June, 01 2007
POSCO to use FINEX technology in Orissa plan
South Korean POSCO has planned to use the newly developed FINEX technology in their proposed steel plant project in Orissa. In a statement, POSCO India said that the use of FINEX technology was expected to substantially reduce the proposed amount of swapping of iron ore required for its 12 million tonnes per annum steel project in Jagatsinghpur district.
Mr Soung Sik Cho chairman cum MD of POSCO India said that "This technology will make the company's steelwork most competitive in Indian steel sector. FINEX can better utilize the high alumina contained Indian iron ore than the blast furnace technology."
POSCO has created a new chapter in the world steel making history by successful completion of FINEX commercialization plant with a 1.5 million tonne per annum capacity plant in Pohang in South Korea recently. Mr Ku Taek Lee CEO of POSCO said that the company is expected to win competitiveness with FINEX plant. He said that "We will hold technology leadership by making full efforts to technology development and introducing No 1 products to the market faster and earlier than competitors."
Appreciating POSCO's success in using the new technology in Pohang, Mr Naveen Patnaik chief minister of Orissa sent a message to the company and reiterated his government's commitment to POSCO India project in the State. SNS has also reported that a high level official delegation from the Orissa government comprising of Mr Priyabrata Patnaik commissioner cum secretary commerce & transport and nodal officer of POSCO India project, Mr UP Singh principal secretary steel & mines and Mr Ashok Mahadeo Rao Dalwai commissioner cum secretary industries attended the inaugural ceremony in Pohang and held discussions with key officials of the company
JSW Steel sets new benchmark for land acquisition
It is reported that JSW Steel has started work on plans for additional land purchase after West Bengal government has offered 4,000 plus acres to set up a 10 million tonne steel plant at an investment of INR 10,000 crore. JSW Steels Ltd has announced that it would offer free shares to those whose land would be acquired for its upcoming mega plant in West Bengal.
Mr Sajjan Jindal vice CMD of JSW Steel while talking to Business Line said that a purchase committee has been formed in consultation with the local administration for the purpose of procuring some 600 acres of private land directly from land owners. He said that This committee has identified all the land owners and the purchase activities will start soon.
Mr Jindal said that If a farmer is given INR 100 for his land then he would be given free shares worth INR 100 as well. The local people should be the owners of this plant and they must benefit from development in their area. By the time the steel plant comes up their share value would raised three to four times. It will take 48 months to commission this project and will create 10,000 direct and indirect jobs.
As per report, it has also obtained environmental clearances and development of external infrastructure such as roads, water and power for the project and plans to complete this activity in 3 months. Mr Jindal also said that once this process is accomplished, work on securing the land with a proper boundary wall would be initiated. Mr Jindal said that We do not foresee any specific hurdle in executing the project, since we have the support of both the government and the local population. The Ministry of Environment and Forests is examining our application. We expect to conduct the public hearing just after the monsoon.
Kirloskars Brothers to take over Kolhapur Steel
BS reported that pumps manufacturer Kirloskar Brothers Ltd has decided to acquire Kolhapur based steel castings company Kolhapur Steel Ltd for a consideration of approximately INR 18 crore. A MoU to this effect was signed by members of a bankers consortium comprising the IDBI Bank, Canara Bank and Shree Suvarna Cooperative Bank and representatives of Kirloskar Brothers Ltd at Kolhapur. The sale, which will go through subject to clearance by the Board of Industrial and Financial Reconstruction
The report mentions that some sources in Kirloskar Brothers have confirmed the signing of the MoU, but declined to offer any details about valuations and how the new acquisition will be accommodated within the group. A senior functionary in the company told Business Standard that The finer details of the deal are being worked out and a formal announcement will be made in a months time.
Kolhapur Steel, as a steel foundry, is suitable for Kirloskar Brothers business and offers itself as a readymade addition to its manufacturing capacity.
Kolhapur Steel Ltd has been referred to the Bureau of Industrial and Financial Reconstruction and is presently operating as per a revival package approved by BIFR.
Iran - Pakistan - India gas pipeline to be built in 3 parts
It is reported that Iran, Pakistan and India are proposing to set up 3 separate JVs for the USD 7 billion natural gas pipeline project by 30th June 2007. The proposed JVs will be formed by companies executing the project.
A delegation from Islamabad is expected to visit New Delhi this year, where issues related with the project structure, security measures and framework agreement would be discussed. The first tri partite meeting between the 3 countries is proposed to be held in early December for firming up the issues on the project structure and security aspects of the pipeline.
India will enter into an agreement with Iran for purchase of gas at its border and responsibility would be fixed on Islamabad for safe passage of the pipeline, uninterrupted supplies and delivery of gas at the Indian border. India, which imports 70% of its crude oil and produces barely half the gas it consumes, is hunting stakes in foreign oil projects and importing, liquefied natural gas.
GAIL in India is likely to be the lead company along with other oil companies and will form the JV along with the Iranian and Pakistani counterparts. Stakeholders in each company will have cross holding in the other JVs to ensure that the 3 countries have a participative interest enabling a joint approach to the project's execution.
Iran will lay a 56 inch pipeline upto its border with Pakistan, from where the diameter will reduce to about 40 inch to 48 inch to carry 60 million standard cubic meters per day of gas that would be split equally between India and Pakistan.
NTPCs 2006-07 net profit up by 17.94% YoY
National Thermal Power Corporation Ltd has posted a net profit of INR 1,734.70 crore for the January to March 2007 period, up by 11.46% YoY as compared to INR 1,566.30 crore shown during the same quarter in 2006 while its total income for the quarter has also recorded at INR 9,546.70 crore up by 14.38% YoY as against INR 8,346.40 crore during last year.
NTPC has recorded a net profit of INR 6,864.70 crore for the year ended March 2007 up by 17.94% YoY as compared to INR 5,820.20 crore during previous fiscal year while its total revenues for the year ended March 2007 has increased to INR 35,380.70 crore from INR 29,339.30 crore during the previous year, registering a growth of 29.6% YoY.
The board of directors of NTPC at its meeting held on May 30th 2007 has recommended a final dividend of 8% on the paid up equity share capital.
Gujarat NRE to expand coke capacity to 1.3 million tonnes
PTI reported that Gujarat NRE Coke Ltd has planned to invest about INR 240 crore (USD 60 million) to ramp up its coke production capacity by 20% to 1.3 million tonnes by March 2009 from the present 1 million tonnes. It plans to double its coke making capacities at Dharwad in Karnataka with an investment of INR 70 crore and is also investing INR 15 crore in setting up a coal washery at Bhachau in Kutch district of Gujarat.
GNCL is also planning to put 3 commercial power plants in Gujarat with a capacity of 15 MW each at Jamnagar, Bhachau and Dharwar and would be operational in the next 18 to 24 months.
Mr Arun Kumar Jagatramka vice chairman and MD of Gujarat NRE Coke Ltd told PTI that "We plan to invest about USD 60 million to ramp up our India operations by over 30% in the next 2 years apart from investing heavily in our overseas operations. He added that "We would be putting the power plants for using the excessive energy produced during the production of coke."
Gujarat NRE Coke is also consolidating its Australian and New Zealand operations spread over mining and resource prospecting, acquired last year. It plans of increasing coal production from the current 1 million tonnes to 5.5 million tonnes by 2010 at its first coal mine in Australia's New South Wales and also the coking coal production from NRE Avondale to 1.5 million tonnes per annum by 2010.
Hindalco and Sterlite in race for Alcan Report
HT reported that Indias largest aluminum majors Hindalco and Sterlite Industries are in talks with global firms to separately bid for Canadas Alcan.
HT citing unnamed sources said that Sterlites parent Vedanta Resources plc was in advanced talks with global miner Rio Tinto to form a special purpose vehicle to bid for Alcan. The report added that London based Vedanta will likely invest USD 3 billion to USD 4 billion and Rio Tinto could put in USD 10 billion to USD 12 billion in the JV. A Vedanta spokesman declined comment.
Hindalco Industries Ltd, which earlier this year bought Canadian aluminum firm Novelis for USD 5.9 billion is also reported to be in talks with BHP Billiton for a joint bid but a deal was some distance away. A spokeswoman for Hindalco said it was not the companys policy to comment on speculation.
Reuters had earlier this week reported that Norwegian aluminum group Norsk Hydro and Rio Tinto might place separate bids to trump Alcoas USD 28.5 billion hostile bid for Alcan, a takeover that would create the worlds largest aluminum group.
TATA Powers 2006-07 net profit up by 14% YoY
TATA Power has posted a 14% YoY rise in profit to INR 696.8 crore for 2006-07 while revenue has increased by 4% to Rs 5059.31 crore. The company has reported a 5.9% YoY growth in annual sales to 14,422 million units against 13,616 million units last year.
However, it posted a 33% YoY fall in profit to INR 92.73 crore in the January to March 2007 period when its revenue decreased by 9% YoY to INR 1126.11 crore.
Mr Prasad Menon MD of TATA Power said that TATA Power has debited a tax of INR 181.74 crore from the revenue in this quarter that will be passed to consumers in 2007-08 only. This tax burden has reduced the revenue as well as the profit.
Jas Infrastructure to build 1215 MW power plants in Bihar
Projects Today reported that Abhijeet Groups Jas Infrastructure Capital Pvt Ltd has planned to invest around INR 65 billion to set up a 9x135 MW coal based thermal plant at Navinagar, Lakhisarai, Pirpainti and Banka districts in Bihar.
The project is in a nascent stage and details are being worked out as the state investment promotion board has given in principle approval. The company hopes to get the coal blocks within 3 to 4 months.
An official of Jas Infrastructure said that "We have applied for coal blocks. More details will be known only after allocation of the blocks." Jas Infrastructure has applied for 6 coalfields namely Amrakonda Murgadangal in Birbhum coalfields, Patal East in South Karanpura coalfields, Ashok Karkata Central in North Karanapura coalfields & Ganeshpur in North Karanpura coalfields in Jharkhand and Mahuagarhi in Rajmahal coalfields & Gourangdih ABC in Raniganj coalfields in West Bengal.
Abhijeet Group is mainly engaged in the iron and steel sector. It has forayed into infrastructure and has successfully completed INR 270 crore worth of road projects on BOT basis. More recently, the group announced 2 coal mining pit head based merchant power projects of 810 MW in Jharkhand.
Adhunik Metaliks's 2006-07 net profit up by 130% YoY
Moneycontrol.com reported that Adhunik Metaliks Limited has registered its net sales at INR 735.75 crore in the year ended 2006-07 up by 74% YoY as against INR 423.78 crores in 2005-06. While its profit before tax has recorded at INR 85.77 crore in 2006-07 up by 56% YoY from INR 55.10 crores in 2005-06 and net profit has increased to INR 77.47 crores up by 130% YoY from INR 33.71 crores in 2005-06.
Adhunik Metaliks Limited has reported net sales of INR 188.03 crore and a net profit of INR 21.58 crore during January to March 2007 period against corresponding sales of INR 184.63 crore and net profit of INR 16.90 crore in the last quarter of 2005-06.
Adhunik Metaliks has started its captive power plant, ferroalloy division, vacuum degassing plant and ladle refining furnace and acquired on April 5th 2007. It has also taken 100 % stake in Orissa Manganese and Minerals Pvt Ltd, which is reported to have 15 million tonnes of manganese ore and 35 million tonnes of iron ore reserves.
CVRD estimates that Chinas iron ore imports will exceed forecast
It is reported that China's iron ore imports may exceed expectations in 2007 as rising steel output increases demand. Mr Fabio Barbosa CFO of Cia Vale do Rio Doce said that China may import 400 million tonnes of iron ore about 5% more than previously forecast as its steel output may rise to 500 million tonnes, 30 million tonnes more than forecast.
Mr Barbosa based his estimates on Chinese government tallies of steel production and iron ore imports for the first four months of 2007. Mr Barbosa during an event promoted by finance industry trade group Apimec at S Paulo said that Chinas purchases from overseas reached some 134 million tonnes of iron ore in January to April up by 23.5% YoY as compared to January to April 2006. He added that "There are no signs of a slowdown in May."
Mr Barbosa said that China's economy is growing more than 10% a year, driving up prices for steel, iron ore, coal and other industrial raw materials. Government efforts to slow steel output growth by shutting old inefficient and polluting mills show no effect' and Rio de Janeiro-based Vale may have difficulty supplying enough iron ore to meet China's needs. He said "the market for iron ore is unbalanced and the market will have to adjust to those pressures.''
CVRDs iron ore output will rise by 70% to 450 million tonnes in 2011 from 264 million tonnes in 2006. Its output is expected to rise by 14%in 2007 to 300 million tonnes. CVRD expects to ship 100 million tonnes of ore to China this year a third more than in 2006.
US ITC revokes AD on OCTG form Argentina, Italy, Japan, South Korea and Mexico
The US International Trade Commission determined that revoking the existing antidumping duty orders on imports of oil country tubular goods from Argentina, Italy, Japan, Korea, and Mexico is not likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. As a result of the Commission's negative determinations the existing orders on imports of these products from Argentina, Italy, Japan, Korea, and Mexico will be revoked.
Today's action comes under the five year review process required by the Uruguay Round Agreements Act. The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.
The five year reviews concerning Oil Country Tubular Goods from Argentina, Italy, Japan, Korea, and Mexico were instituted on June 1st 2006.
Klockner acquires a further 18% stake in its Swiss operations
Klockner & Co Aktiengesellschaft has acquired a further 18% in Debrunner Koenig Holding AG from the previous minority shareholder Gebuka AG. With this additional stake, Klockner & Co now holds 78% in the Swiss country operation Debrunner Koenig Holding.
Dr Thomas Ludwig CEO of Klockner & Co AG said that "We are very happy to extend our stake in the very profitable Swiss company, Debrunner Koenig Holding AG."
Debrunner Koenig Holding AG, with its subsidiaries Debrunner Acifer, Koenig Feinstahl, Koenig Verbindungstechnik and Alu Menziken, and 1,900 employees, is one of the leading Swiss companies in the areas of multi metal distribution, reinforcement and construction technology, technical products and fastening technology.
China may witnesses coal oversupply
Xinhua News Agency reported that China's coal industry sees an increasingly obvious overcapacity after a 5 year investment boom eased the energy bottleneck. Chinese National Development & Reform Commission in a newly released report said that according to incomplete investigation, ongoing coal capacities including those under newly construction, reconstruction and expansion, technological transformation and resource integration, amount to some 1.1 billion tons, almost half of China's coal output in 2006.
NDRC forecasted fresh capacities in 2007 and 2008 would increase remarkably and growth of capacity would be faster than that of market demand. China National Coal Association has warned last year end that coal demand across the country would hit 2.5 billion tons in 2010 while current capacities have exceeded 3 billion tonnes.
Mr Zhou Dadi an analyst from Energy Research Institute of NDRC said that "What is worse, led by coal projects, electric power, metallurgy, coal chemical processing and other high energy consuming projects go up one after another." According to Mr Zhou coal projects are set up in some regions, followed by other high energy consuming projects and power generation bases, to pull development of the whole industry chain. This is signaled by low energy utilization efficiency. Many local governments thus expand investment blindly, regardless of macroeconomic situation.
The added value of 6 high energy consuming industries gained 20.6% YoY, 2.3% more than industry growth. Meanwhile aluminum oxide output has increased by 53.7%, steel products by 120%, investment in nonferrous metal industry by 56.5% at 40.4% faster YoY.
(Sourced from MySteel.net)
Consolidated Thompson inks iron ore MoU with a Chinese trader
Consolidated Thompson Iron Mines Ltd announced that it has signed a MoU with a major China based trading company for the supply of iron concentrates. The agreement with the China based trading company is subject to the completion of due diligence, a definitive agreement and all regulatory approval. Consolidated Thompson Iron Mines expects to execute a definitive agreement for the transaction shortly, and until such time the China based trading company has requested anonymity.
Consolidated Thompson Iron Mines Ltd said that it will enter into an exclusive distribution agreement under which the China based trading company will purchase, on commercially reasonable terms, up to 5 million tonnes of iron ore concentrate per year from its Bloom Lake facility, where production is expected to begin in the first quarter of 2009. The agreement is for an initial 5 year term and can be renewed upon mutual agreement. China based trading company could participate in a future equity financing of the Company for up to 5% on a fully diluted basis.
Mr Richard Quesnel president & CEO of Consolidated Thompson said that "We are very pleased to have signed an offtake MoU with such an outstanding partner. This agreement will ensure effective long term access to the world's largest consumers of iron ore for our high quality product. Bloom Lake is an extremely robust project as evidenced by the results of our recent 7 million tonnes per year feasibility study and the signing of the MoU marks a significant milestone in its development."
Consolidated Thompson holds the Bloom Lake Iron Ore Property which is located in the Normanville Township of Duplessis County in the Province of Quebec on the south end of the Labrador. Bloom Lake Feasibility Study Summary has outlined production of 7 million tonnes of high quality 66.5% concentrate per year commencing in Q1 of 2009 at the capital cost, excluding working capital, at USD 333 million. The updated Feasibility Study is based on an output scenario of 7 million tonnes of iron concentrate per year with a mine life of 34 years.
China to become net zinc exporter again
Interfax citing Ms Feng Juncong a Chinese zinc expert at the China International Nonferrous Metals Market Conference 2007 held in Hong Kong reported that China is set to become a net exporter of refined zinc in 2007, due to oversupply pressure and a slowdown in domestic demand. China returned to net zinc importer status in April this year, after maintaining net exporter status for nearly six months since October 2006.
The expert added that despite the Chinese government's decision to introduce a 5% export tax on 1# zinc (>=99.99% and <99.995%) on November 1st 2006 and increase the export tax on refined zinc (2# zinc <99.99%) from a current 5% to 10%, effective June 1st 2007 China will remain a net zinc exporter for the rest of the year.
Ms Feng said that "There will be no change in the 5% value added tax rebate on 0# refined zinc (>=99.995%), which makes up over 65% of China's zinc exports. As a result, we will not see a significant reduction in zinc exports this year." She forecasted that China's zinc oversupply will reach nearly 200,000 tonnes this year.
Ms Feng said that based on first quarter production levels, the average monthly production this year will be up 30,000 to 40,000 tonnes from 2006. Domestic consumption is also set to increase 270,000 to 280,000 tonnes this year, from 3.39 million tonnes in 2006. She said that "China produced 3.15 million tonnes of refined zinc in 2006, at an average rate of 260,000 tonnes per month. However, zinc smelting capacity reached 4.3 million tonnes last year. In the past seven years, China's zinc smelting capacity has grown on average 12.8% each year. We predict growth to continue to climb until 2010, when China's total zinc smelting capacity will reach 5.8 million tonnes, up by 45.7% from 2005."
Ms Feng explained that China's rapid capacity expansion has been mainly driven by rising zinc prices, technological upgrades and government policies that encourage new projects above 100,000 tonnes in annual capacity.
Ugitech's new SS bar mill nearing completion
Schmolz Bickenbach Groups US based specialty steels provider Ugitech USA announced that it is on schedule and one step closer to opening its new facility incorporating latest technology in cold drawn bars at Batavia in Illinois. The new production line has been installed in the new stainless bar mill in Illinois. The new facility marks a transfer in technology from the primary steelmaking operations of Ugitech in Europe, to the new facility in the US.
Mr Daniel O Donnell President & CEO of Ugitech said that "The first phase of our plan has cleared the implementation process on time. Our initial production lines for the new stainless bar mill are installed." He said that "It is very satisfying to see our commitment to using a Greenfield approach work out so successfully."
Mr Michael Walsh executive VP of Ugitech said that "The new plant moves our advanced steel technology, products and services that much closer to our customer. That means faster replenishment times and eliminated waste in the supply chain, he explained. Just as important. Mr Walsh added that "it means process control on the finished product is positioned closer to the end user. We are nearing our opening date in this newly expanded role of a producer and we expect to be fully functional in this location during third quarter."
Ugitech USA is a North American distribution arm of Ugitech, a Stainless and Nickel Alloys Long Products division of Schmolz+Bickenbach AG. Ugitech's two flagship products are the Screw Machine Quality bar proprietary finishing technology and UGIMA XL family of stainless machining grades.
Norilsk Nickels LionOre bid Too Risky- Mr Prokhorov
Bloomberg quoted Mr Mikhail Prokhorov a Russian billionaire who holds 22% of OAO Norilsk Nickel as saying that Norilsk's CAD 6.8 billion (USD 6.4 billion) bid for LionOre Mining International Ltd is too risky as nickel prices will drop.
Mr Prokhorov former CEO of Norilsk told reporters that LionOre is a great company and Norilsk started looking at it while I was still in charge, but the price offered is too high.''
Mr Prokhorov added that We need to form new markets and new uses for palladium to build on demand from jewelry and auto makers, Prokhorov said. Palladium and platinum are used to make catalytic converters that help cut car emissions.
Moscow based Norilsk is the largest producer of nickel. Norilsk also produces more than half the world's palladium. It has increased its offer for Toronto based LionOre on May 23rd 2007 trumping a bid from Switzerland's Xstrata Plc.
Mr Prokhorov has set up Unexim Group, an investment fund that holds his stake in Norilsk. Unexim plans to explore for copper, palladium, nickel, zinc and gold in Russia and countries of the former Soviet Union, and may develop projects jointly with Norilsk.
Beijing to have a pollution free Olympic
It is reported that Beijing will shut down smoke belching factories and ban thousands of cars from city streets to improve air quality during next year's Olympic Games. Improving air quality is one of the biggest issues facing Beijing. Despite improvements in the past few years, the city is still regularly blanketed in smog.
Mr Ji Lin vice mayor of Beijing said that other special measures would include a ban on dust causing earthworks at construction sites. He said that CNY 120 billion (USD 15.69 billion) had already been invested in environmental improvements over the past decade and at least another CNY 25 billion would be spent over the next year to clean the city's air.
Mr Ji added that "Beijing attaches high importance to environmental protection and much investment and progress has been made. During the Games we will have stricter measures and some companies will adjust their production time, some will have to reduce production and some will be suspended. We also have to consider what impact these measures will have on people's lives."
Some polluting factories have been given time limits to reduce emissions and others will have restricted operations from August 8th 2007 to 24 next year. Tens of thousands of coal fired boilers, ovens and furnaces have been converted to use natural gas, while 50,000 old taxis and 10,000 buses will be taken off the roads by next August. Action has been taken to ensure that the city's many construction sites do not add to the choking dust in the air, while cement factories and brickyards have also been shut down.
Brazilian president calls for new steel mills to add value to iron ore
Mr Luis Inacio Lula da Silva president of Brazil during the 20th congress of the Brazilian Steel Institute said that Brazilian construction industry is growing up again after 30 years time and employment also go up too.
Mr Lula urged that Brazil's growing economic should be capitalized to build more new steelworks mainly to boost added value on iron ore instead of let CVRD ship out increasing quantity of iron ore to other steel making countries.
Chinas domestic SS consumption forecasts
It is reported that the present rate of stainless steel consumption against the China's total crude steel outputs stands at some 1.4% to 1.5%.
As, it is expected that domestic crude steel outputs will reach some 470 million tons in 2007, and if stainless steel consumption will account for 1.5% of the nation's crude steel output this year, the apparent consumption of stainless steel will be some 7.05 million tonnes this year. If China produces some 550 to 580 million tonnes of crude steel by 2010, apparent stainless steel consumption will linger at some 8.25 to 8.7 million tonnes.
In developed countries, stainless steel consumption accounts for over 2% of the nation's annual crude steel outputs. If domestic ratio of stainless steel consumption against crude steel outputs reaches some 2%, China will consume 11 to 11.6 million tons of stainless steel by 2010. At present, stainless steel consumption averages some 4kg per person in the world; some 6 to 9kg per person in developed countries; some 4.6kg per person in China.
China's stainless steel consumption per head will continue to increase along with the quick growth of China's economy and diversification of stainless steel consumption. If the consumption rises by 10% per year, it will reach some 6.7kg per person by 2010. If China's population touches some 1.4 billion, stainless steel consumption will add up to some 9.38 million tonnes by then and to some 10.74 million tonnes with average consumption of 7.67 kg per person by 2012 if the consumption has a growth of 7% per year.
It is expected that domestic apparent stainless steel consumption will remain at some 6.8 to 7 million tonnes in 2007 and some 8.5 to 11 million tonnes in 2010.
(Sourced from MySteel.net)
EBOR GmbH to expand capacities
It is reported that Sachsenheim based EBOR GmbH is all set to build a new production facility and increase its capacities. The new expansion will begin this summer and is due for completion in 2008. The total investment in the expansion of finishing and processing capacity is around EUR 14 million.
Half of the newly acquired land will be used to build 2 further production shops covering an area of 4,300 square meters. EBOR GmbH has bought around 1.85 hectares of land in the Holderbschle II industrial zone for the purpose. Before the contract was signed, Sachensheim district council had to modify its development plan to allow a 216 square meter public area to be built on by EBOR. With the approval of the city, EBOR can combine the newly purchased site with land already in its possession, which will significantly improve logistics for the company.
EBOR has been active as a service center in Sachsenheim since 1982 and in 2002 it was taken over by ThyssenKrupp Stainless and integrated into ThyssenKrupp Nirosta. EBOR began specializing in the finishing of stainless steel flat products at an early stage and has become a major supplier to the appliance, process equipment, medical and automotive supply industries. Last fiscal year, EBOR generated sales of roughly EUR 60 million and shipped around 25,000 tons of stainless flat products.
SSAB borrows USD 8.8 Billion to acquire Ipsco
Bloomberg reported that Swedish SSAB Svenskt Staal AB will borrow USD 8.8 billion in loans to finance the acquisition of Canadian competitor Ipsco Inc.
As per report Citigroup Inc Royal Bank of Scotland Group Plc and Svenska Handelsbanken AB will arrange the loans due in 364 days three years and five years.
SSAB won the right to buy Ipsco, which is based in Lisle Illinois and incorporated in Regina Saskatchewan, for USD 7.7 billion recently.
Stockholm based SSAB which sells most of its steel in Europe will generate almost half its revenue in North America after the takeover.
LOI completes Cascade Steel RHF revamp
Pittsburgh based LOI Inc reported that a new adapt hot skid system has been installed successfully for a reheat furnace update at Cascade Steel in McMinnville to reduce both the thermal skid mark in the billets and the water consumption as compared to the old skid system.
The revamp included double offset long skids, to ensure that the reduction in the thermal skid mark would meet Cascade's expectations, in addition, the engineering group details, its design reduced billet heat loss to the cooling water, resulting in more heat to the billets.
McMinnville based Cascade Steel is an electric arc furnace steel manufacturing plan. Cascades melt shop includes a 108 tons capacity electric arc furnace and a five strand continuous billet caster. Its products include concrete rebar, merchant bar, coiled rebar, wire rod and special sections.
Russia increases crude steel output in by 6.6% YoY
Interfax citing Russian Federal State Statistics Service reported that Russia has raised crude steel output 6.6% YoY in January to April 2007 to 24.39 million tonnes.
Russias converter steel output rose by 1.6% YoY to 14.036 million tonnes and electric steel output grew by 30.1% YoY to 6.118 million tonnes while pig iron production has rose by 0.4% YoY to 17.321 million tonnes.
Russias finished roll production was up by 6.6% YoY to 20.008 million tonnes including YoY growth of 2% to 8.372 million tonnes of flat products, 10.3% YoY to 11.469 million tonnes of long products and 17.9% YoY to 36,000 tonnes of stainless steel.
US raw steel production in last week down by 6.2 % YoY
American Iron & Steel Industries reported that in the week ending May 26th 2007 USs raw steel production was 2.076 million net tons while the capability utilization rate was 86.8% production was 2.215 million tons in the week ending May 26th 2007 while the capability utilization then was 92.5%. The current week production represents 6.2 % decrease from the same period in 2006.
Production for the week ending May 26th 2007 is down by 0.4% from the previous week ending May 19th 2007 when production was 2.085 million tons and the rate of capability utilization was 87.2%.
Adjusted YTD production through May 26, 2007 was 41.830 million tons at a capability utilization rate of 84.4 %. That is a 7.1% decrease from the 45.068 million tons during the same period 2006 when the capability utilization rate was 90.2 %.
AISIs estimate is based on reports from companies representing about 75% of the USs raw steel capability and includes revisions for previous months.
SS plate and nickel price likely to increase MEPS
MEPS reported that hot rolled plate transaction values moved up again this month in all regions as a result of further raw material price rises. MEPS said that hot rolled plate selling values are expected to continue their upward path over the next few months. Basis figures are forecast to slip slightly in both the EU and North America.
Chinese exports volumes are significantly lower for plate than for hot rolled and cold rolled coil. MEPS said that As such transaction prices in all regions should not experience the same level of negative pressure and could record greater gains. Rising nickel prices are still predicted to take their toll on the market. Plate values are forecast to stabilize over the summer months in all regions before moving downwards.
MEPS also said that average monthly nickel prices moved up further in May 2007 but still remaining close to the USD 50,000 per tonne mark. This is due to Norilsk being unable to ship until mid June 2007 as a result of a port closure. MEPS said that The second half of the year is then forecast to record sharper declines as slowing nickel demand from stainless steel mills in all regions takes its toll. Nickel inventories on the LME rose to their highest level since July 2006 with stocks over the past three months showing a definite upward trend.
Corus employee group examining TATA Steels financing plans
Het Financieele Dagblad reported that the Corus Group employees council is starting an investigation to determine whether TATA Steel has sufficient capital for investments after taking over the Corus. As per report the employees council is concerned about the high interest payments and debt that will develop due to the takeover.
The Dutch daily reported that the extent of the debt was revealed in an internal document that the council was sent by Corus Nederland management requesting advice from the employees council about the takeover. the newspaper said that the works council expects to give its advice to Corus Nederland in six weeks time,.
According to the report Ernst & Young will carry out the investigation while an advice bureau has been commissioned to investigate the legal structure arising from the takeover.
Exxaro to buy coal export right at RBCT from BHPB
Exxaro Resources Ltd announced that it has agreed to buy 1 million tonnes of annual coal export allocation at Richard's Bay Coal Terminal from BHP Billiton. Exxaro said in a statement that the additional export entitlement at Richard's Bay Coal Terminal will become effective on July 1st 2007. No financial details of the transaction with BHP Billiton Energy Coal South Africa Ltd were disclosed.
Mr Ernst Venter executive GM of Exxaro's coal division said "Exxaro's export entitlement at RBCT is aligned with our growth objectives that include obtaining a strong position in the export coal market."
Exxaro is currently one of the smallest exporters among RBCT's shareholders It exports some 2.5 million tonnes of coal a year through a limited entitlement at RBCT and the annual lease of additional entitlement and its total export quota will rise again by the second quarter of 2009 to 6.3 million tonnes when the 20 million tonne Phase V expansion at RBCT is completed.
BHP Billiton is the largest shareholder in RBCT and the largest exporter with around 24 million tonnes a year of capacity. Export tonnage is apportioned according to equity in RBCT. The industry sources said that BHP had been negotiating the sale of allocation with interested parties since January 2007. BHP has for many years produced less coal in South Africa than it possessed export allocation. BHP has made up the shortfall by buying coal free on rail from smaller producers and those without export access.
Kemerovo governor urges state support for mining industry
Itar Tass reported that Mr Aman Tuleyev governor of Kemerovo region has called for a large scale support of mining sector upgrades. He called for reducing the mining tax, subsiding interest rates on loans, and contribution to increased coal consumption in power generation.
Mr Tuleyev while giving an interview with local paper Rossiiskaya Gazeta said that "It will be very useful if the state takes part in the construction of transport infrastructure, including ports and railways. Our coalmines have a severe technological lag compared with their foreign analogs. At present, depreciation of fixed capital stock at certain mines in the Kuzbass coal mining district reaches 80%. Hence the serious lag & compared with foreign states in safety."
The governor said that "Thanks to their resolute actions, it was possible to achieve the main thing bring people to the surface, prevent recurrent explosions, avoid new fatalities and save the mine from destruction thus keeping jobs."
It is noted that a methane explosion at the Yubileinaya mine killed 38 people and a total of 217 miners were underground at the moment of the accident. 179 workers were safely brought to the surface out of the 39 miners in the epicenter of the explosion, just 1 survived. Following the latest methane explosion, inspectors from the regional department of the Rostekhnadzor Federal Service for Supervision of Environment, Technology and Nuclear Management suspended 14 breakage and 39 development faces after checking 58 coal mines in the province.
Finland approves purchase of LionOre by Norilsk Nickel
FIS reported that, after necessary documentation was filed with the anti monopoly bodies of Finland on May 16th 2007, according to the decision made, the proposal of Norilsk Nickel to LionOre's shareholders on the purchase of the company's shares for cash will not give the company a dominating position or strengthen its dominating position and, therefore, will not affect competition in the Finnish market.
Outokumpu participated in the IPO of Talvivaara project
It is reported that Outokumpu has participated in the IPO of Talvivaara Mining Company Ltd by subscribing approximately 10.9 million shares resulting in a 4.9% ownership in the company on a fully diluted basis with a total consideration of some EUR 32 million. The IPO of Talvivaara Mining Company Ltd has now been completed and the listing of the shares has started on the London Stock Exchange.
As per report Outokumpu divested the Talvivaara exploration project in 2004 and held an option to subscribe shares with a 20% discount in a possible IPO representing up to 5% ownership in the company.
As announced earlier, it has also exercised its option part of the divestment agreement to acquire a 20% stake in the Talvivaara nickel mining Project Company owned by Talvivaara Mining Company Ltd for a total consideration of one euro.
Talvivaara Project Ltd will be consolidated in Outokumpu's consolidated income statement as an associated company reflecting Outokumpu's 20% holding. The fair valuation of Outokumpu's 20% stake is estimated to result in a non recurring gain in excess of EUR 100 million which will be booked in financial income in the Q2 2007 and is estimated to start production of nickel and other metals at the end of 2008. Its target is to gradually ramp up its nickel output to some 33,000 tons annually.
Peabody Energy opens office in London
Peabody Energy announced that its global sales and trading subsidiary, Peabody COALTRADE International Limited, has opened a new office in London to further serve its European customer base. The new international trading function will be led by Mr John Hanekamp. Reporting to Mr Hanekamp are director of international trading Mr Alexander Baileff and recently hired coal trader Mr David Powell.
Mr Gregory H.Boyce president & CEO of Peabody said that "Europe is the largest and most liquid of the global coal trading markets." He said that "Peabody is a premier global coal producing and trading company, and our European office supplements activities in China, Australia, South America and the United States."
Peabody Energy is one of the world's largest private sector coal company, serves more than 400 customers in 20 countries from a global portfolio of operations. Peabody sold 248 million tons of coal in 2006 and generated USD 5.3 billion in revenues. Its coal products fuel approximately 10% of all US electricity generation and more than 2% of worldwide electricity.
