November, 14 2007
Indian steel secretary calls for conserving iron ore
It is reported that ,with India's steel makers embarking on a major capacity expansion, union steel ministry has made out a case for conservation of iron ore saying it was imperative to make the sector competitive vis a vis that of China's.
Mr RS Pandey union steel secretary said that "China's advantage is its coking coal reserve which is expected to last for about 80 years, while India's advantage is its quality iron ore reserves. China strictly conserves its coking coal. It should not happen at any juncture that Indian steel industry is made to survive on imports of both coking coal and iron ore."
Mr Pandey observed that "If it happens that India was being constrained to import ore, then such a disadvantage would be painful for the Indian steel industry. Our consumption has witnessed a phenomenal growth of about 11%. Credit Suisse has projected that it would grow by 16% compounded annual growth rate. So clearly we are on an upbeat mode."
He added that the steel sector would require about 138 million tonnes of iron ore by 2011-12 and if the production level reaches 191 million tonnes by 2019-20, then India would need about 320 million tonnes of iron ore.
Mr Pandey's comments assume importance amid reports that the government is on the verge of finalizing the National Mineral Policy, wherein it is seeking to address the concerns of steel makers who have been vociferously demanding capping export of iron ore to the fructify their expansion plans.
SAIL to set up 10 service centers across India
ET reported that India’s steel ministry has decided to set up a total of 10 steel processing units across the country. As per report, each unit is slated to come up near consumption centers in industrially backward districts and the total investment, which is likely to be in the region of INR 2,000 crores, will be made by Steel Authority of India Limited.
The processing units or mills will use basic steel produced by large steel plants of SAIL and convert them into items of use.
As per report, Jammu & Kashmir, Punjab, Rajasthan, Assam and Uttar Pradesh will have one unit each while Madhya Pradesh and Bihar will have two such units each. In Kerala, SAIL is mulling over the option of acquiring an existing unit instead of setting up a new mill.
Mr RS Pandey secretary steel told ET that "Each unit will require an investment of INR 200 crore. A detailed project report has already been prepared. The plan is to set up 10 such mills. SAIL will take up the initiative on its own and not form a separate company”.
Mr Pandey said that “SAIL’s objective is to set up mills near consumption centers in states where it does not have a manufacturing presence. In turn, it would also help the company in expanding reach.”
Usha Martin increases CAPEX to INR 2100 crores
Usha Martin Ltd announced that its board of directors in a meeting held on November 13th 2007 approved enhancement in scope and enlargement of project from INR 1250 crores to INR 2100 crores to cover enrichment and optimization of mineral resources, enhancing capacity for captive power generation and value added products.
Additional INR 850 crore CAPEX covers the following areas
1. Enriching value of mineral by setting up a beneficiation plant and a pellet plant and also optimizing available mineral resource.
2. Expanding capacity of captive power for its steel plant at Jamshedpur and wire rope plant at Ranchi to be self sufficient.
3. Expanding capacity of wire rope and strand products to cater to the growing demand of infrastructure, oil & gas and construction sector within India and globally.
Incremental expenditure of INR 850 crores shall be part funded by infusion of additional equity of INR 335 crores by way of preferential allotment of warrants to promoters over the next 18 months subject to requisite approval and the balance shall be funded through combination of debts and internal accruals.
13 companies reported to be in race for Tilaiya UMPP
It is reported that 13 companies have submitted bids for the 4,000 MW fourth ultra mega power project to be set up at Tilaiya in Jharkhand. This is the highest number of bids received by any mega power project.
The list of bidders include
1. TATA Power
2. Reliance Power
3. Lanco Infratech
4. NTPC
5. Sterlite Industries
6. Jindal Steel & Power Limited
7. Essar Power
8. GVK Power & Infrastructure
9. AES
10. Malaysian Dian Wijaya
Sources said the evaluation committee will scrutinize the bids within 15 days, after which the request for proposals or price bids will be invited. PFC plans to go slow on the Tilaiya project so that the bids are scrutinized properly. The companies would be given only a 50 day period to submit the final price bids after the date of issue of request for proposals. The period was earlier 3 months but has been changed following modifications in bid documents.
The Tilaiya project, which is part of the government’s plan to start 9 UMPPs, faced initial setbacks due to environmental and local reasons. Also, there were issues related to blockage of roads for the local community. The pit head project will be built on a super critical technology. It will supply power to New Delhi, Uttar Pradesh, Punjab, Haryana, Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Bihar and Jharkhand.
MCL forms coalmining JV with JSW, JSL and Shyam DRI
It is reported that Mahanadi Coalfields Limited has entered into an INR 465 crore JV agreements with 4 private companies to mine coal from the Utkal A Gopalprasad block west project located in Talcher area of Orissa's Angul district. The two coal blocks are estimated to have reserves of more than 700 million tonnes and the investment is expected to be less than Rs500 crore mainly for land acquisition and rehabilitation.
The new JV will be called Mahanadi Jindal Shyam DRI Company Limited. Mahanadi coalfields will hold 60% share in the JV. The companies with which MCL signed the agreement under public private partnership mode are
1) JSW Group - 22%
2) Jindal Stainless Limited - 9%
3) Shyam DRI Power - 9%
Mr SR Upadhyay CMD of Mahanadi Coalfields said that effort was on to get necessary clearances form the concern authorities for land acquisition and work on the project would start soon. He added that “The proposed company was scheduled to produce 15 million tonnes of F grade coal, 40% of which shall be used by the JV partners in the private sector for captive consumption in their plants located in Orissa while balance 60% would be marketed by the Mahanadi Coalfields as per the approved coal linkages of the central government.”
This is the 2nd JV of the Mahanadi Coalfields after its JV between Neyveli Lignite Corporation and Hindalco of Aditya Birla Group for mining of coal in Talabira Block under Jharsuguda district of Orissa.
NHPC to add 25,000 MW hydro power capacity in 20 years
It is reported that National Hydroelectric Power Corporation is planning to add over 25,000 MW of hydro generation capacity over the next 20 years and has lined up aggressive plans to harness the hydro potential of north and north eastern states such as West Bengal, Arunachal Pradesh, Jammu & Kashmir, Manipur, Sikkim and Uttarakhand.
NHPC is currently in the process of constructing 13 projects which will add about 5,652 MW. Of this, most projects are likely to be commissioned during the 11th Plan period. These include
1. 510 MW Teesta V project in Sikkim
2. 800 MW Parbathi II and 520 MW Parbathi III in Himachal
3. 132 MW Teesta Lower Dam III in Sikkim
4. 160 MW Teesta Lower Dam IV in West Bengal
5. 2000 MW Subansiri Lower project in Arunachal Pradesh
6. 240 MW Uri II in Jammu & Kashmir
7. 520 MW project at Omkeshwar in Madhya Pradesh
NHPC officials said that, apart from these, it is also constructing 3 projects in Jammu and Kashmir with a total capacity of 450 MW nd projects for 5,531 MW of capacity are pending approval from the government including the 3,000 MW Dibang project in Arunachal Pradesh, 1,000 MW Pakal Dul project in Jammu & Kashmir and 4 medium size projects of about 200 MW to 530 MW in Uttarakhand.
As per report, NHPC has prepared a detailed project report to add about 7,750 MW of power in the next 5 to 10 years. The projects identified are mainly in Arunachal Pradesh, Sikkim and Jammu & Kashmir and include a 2,000 MW project, the 16,000 MW Subansiri project and the 750 MW each Tawang I and II projects in Arunachal Pradesh. A DPR has also been prepared for the 1,020 MW Bursar project in Jammu & Kashmir.
The officials said that feasibility studies were on for 7,000 MW projects mainly in Arunachal Pradesh, Uttarakhand and Jammu and Kashmir. As part of the policy to extend the shelf life of various hydroelectric projects across India, NHPC is also undertaking renovation, modernization and up gradation of existing dams.
The expenditure for per megawatt is about INR 1 to INR 2 crore, depending on the size of the project. During the 11th Plan period, about INR 4,000 crore would be spent on increasing the lifespan of about 67 projects.
Suryachakra Power ink MoUs China Guodian for coal IPP
Suryachakra Power Corporation Limited has announced that it has entered into MoU with China Guodian Corporation for the development of its proposed 1200 MW independent coal based power plant project. Initially, the company had planned a 4x300 MW power plant but now is looking at 600 MW units initially to be followed up with another unit of 600 MW.
It has expressed its interest to initially set up a 1200 MW IPP coal based power plant in Chattisgarh or any other potential location in India.
To achieve the above objective, SPCL and CGC have entered into MoU on October 24th 2007.
China Guodian Corporation is one of the 5 largest nationwide power generation groups of China under the direct leadership of the central government and has power plants in every state in China with total controllable installed capacity of 44450 MW. It is having total generation assets worth more than USD 20 billion and its corporate bond has been awarded AAA credit rating.
Mundra Port to set up 30 million tonnes coal terminal by 2011
It is reported that Mundra Port is planning to set up a 30 million tonne coal terminal by 2011.
Mr Ameet Desai executive director of Mundra Port & SEZ, in an exclusive interview with CNBC TV18, said that “Today, we already have 8 multipurpose terminal berths up and running. 3 container terminal berths running, the 4th one is about to get operational very soon. We are just about to operationalis 2 inland container depots. We have 2 container train rakes running fully and we are going to take them up to 20 over the next 12 to 18 months.”
Mr Desai added that “But what is going to be the most important project is the setting up of coal terminal, which is the 30 million tonnes imported coal terminal being set up at Mundra, which will be operational from 2011 onwards.”
CIL plans major organizational restructuring
It is reported that Coal India Limited is likely to see major organizational restructuring soon as the government will examine and implement the recommendations of the recently submitted TL Shankar Committee report on the “Road Map for Coal Sector Reforms”.
Mr HC Gupta union coal secretary said that “The Shankar Committee had put up the draft report for comments from all stakeholders towards the beginning of this year. Now that the committee has submitted the final version of the report, the government will examine each recommendation and take a view on their implementation.”
Major recommendations of the Shankar Committee report include restructuring of CIL to make it a world class company and methods of converting CMPDIL into a centre of excellence for planning and research in the coal sector. It has also given recommendations on measures needed to bridge the demand supply gap of coal in the short, medium and long term, improvement of productivity of man and machinery in Coal India and introduction of cutting edge technology.
The government, as part of the recommendations, may abolish the post of CMDs for CIL subsidiaries. This could well be replaced by a structure where the CIL chairman will be the chairman of all the subsidiary companies. The CIL chairman may be given the power to send an alternative representative to the boards of the subsidiaries. The current CMD of the subsidiaries may be re designated as vice CMD.
TL Shankar Committee also suggests that the interface between CIL and its subsidiaries should be properly streamlined so that the ministry of coal gets involved only in setting annual targets on physical and financial parameters. It felt that Central Mine Planning & Development Institute should operate closely with CIL and at least 25% of the mine planning consultancy of CIL should be procured on a competitive basis in which CMPDIL will also compete.
Tuticorin Port handling crosses 12 million tonnes mark
It is reported that Tuticorin Port Trust has crossed the 12 million tonne mark of cargo handling. At the end of November 8th 2007, the cargo handled has been 12.03 million tonnes up by 16% YoY as compared to the corresponding period last year.
Mr A Subbiah deputy chairman of Tuticorin Port Trust said that the number of containers handled during the current year up to November 8th 2007 has been 2,65,317 TEUs up by 20.54% YoY as compared to the corresponding period in the previous year.
In container traffic, the port is poised to achieve the 5 million TEUs mark by the end of the financial year 2007-08. There are 10 container freight stations and 3 more are in the offing and 1 more container terminal is to be commenced shortly.
Under the National Maritime Development Program, clearance from the government is expected to improve the present draught level to 12.8 meters, making the port a model port in the South.
Orissa, Gujarat and Kerala ink MoU for Baitarani West coal block
It is reported that Orissa Hydro Power Corporation, Gujarat Power Corporation Limited and Kerala State Electricity Board have signed a MoU for the extraction of coal from the Western Baitarani Coal block for generating power.
The MoU was signed in accordance with the decision of the coal ministry. The electricity organizations of the above states will form a JV Company, with equal participation. A consultancy agency will look after the preliminary work of the coal block which is said to have a reserve of 602 million tonne.
Each of the 3 companies will avail 200 million tonnes of coal from the Western Baitarani coal block.
REL companies announce INR 4,065 crore CPEX in Orissa
It is reported that, according to their business plans submitted to the Orissa Electricity Regulatory Commission recently, 3 Reliance Energy Limited controlled power distribution companies namely, Wesco, Nesco and Southco, located in Orissa have proposed to spend INR 4,065.65 crore in the next 5 years.
Of the total outlay, Wesco plans to spend INR 1,282.05 crore, while the expenses proposed by Nesco and Southco are pegged at INR 1,509.54 and INR 1,274.06 crore respectively.
The money will mainly meet the load growth across consumer categories, to reduce the losses, increase efficiency and productivity, augment replace retrofit old obsolete under rated equipment, meet environmental, safety, regulatory and other statutory requirements, purchase routine tools and equipment and other miscellaneous expenditure of capital nature.
The infrastructure upgradation includes increasing the 33 kV and 11 kV lines to bring down LT/HT line ratio and implementation of HVDS, increasing 33 kV substations to improve voltage levels and extend reach areas, installation of breaker on 33 KV and 11 KV side, DTR metering and consumer indexing to support energy audit, rural electrification works under Rajiv Gandhi Gramin Vidyut Yojana and automation of processes by IT intervention in technical and commercial areas.
Orissa to examine SC directive for industries on fertile land
Mr Naveen Patnaik chief minister of Orissa Government, while responding to Leader of Opposition Mr JB Patnaik's demand for relocation of POSCO's proposed steel plant, said that it was seriously examining a Supreme Court directive putting restriction on establishment of industries on fertile land.
Mr Padmanabha Behera steel and mines minister of Orissa said that the SC had categorically said fertile private land would not be used for industries. He added that “The proposed POSCO plant was being demarcated on government land."
Mr JB Patnaik had sought shifting of the POSCO project saying that the proposed site was highly fertile. He added that "The land demarcated for the plant site is known for betel cultivation, drumsticks and other vegetables."
OECD report suggest changes for Indian port management
A report “OECD Economic Surveys: India 2007” has made following recommendations for improving the port infrastructure.
1. Reconsider the role of the tariff authorities for major ports
2. Converting port authorities into corporations
3. Granting multiple concessions at a single port
The report said that Tariff Authority for Major Ports, established in 1997, sets ceilings for freight rates for the major ports on a cost plus basis. It added that “However, given the increasing number of non major ports it is not altogether clear that a natural monopoly element exists in the sector.”
The OECD survey cautioned that if ceilings on freight rates are set too low, private investment would suffer. Apart from reconsidering the role of the regulator, we can enhance the separation of the government’s roles by converting port authorities into corporations.
OECD observed that “Corporatisation would encourage private sector participation and facilitate unbundling into owners and service providers, which can subsequently be privatized.” It added that though the issue was first raised in the mid 1990s, only 1 of India’s major ports of Ennore is run by a company.
IVRCL Infra to acquire 100% shares of Alkor Petroo
BS reported that IVRCL Infrastructure & Projects has entered into a share purchase agreement to acquire 100% shares of Alkor Petroo for an undisclosed amount.
Alkor has 5 exploration blocks, 3 in Yemen and 2 in Egypt, along with Gujarat State Petroleum Corporation Limited and others. While Alkor's participating interest is 25% in the 3 blocks in Yemen and 20% interest in the 2 blocks in Egypt. Gujarat State Petroleum Corporation Limited is the operator of all the 5 blocks and IVRCL will invest about USD 50 million during the exploration phase.
IVRCL said that "Based on the estimates of the resources by an internationally reputed agency, block 19 in Yemen and block 6 in Egypt have a potential to earn revenues of over USD 1 billion for the company during the life of the respective blocks. The revenues for the other blocks are under evaluation."
CERC proposes penalty for power overdraw
It is reported that Central Electricity Regulatory Commission has proposed a congestion charge on states of the northern region resorting to overdrawing power from the newly interconnected central grid. Instances of overdrawing of power, beyond allocated share of respective states, from the grid are reported to be highest among constituents of the northern grid.
A CERC order said that the congestion charge would be INR 3 per unit for overdraw as well as over or under injection for all grid constituents of the northern region. This would be added to the notified frequency linked unscheduled interchange rate prevailing from time to time. The order would be effective November 19th 007 and would remain in force for 3 months.
The order said that “If the state utilities do not exercise the necessary self control, major grid disturbances in near future are very likely and hence it has become imperative to introduce a commercial signal to reduce overdraw and increase generation on the downstream of congested transmission corridor.”
MMTC becomes most valued PSU in terms of market capital
BL reported that MMTC has become India’s most valued public sector firm, toppling oil exploration major Oil and Natural Gas Corporation from this position.
The market capitalization of MMTC rose to INR 2.75 trillion on the BSE, the second highest across all private and public sector firms after Reliance Industries which has a market cap of INR 3.89 trillion.
In the list of top 5 most valued firms, there are 4 PSU companies namely MMTC, ONGC, NTPC and NDMC and only 1 private sector firm namely Reliance Industries.
MMTC is a leading international trading company. It is also the first public sector enterprise to be accorded the status of '5 star export house' by government of India for long standing contribution to exports. It is also the largest non oil importer in India.
Nippon Steel open to increase stake in POSCO
The Nikkei reported that Nippon Steel Corp will consider increasing its stake in POSCO if benefits from their business alliance continue to improve.
Mr Akio Mimura president of Nippon in an interview said “We have effectively become each other's top shareholder, with the purchasing of a total of roughly JPY 80 billion of each other's stocks. We can expect benefits worth about JPY 10 billion a year from tie ups, including the mutual supply of semi finished steel products.” Mr Akio Mimura informed that Nippon Steel is now sitting on nearly JPY 300 billion in unrealized profit on its POSCO shareholdings.
He said “We have personnel exchanges encompassing 5,000 people and have filed 14 joint patent applications. In addition, we have been holding meetings at various levels of personnel at a pace of once every week.
Answering a question on plane plans to boost stakes in each other, He said “ Because POSCO's stock price has risen, buying more shares is not as easy as before. But we will acquire more if we see merits in having a higher stake.”
Brazilian iron ore exports in 10 months up by 17% YoY
BNamericas reported that Brazilian iron ore exports on FOB basis were worth USD 992 million in October up by 4% YoY. In tonnage terms overseas sales in October 2007 increased by 4.5% YoY to 25.1 million tonnes. The shipments were mainly made to China, Japan, Germany and Argentina.
Iron ore exports in January to October 2007 period brought in USD 8.77 billion up by 17% YoY.
Thailand’s steel imports to rise 7.5% in 2007
It is reported that The Iron and Steel Institute of Thailand anticipates high grade steel imports this year will increase by 7.5% YoY to THB 165.8 billion from THB 153.45 billion in 2006, driven by demand from government infrastructure projects.
Mr Wikrom Vajragupta MD of The Iron and Steel Institute of Thailand, at a recent seminar held by The Iron and Steel Institute of Thailand and Thammasat University, said that after the general election, the government would resume infrastructure projects and private investment would pick up as political uncertainties ease. He added that ''The election will bring about confidence and a good investment climate and improve the industrial sector. That could translate into a higher volume of steel consumption.”
Mr Vajragupta said that around 60% of steel products in Thailand were consumed by the construction sector with 12% by the automotive sector; 11% by industry; 8% by electronics; 5% by packaging and the remaining 4% by others.
Steel consumption in Thailand last year was 12.59 million tonnes. Consumption in the first eight months of the year increased to 8.18 million tonnes, compared with 8.06 million tonnes in the same period last year. Mr Wikrom noted that steel consumption expanded 16% per year on average since the 1997 crisis.
In 2006, Thailand imported THB 400 billion worth of steel and steel products, accounting for 10% of total import value. Steel prices are increasing but producers are expected to earn lower margins due to high material costs including oil, coke, iron ore and scrap.
UGITECH USA adds 2 North American stocking locations
Specialty steels provider UGITECH USA, which is part of the Schmolz + Bickenbach Group, announced that it has plans to expand their distribution network by adding stocking locations in Cleveland at Ohio and Toronto in Canada.
The two new stocking locations will complement the five existing locations that will remain in New Jersey, South Carolina, Illinois, Texas and California. The Cleveland warehouse will be operational by January 1st 2008 and Ugitech product will be in the Toronto warehouse, which is an existing Schmolz + Bickenbach facility, by the end of Q1 2008.
Mr Tony Elfstrom president & CEO of UGITECH USA said that "The Schmolz + Bickenbach Group is committed to growth in the North American market. Our investment in the two stocking locations, just months after the July 2007 launch of our new manufacturing and distribution facility in Batavia, Illinois, clearly demonstrates our commitment to the market and our customers."
Mr Chris Zimmer vice president sales & marketing added that "The expansion of stocking locations is a customer driven decision that will increase our service level and shorten delivery lead times to our customers."
UGITECH USA is the North American distribution arm of UGITECH, a Stainless and Nickel Alloys Long Products division of Schmolz + Bickenbach AG. It has been directly servicing the US market with our strategically located stocking locations since 1990. Our specialty steel products and unique approach set us apart from other steel mills and distributors. At the core of our organization's success are our immediate product availability, custom orders, dedicated inventory programs, and strong metallurgical and mechanical engineering support.
ArcelorMittal announces effectiveness of 2nd step merger
ArcelorMittal announced the effectiveness of the merger of ArcelorMittal into Arcelor, following approval by the Extraordinary General Meetings of Shareholders of ArcelorMittal and Arcelor on November 5th 2007. The merger is the second step in the two-step merger process between Mittal Steel Company NV and Arcelor.
As a result of the merger, Arcelor has been renamed ArcelorMittal and holders of ArcelorMittal shares automatically received one newly issued ArcelorMittal share for every one ArcelorMittal share on the basis of their respective holdings in ArcelorMittal.
As of today, the ArcelorMittal shares are listed and traded on Euronext Amsterdam, Euronext Brussels and Euronext Paris by NYSE Euronext, the stock exchanges of Barcelona, Bilbao, Madrid and Valencia and the New York Stock Exchange and are listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange.
The former ArcelorMittal shares automatically disappeared in the merger and are no longer listed and traded on any of the above mentioned stock exchanges.
Pallinghurst extends bid for ConsMin
Pallinghurst Resources Australia Ltd, battling for control of Consolidated Minerals Ltd, extended its AUD 1.04 billion offer for the manganese producer and withdrew a proposed top up payment. Pallinghurst's offer will now close on November 27th at 7PM Sydney time.
It said “Pallinghurst may elect to improve the offer consideration at any time during the offer period and also extend the offer.”
The offer, previously scheduled to end November 16th 2007, is competing with a similar AUD 4.5 a share offer from Palmary Enterprises Ltd, due to close November 23rd 2007.
Australia’s Takeovers Panel last month found that the top-up component of Pallinghurst’s offer, allowing accepting shareholders to receive additional cash should a higher offer occur as unacceptable.
Nippon Steel and POSCO planning JV in Vietnam -Report
Nikkei business daily reported that Nippon Steel Corp and POSCO have reached a basic agreement to expand their business partnership in Asia, including joint production in Vietnam.
The paper said that in Vietnam, POSCO plans to begin producing around 1.2 million tonnes of steel plate a year by 2009. It added that POSCO is likely to ask Nippon Steel to take part in the effort, eyeing jointly manufacturing high end steel products for consumer electronics and building materials.
US weekly crude steel production up by 12.8% YoY
American Iron & Steel Industries reported that in the week ending November 10th 2007, US’s raw steel production was 2.130 million net tons while the capability utilization rate was 89.3%. Production was 1.887 million net tons in the week ending November 10th 2006 while the capability utilization then was 81.5%. The current week production represents 12.8% YoY increase from the same period in 2006.
Production for the week ending November 10th 2007 is up by 1.4% from the previous week ending November 3rd 2007 when production was 2.100 million net tons and the rate of capability utilization was 88%
Adjusted YTD production through November 10th 2007 was 92.108 million net tons at a capability utilization rate of 86.1%. That is a 3.7% YoY decrease from the 95.682 million net tons during the same period 2006 when the capability utilization rate was 89%.
AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.
Siemens to replace AOD converters at ThyssenKrupp Nirosta
Siemens Metals Technologies announced that it received an order from the German stainless steel producer ThyssenKrupp Nirosta to replace two AOD stainless steel converters at the company's plant site at Krefeld in Germany. This will enable the company to maintain its production of stainless steel on a long term basis and simultaneously reduce its operational and maintenance costs. The project is scheduled for completion in December 2008.
As part of a plant modernization production underway at ThyssenKrupp Nirosta's Krefeld plant, Siemens Metals Technologies received an order to substitute the existing two stationary AOD vessels with two exchangeable converters. The project scope includes the dismantling of the existing vessels, installation of two trunnion rings for the exchange vessel system and the engineering, supply and installation of the new converters. Furthermore, new motors for the converter tilting drives will be provided, the Level 1 automation system will be upgraded and the electrical equipment either renewed or upgraded as required.
A particular challenge of this project is that the converters must be replaced with a minimum interference in ongoing production operations and with extremely restricted space conditions.
Together with its affiliated companies Shanghai Krupp Stainless, Italy’s ThyssenKrupp Acciai Speciali Terni and Mexico’s ThyssenKrupp Mexinox, ThyssenKrupp Nirosta is one of the world's leading manufacturers of stainless steel flat products with a wide ranging portfolio of grades, sizes and finishes.
Philippines implements 7% tariff on steel imports
It is reported that Philippines’s The Bureau of Customs has ordered the implementation of higher most favored nation tariffs on imported steel from 3% to 7% in a move that would protect Global Steelworks Philippines Inc.
The order signed by Mr Napoleon Morales commissioner of Bureau of Customs was contained in the Bureau of Customs memorandum was published last October 22nd effective 15 days after its publication in a newspaper of general circulation.
Under the joint order, the MFN tariff on hot rolled and cold rolled steel listed under Annex A of EO 375 would revert back to 7% from 3% after the operations of Global Steelworks Philippines Inc has been declared in commercial operation.
Realizing the impact in prices of steel products under a higher tariff regime, the domestic galvanizers have strongly opposed the government’s decision declaring GSPI as already in full commercial operation. It stressed that for a manufacturing enterprise to be commercial operational, it must be able to meet not only the quantitative but also the qualitative requirements of the market for a sustainable period of operation.
Mr Salvio D Perez president of Filipino Galvanizers Inc in an earlier letter to the BoI said that "Product quality issues must not be completely disregarded. Granting GSPI the undeserved tariff protection will put in peril the continuous viability of downstream companies and endanger the livelihood of tens of thousands of direct and indirect workers."
Noble Resources Q3 net profit up by 158% YoY
Reuters reported that Singapore listed commodities trader Noble Group Q3 of 2007, net profit rose 158% YoY, helped by strong global demand for food and other raw materials.
Noble said that it earned USD 60.6 million in the Q3 of 2007 up from USD 23.5 million in Q3 of 2006.
Noble deals in a wide range of agricultural products metals, minerals and ores and energy products such as coal.
Andritz to supply a new HDG line to voestalpine
It is reported that Andritz Sundwig would supply a hot dip galvanizing plant to voestalpine Stahl GmbH at Linz in Austria, as part of the Linz 2010 project. The total order value of approximately EUR 60 million comprises the equipment supply, installation and start up. Start up is scheduled for the fourth quarter of 2009.
Andritz Sundwig at Hemer in Germany will handle overall planning and coordination of the project, as well as supply, installation and start up of the mechanical equipment. Supply of the thermal process equipment, including installation and start up will be covered by Andritz Selas of France.
The hot dip galvanizing plant No 5 will produce strip ranging from 800mm to 1,750mm in width in thicknesses between 0.4mm and 2.0 mm. The annual output is reported at 400,000 tonnes. The galvanizing unit is designed for three types of coating zinc, zinc iron and zinc aluminum magnesium.
The new line would produce top quality surface finish, as well as new heavy duty steel grades for the automotive industry, the household goods sector and for steel profiles & building components.
Royal Laser Buys Apogee Slitting
Royal Laser Corp announced that it has completed the acquisition of all of the issued and outstanding shares of Apogee Slitting Inc an Ontario based steel service centre, effective November 1, for initial purchase consideration of CAD 6 million common shares in the capital of the corporation and cash consideration of CAD 6 million.
Further consideration for the acquisition may be paid as follows. On November 1, 2010, the value of the share consideration should be less than CAD 1.00 per share, Royal Laser would top up the value to CAD 1.00 per share in the form of either cash or additional common shares in the capital of the corporation, at Royal Laser's option.
Royal Laser Corp said that additional purchase consideration of CAD 5 million is payable in the event that Apogee meets certain additional revenue and profit thresholds. This additional purchase consideration is payable in cash or common shares of the corporation, at Royal Laser's option.
voestalpine H1 net profit up by 34.6% YoY
Thomson Financial reported that Austrian steel company voestalpine AG net profit in the April to September 2007 period up by 34.6% YoY to EUR 434 million boosted largely by the first time inclusion of its new fifth Special Steel Division Boehler Uddeholm Group.
Voestalpine said that its revenues in the April to September 2007 period up by 41% YoY to EUR 4.7 billion as compared to EUR 3.4 billion in April to September 2006 period due to its acquisition of Boehler in the first quarter. It added that Boehler or the new Special Steel Division contributed EUR 907.6 million to the steel group's revenues, an increase of 20.7% reported by Boehler on the same half last year.
The four other divisions also reported increased revenues, with Automotive increasing 33.6% on the year and Profilform up by 28.9%. However, due to difficult the economic climate in the steel industry at the moment Railway Systems growth slowed year on year increasing 11.2% and the Steel Division by only 7.9%.
voestalpine said that its EBIT in the April to September 2007 period rose by 37.1% to EUR 612 million from EUR 447 million in April to September 2006 period. As a result of EBITDA improving by 46.5% to EUR 905 million. Its EBITDA margin increased from to 19.1% from 18.3%.
Zinifex forecasts decline in zinc prices
Bloomberg reported that world's third largest mined zinc producer Zinifex Ltd’s revenue will be cut this year due to the declining price of the zinc and a stronger Australian dollar.
The report quoted Mr Tony Barnes acting CEO of Zinifex Ltd as saying that the price of zinc may decline as additional supply from new mines and expansions comes on to the market. He added that supply issues will keep lead prices high.
Mr Barnes said that zinc output from its Century and Rosebery mines in Australia will be higher for the year ending June 30th 2008, while lead production will be little changed. He added that a new chief executive officer may be appointed by the end of the year.
Citigroup Inc also cut its forecast for the H1 of 2008 for zinc by 35% on gains in supply from mines. Zinifex is seeking to buy new mines or acquire rivals after selling most of its majority stake in smelting unit Nyrstar NV last month.
Citigroup in the report said that the price of zinc has fallen by 38% this year, the worst performance among all metals on the London Metal Exchange. An expected 57,000 tonne surplus in 2008 would be the first in three years.
SDI considering a West Coast mill - Report
Bloomberg reported that Steel Dynamics Inc may build a steel mill on the West Coast, where prices are higher than elsewhere in the US.
Mr Keith Busse CEO of Steel Dynamics Inc in an interview said that the new mill would produce about 1.5 million tons a year of flat rolled steel. He said that "We are strategizing right now about how to expand steelmaking and are refocused on flat rolled steel.”
Mr Busse said that “There is room for a low cost producer in the flat rolled arena. Exporting to the US has become less attractive for overseas steelmakers as the dollar weakens, reducing the value of US sales when converted into other currencies.”
Steel Dynamics said the new West Coast plant could use raw materials from the company's US units, instead of buying more expensive semi finished products or raw materials from abroad.
ArcelorMittal CR mill in Poland to be modernized by ABB
ABB announce that it had been awarded a contract worth more than EUR 14 Million Euros from ArcelorMittal Group. Under the contract ABB’s Metals Business modernize the cold rolling mill located in the city of Crakow in Poland. Low carbon strip steel is produced on the 4 stand tandem rolling mill and the adjoining single stand temper mill.
The order, with a value of approx EUR 14 million includes the complete modernization of the mechanical and electrical components. Key components of the project include the new DC supply units for the main and auxiliary drives, new motor control centers and retain the existing DC motors. Additionally, the rolling mills will be fitted with new Work Roll Bending control systems and new measuring systems for strip thickness and flatness control.
ABB will also supply a new Level 1 automation system, including the Technological Control Systems, based on the state of the art process control platform, System 800xA. The 800xA is equipped with ABB’s high speed controller for rolling mill applications, .the AC800PEC. Level 2 systems, with the mathematical model for the tandem rolling mill and the pass schedule computer for the temper mill are also included. Engineering services, project management, installation and commissioning aspects of the project are also part of the order.
In addition to the modernization of the cold rolling mills, the refurbishment of the pickling line will start in the same production complex. ABB will supply the new AC drives, the welding transformer, motor control centers for the new hydraulic system and the new DC supply units for the existing DC motors of the main and auxiliary drives. Level 1 and Level 2 automation and all engineering services, project management, installation and commissioning are also included in ABB’s scope.
Mr Bernd Sachweh head of sales for Europe of ABB said that “Tandem Cold Rolling Mills automation is an integral part of our metals portfolio and we are very pleased to be working with ArcelorMittal on this project. The local presence allows us to deliver very responsive services and the smooth integration of the new technologies into the existing equipment.”
ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. It operates in around 100 countries and employs about 108,000 people.
Japanese H beam export hits 44,000 tonnes in September
YIEH reported that the export volume of H beam from Japan totaled 44,038 tonnes in September 2007, which settled at the average price of USD 686 per tonnes while the total export from January to September was 230,466 tonnes.
The main destination of the export for the past January to September 2007 is APEC countries which contributed 203,689 tonnes, to NIES countries 182,799 tonnes and to South Korea 132,038 tonnes.
The export prices ranged on average bases between USD 630 to USD 690 per tonne.
NYMEX Holdings acquires 15.1% of Norwegian IMAREX
NYMEX Holdings Inc, the parent company of the New York Mercantile Exchange and options exchange, announced that it has signed an agreement to acquire 15.1% of leading Norwegian financial derivatives exchange IMAREX ASA from Frontline Ltd for approximately USD 52 million.
IMAREX headquartered in Oslo operates a hybrid model of electronic trading and voice brokerage and offers research, transaction and settlement services for financial derivatives based on oceangoing freight, airborne emissions, farmed salmon, electric power and heavy fuel oil.
IMAREX is the world's only regulated market for trading of freight derivatives. The Group's exchange and clearing house are licensed by the Norwegian Ministry of Finance and regulated by the Financial Supervisory Authority of Norway. Across the group, customers include the world's leading banks, oil majors, power generators, ship owners, charterers, commodity trading houses and hedge funds. IMAREX has subsidiaries in Norway, Houston, Singapore, Zurich and London.
Mr Richard Schaeffer chairman of NYMEX Holdings said that "This investment and partnership in one of Europe's leading derivatives exchanges advances our strategic goal to expand our product distribution and clearing into the European market. The IMAREX shipping derivatives trading and clearing business is a powerful platform for NYMEX to expand and develop new products for the European and global energy markets, and complements our energy market products. We are strong believers in the IMAREX business model, including their wholly owned clearinghouse and brokerage business."
Taiwan’s billet price slips on weak scrap market
YIEH reported that due to the slip of scrap price, Taiwan’s billet price is under the same downward trend.
The report added that Taiwan’s billet price has decreased to around USD 545 per tonnes. Meanwhile, the imported billet price offered by Japanese mill is still lower than Taiwanese mill’s which caused a new price cut pressure to the domestic market.
The report further added that as to the slab price, it still stays at the high price level at around USD 570 per tonnes to USD 610 per tonnes C&F price.
In the terms of scrap, Taiwan’s Tung Ho Steel also reduced its price by NTD 700 per tonnes in total which significantly brought down the domestic scrap price to about NTD 12,000 per tonnes.
Taiwanese HR & GI markets strong
YIEH reported that as Taiwan’s Chung Hung Steel increased its list price, Taiwan’s domestic price of hot rolled product has raised by USD 15 per tonnes to USD 615 per tones and the price of cold rolled has increased by USD 12 per tonnes to USD 678 per tonnes.
The report added that due to tight domestic supply, HGI ex work price hiked to USD 710 per tonnes and CGI ex work price to USD 740 per tonnes. Besides, the CGI export price from China has increased by USD 15 per tonnes and therefore the CGI price will keep mounting.
GIPI inks loan agreement for steel pipe & casing complex in Oman
It is reported that Gulf International Pipe Industry has signed an USD 80 million loan agreement with a group of regional and local banks. It is setting up a USD 104 million high pressure carbon steel pipe and casing complex in Sohar of Oman's Batinah region.
The credit facility was arranged by Gulf International Bank as a club deal between Qatar National Bank, Gulf International Bank, Bank Muscat and Bank Sohar. Its shareholders are Awtad, Golden Dunes Investments, Gulf Investment Corporation, POSCO Steel Services and Sales Company and Arkan Group.
Iran sets 4 months deadline for India to join IPI pipe line
It is reported that Iran has set a four month deadline to Indian for formally agreeing for its participation in gas pipeline project to transport Iranian gas to India via Pakistan.
The warning came after Iran and Pakistan on Saturday finalized the content of the USD 7.4 billion deal, originally a tripartite project, which is scheduled to be signed within a month.
Russian Railways lowest bidder for Saudi Arabian minerals railway
It is reported that Russian Railways has submitted the lowest bid for the contract to build the final section of Saudi Arabia’s North South minerals railway. With a bid understood to be about USD 3,000 million, Russian group heads a field of 5 bidders hoping to construct CTW 400, a 480 kilometer long stretch from Al Zabirah junction to Riyadh’s King Khaled International Airport. Details of the bids and an announcement of the winner are expected to be made public by the end of November 2007.
The Public Investment Fund, which is managing the project, had expected 10 bids from the 12 pre qualified companies. Other bidders were Saudi Binladin Group, Saudi Oger along with 2 subsidiaries of the China Railway Construction Corporation, the 15th and 18th China Railway Construction Bureau Corporations.
A source close to Public Investment Fund said that “They are all very strong bids and the prices are all very close. We would rather have had 5 strong bids than the average 10. We are now evaluating the technical detail of the submissions, but assuming they fully meet the requirements of the project then it comes down to price.”
The first 3 construction packages on the 2,400 kilometer railway were awarded earlier this year. Public Investment Fund is also finalizing bid documents for three large ancillary service contracts for the North South project. Tenders will be issued in January 2008 for companies seeking to provide signaling and telecoms, rolling stock and operations and maintenance services.
Drydocks World poised to become a marine industry giant
Dubai World’s subsidiary Drydocks World recently announced that it has successfully completed the setting up of a new group under its umbrella. It is now firmly established as a leading and expanding international player in ship repair, conversion, new building and other marine related activities.
Mr Geoff Taylor CEO of Drydocks World said that it will monitor, control and set procedures in respect of finance, HR and other common functions in group companies. Those in the group at present include Drydocks World Dubai, which is an amalgamation of Dubai Drydocks and Jadaf, Drydocks World Singapore, formerly Pan United Marine, Drydocks World Batam, a green field development in Indonesia, Platinum Yachts FZ and Platinum Yacht management.
Drydocks World Dubai is the complete amalgamation of Jadaf Shipyard and Dubai Drydocks. These companies started operations in 1979 and 1983 respectively and from humble beginnings have grown to become international and regional leaders in their own fields. Jadaf have always served the smaller vessel owners whilst Dubai Drydocks, with the largest repair docks in the world, have focused on the upper end of the market.
Mr Hamed Bin Lahej COO of Drydocks World explained that the huge investment in Drydocks World Dubai, which now boasts 3 graving docks, 2 floating docks, a 120 meter load in and out hydra lift, a 3,000 and 60,000 ton ship lift, 44 dry berths, 3 of which are covered for mega yacht building and repair, a 700 ton yacht lifter and 6 kilometers of wet berths will further establish Dubai as a major maritime hub. This ship repair, conversion and new building group will be able to service vessels of any shape or size from VLCC’s, offshore structures right down to water taxis and privately owned pleasure craft.
Drydocks World Singapore, the most recent acquisition for the group, is completely aligned with the activities and expansion plans of Drydocks World. Well placed in one of the busiest waterways in the world customers can now repair their ships in the Middle East or Singapore, confident that they will receive the same quality repairs and customer care in both locations. This business unit has an exceptional reputation in the new building sector and currently has a full order book for offshore supply, and similar vessels, until 2012.
Sonelgaz pre qualifies bidders for 509 kilometer gas pipeline
It is reported that Algerian Sonelgaz has pre qualified 10 bidders for the project to build a 509 kilometer long gas pipeline running from the eastern Khenchela region to the western Sidi Belabbes region. Commercial offers are due in February 2008.
The pre qualified bidding groups include
1. Iran’s Didas
2. Russia’s Stroytransgaz
3. Iran’s Nastaran Electric Company
4. US’ Willbros Group
5. Turkey’s Nurol Group and Servet Arar
6. Pakistan’s Sui Northern Gas Pipelines
7. Turkey’s Gunsayil
8. Brazil’s Andrade Gutierrez
9. India’s Punj Lloyd
10.Local firms Cosider, Enac and Kanaghaz
The 28 inch diameter pipeline will run through Barika, Batna, Msila, Medea and Oued Taria in Algeria.
Rail link to connect new international airport in Doha
MEED recently reported that efforts are under way to build a rail link to the new international airport under construction in Doha. Bids will be submitted by the second week of November 2007 for a preliminary design adding a rail link to the project.
The design and management of the airport has been carried out since 2004 by US construction giant Bechtel, which omitted a rail link from its original plans.
Mr Boris van Thiel of Ingenieurburo Vossing, a German consultant on the project, said that “At the time it took over there was no rail in Doha, only roads. Now there are plans for a light rail network in the city and we need a 2 kilometer long corridor to link it to the airport.”
Limitless invites EoI for Arabian Canal project in Dubai
Khaleej Times reported that local developer Limitless has invited contractors to express interest in a 2 stage tender for construction contracts for the Arabian Canal project in Dubai.
A spokesman of Limitless said that “Limitless has invited several international contractors to submit proposals for the Arabian Canal project. It is currently considering expressions of interest from about a dozen contractors.”
The construction of the 80 kilometer long waterway will be split into a series of design and build packages, although the client may award multiple contracts to one contractor or consortium.
The canal will enter the Arabian Gulf at 2 points, first at south west of Palm Jebel Ali as part of the Dubai Waterfront project and the second at south west of the Dubai Marina. Limitless will develop 200 square kilometres of land around the canal to the south east of the Dubai World Central airport. The canal will also pass through the Dubai Waterfront and Discovery Gardens developments planned by Nakheel, Dubai Industrial City, the Jebel Ali Business Park planned by Emaar Properties and the Jumeirah Golf Estates development planned by Istithmar Leisure. The canal will be constructed at sea level for its entire length to allow yachts to sail along it.
Construction of the canal is expected to take 3 years from December 2007 until the end of 2010. The client estimates the excavation will require the removal of about 1,000 million cubic meters of material. This will be used for landfill and landscaping on adjacent developments. It will cross major highways at five different locations, as well as the Dubai metro, underground gas and fuel pipelines and overhead power lines.
Saudi oil minister rules out oil output hike
Financial Times reported that Mr Ali al Nuaimi oil minister of Saudi Arabia has ruled out a hike in oil production in response to soaring prices at an OPEC meeting. He added that there will be absolutely no discussion of short term supply at OPEC summit in Riyadh by heads of state or oil ministers and that the summit would instead focus on longer term strategy.
Mr Nuaimi, however, said that OPEC was watching the market carefully and that Saudi Arabia would look at all the information available, leaving the door open to an increase in output at OPEC's next meeting in Abu Dhabi on December 5th 2007. He cautioned that a decision on a production boost at the Abu Dhabi meeting was premature, while insisting that OPEC had nothing to do with where the oil price is today.'
He said that "We have no interest whatsoever in seeing the world regress from its development because of rising energy prices.”
Chinese steel production growth slows down in October
It is reported that the growth momentum in China's steel production continues to slow down in October 2007.
The October production of crude steel stands at 42.92 million tonnes up 13.5% from October 2006, but 4% points slower than the comparable YoY growth rate for September 2007. The average daily production of October 2007 reduced to 1.38 million tons down by 2.75% MoM or by 39,000 tonnes from September 2007 level.
The October production of pig iron stands at 40.84 million tonnes up 13.2% from October 2006. The average daily production of October stands at 1.32 million tonnes, basically in line with September level.
The October production of finished steel products is 49.08 million tonnes, up 17% from October 2006, but 2.9% points slower than the comparable YOY growth rate for September 2007. The average daily production of October dwindles to 1.58 million tonnes, down 2.26% or by 36,600 tonnes from September 2007 level.
Compared with a year earlier, heavy plate production of October 2007 surges 34.2%; medium plate, up by 29.7%; wide and medium-thick strip, up by 39.1%; CR wide and thin strip up by 30%; silicon steel, up 52.1%.
The slowdown in steel production growth indicates that Chinese steel mills are readjusting production to offset the mounting pressure from raw material price hikes.
(Sourced from MySteel.net)
Stemcor and Anshan form marketing JV in Spain
UK based World’s largest independent steel trader Stemcor has set up a JV with Chinese steel producer Anshan Iron and Steel Group to market steel products in Spain.
The agreement was signed by Mr Zhang Xiaogang chairman of Anshan Iron and Steel Group and Mr Ralph Oppenheimer executive chairman of Stemcor on November 8th 2007 in the city of Anshan in northern China.
Under the agreement a new company will be established, Ansteel Spain SL, which will become the exclusive agent for trading and distributing Anshan’s wide range of steel products throughout the Iberian Peninsula?
Mr Oppenheimer said “Anshan and Stemcor have been trading together for over ten years. This joint venture strengthens our relationship and provides a platform for the responsible marketing of Chinese steel in Iberia.”
Stemcor is mainly engaged in steel imports and exports with annual trade volume of 20 million tonnes, valued at more than USD 8 billion. In virtue of over 60 subsidiaries and offices in 40 countries and regions, it is now the largest independent steel trading company.
China may raise export tax in January 2008 - Reports
It is reported that on the backdrops of increase of iron ore prices and trade conflicts between other countries, Chinese government is considering increasing exports taxes in January 2008.
As per unconfirmed reports, the export tax is likely to be raised by 20% on semis, 10% on flat products and 15% on long products.
Northern Territory opens door to Chinese steelmakers
It is reported that the Northern Territory government has signed an agreement with the China Mining Association, in hope it will lead to the opening of new mines in Australia.
The deal was signed during a mining summit in Beijing and will involve the Territory Government providing mining research to potential foreign investors.
Mr Chris Natt mines minister of Northern Territory government said that two Chinese companies have told him of their interest in doing business in the Territory. He added that one of them is BaoSteel.
Wuhan Steel to buy USD 1.1 billion assets from parent
It is reported that Wuhan Steel, based in central China's Hubei province would buy assets of CNY 8.2 billion (USD 1.11 billion) from its state owned parent WISCO Corp to boost competitiveness.
In a filing with the Shanghai stock exchange, Wuhan Steel said it planned to buy coke, scrap steel, railway and other steel related assets from its parent company. The net value of the assets, Wuhan Steel is buying, is CNY 8.2 billion representing 37.4% of the listed company's total net assets at the end of last year.
Wuhan Steel said the acquisition price is yet to be finalized and the plan requires approval from its shareholders and relevant government authorities, adding that it planned to fund the purchase with internal resources. The acquisition, if completed, will cut Wuhan Steel's production and operational costs.
Chinese government is encouraging state controlled listed firms to buy non-listed core assets from their parent companies in order to improve their efficiency. It has also pushing its steel makers to merge while shutting outdated capacity with a view to create a handful of globally competitive giants from the nation's fragmented steel industry.
3 miners dead and 9 missing in Pingdingshan Coal in Henan
UPI reported that the bodies of three miners were pulled recently from a Chinese coal mine hit by a gas explosion and the search continued for nine others trapped in the shaft.
The state news agency said the explosion occurred early Monday in central China's Henan Province. There were 24 miners in the mine when the blast occurred. Twelve were able to escape, while the other 12 were trapped.
The company official said "We are working hard to clear the coal debris blocking the tunnel and then rescuers will be able to get closer to the location where the trapped miners may be.”
Pingdingshan Coal is one of China's Top 10 coal producers with an annual output of more than 30 million tonnes.
Mn Ore price hike expected due to increase in ocean freights
It is reported China’s major ports Lianyungang Port, Fangchenggang Port, Zhanjiang Port and Tianjin Port, have witnessed scant supply of imported Mn ore, especially high grade lump ore, mainly 45% Australian and Brazilian ones.
AS per report, price now remains stable as that in last week. 42% to 45% Australian lump ore is quoted at CNY 73 per MTU to CNY 75 per MTU and 45% Gabonese ore at CNY 76 per MTU.
Ocean freight rates have climbed to USD 60 per tonnes for Australia to China, USD110 per tonnes to USD 120 per tonnes for Brazil to China and USD40 per tonnes to USD 50 per tonnes for Indonesia to China.
Insiders say imported Mn ore price will go up steadily providing freight rate maintains high.
(Sourced from MySteel.net)
Baosteel completes COREX furnace
It is reported that COREX furnace of Luojing project during the relocation of Pudong Iron & Steel Co Ltd yielded iron on November 8th 2007, one day ahead of schedule.
The completion of the world's largest 1.5 million tonnes COREX furnace in Baosteel indicates a new stage for China's iron making technology.
COREX furnace, also named iron making equipment by smelting reduction, is famous for short flow and light pollution.
(Sourced from MySteel.net)
General Steel Holdings' JV gets tax rate reduction from NDRC
General Steel Holdings Inc one of China's leading non state owned steel products producer announced that its Longmen Joint Venture received notification from the National Development Reform Commission that it qualifies for the national Go West special tax treatment for companies significantly contributing to the economic development of the Western Region.
The Go West tax treatment lowers the effective corporate tax rate from 33% to 15%. This change is effective July first and will be reflected in the Company's reported third quarter financial results.
Mr Henry Yu CEO and Chairman of General Steel Holdings Inc stated that "The Central government has placed development of the Western Region as a key priority for national economic growth. One of the reasons we chose to partner with the Longmen Group was its geographic location as a bridgehead point for development into the Western Region. Receiving this "Go West" qualification from the NDRC reinforces our strategy to be a dominant player in this market and capitalize on the expanding growth opportunities here"
General Steel Holdings, Inc headquartered in Beijing, operates a diverse portfolio of Chinese steel companies. With 3 million tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including reinforced bar, hot-rolled carbon and silicon sheet and spiral weld pipe. It has steel operations in Shaanxi province Inner Mongolia autonomous region and Tianjin municipality.
Laisteel improves yield in H beam manufacturing
It is reported that quality loss in manufacturing of H steel by Laisteel has dropped to CNY 2000 in September as compared to CNY 5177 in August.
Factory Manager of Laisteel said that “Only one demurral on quality loss in September loss per tonnes is only 1.04 cent, which is the lowest record for the recent two years.”
E Steel CR complex commissioned
It is reported that E Steel has commissioned its new 1500mm wide CR complex. The key equipments in CR complex include two stand reversing CR mill, annealing facilities and other facilities. The total investment in the project is reported to be CNY 800 million.
The new CR complex will produce high grade CR products suitable for appliances and construction industry.
This marks E steel’s diversification from its previous production of plates and long products.
Bayi Steel inks technology agreement with Baosteel
It is reported that Bayi Iron and Steel's facility engineering department recently signed a facility management and technology assistant agreement with Baosteel Branch's facility department, which will provide Bayi Steel with strong technical support in facility management.
Pansteel HR achieves 2.45 million tonnes output in 2007
It is reported that HR work within Panzhihua New Steel & Vanadium Co Ltd seeking new market opportunities, has conquered many problems like electricity, resource and transport shortage and carefully organized production.
By the end of November 11th 2007 the output of HR plate & coil amounted to 2453362 tonnes and it has completed the annual plan 2.45 million tonnes 51 days in advance before end of 2007.
New products under development in Shougang Research Institute of Technology
It is reported that Shougang Research Institute of Technology will quicken the development of new products such as pipe & wire steel, shipping plate and steel for automobile and contributes to Shougang’s product structure adjustments.
Pansteel completes the construction of RH vacuum system
It is reported that the RH vacuum system used for No 2 slab continuous caster in steelmaking mill of Pansteel has been formally put into production recently.
The equipment is made up by over 20 subsystems and total weight is over 600 tonnes.
The successful manufacture of RH vacuum system has filled the vacancy of vacuum equipment manufacture industry in southwest of China and has constructed the base for Pansteel to develop smelting equipment manufacture market such as RH, LF, VD, etc in future.
CR price up in Shanghai
It is reported that China's market price of carbon steel cold rolled sheets and coils increased in Shanghai recently.
The price of cold rolled sheet with thickness 1.0mm from Ansteel is at CNY 5,150 per million tonnes, showing a rise of CNY 20 per million tonnes compared with the previous day. And thickness 1.2 and 2.0mm is prevailing between CNY 5,050 per million tonnes and CNY 5,080 per million tonnes.
Regarding the cold rolled coil, the price with 1.0mm thickness from BenSteel is at CNY 4,970 per million tonnes.
Norilsk sees nickel demand recovery in Q1
It is reported that nickel demand from stainless steel producers is firming in Europe in the fourth quarter and should revive in Asia in the first quarter of next year.
Mr Viktor Sprogis deputy GD of Norilsk Nickel said during his visit to China said that “Chinese stainless steel plants are raising production after weak product prices and a collapse in nickel prices hurt returns in the last quarter, but refined nickel demand is still roughly flat. For the time being, the market is slow, although we have seen the first signs of recovery. Revived first quarter demand is unlikely to hit a new record after a strong first quarter in 2007.”
Mr Sprogis said Chinese stainless steel producers have seen a 10% to 20% improvement in their order books and production this quarter compared with last, but refined nickel demand looks to be unchanged this quarter from last. He estimated altogether, Chinese nickel consumption rose by 20%in 2007, including refined nickel and nickel in pig iron, scrap and ferronickel.
He added that European demand and some American demand is starting to resume but Japanese demand is still flat this quarter compared to last. He also added that "There is no precedent for such volatility in nickel prices, and both high prices and volatility really affected consumption "We are keeping our fingers crossed. We are positive about growth in consumption in the fourth quarter, and even more in the first quarter. That's why we have a general optimism for recovery."
According to a report issued by Macquarie Research world stainless steel production fell by about 9% in the third quarter compared with the year before and that of austenitic stainless steel, which contains nickel fell by 18%YoY.
Ukraine's Central Mining increases 10 months output by 8% YoY
Interfax reported that Central Mining, a Ukrainian iron ore producer, increased commercial output by 8%YoY in constant prices to UAK 1.587 billion in the first ten months of 2007 including UAK 151.4 million in October.
Central Mining said it increased production of iron ore concentrate increased by 5.6% YoY to 4.921 million tonnes in the ten months and production of pellets rose by 1.9% YoY to 1.839 million tonnes. This included 500,000 tonnes of concentrate and 125,000 tonnes of pellets produced in October respectively 11.4% YoY more and 2.7% less YoY.
Russia and Bulgaria to ink South Stream gas deal in January
RIA Novosti reported that Russia and Bulgaria could sign an agreement on building a gas pipeline to run under the Black Sea directly from Russia to the European Union in January
Mr Anatoly Yanovsky Deputy Industry and Energy Minister of Russian said "We have set ourselves a task of signing the deal in January" adding that the project would contribute to improving global energy security.
Mr Viktor Khristenko Industry and Energy Minister of Russian earlier said Austria and Italy would be the final destination points of the South Stream gas pipeline.
The South Stream project, announced by Gazprom in June, replaces previous plans to extend the Blue Stream pipeline which runs from Russia to Turkey. Russian energy giant Gazprom and Italian oil and gas company Eni SpA. agreed in June 2007 to build the South Stream pipeline, which will deliver 30 billion cubic meters of gas annually via Bulgaria to Austria, Slovenia and Italy.
Vostochniy Port 9 months traffic up by 4% YoY
FIS reported that freight turnover of Vostochniy Port during January to September 2007 14.0896 million tonnes up by 4% YoY.
Average European gas price will be USD 300 in 2008 – Gazprom
RIA Novosti reported that Gazprom forecasts that the average European natural gas price will be USD 300 per 1000 cubic meters in 2008. Mr Alexander Medvedev deputy chairman of the Russian gas giant's management committee said "The average European price forecast for 2008 is USD 300."
Mr Tedvedev said that the price of USD 160 per 1,000 cubic meters earlier discussed with Ukraine would be approved if the country signed a deal of gradual transition to the average European price by 2011. He said we cannot sell to our neighbors at lower prices than we do to others."
Gazprom set an official price for Russian natural gas supplies to Ukraine at USD 230 per 1,000 cubic meters from the start of 2006. However, Ukraine paid an average of USD 95 per 1,000 cubic meters for the mixture of Central Asian and Russian gas supplied at the border.
Gazprom management had earlier said that the average level for 2007 would be USD 263 per 1,000 cubic meters to USD 265 per 1,000 cubic meters. Gazprom planned exports are expected to reach 147 billion cubic meters in 2007.
Oil and Gas account for 67% of Russian exports in 2007
FIS reported that in the commodity structure of exports to overseas countries fuel and energy commodities accounted for 67% of total exports in January to September 2007.
Metals accounted for 15.4% as against 13.2% in January to September 2006, chemicals accounted for 5.4% as against 4.9% January to September 2006, lumber materials and pulp and paper items accounted for 3.7% as against 3.1% in January to September 2006, machines and equipment accounted for 3% as against 3.1%in January to September 2006.
In the exports to CIS countries in January to September 2007 fuel and energy commodities accounted for 36.4% of the total exports to these countries.
Metals and metal items - 14.4% (11.6%)
Chemicals - 9.7% (8.8%)
Machines and equipment - 21% (19.9%)
Lumber materials and pulp and paper items - 5.1% (4.2%)
Construction of new railway across China and Mongolia to start
FIS reported that Upon completion of the Fucin to Bianul railway construction it will be time for the construction of the second phase of the railway, which will reach the frontier check point Dzungadabutsi on the China Russian border.
The rail tracks will then be extended further across the Mongolian territory in the direction of Choibalsan. Finally, the new railway will be connected with the Russian railway network.
Russian Railways invests RUB 217 million in Omsk depot
It is reported that the Russian Railways has invested RUB 217 million in development of the motor carload depot Omsk and has commissioned the new facility on November 9th 2007.
The reconstructed shop of the motor carload depot Omsk now has 5000 square meter shop where 2 structures on ten cars can be placed. Technical opportunities of the updated shop allow spending servicing of five electric trains a day.
The industrial premise is equipped by the technological hardware complex, allowing spending diagnostics of all equipment of electrorolling stock and also mechanizing of working operations.
Russian Railways was created on October 1st 2003 on behalf of Russian ministry of Railways. 100% of shares of the company owning a railway network in the extent 85,500 of kilometers belong to the state. The net profit of Russian Railways in 2006 has grown up to RUB 26.3 billion that is in 2.7 times more than in 2005 RUB 9.7 billion.
