Evraz NTMK starts installation of fourth ladle furnace

Monday, 21 Feb 2011

It is reported that Nizhny Tagil Iron and Steel Works, a subsidiary of the Russian steel producer Evraz Group, has started the construction of a new ladle furnace, its fourth ladle furnace for the secondary treatment of steel before casting.
la
Evraz investment in the implementation of this project, implemented within the framework of the large scale reconstruction of NTMK's converter shop, amounts to about RUB 500 million.

The construction of the ladle furnace No. 4 which is being supplied by Italian producer of steelmaking machinery and plants Danieli will last about three months. The equipment installation will be carried out in conditions of continuous steelmaking.

The additional ladle furnace will allow NTMK to increase its secondary treatment capacities and to reduce the share of common grade slabs produced in its concaster No 4 by concentrating on the output of premium grade slabs which are used by pipe makers for the production of API standard oil pipes.

(Sourced:steelorbis)

FAS offer metallurgy and coal workers to link the price of product to the global quotes

Monday, 21 Feb 2011

Federal Antimonopoly Service of RF offers the metallurgy and coal companies to adopt and issue the distribution policies, which are to indicate all options of forming preferences and penalties.

According to FAS the price lists will allow the consumers clear out the price making process and understand the reasons for discounts, and also will insure the producers from claims on behalf of the antimonopoly authorities and unjustified claims from the consumers.

(Sourced:stockmarketsreview)

Shandong to build six coal bases in next 5 yrs

Feb 21, 2011

East China’s Shandong province would build six coal production bases in the 12th Five-Year plan, one inside and the others outside the province, Dazhong Daily reported, citing local authorities.

During the period from 2011 to 2015, the Luxi base in Shandong, will be constructed, said officials with Shandong Coal Industry Bureau.

The province plans to construct 16 new mines with total designed capacity of 12.6 million tonnes, and put 18 mines into operation adding 16.65 million tonnes of new production capacity, the bureau said

Meanwhile, Shandong will develop five coal bases outside the province, including Ningmeng (Ningxia and Inner Mongolia), Xinjiang, Yungui (Yunnan and Guizhou), Jinshaan (Shanxi and Shaanxi), and Australia, with production capacity of 50 million, 60 million, 25 million, 20 million and 40 million tonnes respectively, it noted.

By 2015, Shandong would have a total production capacity of 344 million tonnes, 158 million tonnes of which would come from the base inside the province, and 186 million tonnes for others.

(sourced:en.sxcoal.com)

Coal capacity expands at Inner Mongolia and Shanxi

Feb 21, 2011

North China’s Inner Mongolia Autonomous region that produced 787mt last year is to raise capacity to 900 million tonnes in 2011, while coal-rich Shanxi province with an output of 737 million tonnes in 2010 will achieve a 850 million tonnes of capacity this year, announced the National Development and Reform Commission on Feb 11.

Local coal agencies expect capacities to be further lifted to 1 billion tonnes in Inner Mongolia by 2015, but in Shanxi a marginal increase to 960 million tonnes is projected.

Inner Mongolia produced 69.6 million tonnes in Jan, up 26.7% from the same month of last year, but down 21.8% from Dec, while Shanxi mined 58.17 million tonnes, decreasing 4.7% year on year and plunging 18.5% month on month.

The NDRC predicts a slowdown in coal consumption growth this year due to environmental pressures but did not give details.

(sourced:China Coal Times)

Inner Mongolia Shendong owns world’s No.1 mines cluster

Feb 21, 2011

Shendong mining area, based in northern autonomous region of Inner Mongolia, has the world’s largest 10-million-tonne level coal mines cluster, Inner Mongolia News reported.

Shendong is China’s first 100- and 200-million-tonne underground coal production base, and presently has 17 mines with a total production capacity of 200 million tonnes, , according to the report

Among these mines, there are three 20 million-tonne level coal mines, two mines with production capacity of 15 million tonnes and 5 capable of producing 10 million tonnes coal.

The mining area produced 178 million tonnes of raw coal in 2009, accounting for 6% of China’s total output.

Following technology innovation, Shendong Coal Group, the main company of China’s largest coal producer, improved production capacity of Daliuta mine to 20.76 million tonnes in 2003.

(sourced:en.sxcoal.com)

Turkish construction sector to grow in coming years - Deloitte

Monday, 21 Feb 2011

According to a report by financial consultancy and accounting firm Deloitte’s Turkish division, Turkey’s construction sector will continue its rapid growth in the coming years.

The report put the growth rate in the Turkish construction sector at 8.5% between the years 2009 and 2014 higher than the regional averages of Asia Pacific, Europe, Africa and Americas.

As per report, the demand for office and other work related buildings will rise in parallel with increasing foreign investments into the country.

(Sourced from Balkans.com)

Environment ministry lifts ban on projects in 8 critically polluted areas

Monday, 21 Feb 2011

The Indian ministry of environment and forests has lifted the moratorium on developmental projects in eight more critically polluted areas. However, it asked respective state governments and pollution control boards to adhere to strict implementation of action plan to contain pollution.

The eight critically polluted areas are
1. Ludhiana (Punjab)
2. Varanasi-Mirzapur (Uttar Pradesh)
3. Agra (Uttar Pradesh)
4. Bhavnagar (Gujarat)
5. Cuddalore (Tamil Nadu)
6. Dombivalli (Maharashtra)
7. Aurangabad (Maharashtra)
8. Navi Mumbai (Maharashtra).

It decided to lift the moratorium on the recommendations of the Central Pollution Control Board.

The ministry had earlier said the moratorium would be in place until action plans were prepared by the state governments concerned to deal with pollution, these action plans were reviewed by the CPCB, the state governments revised the action plans based on the CPCB review, and the process of implementing the revised action plans began and the state pollution control board concerned and CPCB certified in writing that this process had indeed begun and implementation was being monitored systematically.

In January 2010, the ministry had imposed the moratorium on environmental clearance for new projects (and expansions) in 43 critically polluted industrial clusters to stimulate environmental remediation/mitigation activities by industry and by the state governments concerned.

These 43 clusters are part of the 88 important industrial clusters where the CPCB had carried out a comprehensive environmental assessment in 2009.

The report, released on December 24, 2009, was based on the Comprehensive Environmental Pollution Index developed by a number of academic institutions, led by IIT, Delhi, which were also associated with the field-level assessments. Of the 88 industrial clusters, 43 were identified as critically polluted, where the CEPI score was 70 or more.

Based on the recommendations of the CPCB, the ministry had lifted the moratorium in five areas on October 26, 2010. These were Patancheru-Bollarum (Andhra Pradesh), Tarapur (Maharashtra), Mandi- Gobindgarh (Punjab), Coimbatore (Tamil Nadu) and Vapi (Gujarat).

The ministry said the process of verification of implementation of action plans in another 25 critically polluted areas was under way and it was expected to be completed in the next three to four weeks. Moreover, revised action plans for five critically polluted areas Korba (Chhattisgarh), Bhiwadi, Jodhpur and Pali (Rajasthan) and Najafgarh Drain Basin, including Anand Parbat, Naraina, Okhla and Wazirpur (Delhi) are still awaited by the CPCB.

(Sourced from BS)

Billet import prices falter in weaker SE Asia market

Monday, Feb21, 2011

Billet import offer prices are prevailing at $660-680/tonne cfr South East Asia, down by around $10/t from last week. Traders expressed surprise over a lower-priced booking heard last week. Some 5,000 tonnes of Korean-origin billet was booked at $640/t cfr Philippines.
Read more at www.steelbb.com

Australia's Bluescope Steel says H1 net loss A$55 mln

Feb 21, 2011

MELBOURNE Feb 21 (Reuters) - Australia's biggest steel maker, BlueScope Steel , posted a loss in first-half profit on Monday as its attempts to cut costs and lift Asian earnings was not enough to counter higher input costs, stagnant steel prices and softer demand.

Bluescope, which said conditions remained tough, posted a net profit of A$55 million in the six months to December, compared with a loss of A$28 million a year ago.

Bluescope said in November it expected to break even in the first half, or post a small loss on inventory adjustments, as it cut costs in the face of stagnant steel prices, high raw material costs, a strong Australian dollar and softer demand pinching profit margins.

Shares in Bluescope closed Friday at A$2.37, up from lows below A$2 in November but off highs above A$3 in April 2010. (Reporting by Miranda Maxwell; Editing by Balazs Koranyi, sourced:Thomson Reuters)

Shyam Metalics hit hard by stoppage of iron ore supplies

Monday, 21 Feb 2011

BS reported that Kolkata based Shyam Metalics which runs 270,000 tonnes per annum steel plant at Rengali in Sambalpur district, is staring at closure due to abrupt stoppage in supply of iron ore to the plant.

As per report, with barely 6 to 7 days of iron ore stock left, the company is running only two shifts instead of the regular three shifts and is on the verge of shutting down its operations and laying off its employees.

A senior company official told Business Standard that "The entire requirement of iron ore for our steel plant is met by the supply from the Joda mining circle in Keonjhar district. However, the supply of iron ore to our plant has been stopped arbitrarily from January 14 by the Deputy Director (mines) of the circle. Not just Shyam Metalics, a total of 42 end users, most of them being in West Bengal, have been hit hard due to the abrupt halt in supply of raw material.”

He added that "The company has taken up the issue with the state chief secretary as well as steel & mines secretary and they have assured to look into the matter.”

When contacted by Business Standard, a top official of the state steel & mines department said that "There is a court case pending against Shyam Metalics but we have to ensure that raw material supply to the steel units in the state is not disrupted. We have asked the Deputy Director (mines) of the Joda circle to look into the matter."

(Sourced from BS)

Tags: Keonjhar, state steel and mines department

Orissa tops states in value of mineral output

Monday, 21 Feb 2011

Boom in mineral prices and accelerated exploitation of resources in recent years have put Orissa at the top of the mineral bearing states in terms of value of output of minerals.

2009-10
Total INR 15,317 crore
1. Orissa - 13.10%
2. Madhya Pradesh - 7.70%
3. Andhra Pradesh - 7.21%
4. Maharashtra - 4.92%
5. Gujarat - 4.65%
6. Karnataka - 3.96%
7. Tamil Nadu - 3.21%
8. Rajasthan - 2.99%
9. Assam - 2.96%
10. West Bengal - 2.78%

According to the Economic Survey report (2010-11), the value of minerals extracted in Orissa has gone up by more than four times from INR 3694 crore to INR 15,317 crore between 2002-03 and 2009-10 coinciding with the boom in the mineral market during this period.

Orissa boasts of 95% of country's chromite deposit, 92% of nickel ore, 55% of bauxite and 33% of iron ore. Besides, the state has substantial quantity of other minerals and ores like coal, manganese, dolomite, graphite and limestone.

(Sourced from Business Standard)

Tata Steel sees Orissa plant output by March 2013

Mon Feb 21, 2011 7:15am GMT

* Likely to invest $3.77 bln in the plant's first phase

* Initial 3 mln T capacity to be doubled later

* India currently accounts for 25 pct of total capacity (Adds details)

NEW DELHI, Feb 21 (Reuters) - India's Tata Steel (TISC.BO: Quote), the world's seventh-largest steelmaker by output, expects to start production from a new Orissa plant by end-March 2013, Managing Director Hemant Nerurkar said on Monday.

The plant at Kalinganagar in eastern India will have initial capacity of 3 million tonnes, which would eventually be doubled.

Tata Steel signed the initial memorandum for the plant with the local government in November 2004 and preliminary work on land acquisition and resettlement of locals is still under way, showed the company's website here p. Nerurkar said the company was likely to invest 170 billion rupees ($3.77 billion) in the plant's first phase.

Tata Steel acquired Corus, Europe's second-largest steelmaker, in 2007 for $13 billion, in the largest overseas acquisition made by an Indian company so far.

European operations account for two-thirds of Tata Steel's global capacity of about 30 million tonnes, while current Indian operations contribute a quarter.

It also has units in Thailand and Singapore.

The steel industry globally has been caught in a margin squeeze since mid-2010, when raw material costs began to steadily rise but steel prices dropped as activity slowed as recession hit developed economies.

While demand is improving from the auto sector, the other key market, construction, is struggling to pull clear of the crisis.

Tata Steel said last week its margins would remain under pressure because of increased raw materials costs as it reported quarterly net profit more than doubled, driven by demand in Europe and growth in its Indian operations. [ID:nSGE71F00F]

Nerurkar said steel prices were likely to be volatile.

He also said the company would like to retain its stake in Australia-based Riversdale Mining Ltd. ($1=45.1 Indian rupees) (Reporting by Mayank Bhardwaj and Ratnajyoti Dutta; writing by Jo Winterbottom; editing by Malini Menon, sourced:Thomson Reuters)

Brazil saw increases in crude steel production and steel export levels in January

Monday, 21 February 2011

According to a Friday statement from the Brazilian Steel Institute (IABr), Brazilian steelmakers produced 2.8 million metric tons of crude steel in January, an increase of 3.8 percent year-on-year, and 16.2 percent month-on-month.

Product-specific results showed that flat rolled steel output totaled 2.1 million tons, reflecting an increase of 0.4 percent from January 2010, and a 15.4 percent increase from December 2010, when many Brazilian mills reduced output in response to a rise in steel import levels and difficulty securing coal supplies.

In fact, January steel imports were 10.6 percent lower year-on-year, at 343,600 tons, due to rising international steel prices. However, export levels increased to 1.1 million tons, a 60 percent increase from January 2010. As for sales, domestic steel products sales increased 4.5 percent year-on-year in January, to 1.7 million tons, which also reflected an 11.4 percent increase from the prior month.

(sourced:steelorbis)
Tags: hrc , crude steel , crc , raw mat , flats , Brazil , South America , steelmaking , production , imp/exp statistics , Hot Rolled Coil , Cold Rolled Coil

SAIL in talks for tie up for CRGO and CRNGO technology

Monday, 21 Feb 2011

PTI reported that Steel Authority of India is at advanced level of talks with 2 to 3 Japanese and Korean firms to produce electrical steels CRGO and CRNO.

As per report, SAIL would like to have a technological partner but is also open to the options of entering into JV agreement with the prospective partner.

Mr CS Verma chairman of SAIL said that the current domestic market size for CRGO products would be USD 1.5 billion to USD 2 billion and the future growth is linked with the spurt in the power sector.

No Indian steel maker has the technology to produce CRGO steel.

(Sourced from PTI)

Rio Tinto sees Q1 iron ore shipments affected by Pilbara cyclones

Mon Feb 21, 2011 7:36am GMT

SYDNEY Feb 21 (Reuters) - Global miner Rio Tinto says it expects cyclones affecting its coastal operations in Western Australia's Pilbara region to affect shipped tonnage for the first quarter of this year.

Rio Tinto said it had maintained operations at 14 mines in the region and there have been frequent interruptions at its Dampier and Cape Lambert operations from adverse weather.

(Reporting by Michael Smith; Editing by Clarence Fernandez)

Dazhou Steel to produce 3 million tonnes of finished steel in 2011

Monday, 21 Feb 2011

It is reported that Sichuan Province based Chinese steel producer Dazhou Iron and Steel in 2011 aims to produce 3.1 million tonnes of finished steel and achieve sales revenues of CNY 21.5 billion.

In January this year, Dazhou Steel produced 274,519 tonnes of crude steel up by 87.58%. The steel maker's finished steel output in January amounted to 314,100 tonnes while its sales revenues for the month came to CNY 1.29 billion

Dazhou Steel also stated that in 2010 it upgraded its production facilities, with its converter No 2 and converter No 3 both of 120 tonnes capacity starting production in April and October respectively. As a result, Dazhou Steel can now produce 3.0 million tonnes to 3.5 million tonnes of crude steel per year.

(Sourced from www.steelorbis.com)

Usiminas shareholders stave off potential takeover with new long-term accord

Monday, 21 February 2011

Rio de Janeiro, Brazil-based steelmaker Usinas Siderurgicas de Minas Gerais SA (Usiminas), announced Friday that in order to prevent a potential takeover bid by industry rival Companhia Siderurgica Nacional (CSN), its controlling shareholders, led by Nippon Steel Corp., have set up a new long-term accord "to demonstrate the stability" of the company's current shareholding structure.

CSN recently purchased stakes in Usiminas, which prompted the action. According to a statement from Usiminas, the company will be governed until 2031 by controlling shareholders, including: Nippon Steel Corp.; Nippon Usiminas Co., Ltd.; Mitsubishi Corp. do Brasil S.A.; Metal One Corp.; Votorantim Industrial S.A.; Camargo Correa S.A.; Construcoes e Comercio Camargo Correa S.A.; and Camargo Correa Investimentos em Infra-estrutura S.A. Combined, the controlling companies hold 53.7 percent of Usiminas' voting capital. After 2031, the new accord will be renewable in five-year periods. The previous accord was due to expire in 2016.

"The aim is to demonstrate to other stakeholders in the company and to the market the stability of the control group and, consequently, assure the company's continuing growth and development," said Ronald Seckelmann, Vice President of finances and investor relations for Usiminas.
(sourced:steelorbis)

Tags: Brazil , South America , M&A, Nippon Steel corp, CSN, Nippon Usiminas Co.,Mitsubishi Corp., do Brasil S.A.,Metal One Corp., Votorantim Industrial S.A., Camargo Correa S.A., Construcoes e Comercio Camargo Correa S.A., Camargo Correa Investimentos em Infra-estrutura S.A.

India's SAIL to invest $12 bln in 4 overseas plants

Mon Feb 21, 2011 7:36am GMT

* Steelmaker plans to fund upto 80 percent through debt

* Plant start-up will take 3 years from initial agreement

* Overseas plants likely to produce 3 mln T of steel each (Adds quotes, background)

NEW DELHI, Feb 21 (Reuters) - Steel Authority of India (SAIL) (SAIL.BO: Quote) will build four overseas steel plants with a total $12 billion investment, which will be mostly funded through debt, its chairman said on Monday.

The state-run company is also looking for a strategic investor for its proposed plants in Indonesia, Oman, Mongolia and South Africa, which would produce three million tonnes (MT) of steel each, C.S. Verma told reporters.

"Funding of $12 billion will be met through 70-80 percent of debt and the rest 20-30 percent through equity," Verma said.

Last week, the Indian government put off a planned share sale in SAIL to the next fiscal year that begins in April, citing unfavourable market conditions. [ID:nSGE71H04V]

Verma said on Monday projects may take three years to start up once agreed.

"We are talking to the government of the countries where we plan to set up steel plants and it will take about three years to start the plants from the date of signing of (memorandum of understanding) with these governments," he added.

SAIL is part of the International Coal Ventures Ltd (ICVL) consortium which has bid for a Mongolian coal mine and is looking to buy overseas coal assets in countries such as Australia, Indonesia and the United States. [ID:nSGE712058]

Other companies in the group are utility NTPC (NTPC.BO: Quote), iron ore miner NMDC (NMDC.BO: Quote), Coal India (COAL.BO: Quote) and Rashtriya Ispat Nigam Ltd.

Last month, ICVL decided not to counter Rio Tinto's $3.9 billion bid for Australian coal miner Riversdale (RIV.AX: Quote).

Verma also said coal supplies from Australia should improve as the country recovers from recent floods.

"As floods recede in Australia, coking coal supplies have improved and it will have an impact on domestic steel prices." (Reporting by Mayank Bhardwaj; editing by Malini Menon,sourced:Thomson Reuters)

Tags: Indian steel industry news, investment, steel plant

Ukraine’s Interpipe to supply railway wheels for Delhi subway

Monday, 21 February 2011

The Ukrainian steel pipe and railway wheel company Interpipe, one of the largest global producers of railway wheels under the KLW brand, has announced that it has won a tender to supply railway wheels for the subway system in Delhi, India.

The total volume of the order is 200 wheels. Railway wheels under the KLW brand will be used to repair the rolling stock of the Delhi subway.

"For the last 10 years we have supplied railway wheels under the KLW brand to the Indian market. In previous years, we have supplied wheels mainly for suburban and freight transportation. One of the last projects finished in September 2010 was the handover of production technology for 955 mm diameter railway wheels for local EMU [electric multiple unit] trains to the Durgapur Steel Plant (Durgapur, India)," Interpipe's director of railway wheel sales Mikhael Iskov said.

(sourced:steelorbis)

Tags: India , Ukraine , CIS , South Asia , Indian Subcon , construction , steelmaking , manufacturing , production , consumption, Durgapur Steel Plant

Chinese steel industry profit hit by surging iron ore prices

Monday, 21 Feb 2011

It is reported that China steel industry suffered a lot from the continuous increasing imported iron ore prices in the past 2010 realizing CNY 89.7 billion with the sales and profits ration hitting at 2.91% which was much lower than the 6.2% averaged level of national industrial enterprises.

Among the surveyed steel enterprises, most of them gained slight profits or posted profit losses in 2010 which mainly caused by the continuous hiking output costs.

Chinese imported iron ore prices eyed a growth of 61% to USD 145 per tonne in the close of 2010 from the USD 90 per tonne in Jan on average. As calculated, the full-year averaged ore prices were up by USD 40 per tonne to USD 128 per tonne from one year ago, so the total output costs hiked by nearly CNY 196 billion pushing China large and medium enterprises' production costs to grow up by 30.7%YoY.

In 2010, China crude steel output came at 626.65 million tonnes up by 53 million tonnes increase of 9.3%YoY including the key enterprises output accounted for 86.2% of the total volume up by 4.2%YoY.

(Sourced:www.caing.com)

Tags: ore prices, China crude steel output, import export data