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Indian & world foundry news

 

 

April 22, 2013

 

 

Dillinger Hutte raises price for heavy plate in Q2 of 2014

 

 

Spot iron ore prices at 7 month low

 

 

Turkey records decreasing steel exports of 7.1pct YoY

 

 

KLTM tin price unchanged at USD 22030 per tonne

 

 

Taiwan market steel pipe prices up

 

 

US imports of rebar from Spain up

 

 

Arkansas agency lifts air permit for Big River Steel

 

 

European steel recovery fragile - German industry body

 

 

Rosneft to set up a shipbuilding center in Murmansk

 

 

Chinese to launch major anti-pollution plans

 

 

International Coal lays foundation to drill Consuelo project in Queensland

 

 

The Port of Gladstone coal exports to be double

 

 

Petrobras adds fresh orders to fleet expansion plans

 

 

 

Australian miners raise iron ore output targets - April 22

 

Reuters reported that Australian miners are racing ahead with plans to expand iron ore production to capture more of the Chinese market for the steelmaking ingredient, amid strong competition from the world's biggest supplier Vale of Brazil.

 

Fortescue Metals Group Limited which is raising production 57% this year said that its needs iron ore prices to stay between USD 110 per tonne to USD 120 per tonne for the next 12 to 18 months in order to pay off a targeted USD 2.5 billion in debt.

 

The Australian Bureau of Resources and Energy Economics forecast an average price of USD 110 per tonne this year but only USD 103 per tonne in 2015. By 2016.

 

China imports more than a half-billion tonnes of iron ore annually to supplement domestic production of mostly lower grade ore. China's crude steel production rate of some 2 million tonne a day makes it by far the world's biggest consumer of iron ore.

 

According to Macquarie Bank, output from BHP's most profitable division rose 1pct to 49.6 million tonnes in the three months ended March 31 versus the previous quarter above forecasts.

 

Mr Andrew Mackenzie CEO of BHP Billiton said that “The lift in output was helped by a limited impact from heavy rains in Australia's Pilbara iron ore belt in January and expansion work underway at the company's new Jimblebar mine.”

 

 

(Source - www.steelguru.com)

 

 

Devaluating Ukrainian currency gives cutting edge to steel mills - Mar 13

 

Ukraine has been in the eye of storm recently for political and economic reasons. The removal of President Viktor Yanukovych on corruption charges has not only lead to political unrest but incurred the wrath of European and Global financial institutions tightening credit supplies to the economy . It is learnt that EU countries have frozen assets of the erstwhile president.

 

Political upheaval had economic casualties with the UAH taking severe flogging losing 9% within a month raising hackles and panic buttons being pressed by the National Bank to arrest steep slide. NBU to make an intervention and the regulator appropriated another UAH 4 billion to the banks, which caused the exchange rate to surge. However it is unlikely that the tottering currency can hold on for long with depleting reserve of the NBU.

 

 

(Source - www.steelguru.com)

 

 

Environment of CRGO electrical sheets changes entirely - Feb 13

 

The export environment of grain oriented electrical steel sheets has completely changed. After the Japanese mills settled at levelling off of prices for Europe at the end of last year in negotiations for shipment of the first half of this year and put a brake on the downward trend in prices, the aspect has largely changed and supply and demand have become rapidly tightened.

 

In case of the Japanese mills, orders for March shipment are now overflowing by tens of thousands of tons and some of them are predicted to be carried forward to April onward. As customers have got accustomed to a decrease in price and do not have much inventory of GO electrical sheets, such case is thought to take place that they will not be able to get those from shipments of April onward even for a short time.

 

Among the NO electrical sheet mills in Asia, two Japanese mills are operating at full capacity. Korea's POSCO possibly focuses on its domestic supply and has not appeared much in export but it is likely to have raised its prices largely. Baoshan Iron & Steel and Wuhan Iron & Steel of China are said to be supplying their products for transformer manufacturers with operations at full capacity and are not active for export as well as POSCO. Accordingly, in the export market, presence of two Japanese mills has been strengthened.

 

As for prices, such cases already came out that the Japanese mills concluded contracts at an increase in prices by USD 100 for March shipment in negotiations for India, and for Turkey, besides Japan, POSCO is offering a price up by USD 100. Prices of NO electrical sheets repeated to fall by as much as USD 300 every quarter after Lehman's fall. The recent full fledged price increase by USD 100 is for the first time in 5 years.

 

In the backdrop of a price increase for India, there is the fact that 15 items such as TV, printer and scanner have become objectives for the mandatory regulations of the BIS (Bureau of Indian Standards) since April, 2013. Unless otherwise a supplier is examined by a laboratory authorized by the BIS and is registered to the BIS, such possibility begins to occur that a customs clearance is rejected or cargo is confiscated by the DEITY (Department of Electronics and Information Technology).

 

Speaking of India, it had been the market of secondary products of electrical sheets and so on in the past but export products to that country have to use high quantity of electrical sheets and then secondary products have been eliminated. In the domestic market as well, demand for secondary products has been gradually lowered and begins to become high quality oriented. For this reason, customers of that country accepted an increase of USD 100 in prices of proper quality of Japanese NO electrical sheets.

 

 

(Source - www.steelguru.com)

 

 

Indonesia to probe imports of wire rods - Feb 10

 

The government of Indonesia had received the petition from the domestic producers for the investigation of anti dumping duty on imports of hot rolled wire rods.

 

The petitioner argued that the imports have increased in terms of absolute quantity and caused material injury to the domestic industry. The products involved in this case are wire rods with diameters less than 14 mm.

 

 

(Source - www.steelguru.com)

 

 

Japan industrial materials demand rebounding - Jan 27

 

Demand for industrial materials is showing clear signs of recovery, with steel and cement production in 2013 in Japan hitting their highest levels in five years on the back of the building boom in disaster struck regions and urban areas undergoing economic expansion. Production of paper and ethylene, used for a wide range of chemical products, has also increased for the first time in three years.

 

The Japan Iron and Steel Federation said that the 2013 domestic production of crude steel grew 3.1% from the previous year to 110.57 million tonnes, the highest since 2008, when it was at 118.70 million tonnes before the impact of the global financial crisis kicked in.

 

Since last summer, steel makers raised output for cars and homes, two major big-ticket items consumers were rushing to buy ahead of the consumption tax hike in April, the association said. A weak yen also helped make Japanese steel more competitive overseas.

 

Cement production grew 4.1% to 61.69 million tonnes in 2013, registering the second straight year of growth and also the highest level since the 67.60 million tonnes marked in 2008.

 

Like steel, cement demand was underpinned by the construction boom in the country’s northeastern region which was severely affected by the 2011 quake and tsunami and a building boom chiefly in the Tokyo metropolitan area.

 

Paper makers took relief from a slowdown in imports as a result of the strong dollar that made overseas products less competitive in Japan. They benefitted from expanded demand for catalogs and leaflets as business expansion continued.

 

 

(Source - www.steelguru.com)

 

 

MMK plans to raise shipments of hot rolled products - Jan 24

 

It is reported that Russia steelmakers Magnitogorsk Iron and Steel Works company has announced plans in January to deliver about 48.8 million tonne to 49 million tonnes of hot rolled product shipments, an increase of 8% compared to the last month

 

There were 29.6 million tonne to 29.7 million tonnes for the domestic market and 19.2 million tonne to 19.3 million tonnes for overseas markets. In 2013, MMK total shipments of hot rolled products reached 5.6 million tonnes down by 14% compared to the same period of last year.

 

 

(Source - www.steelguru.com)

 

 

POSCO launches SE Asia first off gas power plant - Jan 20

 

The Jakarta Post reported that a unit of South Korea’s Posco Energy has officially inaugurated the completion of a 200 MW gas waste power plant within an integrated steel mill complex in Cilegon, Banten.

 

The plant built and operated by PT Krakatau Posco Energy uses gas emitted as a byproduct of Krakatau Posco’s integrated steel mill which officially began operation in December.

 

KPE is a joint venture between South Korea’s Posco Energy and PT Krakatau Daya Listrik, a PT Krakatau Steel subsidiary, with shares of 90% and 10% respectively.

 

Referred to as an integrated steel mill off-gas power plant, the power plant, the construction of which started in September 2011, is the first of its kind in Southeast Asia.

 

Mr Oh Chang Kwan CEO of POSCO Energy said that “Through the inauguration of the power plant, Posco Energy will actively take part in the development of power projects in Southeast Asia and expand its global presence in cooperation with KDL.”

 

By using gas emissions from the integrated steel mill, the plant will help the mill obtain an energy recycle rate of 98% and reduce its carbon dioxide emissions by up to 1 million tonnes per year.

 

Krakatau POSCO’s current steel mill consists of a sintering plant, a coke oven plant, a plate mill and a blast furnace. The company spent USD 3 billion on its current steel mill and will invest the same amount in the second phase of development.

 

 

(Source - www.steelguru.com)

 

 

Taiwanese Feng Hsin December revenues down - Jan 17

 

Feng Hsin Iron & Steel, one of the major electric furnace mills and also the carbon steel long product makers in Taiwan, registered sales revenue of TND 2.573 billion in December, down by 3.18% from a month ago.

 

The company said its December operating income was TND 161 million, down by 12.5% month on month. The company announced that its combined sales revenue in the Q4 soared by 7.3% to TND 7.764 billion compared to the same time of last year, citing higher demand.

 

 

(Source - www.steelguru.com)

 

 

White House announces New Energy review - Jan 13

 

President Mr Obama unveiled a Quadrennial Energy Review of the nation's pipelines, transmission lines and other energy infrastructure Friday January 10th 2014.

 

Capping a week that's involved an oil spill, water contamination from chemicals used in a coal mine, debate over newly tightened standards for coal fired power plants, heightened energy consumption during the polar vortex and continuing arguments over the proposed Keystone XL pipeline, President Mr Barack Obama has launched the first regular review of the nation's energy infrastructure.

 

According to a statement posted to the White House blog and websites for the Department of Energy and Domestic Policy Council, the project, titled the Quadrennial Energy Review, will go toward ensuring that federal energy policies continue to meet the nation's economic, environmental and security goals.

 

The statement said that “The first review will focus on infrastructure for transmitting, storing and delivering energy, including 200,000 miles of high voltage power lines, 2.2 million miles of local circuits, 300,000 miles of pipelines and hundreds of plants and storage facilities.”

 

The White House statement said that "The QER process launched today is designed to further address the challenge of leveraging America's domestic energy resources while strengthening our energy security and the health and resilience of our planet for future generations."

 

The United States is the world's top natural gas producer and it's producing more oil than it imports for the first time in decades but also at a potentially fraught moment in energy policy.

 

Meanwhile, the Republican controlled House Committee on Natural Resources declared that the Obama administration's stricter standards for coal power plants amounted to a "War on Coal" and the president continued to delay a decision on the Keystone pipeline, a project environmentalists strongly oppose.

 

 

(Source - www.steelguru.com)

 

 

BlueScope gears up big expansion for Taharoa iron sands - Jan 09

 

In the past two years the New Zealand Steel operations of Melbourne-based BlueScope Steel Ltd has been one of the brighter sectors for this Australian steelmaking and exporting giant.

 

Late last year BlueScope announced a resource upgrade for its Taharoa iron sands project, south of Auckland and also detailed planned increased export shipping from the operation.

 

The company said that it would charter a third shipping vessel and a purpose-built 175,000 tonnes per annum slurry loading vessel and will spend about AUD 50 million (NZD 54.17 M) from financial year 2016 to FY2018 on mining processing and ship loading equipment.

 

Commenting, BlueScope managing director Mr Paul O’Malley said that with low cost of extraction the iron sands operation was a valuable part of the company’s business and was providing an “excellent contribution” to low cost iron unit feed to NZ steelmaking.

 

The third vessel for Taharoa was expected to provide solid returns in line with the investment to be made.

 

Mr O’Malley said the expansion was good news for the company’s NZ business, for the community of Taharoa and the wider NZ economy.

 

The mine has operated for more than 40 years and BlueScope considers there is a reasonable basis to believe there were sufficient iron sands available to produce at 44 million tonne per annum for at least 15 years.

 

 

(Source - www.steelguru.com)

 

 

Global Pipe Company to increase production - Jan 06

 

By the first quarter of 2014, Global Pipe Company the first manufacturer in the Middle East of line pipes, plans to increase production to 200,000 tonnes at its new state of the art factory at Jubail Industrial City.

 

The factory started commissioning in January 2013. The factory is a joint venture between Erndtebrucker Eisenwerk of Germany and its Saudi partners Saudi Steel Pipe Company, Ahmed Hamed Al Khonaini, and Pan Gulf Holding Company with a net investment of over USD 176 million.

 

Ahmed Hamad Al Khonaini MD of GPC said that the plant was set up with a view to making thick-walled steel pipes, targeting mainly the GCC and Saudi Arabian markets, which, until now, have had to import these products

 

He added that "Our strategic partner EEW is one of the most experienced manufacturers of thick-walled pipe in the world using the very latest equipment and machinery, and the company benefits from having a wide range of agents and distributors all over the world. Our other partners are also experienced in either pipe manufacturing or pipe trading: SSP has been recognised as Saudi Arabia's premier manufacturer of welded steel pipe since its inception in 1980, while PGH is a provider of quality products and efficient services to the oil and gas and construction sectors in the kingdom."

 

 

(Source - www.steelguru.com)

 

 

BlueScope to boost iron ore sand exports - Jan 01

 

BLUESCOPE Steel will expand its iron ore sands export operations in New Zealand with a AUD 50 million plan to boost output from the project.

 

The company has announced that it will charter a purpose built 175,000 tonne slurry loading vessel to support the expansion, with the AUD 50 million to be spread across 2016 to 2018 on mining, processing and ship-loading equipment.

 

Mr Paul O'Malley MD and CEO of BlueScope said that "With a low cost of extraction, our iron sands operations are a valuable part of BlueScope's business portfolio, making an excellent contribution to earnings from exports and providing a low cost iron unit feed to New Zealand steelmaking.”

 

"Operations of the third vessel are expected to achieve solid returns with annual EBIT, based on current iron ore prices and foreign exchange rates, in line with the AUD 50 million capital to be invested."

 

 

(Source - www.steelguru.com)

 

 

Nigeria set to revitalise steel sector - Dec 30

 

The federal government is poised to resolve the major issues stalling the operationalisation of the Ajaokuta Steel Company Limited and the Nigerian Iron Ore Mining Company (NIOMCO), Itakpe, Kogi state.

 

Government, in an announcement, is also set to open up the steel sector for the projected production of three million metric tonnes of steel per annum by 2015.

 

Minister of Mines and Steel Development, Mr. Musa Sada, announced these at a media round-table for the review of the mines and steel development roadmap implementation in Abuja.

 

Steel production is the fulcrum for a country’s industrialisation process, stalled in Nigeria by the comatose state of the two steel plants, ASCL and Delta Steel Complex, Aladja, and NIOMCO.

 

 

(Source - www.steelguru.com)

 

 

Chinese steel firms should go abroad - Ministry - Dec 27

 

China will encourage Chinese steel enterprises suffering from overcapacity to transfer their businesses to overseas markets where the steel market is still very big, a top official was quoted in a statement published on the website of the Ministry of Land and Resources Tuesday.

 

Mr Miao Changxing, deputy director of the industrial policy division of the Ministry of Industry and Information Technology said that "The global steel industry is developing unevenly with some regions like Southeast Asia and Africa still having a big space to develop, and some nations such as China confronting overcapacity.”

 

Mr Miao suggested that the Chinese enterprises push forward development of the steel industry in Central Asia, Southeast Asia and Africa through ways such as supporting these regions' infrastructure construction, setting up joint venture enterprises and distribution centers overseas.

 

Mr Wang Guoqing a senior analyst with Beijing Lange Steel Information Research Center, told the Global Times Tuesday said that "For the Chinese steel companies, there will be big business opportunities in emerging markets such as some countries in Southeast Asia.”

 

Leading Chinese steel enterprises have already entered into foreign markets. Baosteel Howa Trading Co under Baosteel Co, China's leading iron and steel complex, and South Korean GNS Co signed a foreign investment introduction memorandum in April 2012, to invest and build a new steel processing and distribution center in South Korea's Gyeonggi Province.

 

Wuhan Iron and Steel Co, China's largest flat-rolled alloy steel producer, announced in April this year that it will set up a joint venture with an India-based energy company, and also invest in an India-based silicon steel processing and delivery center, according to a Reuters report.

 

Mr Sun Jin director of the publicity office at Wuhan Iron and Steel told the Global Times Tuesday that "Expanding our businesses overseas has become one of the development strategies for our company.”

 

To meet the environmental protection standards set up by the foreign countries, only Chinese companies with high technological capabilities and strong capital strength could enter into the foreign markets, said Wang of Lange Steel.

 

Mr Wang noted that meanwhile those domestic companies with backward technological levels will be shut down or consolidated according to the central government's measures of combating steel overcapacity.

 

Miao from the MIIT also said that the Chinese government will raise the standards for pollutant emission and energy consumption for the steel industry, and severely punish those companies which violate the environmental protection law, so as to eliminate the backward production capacity.

 

 

(Source - www.steelguru.com)

 

 

Qatar Steel International and Sider to build steel plant in Algeria - Dec 23

 

Qatar and Algeria signed a partnership agreement for the construction of an iron and steel complex in Bellara, Jijel, 359km east of Algiers, between Algerian company Sider and Qatar Steel International.

 

The USD 2 billion project is expected to be completed in three years

 

The agreement was signed by Qatar Steel International chairman Ali Hassan al-Meraikhi in the presence of Foreign Minister HE Dr Khalid bin Mohamed al-Attiyah, Minister of Energy and Industry HE Dr Mohamed bin Saleh al-Sada, Minister of State and CEO of Qatar Holding HE Ahmed bin Mohamed al-Sayed, Qatar’s Ambassador Ibrahim al-Sahlawi and a number of officials.

 

 

(Source - www.steelguru.com)

 

 

Imported iron ore stockpiles decline in China - Dec 19

 

Xinhua reported that at the end of the December 10 to December 16 period, inventories of imported iron ore in ports stood at 83.84 million tonnes, down 975,000 tonnes or 1.15% over the previous week.

 

The price index for 62% grade iron ore dropped three points from the previous week to 135. The index for 58% grade iron ore also dropped three points to 122.

 

The report said iron ore trading volume last week was sluggish because most traders were not active in buying ore and were maintaining a wait-and-see attitude.

 

Analysts predicted that the drop in steel demand will have a negative impact on iron ore trading and it is unlikely that there will be large-scale purchase orders of iron ore.

 

 

 

(Source - www.steelguru.com)

 

 

Ukraine increases metal roll exports from Jan-Sept 2013 - Dec 16

 

The exports of rolled steel by Ukrainian metallurgical enterprises grew by 1.6% YoY, to 17.502 million tonne from January to September 2013. 13.885 million tonne were supplied to non-CIS countries and 3.617 million tonne to the CIS countries

 

Government experts said that the domestic steel industry exports 80% of its product, but the situation in the industry depends on the global macro environment, as well as economies of the destination countries.

 

Compared to last year, Ukrainian metal exports changed both quantitatively and geographically.

 

A 1.6% increase in Ukrainian steel exports after losing several important markets, shows how strong the export system is.

 

Analysts said that major changes in the structure of exports occurred in 3 directions.

 

The debt crisis in the European Union is not conducive to consumption of steel, and the EU accounts for 50% of Ukrainian exports of sheet metal.

 

The Eurozone has been struggling with the recession all year long which resulted in just 0.3% GDP growth in the region by the end of 2013.

 

Consequently, the demand for Ukrainian steel in the EU fell by 850 tonne in 2013.

 

 

(Source - www.steelguru.com)

 

 

Spot iron ore steady into top on China winter stockpiling - Dec 11

 

Reuters reported that spot iron ore held near its highest level since mid August, reflecting sustained buying interest among Chinese steel producers building stockpiles as colder weather curbs domestic mining.

 

But rising inventories of imported iron ore at Chinese ports suggest consumption and resale of the raw material has been slow which could eventually limit the buying appetite.

 

Traders said that iron ore for immediate delivery into top market China to USD 139.40 per tonne just shy of the USD 139.70 level reached last week, which was the highest since August 15.

 

A Shanghai based iron ore trader said that winter stockpiling is continuing, but this time we have not seen very huge volumes being purchased by mills. Stockpiles at ports have also been continuously increasing and this shows that the rise in iron ore prices may not last long.

 

A 100,000 tonne cargo of Australian iron ore was sold on globalORE platform at a price based on the December average of Platts 62% grade plus USD 2.50, or at just over USD 140 per tonne. Still, despite holding up above USD 135 since November, benchmark iron ore prices have stayed below USD 140 because there is no shortage in supply to meet Chinese demand.

 

China's iron ore imports jumped to a record 77.8 million tonnes in November, also reflecting expanded output by miners in Australia, the world's biggest supplier of the commodity. Iron ore inventories at major Chinese ports rose another 1.2 million tonnes to 88.7 million tonnes last week.

 

Spot iron ore prices gained 3.4% in November while Shanghai steel futures rose less than 1% for the month. The most traded rebar for May delivery on the Shanghai Futures Exchange was nearly flat at CNY 3,720 per tonne by midday, after initially touching an 11 week peak of CNY 3,737.

 

 

(Source - www.steelguru.com)

 

 

Iron ore price blasts to 3-month high - Dec 05

 

Mining reported that Chinese steel mills are humming and rapidly depleting domestic iron ore mines already grappling with low grades face tough new environment rules from Beijing translating into surging demand for imports.

 

The price of iron ore jumped to a three month high on robust Chinese economic activity data showing continued strong growth particularly in construction and a rebound for its steel industry.

 

The price of iron ore jumped to a three month high on robust Chinese economic activity data showing continued strong growth particularly in construction and a rebound for its steel industry.

 

The benchmark CFR import price of 62% iron ore fines at China's Tianjin rose 1% to USD 138.20 per tonne a level last seen at the beginning of September according to data provided by SteelIndex.

 

While China's official Purchasing Managers' Index indicated overall economic activity slowed slightly from October's 14 month high, the sub index for construction was buoyed by a stronger property market.

 

A figure above 50 shows expansion and the building index climbed to 63.5 from 62.0 according to the China Federation of Logistics and Purchasing while the steel industry index bounced back to 49 in November from 47.5 in October.

 

While steel activity remained in contraction mode last month new export orders for Chinese steelmakers jumped to 56 from 49.2 in October, showing much stronger growth down the line. China buys roughly 70% of the world's seaborne iron ore trade which is expected to top 1.1 billion tonnes of the steelmaking ingredient this year.

 

Cargoes from the world's largest exporters in Brazil, Australia and South Africa have been edging out domestic supply, with imports into China reaching a record high of 74.6 million tonnes in October.

 

Chinese iron ore miners struggle with low grades and high costs and domestic supply is expected to reduce further after Beijing instituted stricter environmental standards for the highly fragmented industry in November.

 

 

(Source - www.steelguru.com)

 

 

Ukraine and Canada ready to resume suspended free trade negotiations - Dec 03

 

Mr Volodymyr Rybak, The speaker of Ukraine's parliament, said that Ukraine and Canada will resume suspended negotiations on the creation of a free trade zone between the two countries.

 

Mr Rybak said that "We've agreed to continue the talks [on the free trade zone] and we are to sign an agreement on a free trade zone, so that our goods can enter Canada and Canadian goods can come to Ukraine."

 

 

(Source - www.steelguru.com)

 

 

Interpipe develops ERW casing pipes - Dec 02

 

Interpipe has begun producing a new product - ERW casing pipes in accordance with API 5CT standard. Interpipe NMPP successfully passed the certification audit and has been given the license to use the API monogram for its ERW OCTG product with diameter from 8 5/8” to 20 “ (H40, J55 steel grades, pipe estimated weight from 24 lb/ft to 94 lb/ft).

 

ERW casing pipes produced at Interpipe NMPP meet standard requirements and are applicable for the exploration and operation of oil and gas wells.

 

Mr Fadi Hraibi, Chief Commercial Officer said: "The development of new products is key to success in the harsh conditions of today’s market. Mastering ERW casing pipes, as well as the start of steel billet sales enables us to extend Interpipe’s product portfolio to meet real market needs. For example, ERW casing pipes according to API 5CT are mostly requested in the North American market, as such Interpipe is looking forward to supplying ERW OCTG pipes to our existing and potential customers in the USA and Canada”.

 

Interpipe NMPP are also currently beginning to master ERW casing pipes with an outside diameter of 6-5/8”. Once accomplished Interpipe will certify the product according to API 5CT standard.

 

Japan imported 35,000 tonnes of ores to make ferro nickel interms of nickel content from Indonesia in 2012, representing 43% of total import of 81,000 tonnes. Ferro nickel is an alloy made from iron and nickel and isused as a raw material in stainless steel.

 

 

(Source - www.steelguru.com)