September, 03 2007
SAIL RSP registers BOF gas based power plant with UNFCCC
It is reported that Steel Authority of India Limited’s Rourkela Steel Plant has got its clean development mechanism project registered by the United Nations Framework Convention on Climatic Change.
The report cited some sources at RSP as saying that the project based on waste heat recovery based captive power project in integrated iron and steel plant was registered at UNFCCC last month. The project aims at enhancing the gas recovery from basic oxygen furnaces of steel melting shop II and its reuse on captive power generation.
Besides eliminating BOF gas flaring, implementation of the project would also help in substantial reduction in use of fossil fuels like boiler coal and furnace oil at the captive power plant which would help Rourkela Steel Plant earn about INR 12 crore to INR 15 crore over the next 10 years.
The sources also said that Rourkela Steel Plant had also adopted energy efficient technologies using quality raw material reducing the usage of fossil fuel and increasing the recovery of waste gases such as coke oven gases, blast furnace gases and basic oxygen furnaces gas that can be utilized in place of fossil fuel.
Fire at Bokaro steel plant causes INR 1 million damage
It is reported that a fire broke out on Sunday in the cold rolling mill of the state owned Bokaro Steel Plant causing damages estimated at around INR 1 million and hitting production at the plant.
Mr BK Thaur chief spokesperson of Bokaro Steel Plant said that "The fire took place at the immersion basement of the Cold Rolling Mill at 4.30 AM on Sunday. The fire was extinguished around 11 AM. But he ruled out the possibility of sabotage. There were no casualties.
On the estimated loss due to the fire, Mr BK Thaur said we are still evaluating the loss. As far as overall production is concerned there is no impact. However, sources in the plant said the fire had destroyed machinery and the loss would be around INR 1 million and repairs will take at least a week.
Mr Thaur said that a technical committee will probe the cause of the fire and suggest safety measures to prevent such incidents. However officials of Bokaro Steel Plant said the cause of the fire was due to technical reasons or short circuit.
Indian steel ministry to promote use of fines
FE reported that India’s steel ministry wants to promote mass pelletization in the next five years to make use of iron ore fines that are currently exported for want of domestic takers.
Mr RS Pandey secretary steel told FE that the ministry has decided to call for investments to set up pellet plants aimed initially at sponge iron makers.
Mr Goutam Kumar Basak executive secretary of the joint plant committee said that “There are 340 sponge iron units across the country with a capacity of 22 million tonnes but producing around 16 million tonnes to 18 million tonnes. If all of them used pellets, which can be manufactured by the owners of sponge units themselves or third parties, it would call for an investment of around INR 13,500 crore to INR 14,000 crore.
Mr Basak said while Indian manufacturers use lump iron ore costing INR 1,100 a tonne to make sponge iron, the Chinese, using Indian iron ore fines costing INR 400 a tonne, have become the world’s largest producers of steel.
SC rejects Jindal plea in tribunal case
PTI reported that the Supreme Court of India has dismissed a petition by Jindal Steel and Power Ltd challenging the Appellate Tribunal for Electricity's order that asked the company to buy 5% of power generated from renewable sources. A bench headed by Justice Mr HK Sema while refusing to give relief, asked the company to file a review petition before the tribunal.
Jindal Steel, while seeking exemption from purchasing the power, stated that it had a surplus and such mandatory order should be imposed only on those licensees which were power deficient. It said it is totally unjust to direct the appellant to purchase even more power when it is already surplus in power.
Mr Nageshwar Rao Senior counsel while appearing for Jindal contended that any increase in power procurement cost would affect the rate it has fixed for power supply to consumers with whom the company had long-term fixed contracts. He added that it is not in a position to pass on the increased cost of purchasing power from renewable sources to its consumers, there being long-term contracts with fixed rates.
Jindal which has an integrated steel plant in Raigarh has entered into long term agreements with certain industries for supply of around 290 MW power at fixed rates of INR 2.50 per unit which is much lower than the rates charged by the state electricity board for industrial consumers.
New Maritime Development Policy to be announced soon
Mr TR Baalu union minister for shipping, road transport and highways recently said that the new shipping policy is awaiting cabinet approval and would be announced shortly.
Mr Baalu said that “We at the centre believe that this will go up significantly with the economy inching towards the 10% GDP growth mark. As a part of this drive, we have identified 276 project ideas and 111 projects in the shipping segment. Of the INR 1,00,000 crore investments planned, INR 55,000 crore would be deployed into expansion, modernization and creation of new ports useful for shipping and the remaining INR 45,000 crore would be deployed into related infrastructure that supports shipping.”
The new policy, referred to as the National Maritime Development Policy, will pave way for major investments in the infrastructure in the shipping and ports segment in India, where the government expects to pump in about INR 1,00000 crore for various projects in the pipeline. Indian government’s effort is to bring about a multi pronged change covering expansion and modernization of ports and its infrastructure, acquisition of higher capacity cranes and container handling equipment and dredging related infrastructure.
Only power and fertilizer to remain under core sector category for coal
BL reported that steel, railways and cement, which are in the core sector category for the allotment of coal linkages, are set to lose their status, with only power and fertilizer sectors set to be classified under core sector category in the new coal distribution policy. In addition, apart from changing the status of sectors, the existing system of e bidding for non core producers is set to be done away with.
As per report, the policy is aimed at overhauling the guidelines for the allotment of coal to various sectors, has been cleared by Dr Manmohan Singh prime minister of India.
A senior official in the coal ministry said that “There are some modifications that have been made by prime minister, but it is too early to elaborate on what the changes are. But in the new policy, only power and fertilizer sectors will be considered as core sectors for the purpose of awarding coal linkages. This plan is to give assured supplies to only those sectors that have to sell their products in a controlled price regime, given the increase in demand for coal linkages.”
The official added that the new policy would be notified within a couple of weeks. Since only the power and fertilizer sectors operate in a market where the prices are controlled by the government rather than being determined by demand and supply, it has been decided that they would continue to be in the core sector.
On the other hand, those in the non core sector will be able to purchase coal through e auction. The e auctioning system was discontinued in December 2006 after the Supreme Court raised questions on the transparency of such auctions, as there were different reserve prices for different sectors. The official said that “The coal ministry, however, believes that the online auction will be transparent as there will be a single reserve price of coal for all competing sectors. This is why the system is being re introduced, which was one of the suggestions of the TL Shankar Committee on restructuring of the coal sector.”
According to the official, the existing practice of allocation for non core sectors is on first come first served basis, where the price is fixed and the quantity decided later.
Coal & Oil signs USD 1.5 billion coal agreement with Samtan Kideco
ET reported that Chennai based thermal coal importer Coal & Oil has signed a USD 1.5 billion agreement with Indonesia’s trading major Samtan Kideco to source 50 million tonnes of the mineral over 10 years.
Mr Ahmed Buhari president & CEO of Coal & Oil said that “These imports will account for 10% of the total projected imports of coal into India in the next 5 years and translate into generation of about 1,500MW of power per year. The agreement complements our plan to become a long term player in India. We also source coal from Australia, Russia and South Africa, but most of it comes from Indonesia. We are also looking to increase our clientele in West Asian and West African markets. In the long term, we want to integrate our operations, from having own fleet of ships to captive mining and possibly taking part in power generation.”
Samtan Kideco is the third largest supplier of coal in Indonesia and has partnered C&O for the latter’s Indian operations for almost a decade now.
Coal & Oil is a fuel management company that provides logistics and materials to companies in India. It has already tapped TATA Power and Reliance Energy to provide them with thermal coal sourced from Samtan Kideco. It operates from 17 ports in India, including Mumbai, Chennai, Surat and Kolkata. C&O now annually supplies about 7 million tonnes of coal, more than 90% of which is to its Indian customers.
ArcelorMittal not to compromise on land for Orissa project
PTI recently reported that world's largest steel maker ArcelorMittal which plans to set up a 12 million tonnes plant in Orissa with an investment of INR 40,000 crore recently hinted it will not make any compromise on its land requirement.
The report cited Mr Sudhir Maheswari executive VP of ArcelorMittal as saying that "The Company will go by the MoU between it and the Orissa government in connection with land requirement for the project.
Mr Maheswari said the company had not given a thought to the issue of reducing the land for the project. He also added that everything relating to ArcelorMittal's Orissa project was going well.
The issue relating to reduction of land requirement came to the fore after Vedanta Foundation Trust, setting up a university in Orissa agreed to reduce its land needs recently in face of criticism from different quarters. ArcelorMittal's proposed plant site at Patana block in Keonjhar district is also facing opposition from local residents.
GAIL to infuse extra INR 475 crore equity in Dabhol project
PTI reported that GAIL India Limited would infuse an additional INR 475 crore equity in Dabhol power project to help it complete the construction of an attached liquefied natural gas terminal. After the infusion of additional funds GAIL’s equity stake would rise to 32.88%.
Sources said that GAIL board had approved the proposal to pump in additional equity on the condition that the money would be used only for completing the 5 million tonne a year LNG import terminal and that other promoters also make their contributions. Ratnagiri Gas and Power needs INR 1,200 crore to complete the receipt facility and build breakwater.
GAIL has also conditioned the additional funds on getting rights to market the LNG left after generating power at the project on the Maharashtra coast as Ratnagiri Gas needs only 2.1 million tonne of LNG per annum for generating 2,184MW power leaving 2.9 million tonne of LNG for sale to other users.
GAIL currently holds 28.33% in Ratnagiri Gas and Power, which took over the Dabhol power plant after bankruptcy of US energy major Enron Corp. National Thermal Power Corporation, which also holds 28.33% stake will invest INR 475 crore while Maharashtra State Electricity Board having 15% stake would put in INR 250 crore.
JSW promoting jatropha extraction
BL reported that JSW Steel’s Jatropha extraction plans are moving ahead on track to produce bio diesel. Initially, expectations are that at least the locomotives within the steel plant could run on blended fuel.
As per report, 50 acres of Jatropha in 2005 at JSW’s plant in it 3,700 acre Vijayanagar campus has gone by another 70 acres in fiscal 2006-07. About 3,000 plants have been planted so far and normally about 1,000 Jatropha plants are cultivated in one acre with 2 meter x 2 meter spacing.
As direct sowing and transplantation for raising Jatropha is possible, JSW Steel has gone in for both after establishing a nursery. The cultivation cost including land preparation, seedling plantation and regular attention had been taken care of during the campus greening exercise.
JSW Steel is also promoting the farm as a pilot project for the local farming community and looks forward to produce bio diesel in the days to come. Yields can be determined after 3 years. Roping in the local populace for the farming activity, JSW has entrusted day to day management of the crop, such as de weeding, pruning and maintaining the recommended plant population, to an NGO. About 35 women and 5 men involved in the farming activity get about INR 1.2 million per annum for their labour.
JSW officials are keen to emphasize that once the farmers warm up to the idea of cultivating Jatropha on wasteland and farm boundaries there is no stopping. It is also offering a buyback guarantee, in addition to coordinating with NGOs to propagate the advantages of the crop. JSW is also in talks with the forest department and other government agencies to allot uncultivable land for Jatropha.
Spectrum Power calls for natural gas allocation for expansion project
ProjectsWire recently reported that Spectrum Power Generation Limited has urged the ministry of petroleum & natural gas to expedite the allocation of 6.3 metric million standard cubic metres per day of natural gas for its 1,350MW expansion project in Andhra Pradesh.
Spectrum Power informed the ministry that it had made significant progress in the development of the expansion project and is confident of achieving financial closure in the first quarter of 2008.
It added that the project, due to its strategic location and availability of all infrastructural inputs, is ideally placed to be the lowest cost producer of power and provide the maximum advantages and benefits to the end customers. The water from the sea is proposed to be used for the expansion project and also, the project site is about 16 kilometer from the nearest national grid network and is within proximity of the KG basin.
Spectrum Power is implementing a 1,350MW natural gas fired expansion project as a mega power project adjacent to its existing 208MW natural gas fired power plant on the existing land already owned by the company. The project has been recommended by the Andhra Pradesh government for inclusion in the 11th plan period and for award of a long term gas linkage by the ministry.
Haryana to fund DMRC extension in the state
It is reported that Haryana government has agreed to provide INR 2,000 crore for the extension of Delhi metro to Faridabad, Bahardurgarh and Sonepat in the state besides providing INR 300 crore for metro construction in Delhi.
The Delhi metro will extend its corridor from Mundka in West Delhi to Bahardurgarh in Haryana, which is 10 kilometer long and the corridor from Okhla to Faridabad is 15 kilometer. The two proposed new corridors will primarily be extensions of the corridors under the Master Plan for the Delhi Mass Rapid Transport System. The detail of the third line is yet to be worked out.
The Mundka to Bahadurgarh corridor will be built in Phase III of the project after 2010 once the 15 kilometer line from Kirti Nagar to Mundka is completed in Phase II of the project.
As for the Okhla to Faridabad line, it will be an extension of the proposed line between AIIMS and Okhla Phase I. This line has been cleared for Phase III of the project. The 15 kilometer long corridor from Okhla to Faridabad will provide an important link to the industrial township of South Delhi.
Rio Tinto Alcan deal gets Canadian Competition Act clearance
Rio Tinto announced that Canadian Competition Act clearance for the proposed acquisition of Alcan by a subsidiary of Rio Tinto has been obtained. Receipt of this clearance and other regulatory clearances is a condition to Rio Tinto's offer to acquire the outstanding shares in Alcan.
The offer to purchase all of the issued and outstanding common shares of Alcan for USD 101 per common share in a recommended all cash transaction is being made by Rio Tinto Canada Holding Inc an indirect wholly owned subsidiary of Rio Tinto. The Offer represents a total consideration for Alcan common shares of approximately USD 38.1 billion.
The Offer is open for acceptance until September 24th 2007, unless extended. The Offer is subject to a number of conditions including valid acceptances by holders of not less than 66-2/3 per cent of Alcan shares on a fully diluted basis and the receipt of various governmental and regulatory approvals, certain of which the Offeror does not expect to receive prior to September 24th 2007. Accordingly, the Offeror currently intends to extend the Offer beyond September 24th 2007. The board of Rio Tinto has approved the transaction. The Offer is expected to close in the fourth quarter of 2007.
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc a London listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.
MEPS says NA steel prices struggle to keep pace with EU
MEPS reported that Asian prices have not moved up as much as those in the EU but they are now closer to US values with the gap between the two reducing by around USD 85 per tonne since July last year. However, the price differential with the EU has increased by more than USD 30 per tonnes. This has caused a shift in Chinese exports away from the US and into Europe.
MEPS said that “Asian transaction figures continue to lag those of the other two regions. Growing Chinese exports are keeping carbon values in check. This scenario is forecast to persist in the long term as Chinese capacity expands further. Prices in Asia have been strong since the third quarter of 2006. The MEPS Asian Average Composite All Products Carbon Steel Price has increased by around 10% or USD 50 per tonnes. Values for flat and long products have both shown healthy growth, adding around USD 45 and USD 65 per tonnes respectively.”
MEPS added that “A slight weakening of prices is predicted towards the end of this year across Asia. This is due mainly to a decline in the flat products sector, brought about by oversupply in the Chinese market. Long products' values should hold up over period four as both scrap costs and demand remain high.”
For EU MEPS said that “Composite Price surpassed its previous peak in May this year by more than USD 90 per tonne as transaction figures continued their upward trend. Values still reside above that level, despite recent softness. Long products have been the main contributor to rising numbers as strong demand and escalating scrap costs pushed prices higher. Transaction values are expected to record a slight seasonal downturn over the winter months before recovering through the first half of 2008.”
For North American MEPS said that “North American figures indicate a different trend over the past twelve months, with prices being more volatile. In 2006, imports from China were greater. Large volumes saturated the US market, forcing mills to make production cuts towards the end of last year in an attempt to restore the supply-demand balance. This was, however, not enough to avoid a sizeable fall in transaction values. The MEPS North American Composite Price subsequently moved down by approximately 12.5%.”
MEPS added that “The largest reduction was recorded in the MEPS North American Flat Products price, which decreased by around 15%. As scrap costs climbed early in 2007, transaction values improved for all categories except Electro-Zinc. However, the recovery was short lived as numbers have, once again, fallen in recent months. The MEPS North American Composite Price reached a peak in April of this year, but did not achieve the record levels recorded in the summer of 2006. Values are now forecast to recover in the fourth quarter of this year and into 2008.”
FPC to acquire 25% stake in Fushin Specialty Steel
Formosa Plastics Corp the flagship of the Formosa Plastics Group announced that it passed a proposal to set aside USD 50 million or TWD 1.65 billion to acquire 25% stake in Fujian province based Fushin Specialty Steel Co of China. Including the share acquired by Formosa Heavy Industries Corp the Formosa Plastics Corp will have obtained half of the Fushin Specialty Steel, with the remainder going to Fujian province based Sankang Group and other mainland based firms.
Fushin Specialty Steel will set up a TWD 32 billion (USD 972.64 million) stainless steel plant with designed production capacity reaching 720,000 tonnes. Ground breaking for the plant will take place the end of this year and begin mass production in three years at the earliest. It is anticipated that participation by the Formosa Plastics Group will lead to a war in the Asian stainless steel market.
An executive officer of Formosa Plastics Corp said that the investments in Fushin Specialty Steel will be launched by the Samoa based Tienlung Co which is a 50:50 JV between Formosa Plastics Corp and Formosa Heavy Industry. They will submit the application to invest in Fushin Specialty Steel with the Investment Commission under the Ministry of Economic Affairs. To cope with the prospective investment projects, Formosa Plastics Corp has recently issued TWD 5 billion (USD 151.97 million) in unsecured corporate bonds several times within a 5 year span.
Mr YC Wang founder of the Formosa Plastics Group said that it has been a long term goal for Formosa Plastics Group to tap the iron and steel industry. He added that iron and steel and petrochemical industries are the basic foundations for a nation. After achieving success in the petrochemical industry, Formosa Plastics Group will set sights on engaging in iron and steel industry.
Earlier Formosa Plastics Group had planned to set up a large-sized steel mill in Yunlin County of central Taiwan but the entire plan is still stuck in the mandatory environment impact assessment stage.
Fushin Specialty Steel was a joint venture between Taiwan's Chien Shing Stainless Steel Co and Taiwan’s Sankang Group. In April Fushin obtained approval from mainland’s National Development and Reform Commission for setting up a stainless steel plant. With Chien Shing having withdrawn from the investment project, FPG has emerged to take its place.
Minntac to restart ironore pellet line idle since January
It is reported that US Steel plans to restart an iron ore pellet production line at the company's Minntac Mine in Mountain Iron. The line has been idle since January 30th.
Mr John Armstrong a US Steel spokesman said that US Steel expects to have line three at full production during the week of September 10th 2007. It is the smallest of five iron ore pellet production lines at the taconite plant. He added that the restart won't affect the number of jobs at the Minntac Mine. More iron ore pellets are needed due to increased demand at the company's steelmaking facilities and an expansion of a US Steel tubular operation.
Mr Mike Woods president of United Steelworkers Local 1938 in Virginia said that "I think it's going to be good for both the company and the work force for the line to be coming up. From my understanding, they can sell all the pellets they can make."
Northeastern Minnesota is home to six taconite plants that produce iron ore pellets containing about 65% iron. The pellets are used as a primary ingredient in the manufacture of steel at domestic steel mills.
Hyundai Heavy, JFE agree on steel plate price rise
Bloomberg reported that the world's biggest shipbuilder Hyundai Heavy Industries Co will pay more to JFE Steel Corp for steel plates used in hulls as demand and raw material costs rise.
The report cited Mr Kim Ki Young a spokesman of Hyundai Heavy Industries as saying that JFE Steel Corp a unit of Japan's second biggest steelmaker will charge USD 20 more a tonne from October to March, without disclosing the previous price. The new rate agreement was reached last week.
Hyundai Heavy and rival shipyards are charging more for new vessels to reflect higher costs including steel and as orders rise. Yards in South Korea, the world's biggest shipbuilding country, are expanding to meet soaring demand to transport raw materials to China and finished goods to the US.
Mr Choi Won Kyung an analyst at Good Morning Shinhan Securities Co in Seoul said that “While the steel price hike would increase costs a bit, that won't hurt Hyundai Heavy's earnings as it has already been factored into the new orders.'' He added that price increases for steel plate would be limited because rival South Korean steelmakers such as POSCO plan to increase production.
Hyundai Heavy and its shipbuilding units Hyundai Mipo Dockyard Co and unlisted Hyundai Samho Heavy Industries Co plan to consume about 3.2 million tonnes of steel plate in 2007, importing about a quarter of the requirement from Japanese steelmakers, Hyundai. Hyundai Heavy imports about 22% of its needs from China and the remainder from South Korean steelmakers including POSCO and Dongkuk Steel Mill Co.
Severstal metiz to launch a new net welding unit
FIS reported Severstal metiz to launch a new net welding unit for manufacturing of welded net from regular zinc coated wire. The productivity of the new unit is practically three times higher than that of the equipment currently operated at the enterprise.
The new unit will help increase the quality of finished products and expand significantly the product mix as well as provide considerable economy as regards equipment readjustments and production costs.
RBC says iron ore prices could spike 35%
According to a new report from RBC Capital Markets, iron ore prices could rise as much as 35% in 2008 due to booming demand from steelmaking regions in Asia.
An analyst of RBC said that “Demand, particularly from China has continued unabated, while supply from almost every producer remains constrained.” He added that RBC's forecast is on the high end of similar revisions by brokerages in the past three months. UBS AG in July raised its iron ore price forecasts to a 25% gain in 2008 up from 10%, while Goldman Sachs JBWere on August 24th 2007 raised its forecasts to a 30% gain from 9%.
RBC Capital Markets is an international corporate and investment bank that provides innovative solutions and a focused set of products and services to institutions, corporations, governments and high net worth clients around the world. With nearly 3,700 professional and support staff.
Xi’an Iron and Steel formally became part of Longgang Group
It is reported that at the auction of Xi’an Iron and Steel Works held in the morning of August 13th 2007 Shanxi Longgang Group won the tender and Xian Iron and Steel formally became part of Longgang Group.
Mr Zhang Danli chairman of Longgang said at leader colloquia that
1 Production should be well arranged to enhance technical index and achieve better benefit.
2. Legacy problem should be well addressed.
3. To seriously prepare Xigang logistic center to improve hardware facilities and first class service.
4. To quicken up construction of Xigang’s residential community and make stuff living and working in peace and contentment.
China's coal, gas output record double digit growth
According to the China top economic planning agency China's coal production during January to July jumped by 11.7% YoY to 1.278 billion tonnes.
China’s National Development and Reform Commission said that the coal output rose 12.7%YoY or 2.9% points higher from June to hit 196 million tonnes in July 2007. During January to July 2007 the imports of coal soared by 49.6%YoY to 30.96 million tonnes while the exports declined by 21.2% YoY to 28.86 million tonnes. Meanwhile, China's output of natural gas climbed by 17.1% YoY to 38.6 billion cubic meters in the first seven months.
NDRC added that the crude oil production in China however rose only by 1.1%YoY to 108.69 million tonnes between January and July 2007.
China the world's second largest oil consumer imported 96.37 million tonnes of crude oil in the first seven months up by 14.8% YoY.
Consolidated says potential third bidder finishes due diligence
Bloomberg reported that Consolidated Minerals Ltd at the centre of a takeover battle between Territory Resources Ltd and Pallinghurst Resources Australia Ltd a potential third bidder has completed a study into its finances.
The Perth based Consolidated Minerals Ltd said in a statement to the Australian Securities Exchange that the unidentified group hasn’t given any indication whether it will proceed with an offer for Consolidated Minerals.
Consolidated Minerals produces 10% of the world’s high grade manganese used in steelmaking. Pallinghurst recently raised its all cash offer by 9% to AUD 822 million (USD 665 million) trumping Territory’s cash and stock offer that was worth AUD 779 million at the close of trade recently.
Wuxi Stainless steel up further
It is reported that the stainless steel price climbs up further in Wuxi as steel traders keep grudging for supply shortage.
As per report HR 4mm to 6mm pickled plate is quoted in the range of CNY 30000 to CNY 30500 per ton; 10mm or thicker directly rolled plate is CNY 33500 per ton and above. CRC is quoted CNY 1500 per tonnes higher than ex works price; 1mm to 2mm sheet in the range of CNY 31800 to 32300 per tonnes.
(Sourced from MySteel.net)
Volgodonsk to have no electric metallurgical plant
FIS reported that Rostov region's administration declined the proposal of Kurum holding Company of Turkey on the construction of electric metallurgical plant in Volgodonsk.
As per report the plant operation would require a large amount of natural gas, which is not available in Volgodonsk. The existing feed gas pipeline operates in excess of the projected capacity.
Fuwa Metal launches US Base for ferrous scrap export
Osaka based ferrous scrap dealer Fuwa Metal announced that the firm established US subsidiary, Fuwa Metal USA at White Plains in New York which is the first base in USA.
The subsidiary started operation on August 1st 2007 exporting US scrap in container to Asia, Turkey and Spain. The US firm deals monthly 10,000 tonnes of scrap targeting annual 500,000 tonnes of export and USD 150 million of sales in 2010.
Pike river investment tops NZD 100 million
It is reported that New Zealand based Pike River Coal invested NZD 56.9 million in its West Coast mine development during the year to the end of June 2007 taking the total invested to NZD 100.4 million.
Pike River Coal releasing its annual results said that it used some of the NZD 85 million raised in an initial public offering in July to repay NZD 16.5 million in short term loans from shareholders. It added that the annual result should be viewed in the context of the pre production status of the company's development activities.
Following the IPO in July 2007, Pike River's largest shareholder NZ Oil and Gas which has a 31% stake, said that it had agreed to provide up to NZD 25 million extra to help develop the mine. It added that the money raised through the IPO would run out at the end of January, two months before coal production was scheduled to begin.
The annual results put Pike River's total assets at June 30 at NZD 118.1 million to NZD 100.4 million of that the mine development. Total liabilities were NZD 45.2 million leaving net assets of NZD 72.9 million.
Mittal Experts arrive in Dhaka soon on exploratory mission
FE reported that a team of experts from the Global Steel Holding Ltd a subsidiary of the UK based Mittal Group will arrive soon in the city for carrying out a feasibility study on its investment worth USD 2.9 billion in Bangladesh.
Mr Golam Rabbani Helal local agent of the GSHL and MD of GRH Bangladesh Ltd said that "The team comprising ten experts from the company's London and Dubai offices will arrive by the second week of this month. He said the Global Steel Holding Ltd team will stay in the country for ten days to conduct the study on the areas of potential investment.”
The Mittal group June 11th 2007 signed a MoU with the Bangladesh government proposing to invest about USD 2.9 billion in coal mine development, oil exploration and production, power plant, petrochemicals, liquefied natural gas production and other infrastructure projects in Bangladesh.
Of the total investment plan an estimated USD 300 million will be spent on coal mine development, USD 100 million on oil exploration and production, USD 500 million on power plant, USD 1.50 billion on petrochemicals and USD 500 million on LNG production and other infrastructure projects.
When asked, the local agent of the company said after the feasibility study the Global Steel Holding Ltd will submit a concrete proposal for investment in the country. During the visit, he said the expert team is expected to meet senior government officials.
Global Steel Holding Ltd first intimated the BoI April 18th 2007 to invest USD 1.6 billion through an expression of interest but it revised the proposal twice to USD 2.9 billion.
CVRD and IMCO sign a MoU
It is reported that CVRD International and the International Maritime College Oman have signed a MoU aimed at developing co operative links in a number of areas. The MoU was signed by Mr Sergio Leite, Country Manager of CVRD and Mr Jan van der Heijden GM/Dean of IMCO at a ceremony held at the Grand Hyatt Muscat recently.
By signing the MoU both companies will further develop co operation in the field of education, training, human resources management, consultancy for logistics and transport, and provide related services in the Sultanate and/or elsewhere in the GCC region.
International Maritime College Oman is a reputable and strategic college in the GCC region owned by the Government of Oman and the STC Group, Rotterdam providing education, high-end training and consultancy for the port, shipping, transport, logistics and chemical process industries.
Schulz prepares to spread tentacles in South America - Brazil
BNamericas reported that German steel tube manufacturer Schulz is prepared to seek new business opportunities in Latin America's oil and gas sector after announcing plans to invest BRL 180 million (USD 92 million) in building its biggest production complex in Brazil.
Mr Marcelo Bueno CEO of Schulz Latin America told BNamericas that "We believe there is an interesting market in South America. Argentina needs to invest in energy to expand its production. Bolivia has gas reserves. Venezuela has one of world's largest oil reserves; that seems to be facing some problems." He added that but the focus however is on the Brazilian market, which accounts for much of the investment in the region. Brazil's federal energy company Petrobras aims to invest USD 112 billion in 2008-12, of which USD 65 billion will go to E&P where Schulz is a major supplier.
Mr Bueno said that "We believe that almost all of Petrobras' investment plan will be delivered, although not within the schedule it announced. We work now with firm demand for our products through 2012 and demand is currently well above our production capacity."
He added that Schulz's three factories in Rio de Janeiro state will help meet growing demand. The project also includes a distribution center.
The first tubes and connection factory will start production at the end of 2007 with investments of BRL 60 million. The company is investing another BRL 35 million in a welded tubes unit that will start production in January 2008. The third factory will develop seamless tubes and will start operations by the end of 2008.
Mr Bueno said that "Our production capacity in Brazil will be bigger than in our headquarters in Germany." He added that Schulz plans to export to US, European and Middle Eastern markets from its Brazilian units.
JFE Steel to increase price of grain oriented electrical steel
It is reported that JFE Steel agreed with Japanese heavy electric machinery and transformer makers to increase the selling price of grain oriented electrical steel by JPY 60,000 to JPY 70,000 per tonnes for April 2007 shipment retroactively.
JFE Steel succeeded to get the hike to keep stable supply under tight supply when electricity demand grows worldwide.
BlueScope Steel’s Truecore steel celebrates 100,000 tonne
It is reported that BlueScope Steel’s residential house framing material Truecore steel has notched up 100,000 tonnes worth of steel framing just two years after launching.
Representing enough steel framing to surround Australia nearly four times and enough to build more than 45,000 house frames, the 100,000 tonne mark is most significant because it comes at a time when many home builders are turning to steel as their preferred house framing material.
Producing lightweight, durable and termite proof house frames Truecore steel is being embraced by builders because it is quick and easy to use and it is easy to market to customers. For their part, homeowners love the benefits it offers in protecting the long term structural integrity of their homes typically their largest investment.
Mr Mark Eckermann national market development manager at BlueScope Steel said that “Hitting such a milestone with such a positive sentiment in the market place is great. The building community has clearly responded to what it sees as the framing product of the future in Australia.”
He added that “In its first two years it has created a real stir helping homeowners achieve the sort of durable, quality housing they desire and assisting builders to grow their own businesses in the process. It’s a success story that is only going to continue.”
Kazakh investors to invest in Iran
It is reported that Kazakhstan's officials have expressed the country's willingness to make investments in Iran's various sectors in the near future.
As per report, in a meeting with Mr Mehdi Ghazanfari deputy commerce minister of Iran and Mr Uric Atynbayev Kazakhstan's ambassador to Tehran, pointed to numerous opportunities to develop Iran-Kazakhstan relations.
Mr Atynbayev said that "Kazakh investors are looking forward to the implementation on the process of privatization to invest in Iran, with the aim of increasing trade exchanges between the two countries to USD 2 billion." He added that the ground had been prepared for Iranian investors to invest in the construction of two steel plants in Kazakhstan, adding that maritime transportation between Iran's three Caspian provinces of Mazandaran,Gilan and Golestan.
