September, 09 2007
NMDC to enter spot ore market
ET reported that National Mineral Development Corporation has decided to enter the spot market for iron ore on the backdrop of global spot iron ore prices hitting the roof.
A senior official of NMDC told ET that “It is a strategic move on our part to have a presence in the spot market. It will allow NMDC to take advantage of the hike in spot rates. Bulk of our sales so far has been through long term contracts. We have had almost no presence in spot sales. For spot sales, our priority will be the domestic market. If demand at home is weak, we would export to China.”
The official however, refused to indicate the amount NMDC will make available for the spot market. NMDC is in final stages of firming up the modalities and will be ready with the guidelines within the next 10 days. He said that “The material will be sold to end users either through e auction or tendering. We will seek pre qualification of possible buyers who will have to register with us.”
NMDC produced 26 million tonnes of iron ore in 2006. Of this, it sold barely 0.25 million tonnes of low grade iron ore fines in the spot market. It set to produce 31 million tonnes of iron ore in 2007-08, out of which 3.5 million tonnes will be exported to Japan and South Korea on the basis of a long term contract. The rest of it is sold to end users including large steel plants in the domestic market.
Monnet Ispat to start steel plant construction in Orissa next month
Statesman News Service recently reported that Monnet Ispat and Energy Limited, targeting to produce steel in the first half of the next year, plans to begin construction activities of its steel plant next month at villages Nisha and Malibrahmani in Orissa.
According to Monnet official sources it aims to set up a 0.25 million tonnes annual capacity steel plant, coalmine and 1,000 MW commercial power plants at an investment of about INR 5,000 crore.
The memorandum of understanding for the integrated steel plant was signed with the state government in 2003. Monnet Ispat, which has a steel unit and coal mines at Chhattisgarh state initially planned to set up the steel plant at Kamalanga of Dhenkanal district and open up the captive coal mine along with a power plant there. But later it shifted its steel venture from Kamalanga to Angul district. The company also aims to enhance the capacity of steel production to one million tons ultimately.
Sources said they Monnet Ispat need about 1,700 acres of land out of which 710 acres are government land. Monnet Company, unlike others, wants direct purchase of private land from tenants, leaving a portion of private land for acquisition as per the state acquisition law. They have purchased about 450 acres of private land so far out of the required 900 acres.
Iron ore fines laden MV Cheng Le Men listing off Mangalore port
It is reported that iron ore fines laden MV Cheng Le Men on its journey from New Mangalore Port to China began listing to one side seven nautical miles from the port off the Tannirbhavi coast on Thursday. According to available information, the problem arose because of faulty loading of cargo.
As per report, Captain Yang Jing Mu tried to bring the ship back to port, but the vessel ran aground some two nautical miles off the coast. Responding to a distress call from the Captain, the port authorities sent two tugs to pull the ship into deeper waters.
The 1982 built ship with 28 crewmembers vessel owned by a Chinese national, is registered at St Vincent Island in the Caribbean and arrived at the port on September 1st 2007 from Dubai and was bound for China via Singapore. It sailed from New Mangalore Port at 11.30 AM carrying 16,100 tonnes of iron ore fines.
The ship had tilted about 12 degrees on its axis on Thursday and is now almost 16 degrees tilted but is reported to be safe till 30 degrees. As per report, the cargo holds were open allowing rainwater to enter which might have led to the iron ore getting lumped on one side of the ship resulting in tilting as it sailed. Now water is being pumped out of the hold in an attempt to get the ship back on even keel.
The Protection and Indemnity Club of the ship has already activated the salvage group Svitzer and their representatives from the Holland reached Mangalore on Friday evening.
It may be mentioned that Dubai bound cargo ship MV Den Den sank near Tannir Bavi beach on June 23rd 2007 due to engine failure and rough weather in the sea in which 3 crewmembers lost their lives while 21 were rescued.
TATA Steel sees stable steel prices in medium and long term
Reuters reported that TATA Steel expects steel prices to remain stable over the medium to long term, despite some possible short term fluctuations.
The report cited Mr B Muthuraman MD of TATA Steel as saying that TATA Steel is not worried by capacity additions in China. He said that “India has joined the race and is adding capacities rapidly. We are also seeing 13% to 14% demand growth in the steel sector every year in the domestic market."
Mr Muthuraman said that Corus would deliver savings of USD 130 million in the year ending March 2008 and savings of USD 400 million after three years. He added that TATA Steel is looking at using improved technologies developed by Corus to reduce production costs.
Mr Bishnoi conferred with Udyog Ratan award
The Institute of Economic Studies of New Delhi announced that Mr PK Bishnoi CMD of Rashtriya Ispat Nigam Limited was recently presented the prestigious UDYOG RATAN award.
The award to Mr Bishnoi was presented by Mr Bheeshma Narayan Singh former governor at a function held at New Delhi for excellence in productivity, quality, innovation and management.
Orissa to cancel 36 iron ore mining leases
PTI reported that Orissa government has decided to cancel lease of iron ore mines, which remain un utilized for more than two years. As per report, Orissa government has identified at least 36 such mines in Keonjhar and Sundargarh districts, which remained idle even though they were leased out for exploration. If it happens, it will free a large amount of iron ore for allotment to companies that have signed MoUs for setting up steel plants in the state.
The report cited Mr Padmanabha Behera steel and mines minister of Orissa as saying that despite a huge demand for iron ore in the international market some people here were found sitting on valuable mineral while others are unable to get mines for their captive use. He said “The government has directed the authorities concerned to immediately take steps and cancel the lease.”
Mr UP Singh secretary of steel and mines of Orissa said the objective of the government’s mine lease to private parties is value addition to the mineral available in the state. He said “If someone is holding mines without making value addition, there is nothing wrong in canceling such leases.”
As per report, the district collectors concerned had been told to recommend such cases for cancellation.
Essar announces offer for delisting Essar Steel
PTI reported that Essar group announced its plans to delist Essar Steel from the bourses and fixed a floor price of INR 38 per share for buying the stake from public shareholders to reach a minimum of 90% stake to delist the company. As per report, the promoters of Essar Steel already have 87.08% stake in the company and the open offer is for the remaining 12.92% comprising of 14.72 crore shares.
As per the offer, shareholders will have to place their bids around the floor price, after which the company will decide on the exit price. The bidding by shareholders will be held between September 24th 2007 and 28th 2007. The company will announce its exit price or its acceptance of the discovered price or otherwise on October 3rd 2007.
As per the reverse book building process, the minimum or the discovered price will be the price at which the greatest numbers of shares are offered. However, the company said it is not under any obligation to accept the discovered price.
Essar Steel Holding, the Essar group Company, which will acquire the shares, said delisting, is meant to offer exit opportunity for shareholders and to offer more flexibility in running the company.
Kolkata Port aiming to cross 60 million tonne in 2007-08
Statesman News Service quoted Mr Anup Chanda chairman of Kolkata Port Trust, while at a seminar organized by the Merchants’ Chamber of Commerce, as saying that Kolkata Port Trust is targeting a cargo of 60 million tonnes to be handled by it in 2007-08 against 55.05 million tonnes in 2006-07.
Mr Chanda admitted that Kolkata Port has to incur a temporary shortfall in the cargo volume after the Haldia to Paradeep pipeline is operational but said that “The shortfall of 8 million tonnes to 9 million tonnes of liquid cargo in Haldia port alone after the pipeline comes into being will be made up as there will be a sudden spurt of dry bulk cargo to the Haldia port as a number of steel and other companies are planning to set up their manufacturing units in the state.”
He said that “According to our primary calculation, in three years to four years down the line, we will have demand for handling an additional 20 million tonnes of dry bulk cargo. Keeping in view the additional cargo the port has to handle, KoPT is ramping up the efficiency of Haldia port. We have taken up an action plan for the Haldia port.”
Knowledge Infrastructure to acquire coal assets in Indonesia
PTI reported that Delhi based coal trading firm Knowledge Infrastructure Systems has initiated talks with Indonesian miners to acquire small and medium sized coal assets for sourcing thermal coal for India.
The report cited Mr Bhandare owner of Knowledge Infrastructure as saying that "We are looking for coal assets abroad to ensure steady supply of coal to our customers and to offset the fluctuations of price in the international market. Having a coal mine also helps to enhance its reliability among customers.
Indian power utilities, steel and cement companies are finding it increasingly difficult to acquire coalmines in Indonesia, Mozambique and Australia as prices are rising. There are very few assets on sale in these countries, but many takers so prices are fuelling to go up.
As per report, Knowledge Infrastructure Systems imported 6 million tonnes of coal in 2006 to serve its clients in India, including the TATAs. It has recently tied up with Athena Energy Ventures to supply coal for its 1,200 MW Vizag plant. It aims to clock INR 1,600 crore turnover in 2007-08, up from INR 600 crore in 2006-07 fiscal.
POSCO starts acquiring land for steel project in Orissa
TOI reported that notwithstanding stiff opposition from the anti displacement brigade, POSCO has started acquiring land for its proposed 12 million tonne per annum steel project near Paradeep. The report cited Mr Soung-Sik Cho CMD of POSCO India as saying that POSCO has already taken possession of 193 acres and is in the process of acquiring another 300 acres soon.
This, according to him, will pave the way for beginning real construction work at the project site from early next year. Mr Soung said that "We are planning to start real construction at the plant site from early next year. Preparatory work for this will start from October."
POSCO requires about 4,004 acres of land for its proposed steel plant and the state government has so far allotted 1,135 acres to the company on paper. POSCO, however, is yet to take physical possession of the land because it falls under the forest category.
More than 2 years have passed and not much progress has been made on the proposed steel project due to stiff opposition by the land owners and the state government is unable to find a solution.
SEZ for renewable energy equipment planned
It is reported that Indian government is planning dedicated special economic zones for the production of equipments involved in the renewable energy generation sector on a private public partnership model.
The proposed SEZ's will be built in an area of around 1,000 hectare on a build operate transfer basis and will house units involved in manufacturing and testing renewable energy equipment.
As per report, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra and Chhattisgarh have shown interest for the proposed project and a final decision on the location is expected shortly.
Update of development of coal blocks allotted till 2002
Indian government’s Standing Committee on Coal and Steel has observed in their 23rd report on Demand for Grants 2007-08 that some of the coal blocks allotted as early as 1998 to 2000 have still not been developed and only 8 blocks have started producing coal.
Bur Dr Dasari Narayana Rao minister of state for coal informed the upper house of Indian Parliament that the ministry of coal in its reply to the Committee had, stated that out of the 19 coal blocks allotted up to 2002, 11 have already come into production and 6 more are expected to commence production during 2007-08.
Dr Rao T also said that the Committee was further informed that the position has since improved on account of measures taken by the coal ministry such as intensive monitoring being done on a regular basis, prescription of time bound milestones and introduction of bank guarantee deposit system etc.
TATA Motors plans auto park in Jharkhand
It is reported that TATA Motors is planning to set up an auto park at Adityapur in Sareikela Kharwsawan district of Jharkhand. The project to be spread over 600 acres of land will entail an investment of INR 1,400 crore.
The proposed park will house nearly 100 auto component manufacturing units. These units will not only supply to TATA Motors but will also be encouraged to supply to other major auto manufacturing companies.
GAIL aiming for INR 500 billion revenue by 2011
Reuters recently reported that GAIL (India) Ltd expects revenue of around INR 500 billion by 2011 by strengthening its current business and pursuing new exploration opportunities. The report cited Mr UD Choubey CMD of GAIL telling shareholders "GAIL is aggressively pursuing new gas sourcing options, both from new domestic sources as well as through international sources."
Mr Choubey said the company would pursue margin enhancing businesses such as petrochemicals and city gas projects. He added that "We are making active efforts towards establishing two gas based petrochemicals plants outside India."
Mr Choubey said that it would also invest INR 200 billion to nearly double its pipeline network to 12,000 kilometers by 2011. He added that "This will increase your company's natural gas transmission capacity to 300 million standard cubic meters per day and almost double its trunk pipeline network."
GAIL owns a 6,400 kilometers long pipeline infrastructure with a capacity of 148 million standard cubic meters per day. GAIL had recently approached the government with firm plans to pursue city gas projects in 230 cities across the country. GAIL is expanding the capacity of its petrochemical plant in Uttar Pradesh, to 410,000 tonnes from 310,000 tonnes.
China exports 5.18 million tonnes of finished steel in August
According to the preliminary customs statistics, China exported 5.18 million tonnes of finished steel products in August down by 760,000 tonnes or 12.8% MoM from 5.94 million tonnes in July 2007.
China’s exports of semi steels like billet and slab in August 2007 also slumped by 650,000 tonnes to 250,000 tonnes from a month earlier.
(Sourced from MySteel.net)
South African chrome ore price jumps on tight supply
It is reported that South African chrome ore supply becomes tight recently owing to limited inventories at ports. As South African Cr ore is widely used in FeCr productions, insufficient supply pushes up Cr ore price.
Currently 44% South African Cr ore fine is traded at CNY 53 to CNY 54 per MTU; 42% at CNY 51 to CNY 52 per MTU. South African Cr ore price climbs quickly and FeCr producers report difficult purchasing on account of few spot resources.
Some South Africa’s domestic suppliers reveal that this is mainly attributed to unsmooth exports. South African government is brewing an added export tariff on Cr ore, thus implements strict control on Cr ore exports. Some Apr contracts have not been carried out.
Besides, some traders take a pessimistic view towards future deliverability of South Africa since overseas supply has not been solved properly. Despite some spot resources, they are reluctant to conclude transactions at current price. This further intensifies the tension in supply.
(Sourced from MySteel.net)
POSCO begins work on galvanizing line in Mexico
POSCO announced that it has begun the construction of a new plant in Mexico. The USD 250 million plant, scheduled for completion in September 2009, will be POSCO’s second facility in Mexico.
The plant, located near the port city of Altamira on the eastern coast, is a continuous galvanizing line, which will have an annual production capacity of 400,000 metric tons.
POSCO said that the plant would allow it to increase its share of the world's market for steel plates used in automobile production. The company said that Mexico has one of Central and North America's fastest growing automotive industries with around 1,000 auto parts makers and plants for some of the world's largest automakers, including GM and Volkswagen. Company officials added that the North American Free Trade Agreement would allow POSCO to bypass antidumping laws and other trade regulations when exporting to the United States and Canada.
POSCO’s first Mexican facility, which began production in March this year, is a plate steel processing center located in the state of Puebla in central Mexico.
NDRC calls for curbing steel price hikes in China
According to the China's top economic planner National Development and Reform Commissions the efforts should be made to curb drastic fluctuations of domestic steel prices, which have been rising for seven consecutive weeks. NDRC said that the domestic demand and export of steel products should be controlled and warned against coordinated actions to bid up the prices of steels.
According to NDRC the average price of four types of major steel products rose by 17.8% YoY to CNY 4,358 (USD 573.4) last week as compared with the same period of last year. The price of iron ore produced in North China's Hebei Province went up by 80% to CNY 1,097 per ton compared with last year.
NDRC said that surging domestic demands, a slight decline in supplies and soaring iron ore price have contributed to the recent price hikes of steel products. While the supply of steels dropped by 5.3% MoM in July over the previous month due to suspension of production in some areas out of concerns of energy saving and production safety.
NDRC also pointed to high flying international steel prices, rumors about future price hikes and illegal operations of some producers and sellers.
Ilyich finished steel output in January to August up by 5% YoY
Interfax reported that Ilyich Metallurgical Works of Mariupol has increased production of finished roll by 4.9% YoY to 3.632 million tonnes during January to August 2007. Its production of crude steel by 0.8% YoY to 4.62 million tonnes, production of pig iron edged up 0.4% YoY to 3.611 million tonnes and sinter output rose by 10.7% YoY to 8.347 million tonnes. It also increased production of steel pipes by 20% YoY to 82,200 tonnes.
Ilyich produced 461,000 tonnes of finished roll, 602,000 tonnes of crude steel, 476,000 tonnes of pig iron, 1.169 million tonnes of sinter and 9,700 tonnes of pipes in august 2007.
Ilyich reduced production of finished roll by 2.8% YoY to 5.388 million tonnes in 2006, but increased production of crude steel by 0.5% YoY to 6.984 million tonnes and pig iron by 3.7% YoY to 5.433 million tonnes. Its sinter production dropped by 16.1% YoY to 11.265 million tonnes, while steel pipe output rose by 8.3% YoY to 108,700 tonnes.
China terms WTO complaints on subsidies as misunderstanding
It is reported that spokesman of the China Ministry of Commerce noted September 3rd 2007 that the USA and Mexico have a great misconception over Chinese policies regarding their bringing accusation to WTO against China targeting so called subsidizing exports program.
The spokesman said the accusation is out of internal political needs in the initiators countries, which want to cover China's initiative in improving taxation regime and make this their credit of relying on WTO to settle disputes. China won't change its efforts to further improve laws and regulations, which is in accordance with social and economic development despite complaints of the two countries.
The spokesman said the disputes case mainly involves preferential policies like exemption and refund of income tax and value added tax for certain enterprises. But the truth is, the two complaining parties have misunderstanding towards China's relevant measures and ignored improvement of its economic mechanism and the reality. The complaints even include some measures that have already been abolished. With the new Enterprise Income Law soon to be implemented, China's policy and measures are completely in line with WTO rules.
China held two rounds of negotiations with the USA and Mexico on so called "subsidies" programs, in Genevese on March 20th and June 22nd 2007. Yet, the claiming parities insisted requesting establishment of WTO panel to solve the problem.
(Sourced from MySteel.net)
Hainan Steel and Fosun set up mining venture
It is reported that Hainan Mining United Co Limited jointly built by Hainan Steel and Fosun Group was officially set up recently.
Hainan Steel and Fosun signed JV contract on August 15th 2007 with registered capital of CNY 900 million provided by Fosun, the board of directors, board of supervisors and management put in the right place soon. Fosun holds a 60% share of the JV and the rest 40% goes to Hainan Steel.
Early stage of the exploitation of subsurface iron ore has been carried out with total investment of CNY 400 million to CNY 600 million and operation start up slated for 2013. Besides, CNY 300 million to CNY 500 million will be poured in iron ore prospecting near Hainan Steel; CNY 1.6 billion, in zirconium titanium project; CNY 280 million, in deep processing of iron ore; CNY 500 million to CNY 1000 million in iron ore mine acquisition or exploitation.
As a mining venture with history of 50 years, Hainan Steel is a famous rich iron ore production base. Since it resumed production in 1975, it has realized finished iron ore output of 120 million tonnes and pretax profit of CNY 3.6 billion.
Fosun is one of China's biggest private enterprises. It was listed in Hong Kong on July 16th 2007.
(Sourced from MySteel.net)
US to review Manganese Metal petition for duty elimination
The Office of the US Trade Representative announced on September 6th 2007 that it has accepted for review a petition from South Africa Manganese Metal Company Ltd for duty free treatment of manganese metal powder under the Generalized System of Preferences. The US GSP Subcommittee will hold a public hearing on the MMC petition on October 3rd 2007 with a final decision anticipated by May 2008. If the petition is granted, the 14% duty will be eliminated for powder imports into the US from South Africa.
Electrolytic manganese metal powder is a key input for adding strength and abrasion resistance to steel, aluminum and other products. There is no US producer of Electrolytic manganese metal powder selling to the US market today; US companies can only obtain the powder from South Africa and from some 20 companies located in China. The US currently imposes a 14% duty on Electrolytic manganese metal powder imports, the highest in the world.
Mr Cellierus Blignaut marketing manager of Manganese Metal Company said that “We are pleased that Manganese Metal Company has successfully passed this first significant hurdle in USTR’s GSP review process. Granting the GSP petition would ensure that US companies continue to have access to this vital input from MMC, the only reliable international supplier of EMM powder utilizing an environmentally safe production process. We look forward to working with the GSP Sub Committee throughout the review process."
MMC’s petition was one of only nine accepted by the USTR led government inter agency review panel this year; approximately 400 petitions for review were submitted.
The GSP program is designed to promote economic growth in the developing world and provides duty free treatment to over 7,000 products from eligible countries and territories.
Fitch predicts stronger future for coal in US
According to Fitch Ratings, fundamentals for the US coal industry should improve in the near term as increases in exports and electricity generation come together with lower inventory levels.
Fitch predicted that robust demand for the commodity would continue throughout 2007, especially from power generators. It added that prices would be pushed up as supply tightens because of traffic bottlenecks and outages, less availability of labor and equipment, environmental concerns and a challenging regulatory environment.
Fitch said that “Earnings growth across the sector, however, will be constrained by a number of factors, including higher prices for fuel, explosives and steel, labor costs and the tightened supply of machinery parts.”
Ben’gang Steel H1 net profit up by 200% YoY
Ben’gang Steel Plate Company Ltd announced the performance report for the January to June 2007 period. Ben’gang during the January to June 2007 period realized operating profit of CNY 1.315 billion up by 219.49% YoY as compared to January to June 2006 period. Its total profits reached CNY 1.349 billion up by 227.72% YoY and the net profit came to CNY 0.904 billion up by 200.27% YoY.
Ben’gang attributed the increases in profits to the increases in production and the improving in product mix. During January to June 2007 they accumulatively produced 3.69 million tonnes of steel up by 5.13% YoY. 3.51 million tonnes of hot rolled plate up by 56.7% YoY. Meanwhile, the company produced 3.75 million tonnes of pig iron, 700,000 tonnes of cold rolled plates, 250,000 tonnes of special steel products and 100,000 tonnes of coking products.
Ben’gang’s product mix and types have been improved. Due to a longer production flow and an expanded capacity, the operating income and the costs for the first half of 2007 both had large increases and the overall gross profit ratio up by 7.39% YoY as compared to same period in 2006.
Wickeder Westfalenstahl to expand annealing capacity
It is reported that Wickeder Westfalenstahl GmbH, which had awarded LOI Thermprocess of Germany, an LOI Italimpianti company, a contract for an HPH®* bell type annealing plant for annealing cold rolled or plated steel strip. Commissioning is scheduled for September 2007.
The plant, type HUGF 190 / 430 HPH Spray, will include two annealing bases, one heating hood and one cooling hood with a spray cooling system. It will be designed for maximum stack weights of 85 tonnes, outside coil diameters up to 1900 mm and a maximum useful height of 4300 mm.
The new plant will be equipped with a Siemens S7-300 PLC and linked to high level control system.
Mr Milchovic to quit Nucor board
Nucor Corporation announced that Mr Raymond J Milchovich has resigned from its board of directors. Mr Milchovich serves as chairman & CEO of Foster Wheeler Ltd.
In a letter dated September 6th 2007, Mr Milchovich informed Nucor board that he was resigning at the earliest mutually acceptable date due to other increasing personal and professional demands on his time. Mr Milchovich stated in his letter that "This is a decision upon which I have spent considerable time because of the admiration that I have for Nucor, its Management Team, its Board, and all of its team members worldwide. I have truly enjoyed my tenure as a Board member and will miss the opportunity to serve with other members of the Board and management. Nucor is a world class company led and operated by a dedicated world class team of people."
Mr Dan DiMicco chairman, president & CEO of Nucor said that "It is with regret that we accept Ray's resignation. He has been an outstanding director over the past five years. His guidance, experience and independent judgment have played an important role in the success of Nucor and we will miss his leadership and active participation on the Board. We thank Ray for his service and wish him and his family the best."
CSC board approves 2 proposals for expansion
China Steel Corporation announced that the 3rd meeting of the 13th board of directors of was held on August 29th 2007 and during the meeting major items of the agenda adopted were:
1. Financial reports for the first half of 2007
CSC's operating results for the first half of 2007 were: revenues NTD 100,199 million, pretax income NTD 31,850 million.
2. No 3 blast furnace second campaign mid term revamps
Total investment for the project is estimated at NTD 1,515 million. The project commenced on September 1st 2007 and is scheduled for completion on October 31st 2010. Total schedule will be divided into three stages: works planning, blast furnace stop running and revamp, and tag-along jobs. The second stage for revamp will take 45 days from March 2010 to mid April 2010.
3. Purchase of the land and buildings of Mao Da plant from China Hi- ment Corporation.
In order to acquire additional land to construct No 3 cold rolled production line, CSC will buy the land and buildings of Mao Da plant from China Hi-ment Corporation, one of CSC's related parties. Price of the land with buildings is NTD 826,812,000. Additional cost for compensating China Himent Corporation's move of production lines and materiel is NTD 150,444,757. Both amounted NTD 977,256,757.
4. Acquisition of 2 million treasury stocks from Yodogawa Steel Works, Ltd in Japan
In order to stabilize and solidify the sales business, as well as to consider the long term investment, CSC will purchase 2 million treasury stocks from Yodogawa Steel Works, Ltd in Japan. Amount totaled NTD 349 million. CSC's ownership in Yodogawa Steel will be 1.09%. Yodogawa Steel is the parent company of Sheng Yu Steel Co Ltd. Both are CSC's major customers in hot rolled products. Their relationship with CSC in business is very close.
Chongqing H1 net up by 676% YoY
It is reported that Chongqing Iron and Steel released the January to June 2007 financial report based on China Accounting Rules. It realized revenues of CNY 5,723.40 million from main businesses, operating profit of CNY 291.04 million, net profit of CNY 263.93 million up by 676.19% YoY as compared to January to June 2006.
Chongqing Iron main products of the company had larger increases. In the breakdown by products, during the first six months, the company produced 679,200 tonnes of coke, 1,458,100 tonnes of pig iron, 1,675,600 tonnes of steel and 1,601,000 tonnes of finished steel, up by 6.07% YoY, 17.11% YoY, 17.04% YoY, 18.71% YoY respectively compared to January to June 2006 making new records.
It took measures to decrease costs and consumed energy, with 38 out of the 59 comparable technology and economic indexes renew the records, with the ratio reaching 64.40%.
Rio Tinto joins United States Climate Action Partnership
Rio Tinto announced that it has joined the United States Climate Action Partnership.
USCAP represents an alliance of major businesses and environmental groups encouraging federal policy to address climate change and reduce greenhouse gas emissions. The purpose of USCAP is to provide a forum for members to seek policies that account for the global dimensions of climate change; create incentives for technology innovation; are environmentally effective; create economic opportunity and advantage; are fair to sectors that are disproportionately impacted, and; reward early action. These overarching principles adopted by USCAP are aligned with the Rio Tinto climate change position adopted in 2005.
Mr Tom Albanese CEO of Rio Tinto said "Climate change is a critical issue for our business. Not only do we produce energy resources, such as coal, but also our mining and mineral processing operations use large quantities of energy. Combating climate change means finding new and better ways of producing, using and conserving energy. USCAP provides an important forum to advance comprehensive policy that includes both market approaches and technology options."
Mr Preston Chiaro CEO of Rio Tinto's Energy division said “The challenge for this century is to reduce CO2 emissions from fossil fuels such as coal. In the past we have effectively applied technology to reduce emissions from coal burning, but the key to unlocking an environmentally friendly future for all fossil fuels is carbon dioxide capture and storage. The ultimate success of CCS will depend on its widespread application, public acceptance and rapid commercialization of the technology. USCAP recognizes that government and industry cooperation to advance CCS technology is a critical path toward slowing, stopping, and reducing the growth of greenhouse gases in the atmosphere. Market based approaches can provide long-term incentives for low carbon power generation, but government support will also be required to help overcome the high initial cost of first of a kind technology development and deployment."
Rio Tinto is actively working on a number of technology solutions to reduce greenhouse gas emissions and improve energy efficiencies. Some of these initiatives include
1. Founding member of the FutureGen Alliance
2. CO2 Cooperative Research Center for Greenhouse Gas Technologies
3. COAL21 an initiative of the Australian Coal Association
4. COAL21 Fund of Australian black coal mining industry
5. Hydrogen Energy JV with BP to develop decarbonized energy projects around the world.
6. HIsmelt® Corporation for testing a patented technology, projected to achieve a 15% to 20% improvement in energy efficient and GHG reductions.
7. Minding the Carbon Store Project in Queensland
Universal Stainless increases tool steel base price
Universal Stainless & Alloy Products Inc announced base price increases of 5% to 7% on all tool steel products manufactured at its Bridgeville and Dunkirk facilities. The increase will be effective with all shipments on October 1st 2007. Current material and energy surcharges will remain in effect.
Mr Ken Matz president of Universal Stainless & Alloy Products said that "This action is necessary to cover higher energy and operating supply costs and to support our practice of capital reinvestment to better serve our customers."
Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, Panama manufactures and markets a broad line of semi finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The Company's products are sold to rerollers, forgers, service centers, original equipment manufacturers and wire drawers.
Pt Inco gets forestry permit for power plant on Larona River
Metals Insider reported that Indonesian nickel matte producer Pt Inco has been issued a forestry permit, allowing it to resume work on the Karebbe hydroelectric generation facility on the Larona River.
The new power facility will lift the Pt Inco’s generating capacity to 90MW and is a key part of Pt Inco’s plans to lift nickel in matte production capacity to around 200 million pounds per year.
Construction of the power plant was suspended in January 2006 pending receipt of the forestry permit.
Worthington Steel expands operations in Mexico and Central Europe
Worthington Steel, a subsidiary of Worthington Industries, recently outlined plans to enter two JV steel processing projects in Mexico and Central Europe.
Worthington Steel said that the Mexican venture would come by way of purchasing 50% of privately held Serviacero Planos. That company has two steel service centers operating in central Mexico, at Leon and Queretaro. The new organization will be known as Serviacero Worthington and will continue to offer steel slitting, multi blanking and cut to length to automotive, appliance and electronics related buyers. Serviacero Worthington is projected to initially have annual sales of about USD 125 million.
The second venture involves a new operation to be built at Kosice in Slovakia, in partnership with The Magnetto Group. Plans call for it to offer Class 1 services like slitting, blanking and cutting to length for Central European customers. The value of the investment was not released. It will be Worthington's first European steel processing operation. Magnetto operates a series of flat rolled steel distributorships and service centers, as well as automotive stamping and wheel-making operations. It also designs and manufactures bodywork components for construction equipment, industrial vehicles, trucks and buses.
Mr Mark Russell president of Worthington Steel said that “This joint venture aligns with our stated goal of expanding our steel processing business beyond its current geographic boundaries into higher growth markets. By joining with Serviacero, we will be able to immediately offer steel processing services to an increasing number of customers with current and expanding operations in Mexico.”
Australia’s Jubilee inks nickel off take contract with BHPB
Metals Insider reported that Australian nickel producer Jubilee has entered into a one year off take agreement with BHP Billiton for concentrates from its Cosmos mine in Western Australia.
The deal will run through September 2008 and replaces a one year contract with CVRD-Inco, which has taken concentrates from Cosmos since 1998.
Mr Kerry Harmanis executive chairman of Jubilee said that “We are very pleased to announce this off take agreement with BHP Billiton following the conclusion of a very competitive bid process for our high-grade nickel concentrate, which is regarded as a premium quality product in world markets.”
Cosmos mine last year produced 12,260 tonnes of nickel in concentrates.
NTMK commissions new testing facilities for wheel lines
FIS reported that in the course of the II phase of reconstruction of the wheel roll production 7 new aggregates have been assembled on the line, including ultra sound quality control unit developed for NTMK by the Institute of Fraunhofer Society of Applied Research of Germany.
The report added that the line is also equipped with unique magnetic luminescent production control unit of Introtest Company.
Berkeley Group concerned over air pollution from steel plant
It is reported that a community group has found that air sample results taken downwind of a Berkeley steel plant show that the plant is putting neighbor's health in jeopardy. As per report, a team of Berkeley residents took a Minivol portable air sampler and placed it on rooftops in West Berkeley. They've been doing this since April each time leaving it there for 24 hours.
Mr La Wood of the Berkeley Air Monitoring Team said that we found not so surprisingly high metal emissions particulates that of manganese and nickel. He said there were days when the levels were below federal and state standards. But the average value of emissions found exceeds regulations set by the Environmental Protection Agency and the World Health Organization. The average amounts are within California standards.
The Bay Area Air Quality Management District calls the results preliminary. The district gave the grant for this study but says the monitoring team has yet to turn a report detailing how the samples were taken so the district cannot verify the result yet.
Mr Bill Nazaroff professor of UC Berkeley said that "To have a steel operation located immediately upwind from a densely populated urban area isn't the best arrangement and yet there are jobs at this site and there's en economic benefit from having the facility there for the city of Berkeley."
Nucor ranked among Forbes fastest growing firms list
Business Journal reported that Charlotte steel manufacturer Nucor Corp is ranked No 63 on Fortune magazine's annual list of the 100 fastest growing companies.
According to Fortune, Nucor had revenue of nearly USD 15 billion over the last four quarters with a growth rate of 27%. The three year annual return to investors was 50% and earnings per share rose 118% over the last four quarters.
Companies are ranked by their revenue growth and their earnings per share growth rate over four quarters as well as their three year annualized total return to investors for the period ended June 30th 2007. The overall rank is based on the sum of the three rankings.
