September, 20 2007
POSCO and Nagarjuna to build SAIL ISP BF
It is reported that POSCO Engineering & Construction Co and Nagarjuna Construction Company consortium has received a USD 350 million order to build India's biggest blast furnace for Steel Authority of India Limited’s IISCO Steel Plant at Burnpur in West Bengal. The blast furnace will be completed by March 2010.
POSCO Engineering said that the furnace will have the capacity to produce 2.7 million metric tonnes of steel a year and would be based on POSCO technology.
Nagarjuna Construction's share of the order is around INR 1,100 crore.
Kirloskar Brothers takes over management of Kolhapur Steel
Pump manufacturer Kirloskar Brothers announced that it has taken over the management of Kolhapur Steel to meet its captive steel requirements. It would use capacity of Kolhapur Steel for meeting its captive demand to boost production as well as to cater to additional customers.
It would deposit INR 14.86 crore to repay Kolhapur Steel's debt. The share purchase agreement will be executed upon the approval of BIFR
Kolhapur Steel is a firm listed with Board of Industrial and Financial Reconstruction. Kolhapur Steel is engaged in manufacturing of alloy steel castings catering to sugar, cement, steel, pumps, marine, earth moving and other general engineering industries sectors and has a capacity of 300 tonnes per month.
Earlier this month, BIFR passed an order for induction of directors nominated by Kirloskar Brothers on the board of Kolhapur Steel. Kirloskar Brothers would take over the management of the Kolhapur Steel by inducting directors nominated by the company on the steel firm's board, it said.
Move to bar steel exports below domestic price
It is reported that union steel ministry is working to clamp down on exports below domestic price as a part of the national pricing policy that’s now in the works.
Though domestic realizations are higher than those from overseas sales, steel firms have been exporting at lesser than domestic prices to bring down inventories and artificially beef up demand to pave way for price hikes. Many consumer organisations have cried foul on this move and this is what is believed to have led the government to think about a pricing model.
Union steel ministry, though the total quantity of steel exports are yet to be collated, feels that even small shipments at lower realizations were not in the interest of consumers. Mr Ram Vilas Paswan union steel minister said that volatility in steel prices was not in the interest of the consumers and the so called system of benchmarking domestic prices to international prices, as supposedly followed by producers, was flawed.
A sub committee under the steel price monitoring committee is expected to finalise a pricing policy model. A preliminary report submitted by the sub committee has determined that realizations from domestic markets are higher than those from overseas. The price monitoring committee, which was set up early in 2007, raised the hackles of integrated steel producers who perceived this to be a throwback to days of the price control regime.
Indian 2006 scrap import down by 31.6% YoY
YIEH reported that India had imported 3.35 million tonnes scrap in 2006 down by 31.6% YoY.
India’s import destinations with details are
1) Arabia: 601,000 tonnes or 17.9% up by 47.3% YoY
2) USA: 488,000 tons or 14.5% down by 11.6% YoY
3) UK: 467,000 tonnes or 13.9% down by 48.1% YoY
4) Kuwait: 198,000 tonnes up by 6.3% YoY
5) South Africa: 177,000 tonnes down by 9% YoY
6) Belgium: 85,000 tonnes down by 60.2% YoY
7) Singapore: 78,000 tonnes down by 36.5% YoY
8) Japan: 28,000 tonnes down by 24.3% YoY
IPI gas pipeline project hits snags
Pakistani daily The News reported that USD 7.2 billion Iran-Pakistan-India gas pipeline project has hit snags as Iran is insisting that the price of gas should be reviewed after every 5 years, while Pakistan is opposing it, arguing that gas prices under the agreed pricing formula are already linked to the fluctuations in the Japan crude cocktail prices.
A senior Pakistani government official at the ministry of petroleum and natural resources said that “Our experts’ team is scheduled to leave for Iran on September 23rd 2007 to remove this bottleneck.” He added that now our delegation is going to Tehran and the authorities in Iran have also invited Indian experts to discuss this thorny issue.
The official said that Pakistan would not succumb to the Iranian demand. If Indian experts do not turn up, then Pakistan would fight its case alone. In case positive development occurs following technical talks to be held in Tehran, then Islamabad would send another delegation to Tehran in the next month to sign gas sales & purchase agreement.
The official said that all the 3 stakeholders have agreed to the gas pricing formula based on the Japan crude cocktail price. The economic coordination committee has already approved the said formula on April 10th 2007 under which if the price of Japan crude cocktail stands at USD 60 per barrel in the region, then the price of Iranian gas would stand at USD 4.93 million British thermal units. And if the Japan crude cocktail price stands at USD 70 per barrel, the gas price would be at USD 5.56 per million British thermal units.
He explained if the Japan crude cocktail price surges in the market up to USD 90 per barrel and USD 100 per barrel, the gas price at Pakistan Iran border would be at USD 6.56 per million British thermal units and USD 7.06 per million British thermal units, respectively. He said that if the Japan crude cocktail price in the region stays at USD 10, USD 20, USD 30, USD 40 and USD 50 per barrel, the gas price would be of USD 2.04, USD 2.54, USD 3.04, USD 3.67 and USD 4.30 per million British thermal units at the Pakistan Iran border.
The official said that in case the gas sales & purchase agreement was signed, then in the first phase, 2.1 billion cubic feet Iranian gas would be imported that will be equally shared between Pakistan and Iran. The project would be undertaken on segmented approach. In case India, for any reason, does not join the project, Iran and Pakistan would bilaterally materialize the project. The official said under the Phase-II, 5.3 billion cubic feet gas per day would be imported, out of which India would purchase 3.2 billion cubic feet per day gas and Pakistan 2.1 billion cubic feet per day. He added that “The gas would be imported from the Paras gas field in Iran, which has 944 trillion cubic feet gas reserves, the second biggest gas field after Russia. The Paras gas reserves are enough for the next 50 years if the gas of 40 billion cubic feet per day is utilized.”
Under segmented approach, Tehran has started laying pipeline from Paras field to the Pakistan border, as Iran also wants to provide gas to its population living near the Pakistan border. He said that since the route of the pipeline was yet to be decided between the Iranian and Indian border, the cost of the pipeline structure in the territory of Pakistan was yet to be determined. However, he said the cost of laying the pipeline within the territory of Pakistan had been estimated in the range of USD 3 billion. He said that 2 routes of the pipeline were under consideration.
Everest Industries to enter PEB segment
Everest Industries Limited has announced that it is entering into business of design, manufacturing, supply and erection of pre engineered steel buildings.
For undertaking this business, Everest Industries has commenced the setting up of its first plant at Bhagwanpur at Roorkee in Uttarakhand, which will be followed up by other plants based on market growth.
Pre engineered steel buildings are accepted as an alternate to conventional buildings in the construction sector. Most of the industrial, infrastructure and commercial buildings are being made using this technology which saves lot of construction time. This business is in rapid growth mode and this concept is globally accepted. Also the market size is constantly and rapidly growing as more and more people are converting from conventional buildings to steel pre engineered buildings.
Everest Industries has been in the business of providing building solutions and products for over 7 decades in India and is regarded as the pioneer in this business and has built up a premium branding over a period of time.
WB gets 2 shipyard construction proposals from private firms
BL reported that West Bengal Government has received 2 proposals from the private sector for construction of shipyards in the state. One proposal has been mooted by Bharti Shipyard in partnership with Apeejay Group and the other by the Essar Group. Prior to acquisition of land, the state government will firm up the rehabilitation package with the respective promoters.
Mr V Kumar MD of Bharti Shipyard and Mr S Bhattacharyya vice chairman of Essar Group, were recently in connection with the presentations of their respective project proposals before the state government. Sources close to Apeejay Group confirmed that it was negotiating the shipyard proposal with Bharti though the details were still to be worked out.
Mr Nirupam Sen minister for commerce & industry of West Bengal, Mr S Sen director of industries, Mr MV Rao MD of West Bengal Industrial Development Corporation, Mr D Som and Mr Lakshman Seth, MP, among others, were also present at the presentations.
The locations for the 2 shipyards are believed to have been tentatively identified. While the one to be set up by the Bharti Apeejay combine is to be located at Badur, which is close to the confluence of Haldia and Hooghly rivers, in East Midnapore district, the other one is likely to be located anywhere between Kulpi and Sagar Island in South 24 Paraganas district, though the promoter is believed to have shown preference for Sagar Island.
The Essar Group is to start survey for the project in October 2007. The cost of each project is estimated at INR 2,000 crore and the land requirement at 400 acres.
HZL to set up production unit in Uttarakhand
Mint reported that Vedanta Resources Plc’s subsidiary Hindustan Zinc Limited is planning to set up a 365,000 tonne unit at Hardwar in Uttarakhand to produce zinc ingots and galvanized grade alloys for the automobile and telecommunications tower sectors in a state that provides significant tax incentives for new factories. The project will cost between INR 200 crore and INR 230 crore.
The first phase will produce 210,000 tonnes of zinc ingots and begin operation by March 2008. Part of the unit will be dedicated to making CGG, or continuous galvanized grade alloys. The project is expected to employ up to 200 people. Some 385,000 tonnes of zinc cathodes will be transported from its Rajasthan plant.
State Infrastructure and Industrial Development Corporation of Uttaranchal offers a 100% tax holiday on central excise for 10 years and 5 years exemption from income tax. Large companies that are setting up plants will have to pay 30% income tax from the start of the fifth year, while small companies will have to pay 25% for the same period until the end of the term.
JSW Bengal Steel to seek SEZ status for Salboni plant
PTI reported that JSW Bengal Steel will seek special economic zone status for its 5,000 acre steel plant to be coming up at Salboni in West Bengal.
Mr Biswadip Gupta MD of JSW Bengal Steel said that in house discussions were on for seeking SEZ status for the plant with an annual production capacity of 3 million tonnes.
He added that initially, the installed capacity of the plant would be 3 million tonnes a year, involving a cost of INR 10,000 crore. Later, it would be ramped up to 10 million tonnes at an outlay of INR 35,000 crore and 35% of the products would be exported.
The foundation stone of the plant was expected to be laid in November 2007. It is noted that 90% of the land was being given by the state government and the remaining was being purchased directly from the locals.
Mr SS Tripathi assumes charge as new CMD of DCI
Exim India reported that Mr SS Tripathi has assumed charge as CMD of Dredging Corporation of India last week.
Mr Tripathi joined Visakhapatnam Port as a pilot in 1986 and rose to be the head of the marine department in November 2000. Since then, he has been working as deputy conservator of VPT till his present prestigious job at DCI. He said that he was very happy to assume his high responsibility position.
Dredging Corporation of India is engaged in capital dredging for the Sethusamudram ship channel project.
Center to re invite bids for Tilaiya UMPP
It is reported that union government has decided to re invite offers for the ultra mega project at Tilaiya in Jharkhand. The report cited a senior power ministry official as saying that “The existing request for qualification stands cancelled.” He added that this has been done to accommodate the new tighter norms for eligibility introduced after the dispute over the Sasan project.
Union government had already completed the first stage of the bidding process in April 2007 and declared 10 companies qualified bidders eligible to put in a price bid for the 4,000 MW pithead coal based project. These bidders will have to apply again.
According to the official, scrapping the process was necessary following a recommendation of the empowered group of ministers, which sought to plug the loopholes in the bidding documents that emerged as the bids for the Sasan project were being evaluated.
Industry officials feel that the re bidding would provide an opportunity to join the race again for those who lost out in the first round. Lanco Infratech, for instance, is keen on the Jharkhand project, having lost the Sasan project.
WB allotted land to McNally Bharat for production unit
Civil engineering firm McNally Bharat Engineering Co Ltd said that it has been allotted 25 acres of land by the West Bengal government to set up a heavy engineering equipment manufacturing facility.
BALCO gets environment clearance for its 1,200 MW Korba plant
BL reported that Bharat Aluminium Co has recently secured clearance from the ministry of environment & forests for its 1,200 MW commercial power plant in Chhattisgarh. The project is estimated to cost INR 4,810 crore out of which INR 125 crore would be spent on environment protection measures.
Ministry of environment & forests, whilst granting the clearance, observed that the proposed power plant did not involve any forest land and that there was no designated forest area within 10 kilometer from the plant boundary. The public hearing, a precursor to the granting of environment clearance, was held in March 2006.
The coal fired plant comprising 2 units of 600 MW will come up on 355 acres of land in Risda village in Korba district in Chhattisgarh. The plant's coal requirement, estimated at 19,600 tonnes per day, will be fulfilled from south eastern coalfields Ltd and the water will be sourced from Hasdeo river.
AP to provide land to Anrak for a new alumina plant
It is reported that Andhra Pradesh government is planning to provide 2,000 acres to the UAE based company Anrak for setting up an aluminium plant entailing INR 9,500 crore investment. Anrak has appointed Mecon Ltd for preparing the feasibility report for the proposed alumina plant.
The proposed plant will be set up in Narsipatnam mandal of Visakhapatnam district where there is plenty of bauxite. The state government has approved the proposal and directed the district joint collector of Visakhapatnam to identify required land and acquire it.
Anrak has signed a MoU with Jindal South West Steel Ltd which is setting up a similar project in the same district. The AP mineral development corporation will supply bauxite to both Jindal and Anrak projects. The mines department of the central government has insisted that the supply of bauxite should reach all companies setting up plants that require raw material. The Jindal South West Steel Ltd project will have a refinery unit of 1.5 million tonnes per annum and a smelter unit of 0.25 million tonnes per annum.
Andhra Pradesh industrial infrastructure corporation Ltd will acquire the land and sell it to Anrak for setting up the plant, ancillary units, and housing colony.
Goa to invite EoI for gas based power plants
It is reported that Goa government will invite expressions of interest from interested firms for setting up 2 gas based power plants of 250 MW each in the state.
Goa government has requested Gail India Limited to extend the Dabhol to Bangalore pipeline at Belgaum to meet the state's gas requirement. Meanwhile, the state power department has decided to undertake repair work of all streetlights in the state.
Tenaris eyeing 43% hike in 2007 revenues to USD 11 billion
Mr Paolo Rocca chairman & CEO of Tenaris said that it is expecting an acquisition to help boost 2007 revenues by about 43% to near USD 11 billion. He added that results for Tenaris will include Hydril, a connection and pressure control products maker. The Hydril purchase was completed in May 2007.
Mr Rocca said that "Tenaris is navigating at the level of USD 11 billion of sales, with an EBITDA ratio over 30%. We hope that if demand picks up in Canada there could even be an improvement in EBITDA margin."
Mr Rocca also said that Tenaris may become a supplier for the Shtokman field in Russia, given Gazprom's increasing role in the field. He added that on the development of energy resources in the Arctic is an issue that concerns the very long term.
Tenaris is the supplier of the consortium which is developing the field. The Kazakhstan government has complained about the delays regarding the exploitation of the giant oilfield, which was initially due to start operations in 2005 and has been delayed to 2010.
Luxembourg based Tenaris is controlled by Argentine conglomerate Techint and its shares are listed in Buenos Aires, Milan and New York.
MEPS forecast for flat products
MEPS reported that EU Average Hot Rolled Coil transaction price remained stable over the summer months. This was due to a lack of activity in the market, although orders are now starting to return. In the short term, values are not expected to decline because supply may tighten. However, no upward movement is anticipated during the fourth quarter due to occurrences of de-stocking in some member states.
MEPS said that in the New Year, Hot Rolled Coil figures are predicted to rise as mills attempt to pass on increases in raw material costs. In the second quarter of 2008 we expect the largest of these gains to be recorded as the anticipated upsurge in iron ore prices comes into effect. This could result in 2008 transaction values moving above those seen in previous peaks over the last 10 years. The threat of imports should also reduce further as the Chinese government continues in its efforts to curb exports. Next year could, therefore, be a record high for Hot Rolled Coil prices.
MEPS added that EU Average Hot Rolled Plate transaction value has moved down marginally since July. This appears to be a minor slip caused by higher Chinese imports over the last two months. Transaction figures are still expected to continue on their upward path over the forecast period as demand remains strong and supply tight from most EU mills. Fourth quarter prices should, however, be relatively steady as elevated stocks work through the supply chain. In period two of 2008 we predict slightly higher price rises as the increase in raw material costs are added.
Brazilian iron ore export to China jumps through August 2007
According to statistics of the Brazilian bureau of foreign trade, the country exported 61.56 million tonnes un sintered iron ore to China through August 2007 up 25.7%YoY export value at USD 1.975 billion up by 45% in the same comparison.
Export of sintered iron ore posted 6.61 tonnes in the same period up by 60.7%YoY export value at USD 430 million up by 53%.
Brazilian ore shipment to China also took an increasing ratio out of its total ore export. In specific, un-sintered ore export volume and value to China took up to 43% each a 6 percentage points higher than the same period last year; sintered ore covered 19.3% and 18.4% in volume and value respectively in contrast with 2006 comparable figures of 14% and 13.6%.
(Sourced from MySteel.net)
Minmetals denies buying into a Shanxi Steel Maker
It is reported that toward recently report rumoring China Minmetals Corporation has merged with a Shanxi Province based steel mills to become an integrated trader in steel circle, its spokesman Mr He Jianbo however denied to Shanghai Securities News noting that he has learned from the subsidiary there is no share buying into any steel companies and the group hasn't shown any change in development strategy neither.
Further, the rumor report cites an official with Minmetals Hardware Products Import/export Co as saying, a host of Minmetals subsidiaries are trying to buy into domestic steel plants.
Mr He Jangbo yet said nobody in the relevant subsidiary had an interview with the reporters. So far, Minmetals has only Yingkou Medium Plate Co aside from steel distribution and the upstream business of raw materials. The group has no plan at the moment to ally with steel mills as there are very few choices available now while it may need a big fund. It's focus is on the Yongkou Medium Plate Co.
Minmetals has completed the industrial chain of ferrous metals, integrating upstream resources, mid reach of processing & smelting and downstream marketing network.
The group aims to raise iron ore and coking coal resources to 1.5 billion tonnes and 500 million tonnes respectively in five years, from present 530 million tonnes and 180 million tonnes, president of the group previously disclosed. It further wants to expand output of the medium plate co to 5 million tonnes from 2.5 million tonnes which will produce extremely thick and wide shipbuilding plate.
(Sourced from MySteel.net)
CMC acquires Economy Steel
Commercial Metals Company announced that it has completed the acquisition of substantially all the operating assets of Economy Steel, Inc of Las Vegas. The acquired assets will operate under the new name of CMC Economy Steel and as part of CMC Americas' Fabrication and Distribution segment.
Established in 1980, CMC Economy Steel is a rebar fabricator, placer, construction related products supplier and steel service center.
Mr Karl Gamertsfelder Area Manager Desert States, will assume the role of General Manager and Chuck Darnell, former owner, will serve as Operations Manager for the facility.
Mr Russ Rinn executive vice president of CMC and president of CMC Americas said that "This acquisition fits strategically with our company initiative for growth and expansion into a new geographic market. The purchase will also support the development and operational success of CMC's future micromill in Arizona."
Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic overseas markets.
Taigang to set up stainless JV with TPCO
It is reported that Taigang Group, China's largest stainless steel producer has signed a framework agreement for strategic cooperation with Tianjin Pipe Corporation on September 17th 2007. Under the agreement, both would invest CNY 750 million to set up a 50-50 JV and the former would expand its stake to 51% to 55% after completing the second stage project.
Taigang also intends to extend cooperation with TPCO in seamless pipe sector in the future as TPCO is the world's biggest seamless pipe maker. Taiyuan vows to vault into Fortune 500 and become the world's most competitive stainless producer.
(Sourced from MySteel.net)
Shagang Group may merge Yongxing Steel
It is reported that Shagang Group, China's largest private steelmaker, intends to merge Yongxing Steel, the largest private one in Henan Province. If this comes true, Shagang will take an 80% stake of Yongxing Steel. This will be China's first trans-territory regrouping between two private steelmakers.
Local government in Anyang, where Yongxing Steel is based, has vowed to "promote the regrouping of Yongxing Steel and Shagang Group on August 4th 2007.
As China largest private steelmaker, Shagang Group boasts total assets of CNY 60 billion and can yield 15 million tonnes of iron, 18 million tonnes of steel, 18 million tonnes of steel products and 1 million tonnes of stainless steel plate every year.
Yongxing Steel reported sales revenue of CNY 3.8 billion in 2006, ranking the 46th among the country's private steelmakers.
(Sourced from MySteel.net)
Japanese H beam price hits 25 Year High in Tokyo
It is reported that Japan’s H beam market price increased by JPY 1,000 to JPY 80,000 per tonne for base size with 200mm by 100mm width last week hitting 25 year high.
Japanese distributors try to pass markers' hike though the increase pace could slow down due to slower demand. However, the strong pressure by makers and distributors could keep the increase tone for the market.
Panzhihua Steel to streamline steel assets into listed arm
Interfax reported that Panzhihua Iron and Steel Group Company a leading steelmaker in southwestern China intends to streamline its steel assets into its Shenzhen-listed subsidiary, Panzhihua New Steel & Vanadium Company Ltd.
Pangang's steel assets are currently split between three listed subsidiaries, namely PSV, Pangang Chongqing Titanium Industry Co. Ltd and Pangang Sichuan Changcheng Special Steel Co Ltd which has led to relatively high costs and low efficiency.
According to a Shanghai Securities News report, Pangang plans to transfer all its steel assets to PSV in order to improve competitiveness, and will keep in line with guidelines from both the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission.
Chongqing Titanium official who asked remain anonymous said "The group's scheme to combine all steel assets into one listed company hasn't been entirely nailed down yet. The group in still working on the scheme and once an initial plan is formulated the three listed subsidiaries will resume trading again.
Pangang's listed subsidiaries, PSV, Chongqing Titanium and Changcheng Special Steel suspended trading on August 13th 2007 due to the asset listing scheme.
Pangang is also in the process of carrying out a 5% cost reduction program for this year consisting of technical upgrades as well as increased coordination between raw material supplies, production, transportation and sales.
Chongqing Steel to invest CNY 1.9 billion in thick steel plate project
Chongqing Iron & Steel Group has announced to invest CNY 1.9 billion to a thick steel plate project recently. The project is designed to produce 1.3 million tonnes steel annually, mainly steel plates with a width of 1,500mm to 1800 mm.
Chongqing Iron & Steel Group said that CNY 1.87 billion will be invested in fixed assets and CNY 30 million will go into floating assets. The investment comes from its own capital and financing from banks. The construction of the project will start in 2007 and finished in 2009 with a constructing period of 22 months. It is located in Changshouyan Industrial Park in the city.
According to the statistics, China sees increasing demand for thick steel plates as shipbuilding, infrastructure construction and equipment manufacturing industries are growing rapidly in recent years. It is estimated that China will consume 86 million tons of medium-and-thick steel plate by 2010.
Chongqing Steel is a major steel manufacturer and medium and thick steel plate supplier in China. 60% of its products are sold in Chongqing and northwestern regions. The new project will integrate its advantages in production, management and customer resources as well as providing sufficient supply of medium-and-thick steel plates to customers in northwestern region.
EU flat steel products price upturn after summer holiday- MEPS
MEPS reported that activity is slowly returning to the EU market after the dormant summer holiday period as the quantities of imported strip mill products arriving in Southern Europe dropped during August 2007. MEPS said that “EU customers are expecting import price offers to be higher during the autumn because of an anticipated decline in availability from China and a need to recover escalating raw material costs. Nevertheless, some local prices have slipped during the vacation. EU producers still appear undecided regarding period four pricing and no official announcements have been made so far.”
MEPS said that “Although real consumption remains healthy in Germany, demand on the mills has lost some momentum because of overfull inventories at the distributors. Resale values for strip products are much lower than 5 to 6 weeks ago. As many service centres have sufficient stocks for the next 2 months at least, it is difficult to envisage any increases being secured by the mills for October to December2007.”
MEPS added that “Demand has started to pick up in the French market since the beginning of September 2007.” It added that in Italy, the price falls of early summer have been arrested and producers are starting to look for some small increases. However, competition at the distribution level is quite strong as the destocking process continues and service centres will find it difficult to pass on any mill rises to their customers. Some improvement in activity is anticipated during October 2007.
MEPS said that “The price trend in Belgium appears to be a negative one. Plenty of material is standing in Antwerp port, some of it rusting outside because the warehouses are full. This is partly as a result of insufficient de coiling capacity. Spanish buyers do not want to risk imports at present and are only purchasing small lots from the local mills.”
MEPS also noted that the UK market has been quiet since mid July 2007. Order intake is described as steady but not exciting. Buyers are concerned about the fourth quarter but, so far, there have been no mill announcements. Domestic prices softened over the summer as producers tried to create business during the holidays. However, import values from Asia are now moving up.
Jinchuan raises nickel price as steel producers increase orders China
It is reported that Jinchuan Group Company Asia's biggest nickel producer raised the price of the refined metal for a second time this month on increased demand from stainless steel producers in China.
As per report the price was increased by CNY 6,000 to CNY 245,000 (USD 32,573). Jinchuan supplies 90% of refined nickel in China the world's biggest producer of stainless steel.
Jinchuan Group Company raised the price by CNY 8,000 to CNY 239,000 per tonnes on September 1st 2007.
CCCMC to review iron ore imports from licensed importers
Interfax China reported that China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters is planning to carry out a review on iron ore imports in the first half of 2007 from China's 118 licensed iron ore importers.
SPF to set up JV to complete Kirovohrad metals plant
Ukrainian Journal reported that Ukraine’s State Property Fund has completed an assessment of the property of the state Kryvy Rih Mining and Processing Plant for Oxidized Ores at Dolysnke in Kirovohrad region and on September 20th 2007 plans to sign an agreement on the creation of a joint venture to complete the building of the plant with an investor.
Mr Valentyna Semeniuk head of State Property Fund during a press conference in Kiev last week said that "The assessment of the object has been made, and next week I go the site and will sign the relevant documents."
Shougang starts high phosphorus iron ore project in Hubei
It is reported that Major Chinese steelmaker Shougang, has started construction on a high phosphorus iron ore development project in Yichang in central China's Hubei province on September 15th 2007. The Yichang government signed an agreement for the project with Shougang last year.
According to a government source Shougang has registered a new company in Yichang city named New Shougang Resources Holdings to be responsible for the project. The mining area is about 26.88 square kilometers and is believed to contain reserves totalling around 152.9 million tonnes.
The project would include mining and concentrating operations. A local report suggests the two phase project would cost a total investment of over CNY 300 million with the first-phase 600,000 tonnes per year capacity slated to operate from late June in 2008. The capacity would be then expanded to 1.5 million tonnes per year later.
The western part of Hubei province-consisting of Yichang city, Shiyan city and Enshi autonomous state is believed to hold reserves of around 2bn tonnes of high phosphorus iron ore grading over 40% Fe.
Ranger Steel opens a distribution center in New Southern California
US largest independent steel plate distributor Ranger Steel has opened its fourth distribution center in the Los Angeles Basin to serve the west coast and northwestern states. Located in the Inland Empire cities of Fontana and Bloomington, California, the five acre center was chosen for its rail facilities and access to major highways.
Ranger's new California facility initially will stock 10,000 to 15,000 tons of steel plate. Dalton Logistical Services, in a joint venture with Ancon Transportation, is handling operations and transportation services for Ranger at the new center. The company plans to open its own California sales office within the year.
Mr Ron Whitley president of Ranger Steel said that "For many years, Ranger has maintained a customer base in the west and northwestern states. The amount of steel we've shipped to these customers has been dependent on market conditions and steel availability. Having inventory on the ground in California puts steel closer to our customers, which helps us serve them better. That's always our goal."
Mr Whitley explained that "With continual restrictions on incoming import steel into the US and the west coast, a void has developed for dependable on ground plate supply. Maintaining a stock distribution center in California will enhance this supply, which is especially needed to meet the ongoing population growth and construction infrastructure demands on the west coast and in numerous western states."
Ranger Steel is one of the largest privately owned steel plate distributor in the United States. Ranger's strategically located distribution centers at the Port of Houston, New Orleans and Tulsa, Oklahoma, serve a wide variety of industries, including ship building, energy, transportation, vessel and heat exchanger, heavy plate fabrication, commercial and industrial construction and storage tanks.
Mr Ken Talbot appointed as non executive director of Sundance board
It is reported that Sundance Resources Limited has appointed coal baron Mr Ken Talbot as a non executive director of the board. The appointment comes after Mr Talbot's investment vehicle Talbot Group amassed a 19.6% stake in Sundance and positioned itself as the company's largest shareholder.
Mr George Jones chairman of Sundance said that Mr Talbot would bring an exceptional track record of success in the carbon steel materials business to the company.
Sundance's flagship is the Mbalam iron ore project in Cameroon, now the focus of pre-feasibility studies and a drilling program. A scoping study completed by Australian based Promet Engineers last year estimated it would cost about USD 2.5 billion (AUD 3.0 billion) to bring on stream. Sundance is also backed by Western Australian multi millionaire Mr Ralph Sarich.
Mr Talbot said that "After visiting the Mbalam site in July 2007 and spending time with Sundance's Australian and Cameroon management team, I very quickly satisfied myself of the potential of the Mbalam Project in this emerging iron ore province. The project is located in a region which is currently attracting strong international interest in the development of major new iron ore projects."
Mr Talbot is the founder and former managing director of Queensland coal miner Macarthur Coal Ltd.
Thyssenkrupp sets November 2nd for groundbreaking Alabama plant
It is reported that Thyssenkrupp, the mega steel manufacturer coming to the state of Alabama has set a groundbreaking date for its plant in southwest Alabama. The date is November 2nd 2007.
The plant will cost USD 3 point 7 billion dollars. Upwards of 30,000 people will be employed during the two years of construction. It will make carbon and stainless steel metals. The plant will be built in the Mount Vernon area just north of Mobile. Once open in 2010 it will employ 2,700 people.
Prosperity Minerals Q1 pretax profits down by 14%YoY
Thomson Financial reported that Prosperity Mineral Holdings a cement manufacturer and iron ore trader in China has reported pretax profits of USD 13.49 million for the first quarter down 14%YoY mainly due to a special tax refund last year, higher coal prices and plant down-time for maintenance.
Prosperity Mineral Holdings said revenues increased 15%YoY to USD 104.39 million and EBITDA was up 11% to USD 18.56 million. It said demand for both cement and iron ore remains strong in China and it expects its results for the financial year to March 31st 2008 to be in line with expectations.
China to allow SMEs to participate in minerals exploitations
Ms Liang Yan deputy director general of department of small and medium sized enterprises under National Development and Reform Commission at the 4th China International Small and Medium Enterprises Fair on September 15th 2007 said that small and medium sized enterprises will be allowed to set foot in the exploitations of some important mineral resources,
According to her, China will encourage, support and guide small and medium sized enterprises to take part in the reform of state owned enterprises and enter fields such as financial service, public service and infrastructure. Ms Liang said that China would improve and perfect multilevel capital market system, strengthen SMEs plate in securities market and expand their direct financing channels.
Mr Zhang Hongli vice minister of Ministry of Finance said on the same occasion that China would map out detailed policies to give priority to products and services provided by SMEs.
So far 12 provinces and municipalities have hammered out SMEs Promotion Law almost all provincial financial departments have set up special funds to support the development of SMEs; credit guaranty agencies for SMEs add up to over 3000 covering nearly CNY 500 billion.
SMEs have been a significant impetus to China's economy. By the end of 2006, there are over 4.3 million registered SMEs in China contributing over 60% of the country's GDP and employing over 43% of working population. In recent years Chinese government has been determined to support SMEs, which are involved in over 70% of government purchasing contracts.
(Sourced from MySteel.net)
Pakistan Steel earns net profit of PKR 2.6 billion
Pakistan Daily Times reported that Pakistan Steel has earned a net profit after tax of over PKR 2.6 billion for the year ended June 30th 2007.
The report added that the accumulated profit is to the tune of PKR 7.5 billion as on June 30th 2007. It was for the first time in its history, Pakistan Steel has achieved a milestone of declaring and paying ‘interim dividend’ of PKR 1 billion.
BHPB to boosts exploration in Indonesia and Russia
Bloomberg reported that BHP Billiton Ltd boosting exploration in countries including Indonesia, the Philippines, Russia and Guatemala on rising demand for nickel used in stainless steel. BHP in a presentation to media in Australia said that “We are making a significant investment in exploration activity.''
Mr Illtud Harri spokesman for BHP's London based said in a telephone interview that a new mine at Ravensthorpe in Western Australia will begin shipping to the Yabulu refinery in Queensland in the first quarter. Ravensthorpe will have annual capacity of about 50,000 tons of nickel contained in concentrate.
Mr Harri said another new mine at Cliffs also in Western Australia will start operating in the first half of next year. No production forecast has been given. He added that BHP which accounts for 16% of global nickel concentrate supply plans other projects in Western Australia including the Perseverance Deeps extension to the Leinster mine and two further expansions to the Mt Keith mine, the world's largest open cut nickel project.
The price of nickel has more than doubled in the past two years because of increased demand for stainless steel products in China, the world's largest consumer of the alloy. Delays and cost overruns at new mines helped push nickel to a record AUD 51,800 a metric ton on the London Metal Exchange on May 9th 2007.
PPI Industries eyeing MYR 150 million project in East Malaysia
It is reported that PPI Industries Sdn Bhd, a wholly owned subsidiary of Wah Seong Corp Bhd, is eyeing to secure MYR 150 million oil & gas project in East Malaysia.
Mr Giancarlo Maccagno deputy MD of Wah Seong Corp Bhd, while addressing at the 25th anniversary of PPI Industries’ celebration at its plant in the Prai Industrial Estate said that “PPI would know the outcome of the bidding by the end of the year. The project requires PPI to produce and coat some 500 kilometer of pipes for an oil and gas project. Should we obtain the project, we will set up a plant in East Malaysia to support the project."
Mr Maccagno said that this was not the first time PPI Industries, which specialized in making spiral welded steel pipes for the infrastructure and water industries, got involved in the oil and gas business. Between 1995 and 2000, PPI Industries produced and coated some 800 kilometer of pipes for a major oil and gas project in Malaysia.
Meanwhile, Mr Yap Wing Chun chairman of PPI Industries said that it was in talks with China Harbour Engineering Corp to supply steel pipes for the second bridge project in Penang. He added that "We presently have about MYR 100 million worth of orders for projects in the country and overseas.”
The overseas projects include the Batu Hijau iron ore mine in Sumbawa in Indonesia, the Binh An project in Vietnam and the grain terminal venture in Adelaide in Australia. In Malaysia, PPI industry is involved in projects such as the Johor Singapore second link, Petronas oil refinery in Malacca, the Kerteh ethylene plant in Terengganu, Manjung power station in Perak and the Penang bridge extension project.
Doosan Heavy wins USD 540 million power plant contract from Indonesia
ANTARA News reported that South Korea's Doosan Heavy Industry Co has secured a USD 540 million order from PT Cirebon Electric Power to build a coal fired power plant in Indonesia. The project is expected to be completed by May 2011.
Doosan Heavy Industry Co said it will undertake engineering, procurement and construction works for the 700 MW facility which will be located at Cirebon in Indonesia.
Samsung Heavy wins USD 1.2 billion order for two drill ships
Yonhap reported that the world's second largest shipbuilder, Samsung Heavy Industries Co has received an order to build two drill ships for USD 1.2 billion as demand for oil prompts companies to spend more on exploration.
Samsung Heavy Industries Co in a regulatory filing, without identifying the buyer said that “The vessels will be delivered by March 31st 2011, to a client from the western Pacific region.”
Record high oil prices and global economic growth are encouraging BP Plc, Total SA and other oil companies to increase spending on fuel exploration and production. That's leading to a fifth consecutive year of record orders for shipyards in South Korea.
Stelco announces details of proposed redemption of floating rate notes
Stelco Inc has announced that pursuant to the terms of the arrangement agreement with United States Steel Corporation, US Steel has specified that Stelco's floating rate notes due 2016 are to be redeemed on the effective date of the proposed arrangement under Section 192 of the Canada Business Corporations Act involving Stelco, US Steel and 1344973 Alberta ULC an indirect wholly owned subsidiary of US Steel.
The released said the Arrangement Agreement will be submitted for approval at the special meeting of shareholders of the Corporation to be held on October 26th 2007. The Arrangement is subject to approval by the Ontario Superior Court of Justice. If approved by shareholders and the Court, the Arrangement is expected to be completed on or about October 31st 2007 subject to the satisfaction of the conditions to closing set out in the agreement between the parties.
US Steel has specified to Stelco that if the Arrangement closes, the redemption amount for each USD 1,000 principal amount of Notes will be the aggregate of USD 1,000 plus all accrued and unpaid interest thereon to but excluding the Effective Date payable under the terms of the indenture governing the Notes plus USD 100 representing the premium payable under the terms of the Indenture, plus 30 days of additional interest in lieu of notice under the Indenture.
Stelco is one of Canada's largest steel companies. It is focused on its two Ontario-based integrated steel businesses located in Hamilton and in Nanticoke. These operations produce high quality value added hot rolled, cold rolled, coated sheet and bar products
