Thu, Jan05, 2012
HAZIRA (GUJARAT): In an era where low-cost is the buzzword, Essar Steel has more than doubled the capacity of its Hazira steel plant from 4.6 million tonnes per annum to 10 mtpa at an investment of USD 7.5 billion, less than half the industry standard for setting up a facility of this size.
"It took USD 7.5 billion to create a 10-mtpa fully-integrated steel-making facility at Hazira. The investment includes raw material beneficiation, steel-making and distribution. The industry standard is more than twice for putting up a 10-mtpa capacity alone," Essar Group Chief Executive Prashant Ruia told reporters here today.
The plant will have the capability to manufacture steel at a low cost through a series of cost-cutting measures.
Essar Steel began its journey at Hazira in 1989 with a 0.9-mtpa sponge iron-making plant and in the passage of 22 years, gradual expansion of capacity has made the facility one of the top four flat steel producers in the world at a single location.
"We would like to dedicate this plant to the nation. When I first ventured into Hazira, it was my desire to put India on the global steel map and today that dream has come true. Our world-class steel complex is a testament to the hard work put in by the Essar family and our small contribution to the steel industry and India's growth story," Essar Group Chairman Shashi Ruia said in a statement.
The company is already among the lowest cost steel producers in the world through raw material and energy securitisation, Prashant Ruia said, adding that operational efficiencies, throughput enhancement and asset optimisation would move it further down the cost curve.
The Hazira facility combines a DRI, blast furnace and corex technology for making iron, which is later used in the steel-making process through electric arc furnaces. The advantage of having such a combination is that there is no wastage of gas generated through the corex iron-making technology.
As a result, the company generates almost 45 per cent of its captive requirement in the gas-based DRI. Essar Steel has a long-term contract with ONGC for the rest of the gas requirement.
"The cost of labour for per tonne steel-making is just USD 8.2 per tonne. This is only second to USD 5.71 for Baosteel. Even Posco's labour cost for per tonne steel production is higher than us at USD 9.22," Ruia said.
Ruia said the plant is expected to run at 80-85 per cent capacity in the next fiscal and 70-75 per cent of the output would be value-added products, the demand for which is on the rise on account of the fast-growing automobile and FMCG sectors.
(sourced ET)
Showing posts with label Posco steel. Show all posts
Showing posts with label Posco steel. Show all posts
Thursday, January 5, 2012
Thursday, November 3, 2011
SAIL, Posco bury hatchet ahead of steel minister's visit to Seoul
3 Nov, 2011 |ET Bureau
NEW DELHI: Steel Authority of India (SAIL) and Korea's Posco have largely settled their differences over the proposed 3 million tonne plant the two companies plan to build at Bokaro, ahead of a visit to Seoul by Union steel minister Beni Prasad Verma on November 6.
The differences were related to pricing of a key raw material and on the quantum of equity stakes for the two partners, said a person familiar with the negotiations. A team from Seoul has been working on details of the proposed agreement with SAIL over the last few days. They may, however, not have it ready before the minister's trip since any strategic alliance will have to be cleared by SAIL's board of committee.
The Korean steelmaker that will bring the patented non-coking coal steelmaking technology FINEX to the joint venture has agreed to SAIL's offer of iron ore fines at a 10% discount, said the person cited earlier. Posco had earlier wanted a 20% discount to market prices.
SAIL on its part has conceded to Posco's insistence on a majority equity stake. Posco had maintained that the Korean government which had funded the development of FINEX, would not okay a joint-venture involving the critical technology in which Posco had less than 51% stake. "Future joint ventures with SAIL could be on an equal partnership basis," said the person who is also involved in the discussions.
The two companies are still trying to sort out differences on whether SAIL could retain a first right of refusal for any future agreements with the Korean steelmaker. SAIL will be the first company to try out the FINEX technology outside of South Korea. According to sources, while Posco had offered to keep SAIL informed in such a situation, it didn't offer a first right to refusal. Posco's 12 million tonne plant in Gopalpur, Orissa will also use the FINEX technology.
(sourced EconomicTimes)
NEW DELHI: Steel Authority of India (SAIL) and Korea's Posco have largely settled their differences over the proposed 3 million tonne plant the two companies plan to build at Bokaro, ahead of a visit to Seoul by Union steel minister Beni Prasad Verma on November 6.
The differences were related to pricing of a key raw material and on the quantum of equity stakes for the two partners, said a person familiar with the negotiations. A team from Seoul has been working on details of the proposed agreement with SAIL over the last few days. They may, however, not have it ready before the minister's trip since any strategic alliance will have to be cleared by SAIL's board of committee.
The Korean steelmaker that will bring the patented non-coking coal steelmaking technology FINEX to the joint venture has agreed to SAIL's offer of iron ore fines at a 10% discount, said the person cited earlier. Posco had earlier wanted a 20% discount to market prices.
SAIL on its part has conceded to Posco's insistence on a majority equity stake. Posco had maintained that the Korean government which had funded the development of FINEX, would not okay a joint-venture involving the critical technology in which Posco had less than 51% stake. "Future joint ventures with SAIL could be on an equal partnership basis," said the person who is also involved in the discussions.
The two companies are still trying to sort out differences on whether SAIL could retain a first right of refusal for any future agreements with the Korean steelmaker. SAIL will be the first company to try out the FINEX technology outside of South Korea. According to sources, while Posco had offered to keep SAIL informed in such a situation, it didn't offer a first right to refusal. Posco's 12 million tonne plant in Gopalpur, Orissa will also use the FINEX technology.
(sourced EconomicTimes)
Friday, July 8, 2011
Government extends MMTC LTA for high grade iron ore export
Friday, 08 Jul 2011
The Indian government has approved the proposal to renew the long term agreements and has authorized MMTC to supply iron ore, both lumps and fines, of grade +64% Fe content to Japanese steel mills and POSCO of South Korea for another 3 years ie 2011-2014) under long term agreements entered into by MMTC earlier.
The long term agreements entered into by MMTC during the year 2006-11 expired on March 31st 2011.
The Indian government has approved the proposal to renew the long term agreements and has authorized MMTC to supply iron ore, both lumps and fines, of grade +64% Fe content to Japanese steel mills and POSCO of South Korea for another 3 years ie 2011-2014) under long term agreements entered into by MMTC earlier.
The long term agreements entered into by MMTC during the year 2006-11 expired on March 31st 2011.
Thursday, June 2, 2011
Karnataka seeks clearance from union for steel projects
Thursday, 02 Jun 2011
(sourced Thehindubusinessline)
BL reported that Karnataka has asked the center to grant necessary clearance for POSCO, ArcelorMittal, Surya Roshini, Bhusan Steel, Jindal South West and Kudremukh Iron Ore Company Limited, which are setting up steel plants in the state.
Mr Murugesh Nirani industries minister of Karnataka said that the state government has cleared all the six projects but are now awaiting Centre's nod for environmental clearance. For setting up steel mills, few companies such as ArcelorMittal have also sought land for captive mining.
He added that "These companies have already deposited money with us for their land requirement. At a few places, Karnataka Industrial Areas Development Board has already initiated the work on land acquisition."
Land for some of these companies have been identified and deputy commissioners have been told to hold final meeting with revenue officials and hold meets to fix price for the land in consultation with the farmers.
POSCO has sought around 4,000 acres and has identified Gadag district for setting up their plant. Land acquisition for ArcelorMittal has entered final notification stage. The company has identified land around Bellary Koppal districts and has deposited INR 600 crore for land acquisition and its estimated requirement is about 4,000 hectares.
Surya Roshini is setting up a plant in Bagalkot and has sought 3,000 acres. Bhushan Steel which needs around 3,000 acres has selected Bagalkot and Koppal for its steel plant. The company plans to take a final decision based on the land availability.
JSW is planning to invest around INR 25,000 crore in expanding the capacity of its Bellary plant while KIOCL has partnered with NMDC for setting up a steel plant. NMDC is likely to transfer its iron ore mines located at Donimalai in Bellary to KIOCL for mining activities.
Mr Murugesh Nirani industries minister of Karnataka said that the state government has cleared all the six projects but are now awaiting Centre's nod for environmental clearance. For setting up steel mills, few companies such as ArcelorMittal have also sought land for captive mining.
He added that "These companies have already deposited money with us for their land requirement. At a few places, Karnataka Industrial Areas Development Board has already initiated the work on land acquisition."
Land for some of these companies have been identified and deputy commissioners have been told to hold final meeting with revenue officials and hold meets to fix price for the land in consultation with the farmers.
POSCO has sought around 4,000 acres and has identified Gadag district for setting up their plant. Land acquisition for ArcelorMittal has entered final notification stage. The company has identified land around Bellary Koppal districts and has deposited INR 600 crore for land acquisition and its estimated requirement is about 4,000 hectares.
Surya Roshini is setting up a plant in Bagalkot and has sought 3,000 acres. Bhushan Steel which needs around 3,000 acres has selected Bagalkot and Koppal for its steel plant. The company plans to take a final decision based on the land availability.
JSW is planning to invest around INR 25,000 crore in expanding the capacity of its Bellary plant while KIOCL has partnered with NMDC for setting up a steel plant. NMDC is likely to transfer its iron ore mines located at Donimalai in Bellary to KIOCL for mining activities.
(sourced Thehindubusinessline)
Friday, May 27, 2011
POSCO to lower stainless steel prices for June
Fri May 27, 2011 9:31am GMT
SEOUL May 27 (Reuters) - POSCO , the world's third-biggest steelmaker, will lower prices of its major stainless steel products by 300,000 won ($275.36) a tonne for June, a company spokesman said on Friday, reflecting a recent fall in nickel prices.
Its June prices of hot-rolled and cold-rolled stainless steel products would be cut to 3.6 million won and 3.87 million won per tonne, respectively. ($1 = 1089.500 Korean Won) (Reporting by Ju-min Park; Editing by Jacqueline Wong, Thomson Reuters)
SEOUL May 27 (Reuters) - POSCO , the world's third-biggest steelmaker, will lower prices of its major stainless steel products by 300,000 won ($275.36) a tonne for June, a company spokesman said on Friday, reflecting a recent fall in nickel prices.
Its June prices of hot-rolled and cold-rolled stainless steel products would be cut to 3.6 million won and 3.87 million won per tonne, respectively. ($1 = 1089.500 Korean Won) (Reporting by Ju-min Park; Editing by Jacqueline Wong, Thomson Reuters)
Monday, January 31, 2011
POSCO war zone - Villagers apprehensive on MOEF decision
Monday, 31 Jan 2011
With the union ministry of Environment and Forests set to take a final decision on the proposed steel plant project of POSCO, Orissa villagers facing displacement have decided to intensify their agitation if the Ministry order went in favour of the company.
As per report, a majority of villagers in the three gram panchayats of Dhinkia, Gadakujang and Gobindpur in Jagatsinghpur district were apprehensive appeared clear on Saturday.
Mr Prashant Paikray spokesperson of POSCO Pratirodh Sangram Samiti the organisation which has been opposing establishment of the proposed steel plant of POSCO since 2005 said that “Going by the reports reaching us from New Delhi, we are apprehending that the order might go against us.”
According to Mr Paikray, the PPSS has decided to hold a public meeting in Dhinkia on February 1 to decide their future course of action in the light of the MoEF's decision that would be announced on Monday.
Mr Paikray added that “After the February 1 meeting, we will try to develop coordination between all people opposing the project and carry forward our agitation to demand withdrawal of the project from the State if the MoEF order supports the company.”
The land acquisition work for the proposed steel mill in Jagatsinghpur had been stopped by the Naveen Patnaik government on the orders of the MoEF, following a report of a panel set up by the centre indicating violations of the provisions of the Forest Rights Act. Subsequently, another central panel headed by the former Secretary of MoEF, Ms Meena Gupta had also submitted two separate reports raising environmental issues along with the alleged violation of the Forest Rights Act. (sourced:Hindu)
With the union ministry of Environment and Forests set to take a final decision on the proposed steel plant project of POSCO, Orissa villagers facing displacement have decided to intensify their agitation if the Ministry order went in favour of the company.
As per report, a majority of villagers in the three gram panchayats of Dhinkia, Gadakujang and Gobindpur in Jagatsinghpur district were apprehensive appeared clear on Saturday.
Mr Prashant Paikray spokesperson of POSCO Pratirodh Sangram Samiti the organisation which has been opposing establishment of the proposed steel plant of POSCO since 2005 said that “Going by the reports reaching us from New Delhi, we are apprehending that the order might go against us.”
According to Mr Paikray, the PPSS has decided to hold a public meeting in Dhinkia on February 1 to decide their future course of action in the light of the MoEF's decision that would be announced on Monday.
Mr Paikray added that “After the February 1 meeting, we will try to develop coordination between all people opposing the project and carry forward our agitation to demand withdrawal of the project from the State if the MoEF order supports the company.”
The land acquisition work for the proposed steel mill in Jagatsinghpur had been stopped by the Naveen Patnaik government on the orders of the MoEF, following a report of a panel set up by the centre indicating violations of the provisions of the Forest Rights Act. Subsequently, another central panel headed by the former Secretary of MoEF, Ms Meena Gupta had also submitted two separate reports raising environmental issues along with the alleged violation of the Forest Rights Act. (sourced:Hindu)
Sunday, January 30, 2011
POSCO to form mining JV with Anchor Holding in Zimbabwe
Sunday, 30 Jan 2011
POSCO announced that it has signed an initial agreement with Zimbabwe's Anchor Holdings to set up a mining joint venture to develop minerals in the African country.
POSCO plans to launch the mining company in Zimbabwe some time in the first half at the earliest to develop chrome, coal, iron ore and other minerals.
The agreement comes as a result of POSCO CEO Mr Chung Joon-yang's trip to four African countries last week, aimed at securing resources from the continent.
(Sourced from DJ)
POSCO and Vale join ands to develop coal mine in Mozambique
Sunday, 30 Jan 2011
Reuters reported that POSCO said that it has agreed with Brazilian miner Vale to jointly seek to develop a coal mine in Mozambique.
POSCO said in a statement “The coal mine, located in Tete, Mozambique, would be able to produce 11 million tonnes of coals annually, which will be used as raw materials or for power generation.”
It did not elaborate how much each company would invest.
POSCO, which aims to double raw material self sufficiency to 50% by 2014, has earmarked KWR 700 billion in raw material investment this year.
The agreement comes as a result of POSCO CEO Mr Chung Joon-yang's trip to four African countries last week, aimed at securing resources from the continent.(sourced:Reuters)
Friday, January 28, 2011
Strike looms at Teck Resources coal mine in western Canada
Strike looms at Teck coal mine in western Canada
* United Steelworkers union sets Jan 30 deadline
* Union says dispute centers on retirement benefits
* Mine produces steel-making coal
(Updates with union statement)
VANCOUVER, Jan 27, 2011 (Reuters) - Unionized workers at Teck Resources Ltd's Elkview coal mine in western Canada will walk off the Sunday evening if a contract deal is not reached, the company and union said on Thursday.
More than 700 workers at the facility, the second largest of Teck's six operating coal mines, have worked without a contract since the end of October.
The company said it will not disclose sticking points in the dispute, but the United Steelworkers union has said unresolved issues include company contributions to the workers retirement plan and retiree benefits.
"Our members are preparing to bring about an orderly shutdown and strike action will commence on Sunday," said Dan Will, a staff representative of Steelworkers Local 9346.
Teck said it remains committed to resolving the contract through the negotiations, which are underway in the ski resort town of Fernie, British Columbia.
The Jan. 30, strike notice by the United Steelworkers union comes just over a week after Teck said that adverse weather and rail traffic disruptions would hit its coal sales in the first quarter.
Teck, one of the world's top exporters of metallurgical coal, used to make steel, said it expects sales of between 5 million to 5.5 million in the quarter. That compared with sales of 5.25 million in the same quarter 2010.
Nippon Steel Corp and South Korean steelmaker Posco each own a 2.5 percent stake in the open pit mine near Sparwood, British Columbia. It has an annual production capacity of 6.5 million tonnes per year.(sourced:af.reuters)
* United Steelworkers union sets Jan 30 deadline
* Union says dispute centers on retirement benefits
* Mine produces steel-making coal
(Updates with union statement)
VANCOUVER, Jan 27, 2011 (Reuters) - Unionized workers at Teck Resources Ltd's Elkview coal mine in western Canada will walk off the Sunday evening if a contract deal is not reached, the company and union said on Thursday.
More than 700 workers at the facility, the second largest of Teck's six operating coal mines, have worked without a contract since the end of October.
The company said it will not disclose sticking points in the dispute, but the United Steelworkers union has said unresolved issues include company contributions to the workers retirement plan and retiree benefits.
"Our members are preparing to bring about an orderly shutdown and strike action will commence on Sunday," said Dan Will, a staff representative of Steelworkers Local 9346.
Teck said it remains committed to resolving the contract through the negotiations, which are underway in the ski resort town of Fernie, British Columbia.
The Jan. 30, strike notice by the United Steelworkers union comes just over a week after Teck said that adverse weather and rail traffic disruptions would hit its coal sales in the first quarter.
Teck, one of the world's top exporters of metallurgical coal, used to make steel, said it expects sales of between 5 million to 5.5 million in the quarter. That compared with sales of 5.25 million in the same quarter 2010.
Nippon Steel Corp and South Korean steelmaker Posco each own a 2.5 percent stake in the open pit mine near Sparwood, British Columbia. It has an annual production capacity of 6.5 million tonnes per year.(sourced:af.reuters)
Thursday, January 27, 2011
Hyundai Heavy to increase use of steel plate by 14pct in 2011
Thursday, 27 Jan 2011
Bloomberg reported that Hyundai Heavy Industries Co plans to increase use of steel plate by 14% in 2011 to the most since 2008 as it boosts production of container vessels and oil tankers.Mr Kim Ki Young, a spokesman of Hyundai Heavy Industries Co, said that it expects to use 4 million tonnes of plate in 2011 as compared with about 3.5 million tonnes in 2010. Consumption among the world's six largest yards, all based in South Korea, will rise 12% to 8 million tonnes, based on company figures.
Mr Cho In Karp head of research at Heungkuk Securities Co said that the increase in demand may help POSCO and Dongkuk Steel Mill Co, the biggest South Korean plate makers, raise prices that have tumbled 33% in two years amid a slowdown in ship deliveries and rising competition. Shipyards may be able to pass on higher costs as demand for vessels rebounds following the end of the global recession.He added that "It will give shipyards ammunition to raise ship prices, which will be positive in the long term. In the short term, higher plate costs could crimp margins."Shipyards spend the equivalent of about 15% of sales on steel plate, used to make hulls, making it their biggest materials expense. Prices have been unchanged at KRW 950,000 per tonne since the mills' last increase in July 2010.
Hyundai Steel Co, South Korea's second biggest steelmaker, began making plate in 2010 challenging POSCO, Dongkuk and Chinese and Japanese producers.Mr Moon Jeong Up, an analyst at Daishin Securities Co, said that "Demand is going to allow steelmakers to raise prices. Demand for steel plate is sure to increase because shipyards are planning to build more in 2011."According to Credit Suisse Group AG, prices for most types of steel are rising as increasing demand and flooding in Australia’s mining region pushes up materials costs. Coking coal may jump to a record USD 250 a tonne in 2011. Prices for iron ore arriving at Tianjin, China surged to a nine month high on January 21st 2011.
Samsung Heavy Industries Co, the world's second largest shipyard, plans to use 1.5 million tonnes of steel plate in 2011, a 15% increase. Third ranked Daewoo Shipbuilding & Marine Engineering Co expects use to climb 6.3% to about 1.7 million tonnes. STX Shipbuilding & Offshore Co, the No 4 yard, plans to use 810,000 tonnes, up by 5.9% YoY.Hyundai Heavy's steel plate tally includes units Hyundai Mipo Dockyard Co and Hyundai Samho Heavy Industries Co, the world's fifth and sixth biggest yards.
(Sourced from www.bloomberg.net)
Bloomberg reported that Hyundai Heavy Industries Co plans to increase use of steel plate by 14% in 2011 to the most since 2008 as it boosts production of container vessels and oil tankers.Mr Kim Ki Young, a spokesman of Hyundai Heavy Industries Co, said that it expects to use 4 million tonnes of plate in 2011 as compared with about 3.5 million tonnes in 2010. Consumption among the world's six largest yards, all based in South Korea, will rise 12% to 8 million tonnes, based on company figures.
Mr Cho In Karp head of research at Heungkuk Securities Co said that the increase in demand may help POSCO and Dongkuk Steel Mill Co, the biggest South Korean plate makers, raise prices that have tumbled 33% in two years amid a slowdown in ship deliveries and rising competition. Shipyards may be able to pass on higher costs as demand for vessels rebounds following the end of the global recession.He added that "It will give shipyards ammunition to raise ship prices, which will be positive in the long term. In the short term, higher plate costs could crimp margins."Shipyards spend the equivalent of about 15% of sales on steel plate, used to make hulls, making it their biggest materials expense. Prices have been unchanged at KRW 950,000 per tonne since the mills' last increase in July 2010.
Hyundai Steel Co, South Korea's second biggest steelmaker, began making plate in 2010 challenging POSCO, Dongkuk and Chinese and Japanese producers.Mr Moon Jeong Up, an analyst at Daishin Securities Co, said that "Demand is going to allow steelmakers to raise prices. Demand for steel plate is sure to increase because shipyards are planning to build more in 2011."According to Credit Suisse Group AG, prices for most types of steel are rising as increasing demand and flooding in Australia’s mining region pushes up materials costs. Coking coal may jump to a record USD 250 a tonne in 2011. Prices for iron ore arriving at Tianjin, China surged to a nine month high on January 21st 2011.
Samsung Heavy Industries Co, the world's second largest shipyard, plans to use 1.5 million tonnes of steel plate in 2011, a 15% increase. Third ranked Daewoo Shipbuilding & Marine Engineering Co expects use to climb 6.3% to about 1.7 million tonnes. STX Shipbuilding & Offshore Co, the No 4 yard, plans to use 810,000 tonnes, up by 5.9% YoY.Hyundai Heavy's steel plate tally includes units Hyundai Mipo Dockyard Co and Hyundai Samho Heavy Industries Co, the world's fifth and sixth biggest yards.
(Sourced from www.bloomberg.net)
Subscribe to:
Posts (Atom)
Posts
