June, 26 2007
RINL awards blower package to BHEL& MAN Turbo consortium
It is reported that Bharat Heavy Electricals Limited has received an order for a turbo blower package worth INR 1.06 billion (USD 26 million) from Rashtriya Ispat Nigam Limited. The order will be executed by BHEL in coordination with Germany's MAN Turbo in 28 months.
The package would be installed at RINL’s Vizag Steel Plant as part of the ongoing expansion project to raise its capacity to 6.3 million tonne per annum.
MAN Turbo will supply the turbo blower, which would generate compressed air at a high pressure to enhance combustion in the blast furnace.
BHEL’s scope of work in the project envisages manufacture and supply of a 45MW steam turbine with associated auxiliaries and balance of plant, in addition to site erection and commissioning of the complete turbo blower package. BHEL’s units at Hyderabad and Bangalore will supply the equipment.
The consortium’s offer was found techno-economically more superior than its Chinese competitor.
Government to develop INR 4000 crore POSCO highway
Times News Network reported that the union government has decided to develop 600 kilometer of highways to provide connectivity for the POSCO’s proposed 12 million tonne capacity steel plant in Orissa. The road connectivity project would facilitate movement of iron ore from the mines to POSCO’s steel plant.
An official in the ministry of shipping, road transport and highways said that “The preparation of detailed project reports for the highway projects is almost complete and they will be awarded by October 2007.”
The INR 4,000 crore highway is part of phase-III of the National Highways Development Program and would be constructed on built operate transfer model and would be completed by 2010. The POSCO package consists of 7 road stretches, including Panikholi-Keonjhar-Rimoli on national highway-215 and Chandikhole to Duburi on NH-200 and the Cuttack to Paradip state road, jointly funded by the Orissa government, Paradip Port Trust and the roads ministry, will also help serve the transport of goods to and from POSCO’s steel plant.
The official said that “NH-215 and NH-200 will be specifically geared to carry iron ore traffic. The roads will serve Orissa’s industrial requirements for upcoming projects in the state, but POSCO will be the biggest beneficiary.”
PSL emerges as lowest bidder for IOC Dadri Panipat pipe line
PSL Ltd announced that it has emerged as the lowest bidder as Indian Oil Corporation opens the price bid for its first gas pipeline from Dadri to Panipat for pipes of 30" diameter.
The project cost is approximately INR 165 Crores.
PSL release said that “Receiving this order will be a step further with the Company's association with Indian Oil Corporation.”
PSL's un executed Order Book on receipt of this Order will exceed INR 2400 Crores.
PSL is engaged in various types of pipe coating and pipe manufacturing activities at Daman, Nanichirai, Vishakhapatnam, Chennai and Kandla. In coating business, PSL undertakes coal tar enamel coating, internal epoxy coating and three layer polythelene coating. These coated pipes are used for transportation of gas, oil water and petroleum. In the steel pipe industry, the company focuses on both oil & gas and the water pipeline industry.
5 feared killed in mine roof collapse in abandoned BCCL mine
Ranchi Express reported that 5 persons, including a woman and a minor girl, are feared to have been buried alive, when the roof of an abandoned coalmine at Chandmari colliery area of the Coal India Limited’s subsidiary Bharat Coking Coal Limited caved in on Saturday.
As per report, the deceased were engaged in illegal mining of coal when the disaster occurred.
However, neither the police nor the BCCL authorities, confirmed the incident. The local police official said "We are unaware of the incident. We have received no complaints with this regard so far." He added that he would look into the matter and take necessary steps if it were found to be true.
Man Industries bags INR 220 crore export orders
PTI reported that Man Industries has bagged export orders worth INR 220 crore from various companies including Malaysia based oil and gas major Petronas. The order from Petronas is for supply of Longitudinal Submerged Arc Welded pipes.
Mr KG Mantri senior VP of corporate affairs of Man Industries said "With these new orders, the order book position stands at INR 2,400 crore. In addition to this, the company has bid for several large projects globally for around USD 1 billion and expects to improve the order book position substantially in the coming months.”
After commissioning of a line pipe and coating complex at Anjar in Gujarat in 2005, Man Industries has a total installed capacity of over 2,500 kilometers of line pipe and over five million square meters of coating systems every year. It is already in advanced stage of adding two more production lines at its Anjar complex, one of which would be commissioned in the next month and the other one in second half of the current year.
India's biggest uranium processing plant inaugurated
It is reported that India's biggest uranium processing plant was inaugurated by Mr Anil Kakodkar chairman of Atomic Energy Commission at Turamdih on the outskirts of Jamshedpur in Jharkhand. Mr Kakodkar also inaugurated the Banduhurang open cast mine and laid foundation stone for UCIL's proposed Mohuldih uranium mine located in the Saraikela-Kharswan district of the state.
INR 350 crore plant, built under Uranium Corporation of India Limited's ongoing uranium augmentation program, is the second processing plant of UCIL, a public sector undertaking of Department of Atomic Energy. The plant has uranium ore processing capacity of 3,000 tonne per day. The uranium ore extracted from its underground Turamdih and Mohuldih as well as open cast mine at Banduhurang will be processed at the new plant.
The capacity of UCIL's first processing plant at Jadugora, inaugurated in 1967, is increased to 2,090 tonnes per day from the initial 1,200 tonnes.
UCIL presently operates four underground mines Jadugora, Bhatin, Narwapahar and Turamdih and the Jadugora plant in East Singhbhum district of Jharkhand. While the corporation's first open-cast mine, Banduhurang, would produce 2,400 tonnes of uranium ore per day, the projected capacity of Mohuldih underground mining project was expected to produce 1,50,000 tonne of ore per annum.
RITES led consortium bags Bangalore metro consultancy
Consortium of RITES Ltd, PCI of Japan, PBI of USA and SYSTRA of France has been awarded the work of providing general consultancy services for implementation of Bangalore Metro Project Phase 1 by Bangalore Metro Rail Corporation Ltd. RITES is leader of the consortium. The total value of the consultancy services is about INR 215 crores out of which the RITES’s share is INR 126.50 crores or 58.8%.
Consultants will provide advise on system design to commissioning of the project including its integration with the other modes of transport in Bangalore.
The project consists of 33 Kilometer of the metro network in two corridors, namely East to West corridor of 18 kilometer length and North to South corridor of 15 kilometer length. It includes 7 kilometer of the underground portion and balance as elevated. The project is scheduled to be commissioned by December 31st 2011. The project is partly being funded by JBIC of Japan.
RITES was also involved as consortium member in providing the general consultancy services for Delhi Metro Project Phase – 1 which has been successfully accomplished. RITES is also providing the consultancy services as member of the consortium for Delhi Metro Phase – 2 as well as for the Airport Metro Line.
Bellary Steel update on Jaisinghpur iron ore mine
Bellary Steels & Alloys Ltd announced that all the clearances in respect of Jaisinghpur Iron Ore Mines, for captive consumption are through, except the last mile formalities like affrorestation fees etc, which are currently under the process of compliance by the Company. This is also expected to be completed within the next three months.
The release added that it is also in active discussions with various Carbon Credit Agencies for completion of its captive 12 MW Power Plant. The balance work is being taken up for completion and the plant is expected to be completed and go on stream within the next 10 months to 12 months.
Mr B Ramesh Kumar gets Manager of the Year award
It is reported that Mr B Ramesh Kumar chairman and MD of National Mineral Development Corporation Ltd bagged the “Manager of the Year” award of Hyderabad Management Association.
Mr S Subba Rao president of Hyderabad Management Association said that "Mr Kumar has been chosen in recognition of his outstanding leadership and managerial skills as exemplified by the exceptional performance of his organization."
Mr GK Pillai appointed as CMD of HEC
Mr GK Pillai has recently been appointed as the new CMD of Ranchi based Heavy Engineering Corporation.
Prior to this, Mr Pillai was the CEO of Fisher Sanmar, Tyco Sanmar and was associated with Instrumentation Ltd Palakkad in various capacities. Mr Pillai did his BE in Electrical Engineering from 1968-1973 from Birla Institute of Technology and Science in Rajasthan.
Established in 1958, Heavy Engineering Corporation is one of the largest integrated engineering industrial complex in India with an excellent design, engineering & manufacturing base. It is engaged in the manufacture & supply of capital equipments, machine tools and spares needed for the core sector industries like steel, railways, aluminum, power, shipbuilding, coal, defense, cement, atomic energy, etc.
Indian railways improves freight performance in May 2007
It is reported that the Indian Railways' freight performance appears to have recovered in May 2007 with goods movement recording a 3.71% growth in net tonne kilometer a key performance indicator, which reflects the combined effect of increase in loadings and distance for which Railways moves goods
Net tonne kilometer touched 41,188 million in May 2007 as compared to 39,715 million NTKM in May 2006. As per report the increase in NTKM was supported by a 7.17% growth in total goods loaded during the month even though Railways had witnessed a 3.45% decline in average lead.
Indian Railways loaded a total of 63.85 million tonnes of goods in May 2007 owing to increased demand for transportation of iron ore for exports, coal, and other goods. The goods for which the Railways saw a drop in demand were fertilizers, food grains and petroleum products. Demand for moving iron ore to ports for exports went up by 71% and Railways loaded 4.03 million tonne in May 2007 as against 2.35 million tonne in May 2006.
Indian Railways was concerned in April as the growth flattened at 0.33% touching 39,552 million NTKM compared to 39,420 million NTKM in April 2006.
Nucor to acquire Magnatrax
Nucor Corporation announced that it has entered into a merger agreement pursuant to which Nucor will acquire Magnatrax Corporation, via the merger of Magnatrax with a wholly owned subsidiary of Nucor, for a cash purchase price of approximately USD 280 million. Finalization of the acquisition will occur after satisfactory resolution of regulatory approvals, discharge by Magnatrax of outstanding indebtedness and other closing conditions. The transaction is expected to close during the third quarter of 2007.
Magnatrax is a leading provider of custom engineered metal building systems for the growing North American non residential construction market. Via its American Buildings Company, Kirby Buildings Systems, Gulf States Manufacturers and CBC Steel Buildings subsidiaries and divisions, Magnatrax primarily sells, engineers and fabricates custom metal building systems, which include primary and secondary wall and roof panels, trim and accessories. Magnatrax also offers architectural metal roofing systems for new and retrofit construction, sells third party metal building components like doors and skylights etc and provides related transportation services through additional subsidiaries and divisions.
Mr Dan DiMicco chairman, president & CEO of Nucor said "The acquisition of Magnatrax is an important growth opportunity for one of our core downstream businesses. Although Nucor is already a major national player in the metal buildings business, the addition of the Magnatrax brands, facilities and, most importantly, people, significantly enhances Nucor's market position."
CCCMC defends Chinese pipe exports to US
China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters defended that China's welded pipe exports to the US are completely in line with market rules and demand and domestic exporters will use every possible legal countermeasure to protect their legal export rights.
A CCCMC Legal Affairs Department official said that "We have been informed that the US ITC has filed an anti damages lawsuit against Chinese welded steel pipe exporters, and will conduct an investigation in the near future. The Department of Commerce has not yet filed any anti dumping or countervailing lawsuits so far."
The official added that more than 20 domestic Chinese steel pipe producers and exporters have pledged to defend themselves against the lawsuits, and both the CCCMC and Ministry of Commerce will afford them every assistance necessary. The official further commented that US authorities have no evidence to support the dumping charges on Chinese welded pipe exports, and all Chinese welded pipe exports conform to international trade standards and play a key role in feeding US market demand.
According to the statement, Chinese enterprises strongly resent the US authorities use of both anti dumping and countervailing investigations into Chinese products, which could be regarded as a breach of WTO regulations.
The statement was an official Chinese government response to the recent request from US steel mills to impose an 88% anti dumping import duty on Chinese circular welded carbon quality steel pipe. CCCMC has repeatedly warned the US government that their abuse of WTO trade dispute measures is not a suitable way to solve trade disputes between the two countries, and is damaging to the long term healthy development of the US steel industry.
According to statistics released by the China’s General Customs Administration China exported 1.24 million tonnes of seamless pipe in January to April 2007 up by 101.38% YoY. Export turnover amounted to USD 1.45 billion up by 107.72% YoY. Export of welded pipe reached 1.53 million tonnes in January to April 2007, leaping by 138.37% YoY while export turnover was up by 171.4% YoY to USD 1.15 billion.
International Ferro Metals ferrochrome facility in SA starts operations
Chinese Jiuquan Iron and Steel Group and its South African and Australian partner’s JV International Ferro Metals Limited has recently commenced operation of a 267,000 tonne ferrochrome facility in South Africa. Project construction began in October 2005 and was completed ahead of the 2 year construction schedule.
The IFM project includes a chromium ore mine with an estimated 25 million tonne reserves and affiliated ore selecting plant with an ore processing capacity of 900,000 tons per year, a pellet plant with an annual capacity of 400,000 tons, two 66 MVA converters and the necessary water and power supply infrastructure.
According to the JV agreement, Jiuquan Steel will purchase 50% of the ferrochrome output to supply its 600,000 tonne stainless steel facility, which includes an operational hot rolling facility and a cold rolling facility that is currently under construction.
IFM was established in 2002 with a registered capital of USD 157 million, at which time Jiuquan Steel was the largest shareholder with a 26.1% stake. IFM raised GBP 80 million to finance the project by listing on the London Stock Exchange in September 2005.
China's auto makers to use 12.55 million tonnes of steel in 2007
Mr Shi Jianhua deputy head of the China Association of Automobile Manufacturers revealed that China's auto manufacturers would consume 12.55 million tons of steel in 2007. The total will include 9.41 million tonnes of flat products and 3.14 million tonnes of long products.
Mr Shi added that China’s annual demand of steel from automakers would increase to 27.67 million tonnes by 2010, including 20.75 million tonnes of flat products and 6.92 million tonnes of long products.
In 2006, China produced 7.28 million motor vehicles, ranking third in the world. It is estimated that China's automotive industry needed 11.82 million tonnes of rolled steel last year up by 19% YoY. The total included 2.96 million tons for car production up 24% YoY, 7.5 million tonnes for truck production up by 18% YoY and 1.36 million tonnes for bus production up by 2.87% YoY.
Mr Shi said that as domestic output still failed to meet demand and imported steel filled the gap.
Macarthur Coal to restart exports from July 2007
Macarthur Coal Ltd's majority owned Coppabella and Moorvale announced that it would restart exports through the Abbot Point Coal Terminal in Queensland from July 2007.
The Queensland coal miner said the JV would look to export up to 560,000 tonnes of coal from the two mines through Abbot Point by the end of March 31st 2008.
The JV previously exported coal through Abbot Point during 2005 and 2006 before construction works put exports from the terminal on hold.
MacArthur Coal said access to Abbot Point would supplement exports through the Dalrymple Bay Coal Terminal where coal producers had received cutbacks in export allocation.
Mount Gibson ships first iron ore parcels to China
It is reported that Mount Gibson Iron has shipped its first two loads of iron ore from Koolan Island in the Buccaneer Archipelago off Western Australia's northwest. Mount Gibson said that almost 150,000 tonnes of iron ore have been sent to southern China in the past fortnight.
Mr Luke Tonkin MD of Mount Gibson said that the project has been under construction for about 18 months. He said “Company is pleased two shipments were able to be exported before the end of the financial year. We expected to get one load out and we expected to commission the lump circuit prior to the end of June, but we were happy to get the second ship out because it's a significant achievement to bring on two circuits.”
Dubai's demand for steel rebar to grow 20% annually
Gulf News citing Mr Vikram Bhatia director of Alam Steel Industries as saying that Dubai's construction boom will boost steel reinforcement bar consumption by 20% annually for the next several years.
Mr Bhatia, whose company inaugurated a rebar facility in Dubai Investment Park last week, said that the emirate's rebar consumption is projected to be about 4 million tonnes in 2007. 60% of rebar used locally is procured through processing plants but this could grow to 80% in the next 2 to 3 years. Mr Bhatia said that "We see more contracting firms using processing plants for procuring rebar as new capacity becomes available.”
Mr Bhatia said that "If construction continues in Dubai at current levels, we will have to expand the plant in a couple of years. Rebar consumption will grow at 20% per annum for at least three years." Mr Bhatia said that the plant's capacity could be doubled in the second phase expansion. He said that it aims to have a 10% share of the local rebar processing market once its plant reaches full capacity.
Alam new AED 30 million plant has a capacity to process up to 300,000 tonnes of rebar per year. It will produce pre cut and bend steel products for the construction industry. The rebar facility will complement our existing businesses and is part of our strategy of moving up the steel value chain.
Alam is also building an AED 50 million facility in Jebel Ali to process long and flat steel products primarily used in the oil and gas industry. It is also building a facility in Sharjah's Hamriya Free Zone to distribute steel products in the Northern Emirates.
Philippines to hike steel import tariff to 7%
It is reported that Philippine government is expected to more than double the tariff on imported steel to 7% as against current 3%.
As per report, Global Steel Philippines Holding has been lobbying for over 2 years for the tariff increase but the Philippine’s government has held off any moves until it could can prove that it is in commercial operation. Last Week, during the technical committee meeting of the Tariff and Related Matters committee, the group has decided that Global Steel is in commercial operations and is therefore entitled to tariff protection as mandated by Executive Order 375.
Mr Thomas G Aquino Trade Senior Undersecretary and concurrent chairman of the technical committee said that they found justifiable reasons to declare Global Steel in commercial operation based on the conditions set by EO 375. He said that “There is basis for the grant of commercial operation. It puts the company in the proper footing in as far as the EO is concerned."
EO 375 authorizes the increase in tariffs of steel products to 7% from the current 3%. The EO authorizes the tariff hike on imported flat-rolled products of iron, or non-alloy steel of a width of 600 millimeters or more, hot rolled, cold rolled, no clad, plated or coated steel products.
Earlier, leaders of the steel industry, especially those in the galvanizing sector, expressed concern that the increase on tariff rates on HRC and CRC as provided under EO 375 will lead to higher prices of construction material. Manufacturers, specifically those in the iron and steel industry, explained that raw materials for the manufacture of reinforcing bars and roofing sheets such as billets, HRC, CRC and zinc are basically imported.
Mr Arthur Florendo, president of Union Galvasteel Corp and the steel industry’s flat products sector expressed concern on the implementation of the tariff hike as it will unduly penalize producers and burden end users.
Leighton bags Middlemount coal mining contract
Leighton Holdings Limited announced that its mining division had been awarded a coal mining contract in Queensland valued at more than AUD 500 million over the next five years.
Under the contract Leighton Contractors will perform bulk and selective coal mining operations at Custom Mining’s Middlemount coal project situated approximately 15 kilometers from Middlemount in Central Queensland.
The company said that the project would commence in the second half of 2007 and would ramp up over five years to produce an expected 4 million tonnes of coal annually. Production from Middlemount will include a mix of hard coking coal and low volatile pulverized coal injection coal.
Japan power utilities start buying SA thermal coal – Report
Reuters reported that a Japanese power generating firm has bought at least one cargo of South African coal for July shipment. Unconfirmed reports mention Japan's biggest coal consumer Electric Power Development Co Ltd (J-Power) as the buyer.
The report cites a shipping executive in Tokyo as saying that "Some utilities have moved to purchase coal from South Africa. While they are sending a ship to eastern Australia, they are getting a spot cargo from South Africa. Otherwise, it could hit their operation, which would cost them hundreds of millions, or even billions of yen.” The executive gave no further details.
The move came as Australian spot thermal coal prices, the benchmark in Asia, hit a record high after two tropical storms disrupted exports from Newcastle port in eastern Australia. AS per GlobalCoal index the price for thermal coal rose by USD 3.11 to USD 66.30 per tonne FOB Newcastle Port in Australia.
NDRC approves Nanjing plan for Tieben Industrial
It is reported that China’s National Development & Reform Commission has given green light to Nanjing Steel Group on completing the Tieben project based at Changzhou City in eastern China's Jiangsu province.
Tieben had its construction halted in April 2004 by the Chinese authorities, after the company actively sought to bypass the central government's approvals' process.
It is believed the local provincial authorities previously invited Nanjing Steel, also based in Jiangsu, to form a new investment group to take over the Tieben project. As part of the change in ownership, Jiangsu Tieben's capacity looks set to shrink from an original design of 8.4 million tonnes to 4 million tonnes.
Evraz board appoints Mr Frolov as CEO
Evraz Group SA announced that subsequent to the resolutions of the annual general meeting of June 20th 2007, Evraz's board of directors has resolved to delegate the daily management of the Evraz's business to Mr Alexander Frolov and appoint him as CEO of Evraz.
The board has also confirmed Mr Frolov's position as the chairman of the board of directors and appointed Mr Dmitry Melnikov as the Secretary of the board effective immediately.
Kazchrome orders second chromite pellet plant from Outotec
It is reported that Kazakhstan based OAO TNK Kazchrome has ordered a second chromite pellet plant from Outotec of, Finland. The new pellet plant, together with a similar one Outotec delivered to the Donskoy mine in 2005 will be the world's largest production unit for chromite pellets. The contract price with services and spare parts is nearly USD 57.2 million.
As per report Outotec will supply the SBS™ Steel Belt Sintering technology, engineering, the main process equipment, automation and electrification, as well as the supervision of equipment installations and commissioning.
The new plant is expected to become operational in mid-2009. With the commissioning of a second pellet plant, the production capacity at Donskoy will double to 1.4 million tonne per year of chromite pellets.
PT Krakatau upbeat on privatization plans
ANTARA News reported that Indonesian PT Krakatau Steel is optimistic about its privatization program although it booked a loss of IDR 135 billion in the 2006. PT Krakatau Steel’s privatization, which was earlier scheduled this year, has been postponed until 2009 because of the company’s condition.
Mr Daenulhay president director of PT Krakatau Steel said that "According to information from the Jakarta Stock Exchange, we lose but could still conduct IPO so long as we remain at development board. Because of the condition IPO would not increase value creation but only reduce the company’s value before investors.”
He said however he had already prepared a clear road map for the restructuring and privatization of the holding company and two of its subsidiaries namely PT KHI Pipe Industries and PT Pelat Timah Nusantara. He said that the management even expects privatization of the two subsidiaries to be able to be done through IPO and strategic partnership. He said "The privatization is a mandate of the shareholders` meeting and therefore has to be implemented.”
Mr Daenulhay said the company in 2006 booked a loss as a result of the high price of raw materials in 2005, which later dropped in the first semester in 2006 because of China’s export discount policy. He said "Much of the operational funds has also gone to energy including oil, gas and electricity. The cost of electricity in the first semester of 2006 reached IDR 162 billion as a result of oil supply decline from Pertamina. He added that "Actually we could lose up to IDR 250 billion but through some corporate action we could limit it to only IDR 135 billion.”
2 killed in Komsomolskaya coal mine in Russia
Itar Tass reported that 2 coal miners died, 3 survived and the fate of 8 miners remains unknown after an incident at the Komsomolskaya mine in Vorkuta in Russia on Monday.
Ms Natalia Lukash Russia’s emergencies ministry spokesperson told Itar-Tass “There was a popping sound in the mine at 21:05 Moscow time resulting in a power outage in two underground workings where work was in progress at that time.”
According to the official, six teams of rescuers are on their way to the trapped coal miners. Specialists and the mine management are trying to find out what exactly happened.
MMX receives permit for Açu Port in Brazil
MMX Mineração e Metálicos SA announced that the MMX Minas-Rio System, operated by it’s subsidiaries MMX Minas-Rio Mineração SA and LLX Minas-Rio Logística SA, received from the National Agency of Waterway Transportation the competent port authority permit which will enable the construction and operation, for an indefinite term, of the multi purpose private port terminal known as the Açu Port.
This permit allows the operation of both the its own as well as third party cargo, as contemplated by the business plan of the its subsidiary LLX Logística SA.
The Açu Port is located in the Municipality of São João da Barra in Rio de Janeiro State of Brazil. It will serve as the export platform for the iron ore produced by the MMX Minas-Rio Integrated System and has the potential to become a new and important operational logistics base for the Southeast Region of Brazil.
4 dead in coal mine fire in Liaoning province of China
Xinhua reported that a coalmine fire has left 4 people dead and 10 others injured in northeast China's Liaoning Province. The fire broke out at about 2PM on Sunday in the shaft of Xinglong Coal Mine located at the Taiping District of Fuxin City.
Local government has ordered the privately owned Xinglong Coal Mine to halt production to look into the cause of the accident.
China import of nickel in April 2007 up by 25% MoM
According to China Customs, China imported nickel for 9,598 tonnes in April 2007 up by 24.7% MoM as compared to 7,649 tonnes in March 2007. China’s nickel exports in April 2007 were 1,288 tonnes down by 33.2% MoM from 1,930 tonnes in March 2007. The main nickel import counties were Canada, Australia, Russia, Finland, Norway, and Taiwan.
In April, China's import of ferronickel was totaled 3,732 tonnes down by 53.6% MoM as compared to March 2007. And its import of nickel ore was some 1.59 million tons showing an increase of 54%.
PT Timah increases tin sales forecast for 2007
Indonesian tin major PT Timah announced that sales of the tin during 2007 would exceed an earlier forecast as an Indonesian crackdown on illegal miners made it easier for the company to obtain raw material.
Mr Prasetyo B Saksono Secretary of PT Timah said sales of refined tin might exceed 50,000 tonnes in 2007 as compared with an earlier company forecast of 48,000 tonne. Mr Saksono said “The crackdown lessens the competition allowing us to buy at a higher quantity so we can produce more.”
Indonesia’s government started a campaign to stop illegal tin mining last October, driving the price to its highest in at least 18 years. From February 23rd 2007 only companies with licenses and those that paid royalties have been able to export refined tin.
Chongqing Steel starts Banan iron ore project
In order to offset rising iron ore import cost, the under relocation Chongqing Steel has turned to domestic market for ore resource and has started work at the CNY 250 million new ore mine in Banan district.
The mine is slated for operation within two years. The project has design annual crude ore output of 400,000 tonnes or 200,000 tonnes concentrate, producing industrial output value of CNY 120 million making CNY 15 million revenue and offering 800 jobs.
Aside from the ore mine in Banan district, Chongqing Steel is also seeking the resource at Nanchuan in Wushan etc to secure ore supply after the relocation. It aims to source 70% of required ore from domestic market in consideration of lower transportation cost.
(Sourced from MySteel.net)
US Steel puts new commercial organization structure for tubular business
United States Steel Corporation announced changes to its tubular products commercial organization structure following the completion of its acquisition of Lone Star Technologies Inc and its related companies. Mr Scott M Dorn has been named GM market development and Mr W Steven Fowler has been named GM commercial. Both positions report to Mr Joseph Alvarado VP tubular operations. The changes are effective immediately.
Mr Dorn will be responsible for tubular product pricing as well as market development and analysis. Mr Dorn began his career at US Steel as a student co op at the company's Mon Valley Works operations near Pittsburgh in 1986 and joined the company full time in 1991 as a process engineer at Mon Valley's Irvin Plant. He was later named manager of US Steel's Lorain Tubular Operations at Lorain in Ohio and moved to US Steel's headquarters in Pittsburgh after being promoted to his most recent position as director-commercial for tubular products in 2005.
Mr Fowler will oversee tubular product sales at US Steel. HHe began his career at Lone Star in 1975 as a sales trainee at the company's Dallas headquarters has been senior VP of sales and marketing for Lone Star Steel Company responsible for directing and managing all sales, business development, marketing and product development activities for line pipe, oil country tubular goods and flat rolled steel products.
Mr Alvarado said "As we work to merge Lone Star's operations into US Steel, we must pay special attention to our customers' needs to ensure their continued satisfaction. Scott and Steve have well balanced backgrounds and significant experience that will aid our transition process and, most importantly, provide stability to the customers we serve."
Malaysian KKB to focus on steel fabrication and water pipes segments
Malaysian daily StarBiz reported that Sarawak based KKB Engineering Bhd will focus on its steel fabrication and steel water pipes businesses for the year ahead, as these two segments have been profitable.
StarBiz cited Mr Kho Pok Tong group chief director of KKB Engineering Bhd as saying that KKB is looking at opportunities within the region and the Middle East and the company's plans would be to further expand its operating facilities within Sarawak. He said that “We hope to sign a MoU by the second half of 2007. Our facilities are limited and we are looking at new locations within Sarawak.”
KKB's core business is in steel fabrication. It is also involved in the manufacture of liquefied petroleum gas cylinders, steel pipes and hot dip galvanizing and civil construction. Its main operations are in Sabah and Sarawak. KKB Engineering’s steel fabrication segment registered sales of MYR 27.11 million in 2006 up by 116.4% while its steel water pipes manufacturing business under units Harum Bidang Sdn Bhd and KKB Industries Sdn Bhd recorded aggregate sales of MYR 29.89 million against MYR 20.06 million in 2005.
Tsingshan to increase production of SS
It is reported that Southern China base SS maker Tsingshan Holding is planning to increase its production ability up to 700,000 tonnes in 2007 up around 200,000 tonnes from 2006. The report added that Tsingshan Holding plans to sell 70% of its products in local market and the balance for overseas.
Tsingshan started a 300,000 tonnes per year HR stainless strip project in 2006. Its flat rolled products occupy a 45% of its total output the rest will be long stainless products.
Tsingshan Holding Group was originated in early 1990s and it’s mainly engaged in making various grades of stainless steel bars, wire rods, sections, strips, thin and super thin wires, seamless pipes and pipe fittings.
China's export imports stats of ferroalloys and ores in 5 months
According to the latest statistics from the country's General Administration of Customs. China's exports of ferrosilicon during January to May 2007 increased by 40.5% YoY to 700,000 tonnes. The value of the ferrosilicon exports also surged by 77% YoY to about USD 540.2 million. China’s ferrosilicon exports in May 2007 totaled 150,000 tonnes at a value of USD 121.6 million.
China’s unwrought manganese exports during January to May 2007 increased by 2.1% YoY to 123,082 tonnes while their value rose by 57.8% YoY to USD 233.5 million. Exports in May were 34,062 tonnes at a value of USD 84.47 million.
China imported a total of 2.29 million tonnes of manganese ore in January to May 2007 up by 19% YoY. The value of imports also rose by 28% YoY to about USD 259.9 million. Manganese ore imports in May were 400,000 tonnes worth about USD 51.47 million.
China’s imports of chrome ore and concentrates rose by 54.7% YoY to 2.4 million tonnes during January to May 2007 while their value surged by 106.5% YoY to about USD 506.17 million. Imports in May alone totaled 520,000 tonne at a value of USD 127.1 million.
Structure steel demand in Japan’s shipbuilding sector to rise by 3.9% YoY in FY 2007
JMB reported that, according to research of 20 members of Shipbuilders' Association of Japan, Japanese carbon steel consumption for shipbuilding and marine structure will be .175 million tonnes during fiscal 2007 up by 3.9% YoY.
The figure could increase more when the builders expand the building capacity.
SDI announces increased revolving credit facility
Steel Dynamics Inc announced that it has amended, restated and expanded its senior secured revolving credit facility from the prior USD 350 million levels to a renewed 5 year USD 750 million facilities. Subject to certain conditions, Steel Dynamics also has the opportunity to increase the facility size by an additional USD 350 million.
The amended facility is guaranteed by certain of Steel Dynamics subsidiaries and is secured by substantially all of its accounts receivable and inventories.
The proceeds from the revolver will be available to fund working capital, capital expenditures, acquisitions, share repurchases and other general corporate purposes.
Canadian CEZ zinc lowers production guidance for 2007
Metals Insider reported that the CEZ zinc refinery at Quebec in Canada has lowered its zinc production and sales targets for this year to 265,000 tonnes and 272,000 tonnes respectively. The new production target marks a downgrade from previous guidance of 275,000 tonnes.
Noranda Income Fund, which owns and operates the refinery, attributed the expected lower production this year to process difficulties in the hydrometallurgical section of the plant.
Production at CEZ in 2006 was 266,430 tonnes down from 272,420 tonnes in 2005, also due to technical issues in the plant.
Fitch puts Raspadskaya on positive watch on potential merger with Yuku
Thomson Financial reported that Fitch Ratings has placed OJSC Raspadskaya's ratings on Rating Watch positive following news of its potential merger with Yuzhkuzbassugol.
The merger would create the largest coking coal company in Russia with a total output in excess of 20 million tonnes of raw coal. Upon completion of this transaction Raspadskaya will own 100% of shares in Yuzhkuzbassugol. The exact terms and structure of the transaction are expected to be finalized in the second half of 2007.
The positive watch also factors in Evraz's plans to take an over 50% stake in Corber a JV entity with Raspadskaya's management.
Fitch said that Raspadskaya's ratings could either be upgraded or affirmed at the current levels. But no rating impact is expected on Evraz's ratings. Fitch has long term issuer default and senior unsecured B+ short term issuer default B and national long term 'A(rus)' ratings on Raspadskaya.
Mr Murakami resigns as CFO of Northwest Pipe
It is reported that Mr John Murakami CFO & VP of Northwest Pipe Co is resigning. According to a regulatory filing with the Securities and Exchange Commission, Mr Murakami told Northwest Pipe last week that he is leaving. The filing did not disclose a reason or when he would leave the company.
Mr Murakami joined Northwest Pipe, which makes welded steel pipe, in 1995 as corporate controller. He was appointed CFO in 1997.
