor Relations Board should certify the results of election within the next two weeks.
Mr Ted Sautter, organizing coordinator for USW District 7, .said that there were 94 votes to affiliate and 76 against having the Steelworkers represent the steel processing plant's workers. There also were 11 challenged ballots but those weren't enough to affect the election's outcome.
Mr Sautter said that the steel processing plant's hourly employees may have their own USW local or they could become part of a larger local. USW District 7 Director Mr Jim Robinson will make that decision.
