Monday, 14 February 2011
West Chester, Ohio-based AK Steel is moving forward with its plans to become more energy independent. Industrial gas provider Air Products and Chemicals Inc. wants to build a $315 million facility that would take the waste gas from AK Steel's Middletown Works plant in southern Ohio to make steam and electricity. Air Products and Chemicals Inc. is currently in negotiations with AK Steel for the steelmaker to then purchase the recycled energy from its plant.
Construction of the facility is however subject to potential Environmental Protection Agency (EPA) and Congressional legislation because the project relates to a greenhouse gas, and since the facility would be producing electricity, it is also subject to state and federal legislation as well. Both companies are looking to obtain the necessary permits by July 1.
(sourced:steelorbis)
Tags:raw mat, flats, USA, North America, steelmaking, M&A, AK Steel
Showing posts with label Monday Feb14 2011. Show all posts
Showing posts with label Monday Feb14 2011. Show all posts
Monday, February 14, 2011
China to import up to 20 million mt per year of Russian coal
Monday, 14 February 2011
Russian Energy Minister Sergei Shmatko has stated that China has agreed to raise the maximum limit for the volume of coal it imports from Russia to 20 million mt per year.
Minister Shmatko said that Russia and China will soon sign the relevant agreement regarding cooperation in the coal sector.
In 2010, Russia exported more than 10 million mt of coal to China, principally through its Far Eastern ports.
(sourced:steelorbis)
Tags: coking coal , raw mat , China , Russia , CIS , East Asia and Pacific , Far East , imp/exp statistics , Coking coal
Russian Energy Minister Sergei Shmatko has stated that China has agreed to raise the maximum limit for the volume of coal it imports from Russia to 20 million mt per year.
Minister Shmatko said that Russia and China will soon sign the relevant agreement regarding cooperation in the coal sector.
In 2010, Russia exported more than 10 million mt of coal to China, principally through its Far Eastern ports.
(sourced:steelorbis)
Tags: coking coal , raw mat , China , Russia , CIS , East Asia and Pacific , Far East , imp/exp statistics , Coking coal
OMK’s Vyksa increases railway wheel output by 2.4 times in January
Monday, 14 February 2011
The Russian steel and pipe producer United Metallurgical Company (OMK) has announced that in January 2011 its Novgorod-based subsidiary Vyksa Steel Works (Vyksa) increased its railway wheels output by 2.4 times year on year to 66,384 wheels.
In addition, in January this year Vyksa also produced 145,000 mt of steel pipes, including 93,000 mt of large diameter (LD) steel pipes, which corresponds to the output volume in January 2010.
(Sourced:steelorbis)
Tags:pipe, tubular, Russia, CIS, manufacturing, steelmaking, production, OMK
The Russian steel and pipe producer United Metallurgical Company (OMK) has announced that in January 2011 its Novgorod-based subsidiary Vyksa Steel Works (Vyksa) increased its railway wheels output by 2.4 times year on year to 66,384 wheels.
In addition, in January this year Vyksa also produced 145,000 mt of steel pipes, including 93,000 mt of large diameter (LD) steel pipes, which corresponds to the output volume in January 2010.
(Sourced:steelorbis)
Tags:pipe, tubular, Russia, CIS, manufacturing, steelmaking, production, OMK
Atlas Iron now holds 59.92 percent of voting rights in Giralia
Monday, 14February2011
Australian iron ore miner Atlas Iron Limited has announced that it holds 59.92 percent of the voting rights in fellow Australian iron ore mining company Giralia as of February 14.
As SteelOrbis previously reported, according to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$831 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent.
The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5 billion.
"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in a previous statement.
As SteelOrbis also previously reported, Atlas had agreed to buy Perth-based metals developer Aurox Resources on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.
(sourced:steelorb
Tags:iron ore,raw mat, Australia, Oceania, mining, M&A, Atlas, Pellets, Lump ore,Fine ore
Australian iron ore miner Atlas Iron Limited has announced that it holds 59.92 percent of the voting rights in fellow Australian iron ore mining company Giralia as of February 14.
As SteelOrbis previously reported, according to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$831 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent.
The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5 billion.
"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in a previous statement.
As SteelOrbis also previously reported, Atlas had agreed to buy Perth-based metals developer Aurox Resources on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.
(sourced:steelorb
Tags:iron ore,raw mat, Australia, Oceania, mining, M&A, Atlas, Pellets, Lump ore,Fine ore
Belarus to boost steel cord output to 150000 tonnes a year
Monday, 14 Feb 2011
Belarusian Telegraph Agency quoted Mr Ivan Demidovich first deputy industry minister of Belarus as saying that the production of steel cord in Belarus will increase to 150,000 tonnes a year.
The project to increase metal cord production at the Belarusian Steel Works is under development now. It will be implemented in the current five year period. To date the Belarusian Steel Works produces 100,000 tonnes of metal cord a year, the plant’s output is set to reach 150,000 tonnes.
Mr Ivan Demidovich mentioned other innovation projects, which will be implemented in the current 5 year period. One of them is the project to build a flat steel plant. There are plans to revamp other metallurgy plants.
Mr Ivan Demidovich said that the production of caterpillar tractors was established at the Mozyr Machine Building Plant. The plant started the serial production of caterpillar tractors. There are plans to produce 1,000 tractors a year. He added that "We hope this will ensure good export and MTZ development."
Minsk Automobile Plant starts manufacturing cabins, thus the plant can penetrate new markets and strengthen positions on the existing ones. Gomselmash is developing conceptually new hi tech grain harvesters with the capacity of 20 tonnes of grain per hour.
(sourced:www.belta.by)
Belarusian Telegraph Agency quoted Mr Ivan Demidovich first deputy industry minister of Belarus as saying that the production of steel cord in Belarus will increase to 150,000 tonnes a year.
The project to increase metal cord production at the Belarusian Steel Works is under development now. It will be implemented in the current five year period. To date the Belarusian Steel Works produces 100,000 tonnes of metal cord a year, the plant’s output is set to reach 150,000 tonnes.
Mr Ivan Demidovich mentioned other innovation projects, which will be implemented in the current 5 year period. One of them is the project to build a flat steel plant. There are plans to revamp other metallurgy plants.
Mr Ivan Demidovich said that the production of caterpillar tractors was established at the Mozyr Machine Building Plant. The plant started the serial production of caterpillar tractors. There are plans to produce 1,000 tractors a year. He added that "We hope this will ensure good export and MTZ development."
Minsk Automobile Plant starts manufacturing cabins, thus the plant can penetrate new markets and strengthen positions on the existing ones. Gomselmash is developing conceptually new hi tech grain harvesters with the capacity of 20 tonnes of grain per hour.
(sourced:www.belta.by)
Breakdown at Enakievo disrupted steel production for a week
Monday,Feb14,2011
It is reported that the breakdown happened in the converter workshop of Enakievo Steelworks at the beginning of the week. It brought to a complete standstill the steelmaking facilities and reduced to the minimum the operations of the blast furnaces.
The plant is to resume normal operations in 3-4 days, according to the Association of Ukrainian Steelmakers.
According to Millennium Capital analyst “The news is NEGATIVE for Enakievo steelworks. The week long breakup in production is to reduce the plant’s February steel output by at least 25%. The scope of the breakup can be more serious, as the issue is not publicly commented, and it may take longer for the company to resume normal operations.”
(sourced:Millennium Capital)
It is reported that the breakdown happened in the converter workshop of Enakievo Steelworks at the beginning of the week. It brought to a complete standstill the steelmaking facilities and reduced to the minimum the operations of the blast furnaces.
The plant is to resume normal operations in 3-4 days, according to the Association of Ukrainian Steelmakers.
According to Millennium Capital analyst “The news is NEGATIVE for Enakievo steelworks. The week long breakup in production is to reduce the plant’s February steel output by at least 25%. The scope of the breakup can be more serious, as the issue is not publicly commented, and it may take longer for the company to resume normal operations.”
(sourced:Millennium Capital)
Alchevsk plans to boost steel output by 18pct MoM in Feb
Monday, 14 Feb 2011
It is reported that Alchevsk Steel is planning to increase February crude steel output by 14% to 18% to reach 320,000 tonnes to 330,000 tonnes.
The corresponding increase in rolled products’ output is to underlie 230,000 slab exports in February.
To meet the growing production targets for pig iron, in January the company has re launched Blast furnace No 3 which had been idle due to raw materials shortages.
According to Millennium Capital analyst “The news is POSITIVE for Alchevsk Steelworks, as it implements successfully its plans to increase output. As we expected, this speedy production recovery allows ALMK to capitalize on surging global prices for steel. Importantly, the company has successfully increased iron ore purchases from Metinvest, in order to secure the production hike.”
(sourced:Millennium Capital)
It is reported that Alchevsk Steel is planning to increase February crude steel output by 14% to 18% to reach 320,000 tonnes to 330,000 tonnes.
The corresponding increase in rolled products’ output is to underlie 230,000 slab exports in February.
To meet the growing production targets for pig iron, in January the company has re launched Blast furnace No 3 which had been idle due to raw materials shortages.
According to Millennium Capital analyst “The news is POSITIVE for Alchevsk Steelworks, as it implements successfully its plans to increase output. As we expected, this speedy production recovery allows ALMK to capitalize on surging global prices for steel. Importantly, the company has successfully increased iron ore purchases from Metinvest, in order to secure the production hike.”
(sourced:Millennium Capital)
ArcelorMittal SA deal with ITC premature - CEO
Monday, Feb14, 2011
Ms Nonkululeko Nyembezi Heita CEO of steel producer ArcelorMittal South Africa said that it's discussions of a controversial black empowerment deal with Imperial Crown Trading last year may have been premature.
She added that "There is no proposal on the table for shareholders and it remains subject to shareholder approval."
She said that the discussions in 2010 were a little bit premature. Shareholders had expressed various reservations and criticisms about the deal, and these will be taken into account.
Ms Nyembezi Heita said that they did not want to take a decision on the empowerment deal, or buying ICT until the court case was assessed on its merits. She added that "The whole issue is that we must be apprised of all the factual matrix before we move forward."
She said that ICT's legal ownership of the mining right in Sishen was a condition of the deal, and that was the subject of the court case, so the outcome of the court case was important. She added that "It all depends on what comes out as the court process unfolds. Clearly we can't sit in this limbo forever."
The company announced in August 2010 that one of its subsidiaries would buy ICT for ZAR 800 million as long as ICT was awarded mining rights for the portion it held in Sishen mine in the Northern Cape Ä one of the world's largest and richest iron ore mines. The deal was also conditional on legal battles over its stake in the mine being resolved in ICT's favor. At the time, it was also announced that ICT shareholders would be included in a black economic empowerment deal with ArcelorMittal. Shareholders in ICT include Mr Duduzane Zuma, the son of President Mr Jacob Zuma, and Mr Atul Gupta. The Gupta family has close links to the ruling ANC.
The announcement came after ArcelorMittal did not renew its 21.4% old order mining right in the Sishen mine, into a new order mining right by the deadline last year. Sishen Iron Ore Company, a subsidiary of Kumba Iron Ore Limited, which owns the rest of the rights in the Sishen mine, applied for the 21.4% stake. ICT however, also applied for the right, and was granted it. This has led to a court battle involving Kumba, ICT and the mineral resources department.
In 2001, as part of Iscor's unbundling, it was agreed that a 21.4% stake in mineral rights of the Sishen mine would vest in the company that is now ArcelorMittal SA. At the time it was agreed that Sishen would supply ArcelorMittal SA with iron ore, at up to 6.25 million tonnes a year, at cost plus 3%. When ArcelorMittal SA failed to renew its 21.4% stake in part of the Sishen mine, Kumba said it would sell its iron ore to the steel giant at market prices. ArcelorMittal objected, and this was not the subject of arbitration.
(sourced:www.iol.co.za)
Ms Nonkululeko Nyembezi Heita CEO of steel producer ArcelorMittal South Africa said that it's discussions of a controversial black empowerment deal with Imperial Crown Trading last year may have been premature.
She added that "There is no proposal on the table for shareholders and it remains subject to shareholder approval."
She said that the discussions in 2010 were a little bit premature. Shareholders had expressed various reservations and criticisms about the deal, and these will be taken into account.
Ms Nyembezi Heita said that they did not want to take a decision on the empowerment deal, or buying ICT until the court case was assessed on its merits. She added that "The whole issue is that we must be apprised of all the factual matrix before we move forward."
She said that ICT's legal ownership of the mining right in Sishen was a condition of the deal, and that was the subject of the court case, so the outcome of the court case was important. She added that "It all depends on what comes out as the court process unfolds. Clearly we can't sit in this limbo forever."
The company announced in August 2010 that one of its subsidiaries would buy ICT for ZAR 800 million as long as ICT was awarded mining rights for the portion it held in Sishen mine in the Northern Cape Ä one of the world's largest and richest iron ore mines. The deal was also conditional on legal battles over its stake in the mine being resolved in ICT's favor. At the time, it was also announced that ICT shareholders would be included in a black economic empowerment deal with ArcelorMittal. Shareholders in ICT include Mr Duduzane Zuma, the son of President Mr Jacob Zuma, and Mr Atul Gupta. The Gupta family has close links to the ruling ANC.
The announcement came after ArcelorMittal did not renew its 21.4% old order mining right in the Sishen mine, into a new order mining right by the deadline last year. Sishen Iron Ore Company, a subsidiary of Kumba Iron Ore Limited, which owns the rest of the rights in the Sishen mine, applied for the 21.4% stake. ICT however, also applied for the right, and was granted it. This has led to a court battle involving Kumba, ICT and the mineral resources department.
In 2001, as part of Iscor's unbundling, it was agreed that a 21.4% stake in mineral rights of the Sishen mine would vest in the company that is now ArcelorMittal SA. At the time it was agreed that Sishen would supply ArcelorMittal SA with iron ore, at up to 6.25 million tonnes a year, at cost plus 3%. When ArcelorMittal SA failed to renew its 21.4% stake in part of the Sishen mine, Kumba said it would sell its iron ore to the steel giant at market prices. ArcelorMittal objected, and this was not the subject of arbitration.
(sourced:www.iol.co.za)
NGOs planning legal action to force ArcelorMittal SA to publish masterplan
Monday, 14 Feb 2011
Although their relationship with ArcelorMittal South Africa had become less acrimonious, environmental groups said that they are planning legal action to force the steel producer to publish a secret 8 year old environmental masterplan.
The issue has strained stakeholder relations after the masterplan was compiled by consultants in 2002 but never made public. ArcelorMittal SA said yesterday that it would not release the 9000 page report. The company published year end results and announced plans to spend ZAR 3 billion up to 2015 on environmental rehabilitation, legacy water pollution and clean energy projects. Environmental spend amounted to R300 million in the year under review.
The company said its commitment to making our operations sustainable has not wavered, despite the economic downturn. By comparison, it said in 2009 that only the most urgent of its environmental projects would proceed.
The Vaal Environmental Justice Alliance said in Vanderbijlpark that their relationship was no longer acrimonious, but legal action was nonetheless being pursued.
Vanderbijlpark is home to ArcelorMittal SA's headquarters and primary production site, which has attracted the attention of the Green Scorpions as it falls within the Vaal Triangle priority air shed area.
Mr Phineas Malapela chairman of Vaal Environmental Justice Alliance said that environmental NGOs and Department of Water Affairs officials were part of a monitoring committee to keep watch on issues such as the proximity to water sources of toxic sludge leached from an unlined waste site.
The firm said it no longer had unlined ponds at Vanderbijlpark after a new site was commissioned in December.
Mr Malapela believed the change in ArcelorMittal SA’s attitude to have come about on the instruction of parent company ArcelorMittal, which owns 52% of its JSE listed subsidiary. Global environmental groups have sustained an international campaign to highlight transgressions at ArcelorMittal operations worldwide.
Mr Bobby Peek director of NGO groundWork said that although the relationship with ArcelorMittal SA was not acrimonious. He added that "It's not of any value in the monitoring committee. You can't have a relationship of value to monitor old toxic landfill sites that is based on information you don't have."
He accused ArcelorMittal SA of using the committee to tick boxes. He added that "It's partly up to us (organizations) to unpack that, which is why we’re taking the legal process." He added that an alliance of environmental organizations was investigating the possibility of securing access to the masterplan via the Promotion of Access to Information Act.
According to Mr Malapela, ArcelorMittal SA had said that it was advised by its lawyers not to release the document.
Previously ArcelorMittal SA argued it would not make the document public because it was accepted practice that audits were confidential and the bulk of the work undertaken in the masterplan was outdated. The company said that its efforts to improve environmental performance relied heavily on the experience of and research and development within its parent company.
It would benchmark plants against best practice plants in Europe, North America and South America, and had approved detailed action plans with targets for improved efficiency and reduced energy usage.
(sourced:www.iol.co.za)
Although their relationship with ArcelorMittal South Africa had become less acrimonious, environmental groups said that they are planning legal action to force the steel producer to publish a secret 8 year old environmental masterplan.
The issue has strained stakeholder relations after the masterplan was compiled by consultants in 2002 but never made public. ArcelorMittal SA said yesterday that it would not release the 9000 page report. The company published year end results and announced plans to spend ZAR 3 billion up to 2015 on environmental rehabilitation, legacy water pollution and clean energy projects. Environmental spend amounted to R300 million in the year under review.
The company said its commitment to making our operations sustainable has not wavered, despite the economic downturn. By comparison, it said in 2009 that only the most urgent of its environmental projects would proceed.
The Vaal Environmental Justice Alliance said in Vanderbijlpark that their relationship was no longer acrimonious, but legal action was nonetheless being pursued.
Vanderbijlpark is home to ArcelorMittal SA's headquarters and primary production site, which has attracted the attention of the Green Scorpions as it falls within the Vaal Triangle priority air shed area.
Mr Phineas Malapela chairman of Vaal Environmental Justice Alliance said that environmental NGOs and Department of Water Affairs officials were part of a monitoring committee to keep watch on issues such as the proximity to water sources of toxic sludge leached from an unlined waste site.
The firm said it no longer had unlined ponds at Vanderbijlpark after a new site was commissioned in December.
Mr Malapela believed the change in ArcelorMittal SA’s attitude to have come about on the instruction of parent company ArcelorMittal, which owns 52% of its JSE listed subsidiary. Global environmental groups have sustained an international campaign to highlight transgressions at ArcelorMittal operations worldwide.
Mr Bobby Peek director of NGO groundWork said that although the relationship with ArcelorMittal SA was not acrimonious. He added that "It's not of any value in the monitoring committee. You can't have a relationship of value to monitor old toxic landfill sites that is based on information you don't have."
He accused ArcelorMittal SA of using the committee to tick boxes. He added that "It's partly up to us (organizations) to unpack that, which is why we’re taking the legal process." He added that an alliance of environmental organizations was investigating the possibility of securing access to the masterplan via the Promotion of Access to Information Act.
According to Mr Malapela, ArcelorMittal SA had said that it was advised by its lawyers not to release the document.
Previously ArcelorMittal SA argued it would not make the document public because it was accepted practice that audits were confidential and the bulk of the work undertaken in the masterplan was outdated. The company said that its efforts to improve environmental performance relied heavily on the experience of and research and development within its parent company.
It would benchmark plants against best practice plants in Europe, North America and South America, and had approved detailed action plans with targets for improved efficiency and reduced energy usage.
(sourced:www.iol.co.za)
POSCO war Zone - Government officials visit proposed port site
Monday, 14 Feb 2011
Orissa Diary reported that top state government officials paid spot visit visited proposed POSCO captive port site nearer to Paradeep and held a high level meeting with district officials at Paradeep circuit house.
The visiting state higher ups included IDCO managing director cum nodal officer for POSCO project Mr Priyabrata Pattnaik, state director general police Mr MM Praharaj, Jagatsinghpur district collector Mr NC Jena and Superintendent of Police Mr S Devadatta Singh, Rehabilitation officer Mr Surajit Das Paradeep, Additional district magistrate Saroj Kanta Chouhurry land acquisition officer Mr Nrusingha Swain and other district level officers from revenue department.
According to official sources added that for collecting ground level information’s about the project state senior officials had come to Paradeep on Saturday and held discussion with district officials.
Sources said after union ministry of Environment and Forests department cleared much hyped POSCO project imposing elevated conditions on 31 January the visit of state government officials to proposed project site marks significant as state government yet to be complied with MoEF and seeking for final clearance.
(sourced:orissadiary.com)
Orissa Diary reported that top state government officials paid spot visit visited proposed POSCO captive port site nearer to Paradeep and held a high level meeting with district officials at Paradeep circuit house.
The visiting state higher ups included IDCO managing director cum nodal officer for POSCO project Mr Priyabrata Pattnaik, state director general police Mr MM Praharaj, Jagatsinghpur district collector Mr NC Jena and Superintendent of Police Mr S Devadatta Singh, Rehabilitation officer Mr Surajit Das Paradeep, Additional district magistrate Saroj Kanta Chouhurry land acquisition officer Mr Nrusingha Swain and other district level officers from revenue department.
According to official sources added that for collecting ground level information’s about the project state senior officials had come to Paradeep on Saturday and held discussion with district officials.
Sources said after union ministry of Environment and Forests department cleared much hyped POSCO project imposing elevated conditions on 31 January the visit of state government officials to proposed project site marks significant as state government yet to be complied with MoEF and seeking for final clearance.
(sourced:orissadiary.com)
Bangladesh government to declare ship breaking an industry
Monday, Feb14, 2011
The Bangladesh government on Sunday decided to announce ‘ship breaking’ as an industry. The decision was taken at a high level meeting on ship breaking and ship recycling with prime minister Ms Sheikh Hasina in the chair at the prime minister's office.
After the meeting, the prime minister's press secretary Mr Abul Kalam Azad told newsmen that the meeting decided to place the new industry under the ministry of industries.
Addressing the meeting, the PM asked the authorities concerned to be cautious about the protection of nature and environment of the surrounding areas where the industry will be set up. She said that "All concerned rules, regulations and conventions have to be properly maintained in conducting ship breaking activities under the new industry.”
The meeting was told that the epoch making decision of the government will open up new opportunity for a considerable number of people to get employment.
Placing the ship breaking industry under the ministry of industries is expected to ensure discipline in its activities while the surrounding inhabitants, local environment and the workers and employees will be immensely benefited through it. This will also reduce the market price of the essential materials of the construction sector like rod, iron and steel.
(sourced:thedailystar.net)
The Bangladesh government on Sunday decided to announce ‘ship breaking’ as an industry. The decision was taken at a high level meeting on ship breaking and ship recycling with prime minister Ms Sheikh Hasina in the chair at the prime minister's office.
After the meeting, the prime minister's press secretary Mr Abul Kalam Azad told newsmen that the meeting decided to place the new industry under the ministry of industries.
Addressing the meeting, the PM asked the authorities concerned to be cautious about the protection of nature and environment of the surrounding areas where the industry will be set up. She said that "All concerned rules, regulations and conventions have to be properly maintained in conducting ship breaking activities under the new industry.”
The meeting was told that the epoch making decision of the government will open up new opportunity for a considerable number of people to get employment.
Placing the ship breaking industry under the ministry of industries is expected to ensure discipline in its activities while the surrounding inhabitants, local environment and the workers and employees will be immensely benefited through it. This will also reduce the market price of the essential materials of the construction sector like rod, iron and steel.
(sourced:thedailystar.net)
Namco setting up steel plate mill in Khapoli
Monday, 14 Feb 2011
It is reported that Namco Industries is setting up a world class plate mill with an investment of over USD 170 million in Khapoli district of Maharashtra in Western India.
The plate mill with an installed capacity of 1.2 million tonne per annum is slated to come into operation in late 2011. Initial plans are for producing 50,000 tonnes of plates every month, which would be gradually ramped up to reach the installed capacity.
Production capabilities will include plates in width of 1250mm to 2500mm in thickness range of 8mm to 150mm.
The company proposes to import slabs for the same before commissioning of its slab cater later next year.
Mr Namit Soni director of Namco Industries said “Being located in the vicinity of the port, the company will have a freight advantage over most plate makers in the region.”
He added that “Being a primary trader till now, Namco has expertise in sourcing slabs from all over the world, which will be a major advantage for the group.”
The group also is setting up steel service centers around the country to add value to their trading portfolio products.
Namco Industries Private Limited is a wholly owned subsidiary of Namco Corp Limited. Namco Corp is one of the major steel traders in India today. Promoted by Mr Namit Soni and Mr Vijay Soni, the company started operations in 2007 as a steel trading company operating from Indore and has become a dominant steel importer within 3 years.
(sourced:steelguru)
It is reported that Namco Industries is setting up a world class plate mill with an investment of over USD 170 million in Khapoli district of Maharashtra in Western India.
The plate mill with an installed capacity of 1.2 million tonne per annum is slated to come into operation in late 2011. Initial plans are for producing 50,000 tonnes of plates every month, which would be gradually ramped up to reach the installed capacity.
Production capabilities will include plates in width of 1250mm to 2500mm in thickness range of 8mm to 150mm.
The company proposes to import slabs for the same before commissioning of its slab cater later next year.
Mr Namit Soni director of Namco Industries said “Being located in the vicinity of the port, the company will have a freight advantage over most plate makers in the region.”
He added that “Being a primary trader till now, Namco has expertise in sourcing slabs from all over the world, which will be a major advantage for the group.”
The group also is setting up steel service centers around the country to add value to their trading portfolio products.
Namco Industries Private Limited is a wholly owned subsidiary of Namco Corp Limited. Namco Corp is one of the major steel traders in India today. Promoted by Mr Namit Soni and Mr Vijay Soni, the company started operations in 2007 as a steel trading company operating from Indore and has become a dominant steel importer within 3 years.
(sourced:steelguru)
Budget update - Steel users want zero import duty on steel
Monday, 14 Feb 2011
The Indian small and micro steel industry has requested the government to cut down import duty to nil from 5% and also levy duty on HR coils to contain inflation.
All India Confederation of Small & Micro Industries Association President Mr Sudarshan Sareen said that “Steel manufacturers have increased prices by 30% in the last two months anticipating that Australia may hike the coke price in view of the recent floods that impacted its coal mines.”
Mr Sareen said that there is no reason for the Indian steel producers to effect a hefty INR 9,000 per tonne increase in prices in January and February 2011.
(sourced:PTI)
The Indian small and micro steel industry has requested the government to cut down import duty to nil from 5% and also levy duty on HR coils to contain inflation.
All India Confederation of Small & Micro Industries Association President Mr Sudarshan Sareen said that “Steel manufacturers have increased prices by 30% in the last two months anticipating that Australia may hike the coke price in view of the recent floods that impacted its coal mines.”
Mr Sareen said that there is no reason for the Indian steel producers to effect a hefty INR 9,000 per tonne increase in prices in January and February 2011.
(sourced:PTI)
Rizhao Steel refuses to pay contract breach fines to Mount Gibson
Monday, 14 Feb 2011
It is reported that due to the refusal of paying a contract-breach compensation of about CNY 700 million to the Australian Mount Gibson Iron Ltd, Rizhao Steel is confronted with Mount Gibson’s detention for its iron ore cargoes from the Australian ports in a bid to recover damages from Rizhao Steel.
According to the report published on The Australian , iron ore miner Mount Gibson put forward solutions in early February hoping to recover compensation through seizing iron ore cargoes from the ports of Rio Tinto and other miners as it struggles to recover USD 114 million of fines awarded to it from China's Rizhao Steel.
Mr Alan CFO of Mount Gibson said that he doesn’t make sure whether other Australian suppliers were helping us if we seize one of Rizhao ships which may only be worth USD 15 million or USD 20 million.
In July 2007, the two companies signed a 15 year contract, in which Rizhao committed to purchase up to 1.5 million tons of iron ore every year from Mount Gibson. In 2008, affected by financial crisis and the market prices of iron ore dropped below the negotiated long term prices in the international iron ore market, many small steelmakers including Rizhao were unable to fulfill their duty stipulated in their long term contracts and diverted to purchase iron ore in spot market.
(sourced:mysteel.net)
It is reported that due to the refusal of paying a contract-breach compensation of about CNY 700 million to the Australian Mount Gibson Iron Ltd, Rizhao Steel is confronted with Mount Gibson’s detention for its iron ore cargoes from the Australian ports in a bid to recover damages from Rizhao Steel.
According to the report published on The Australian , iron ore miner Mount Gibson put forward solutions in early February hoping to recover compensation through seizing iron ore cargoes from the ports of Rio Tinto and other miners as it struggles to recover USD 114 million of fines awarded to it from China's Rizhao Steel.
Mr Alan CFO of Mount Gibson said that he doesn’t make sure whether other Australian suppliers were helping us if we seize one of Rizhao ships which may only be worth USD 15 million or USD 20 million.
In July 2007, the two companies signed a 15 year contract, in which Rizhao committed to purchase up to 1.5 million tons of iron ore every year from Mount Gibson. In 2008, affected by financial crisis and the market prices of iron ore dropped below the negotiated long term prices in the international iron ore market, many small steelmakers including Rizhao were unable to fulfill their duty stipulated in their long term contracts and diverted to purchase iron ore in spot market.
(sourced:mysteel.net)
Chinese power use growth in January seen up MoM
Monday, 14 Feb 2011
Reuters reported that Power consumption in areas served by State Grid Corp of China may have increased by an average of 9.4% in January from a year earlier up from a nationwide 5.4% rise in December.
Electricity consumption in areas covered by the Northwest Grid, one of SGCC's five regional units rose 14.01%YoY to 30.9 billion kilowatt hours last month.
The report said citing data from the Northwest Grid that the increase was the fastest among the five region and 4.64 percentage points higher than the average for SGCC as a whole.
Power use comparisons in January and February are often distorted by the Lunar New Year holiday which can fall in January or February. In 2010 and 2011 the holiday took place in February.
(sourced from Reuters)
Reuters reported that Power consumption in areas served by State Grid Corp of China may have increased by an average of 9.4% in January from a year earlier up from a nationwide 5.4% rise in December.
Electricity consumption in areas covered by the Northwest Grid, one of SGCC's five regional units rose 14.01%YoY to 30.9 billion kilowatt hours last month.
The report said citing data from the Northwest Grid that the increase was the fastest among the five region and 4.64 percentage points higher than the average for SGCC as a whole.
Power use comparisons in January and February are often distorted by the Lunar New Year holiday which can fall in January or February. In 2010 and 2011 the holiday took place in February.
(sourced from Reuters)
Xinxing Ductle Pipe to activate 3 million tonnes per year steel project
Monday, 14 Feb 2011
It is reported that Xinxing Ductile Iron Pipe Group Xinjiang Company would start construction of its 3 million tonnes per year special steel project with the total investment of 9.01 billion tonnes including 4 0.2 million tonnes per year converters, 4 0.2 million tonnes per year shaft furnaces and 2 1.8 million tonnes per year sinters etc.
As per report, the project has been submitted to the local authorities and got approved which may finish the constructions for production in 2013 with the annual output hitting at 5 million tonnes.
(sourced:mysteel.net)
It is reported that Xinxing Ductile Iron Pipe Group Xinjiang Company would start construction of its 3 million tonnes per year special steel project with the total investment of 9.01 billion tonnes including 4 0.2 million tonnes per year converters, 4 0.2 million tonnes per year shaft furnaces and 2 1.8 million tonnes per year sinters etc.
As per report, the project has been submitted to the local authorities and got approved which may finish the constructions for production in 2013 with the annual output hitting at 5 million tonnes.
(sourced:mysteel.net)
FITCH affirms Baosteel at A-, outlook stable
Mon Feb 14, 2011 6:13am GMT
(The following was released by the rating agency)
(The following was released by the rating agency)
February 14 (Fitch) Fitch Ratings has affirmed China-based Baoshan Iron & Steel Company Limited's (Baosteel) Long-term foreign currency Issuer Default Rating (IDR) at 'A-' and Short-term foreign currency IDR at 'F2'. The Outlook is Stable
Using Fitch's Parent and Subsidiary rating Linkage methodology, the 'A-' IDR incorporates a one-notch uplift to Baosteel's standalone rating, reflecting the strong linkages between its state-owned parent Baosteel Group Corporation (BGC) and the Chinese government. This is based on BGC's and Baosteel's strategic importance to the country and potential support from the Chinese government should it be required. BGC, being the largest steel company held by the state-owned Assets Supervision and Administration Commission of the State Council, has been identified by the Chinese government to lead the restructuring of the country's steel industry - an important priority for China's industrialisation and urbanisation.
Baosteel's standalone rating reflects its position as the leading high value-add steel producer in China. The company has strong market share in its major products such as cold-rolled (CR) auto sheet (with 50% market share), home appliance sheet (37%), and pipeline steel (33%). CR coil products, stainless steel products, and steel tubes contributed to 52% of revenues in 2009. Despite weak CR steel product prices in 2010, Baosteel continued to generate robust revenue and operating profit growth. The company's high average selling price (ASP) for its steel products of CNY6,300 in 2010, based on Fitch estimates, was 26% higher than in 2009, suggesting that Baosteel has continued to enhance its product offerings with high value-added steel products.
Baosteel has maintained a stable financial profile despite a volatile operating environment between 2007 and 2010, relative to other Chinese steel producers and most global steel companies. Baosteel's EBITDA margin ranged from a low of 14% in 2009 to a high of 18% in 2010, whereas Angang Steel Co Ltd's and Wuhan Iron & Steel Co's EBITDA margin over the same period ranged from 24% in 2007 to 12% in 2009 and from 24% in 2007 to 11% in 2010 respectively. Capex and dividend payment have been reduced in response to the decline in EBITDA in 2009, alongside working capital reduction, which helped reduce Baosteel's debt level. Adjusted net debt/operating EBITDAR fell to 1.52x for the LTM to September 2010 from 2.9x in 2009, after an improved operating environment lifted EBITDAR. Its EBITDA margin improved to 15.8% from 14% during the same period.
Fitch expects steel companies in 2011 at least to maintain their profitability as the steel price increase is likely to offset any raw material cost increases. Baosteel's strong market share in its major products suggests close working relationship with its customers, making it likely for the company to pass on any raw material cost increases to its customers. This is reflected in Baosteel's stable EBITDA margin.
The Stable Outlook reflects Fitch's expectations that the over-supply condition in the Chinese steel industry will improve with the government's restructuring drive and the restriction placed on building new steel plants. Aggressive capex and acquisition of production facilities resulting in declining unit profit or a higher debt burden, and in turn a net debt/EBITDAR exceeding 1.5x on a sustained basis may lead to negative rating action. The ratings may also come under pressure if BGC's support is insufficient to offset a deterioration in the credit profile of Baosteel or if state support for the company is deemed to have weakened. No positive rating action is envisaged in the next 12-18 months.
(sourced:Thomson Reuters)
Using Fitch's Parent and Subsidiary rating Linkage methodology, the 'A-' IDR incorporates a one-notch uplift to Baosteel's standalone rating, reflecting the strong linkages between its state-owned parent Baosteel Group Corporation (BGC) and the Chinese government. This is based on BGC's and Baosteel's strategic importance to the country and potential support from the Chinese government should it be required. BGC, being the largest steel company held by the state-owned Assets Supervision and Administration Commission of the State Council, has been identified by the Chinese government to lead the restructuring of the country's steel industry - an important priority for China's industrialisation and urbanisation.
Baosteel's standalone rating reflects its position as the leading high value-add steel producer in China. The company has strong market share in its major products such as cold-rolled (CR) auto sheet (with 50% market share), home appliance sheet (37%), and pipeline steel (33%). CR coil products, stainless steel products, and steel tubes contributed to 52% of revenues in 2009. Despite weak CR steel product prices in 2010, Baosteel continued to generate robust revenue and operating profit growth. The company's high average selling price (ASP) for its steel products of CNY6,300 in 2010, based on Fitch estimates, was 26% higher than in 2009, suggesting that Baosteel has continued to enhance its product offerings with high value-added steel products.
Baosteel has maintained a stable financial profile despite a volatile operating environment between 2007 and 2010, relative to other Chinese steel producers and most global steel companies. Baosteel's EBITDA margin ranged from a low of 14% in 2009 to a high of 18% in 2010, whereas Angang Steel Co Ltd's and Wuhan Iron & Steel Co's EBITDA margin over the same period ranged from 24% in 2007 to 12% in 2009 and from 24% in 2007 to 11% in 2010 respectively. Capex and dividend payment have been reduced in response to the decline in EBITDA in 2009, alongside working capital reduction, which helped reduce Baosteel's debt level. Adjusted net debt/operating EBITDAR fell to 1.52x for the LTM to September 2010 from 2.9x in 2009, after an improved operating environment lifted EBITDAR. Its EBITDA margin improved to 15.8% from 14% during the same period.
Fitch expects steel companies in 2011 at least to maintain their profitability as the steel price increase is likely to offset any raw material cost increases. Baosteel's strong market share in its major products suggests close working relationship with its customers, making it likely for the company to pass on any raw material cost increases to its customers. This is reflected in Baosteel's stable EBITDA margin.
The Stable Outlook reflects Fitch's expectations that the over-supply condition in the Chinese steel industry will improve with the government's restructuring drive and the restriction placed on building new steel plants. Aggressive capex and acquisition of production facilities resulting in declining unit profit or a higher debt burden, and in turn a net debt/EBITDAR exceeding 1.5x on a sustained basis may lead to negative rating action. The ratings may also come under pressure if BGC's support is insufficient to offset a deterioration in the credit profile of Baosteel or if state support for the company is deemed to have weakened. No positive rating action is envisaged in the next 12-18 months.
(sourced:Thomson Reuters)
China’s HRC output soars in 2010 on capacity boost
Monday, Feb14, 2011
The boost in hot rolled coil capacity witnessed in China through 2009~2010 prompted the country’s HR coil and sheet output last year to surge to 144.63m tonnes, according to National Bureau of Statistics data. This was up by a significant 25.93mt or 22% from 2009’s 118.7mt.
Steel Business Briefing notes that, in 2010 alone, a combined 14m tonnes/year of new HRC capacity was brought on stream, and this year a further 6m t/y will be commissioned. Indeed, China’s HRC output will continue climbing this year in any case as those newly-started hot strip mills gradually reach full operation.
Remarkably however, though HRC output is trending upwards, HRC prices have also climbed since early last September – driven both by Chinese inflationary pressure and by increasing raw materials costs.
Among Shanghai dealers for example, Q235 5.5mm HRC prices have reached RMB 4,780/t ($729/t) with 17% VAT, or RMB 4,085/t without VAT, up almost RMB 800/t from last September.
And because HRC supplies to the domestic market this month will be temporarily affected by maintenance stoppages at some mills, prices will likely climb further after traders resume business on 9 February after the Chinese New Year break.
For example, northern China’s Anshan Iron & Steel will lose about 250,000 tonnes of pig iron output this month due to blast furnace maintenance, denting HRC output as a result. Maintenance on one of its hot strip mills this month will lose east China’s Shagang about 300,000 t of HRC output. Angang and Shagang have informed their trading agents that their February HRC deliveries will only be 35% and 28% of contracted volumes respectively.
(sourced:SAC International Steel,Inc.)
The boost in hot rolled coil capacity witnessed in China through 2009~2010 prompted the country’s HR coil and sheet output last year to surge to 144.63m tonnes, according to National Bureau of Statistics data. This was up by a significant 25.93mt or 22% from 2009’s 118.7mt.
Steel Business Briefing notes that, in 2010 alone, a combined 14m tonnes/year of new HRC capacity was brought on stream, and this year a further 6m t/y will be commissioned. Indeed, China’s HRC output will continue climbing this year in any case as those newly-started hot strip mills gradually reach full operation.
Remarkably however, though HRC output is trending upwards, HRC prices have also climbed since early last September – driven both by Chinese inflationary pressure and by increasing raw materials costs.
Among Shanghai dealers for example, Q235 5.5mm HRC prices have reached RMB 4,780/t ($729/t) with 17% VAT, or RMB 4,085/t without VAT, up almost RMB 800/t from last September.
And because HRC supplies to the domestic market this month will be temporarily affected by maintenance stoppages at some mills, prices will likely climb further after traders resume business on 9 February after the Chinese New Year break.
For example, northern China’s Anshan Iron & Steel will lose about 250,000 tonnes of pig iron output this month due to blast furnace maintenance, denting HRC output as a result. Maintenance on one of its hot strip mills this month will lose east China’s Shagang about 300,000 t of HRC output. Angang and Shagang have informed their trading agents that their February HRC deliveries will only be 35% and 28% of contracted volumes respectively.
(sourced:SAC International Steel,Inc.)
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