Banner
Indian & world foundry news

 

 

 

July 29, 2014

 

 

Steelworkers strike against job cuts at ThyssenKrupp stainless steel plant at Terni

 

 

SEIFSA welcomes end of metal worker strike in south Africa

 

 

Severstal presents new long product mini-mill in the Saratov Region

 

 

Moody's to upgrade ratings of TATA Steel and British arm

 

 

MMK updates on production of Metalurji

 

 

POSCO ups special purpose products

 

 

TAP issues supply contract for large diameter ball valves

 

 

Big 3 iron ore miners in volume and price sweet spot

 

 

Baosteel Stainless cuts list prices for August

 

 

Japan's steel exports drop in June

 

 

Turkish iron ore imports up in first 5 months

 

 

Chinese domestic steel rebar price movement on July 28

 

 

Chinese domestic steel billet price movement on July 28

 

 

 

 

Moody's to upgrade ratings of TATA Steel and British arm - July 29

 

PTI reported that Moody's Investors Service has put TATA Steel's corporate family rating of Ba3 and British arm's corporate family rating of B3 on review for upgrade, following the successful sale of unrated debt worth USD 1.5 billion last week.

 

The international rating agency also said it will be upgrading other ratings of the Group such as TATA Steel UK's probability of default rating of B3-PD and the B3/LGD 3 (49%) rating of its term loan facility.

 

The review upgrade has been triggered by the issuance of USD 1.5 billion worth bonds by ABJA Investment, guaranteed by TATA Steel and rapid progress made on the refinancing of British unit's senior facilities agreement.

 

Moody's Asia VP for corporate finance group Mr Alan Greene and its Managing Director Mr Philipp L Lotter said that "On the back of improving sentiment in Europe and India, Tata Steel has been able to make swift progress on the refinancing of its European assets and opportunistically tap global markets to lock in cheaper funding for the group."

 

They said that “The review will focus on assessing the terms and conditions of the refinancing and its implications for the links between Tata Steel Britain and its parent, as well as the operational profiles of both the British arm and TATA Steel.”

 

They noted that the UK arm has improved the cost profile of its plants and generated five consecutive quarters of positive Ebitda despite a fragile recovery in European demand.

 

However, the agency has warned that while it expects TATA Steel UK to maintain positive Ebitda in FY 2015, with Ebitda per tonne at USD 40 per tonne and reduce its reliance on the cash support from its parent, it is unclear how it can sustainably return to positive cash flow and pay back the debt. The Group as a whole has close.

 

Mr Greene said that "TATA Steel's Ba3 rating has been held back by TATA Steel UK's weak performance in recent years. With the British arm now on a better footing both operationally, and financially, the strength of the parent can better benefit the Group."

 

 

 

(Source - www.steelguru.com)

 

 

 

Thyssen hires Deutsche Bank to manage VDM unit sale - July 28

 

Reuters reported that German steelmaker ThyssenKrupp has picked Deutsche Bank to manage the sale of its high performance alloy unit VDM, as it renews efforts to draw a line under an ill fated venture.

 

Two people familiar with the matter said that the sale process is not expected to start until more restructuring measures have been taken at VDM. Thyssen may even decide to keep the asset if offer prices remain significantly below its book value.

 

VDM, which expects earnings before interest, taxes, depreciation and amortization of between EUR 60 million and 70 million this year, may be valued at more than EUR 500 million in sale.

 

ThyssenKrupp was forced to take back VDM and Italian steel plant Terni valued at a combined EUR 950 million from Finland's Outokumpu last year. It had sold its stainless steel business Inoxum which included the two units to Outokumpu in 2012, but the Finnish group almost bankrupted itself in the process.

 

ThyssenKrupp and Outokumpu, like other steelmakers in Europe, have faced weak demand as construction and metal engineering customers have held back purchases.

 

Outokumpu said that it expected its operating loss to widen in the Q3 due to slow summer sales in Europe. Thyssen will publish Q3 earnings on August 14. Last week, Thyssen presented a revamp plan for the Terni plant that entails cutting about 550 jobs and EUR 100 million in annual costs for the loss-making site.

 

Outokumpu itself had also tried to sell VDM. Private equity investors such as Lindsay Goldberg, KPS Capital, Triton, Pamplona and Advent had shown interest in the asset.

 

The same list of bidders may again look at the asset, as may Europe's third-largest stainless steelmaker Aperam and Russian tycoon Viktor Vekselberg, owner of Swiss steelmaker Schmolz + Bickenbach.

 

VDM has about 2,000 employees and offers metal products such as nickel alloys, titanium alloys or special stainless steels, used in highly corrosive environments such as in chemicals processing and the oil and gas sector.

 

VDM was created as Vereinigte Deutsche Metallwerke in 1930 by a merger of two German metal groups. In 1988, it was bought by Krupp, the steelmaker which eventually merged with Thyssen.

 

 

 

(Source - www.steelguru.com)

 

 

 

China's decrease in real estate sales show weak market conditions - July 23

 

China’s real estate sector is a key component of the country’s economic activity. It accounts for 11% of its gross domestic product. Historically, changes in real estate activity have trended with the overall economy. China is the largest importer of iron ore. It’s also the second largest importer of coking coal, which is used to make steel a key material used to construct buildings in China. As a result, China’s real estate activity positively correlates with shipping demand.

 

June climate index;

 

For June, 2014, China’s Real Estate Climate Index stood at 95 consistent with the levels last year and also with the previous month’s levels. The Composite Index was developed by China’s National Bureau of Statistics. It measures the aggregate business activity for land, capital, and sales of real estate, which is useful in showing the trend of the Chinese real estate market. Figures above 100 show prosperity or economic growth.

 

China RE ClimateEnlarge Graph;

 

Meanwhile, in June, home sales in China increased 32.5% from levels in May as state controlled banks offered more credit to buyers to prevent a slowdown in the sector. However, on YoY basis sales dipped by 5.4% indicating that the cash strapped developers were cutting prices and offering other incentives to entice buyers and reduce inventories of unsold homes in a weakening market.

 

Outlook;

 

In order to support the housing sector, Beijing planned cuts in taxes and loosened monetary policy to ramp up activity in the sector. Also, with June bank lending coming in stronger there are indications that policymakers have adopted cooling down measures.

 

With demand from China slowing down, the dry bulk shipping companies to watch out are DryShips Inc, Diana Shipping Inc., Knightsbridge Tankers Limited, Navios Maritime Partners LP and Eagle Bulk Shipping Inc.

 

 

 

(Source - www.steelguru.com)

 

 

 

London copper near three week trough as surplus on horizon - July 22

 

Reuters reported that London copper held near its lowest in three weeks hemmed in by nagging worries over China's property sector and a big Chinese stock build that highlighted an expected market surplus in the H2.

 

Fundamentals;

 

1. Three month copper on the London Metal Exchange was steady at USD 6985 a tonne by 0034 GMT, after small losses in the previous session. LME copper fell 2.4% last week, its biggest weekly fall since mid March.

 

2. The most traded September copper contract on the Shanghai Futures Exchange dropped by 1.1% in Monday's overnight session to CNY 49,190 per tonne it weakest level in nearly a month.

 

2. The most traded September copper contract on the Shanghai Futures Exchange dropped by 1.1% in Monday's overnight session to CNY 49,190 per tonne it weakest level in nearly a month.

 

4. The head of the International Monetary Fund warned on Friday that financial markets were perhaps too upbeat because high unemployment and high debt in Europe could drag down investment and hurt future growth prospects.

 

5. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 28.9 percent from last Friday.

 

6. Chinese Premier Mr Li Keqiang said that economic growth of slightly more or less than 7.5% this year would be acceptable as long it still led to new jobs and higher wages.

 

7. Production at Collahuasi, one of the world's largest copper mines, will be slightly higher in 2014 than last year.

 

 

 

(Source - www.steelguru.com)

 

 

 

London Mining boosts Sierra Leone iron ore output - July 19

 

Reuters reported that London Mining Plc raised quarterly production at its iron ore mine in Sierra Leone after upgrading a processing plant and it expects to find a strategic partner by the end of the year.

 

Iron ore production at the Marampa mine rose 21% in the Q2. London Mining reiterated its full year 2014 production target of 4.9 million to 5.4 million wet tonnes of iron ore concentrate.

 

The company has previously announced its intention to divest a minority stake in Marampa to help accelerate expansion of the mine.

 

Mr Graeme Hossie CEO of London Mining said that "We intend to deliver a positive outcome for shareholders from our strategic partner process before the end of 2014."

 

Iron ore miners worldwide have been hit by weakening prices, even as major producers like Rio Tinto Plc and Vale SA ramp up output and cut costs.

 

London Mining said that it was in talks with banks to secure a short term USD 25 million loan and that it had drawn down USD 17.5 million loan from Swiss trader Vitol as part payment on 500,000 tonnes of future exports.

 

The company, which started shipping ore from Marampa mine in 2011, produced 1.17 million wet metric tonnes in the Q2.

 

It said it did not expect an outbreak of the Ebola virus to affect production at Marampa. Preventative measures, including isolation and screening facilities, have been put in place after an outbreak of the deadly virus in in eastern Sierra Leone.

 

 

 

(Source - www.steelguru.com)

 

 

 

TEX updates negotiations on HR coils for remote regions pass peak for Aug shipment - July 18

 

In negotiations on hot rolled (HR) steel coils for the remote regions like Middle East and Central and South America by the Japanese mills, prices begin to be settled at levelling off. The hardest part of negotiations is felt to be over. Meantime, Chinese products were inbound in the South American region like Peru and Chile and HR coil prices in both countries are dropping by around USD 20. There is a possibility for such prices to have dipped below USD 500 on FOB basis.

 

In general, contracted prices in July have been maintained despite of being on a weak note in countries where Chinese products are not inbound. Cheap prices of Russia and Ukraine are in a state not to be found. As there is demand in its own way, prices are kept at USD 570 to USD 580 CFR in the Middle Eastern region. It is said that offers at cheap prices from European mills toward the summer holiday cannot be found. The price recovery of HR coils within the European region is said to be behind the backdrop of it.

 

It is said that sale at cheap prices by Indian mills cannot be also found at present. It is because blast furnace mills are seen to be moving to raise their domestic prices in that country.

 

In September, relining works of blast furnaces are commenced by Baoshan Iron & Steel of China and so on. Then, the balance of supply and demand in China is expected to be tightened more than at present. If export from China decreases, it is in the environment that there could be price recovery as it is the autumn season for demand to increase, so the Japanese mills are thought to challenge an increase in price again.

 

 

 

(Source - www.steelguru.com)

 

 

 

SEAA names 2013 Steel Erection Projects of the year winners - July 17

 

Steel Erectors Association of America announced the winners of its annual Project of the Year comp

 

Mr Tom Underhill executive director of SEAA said that “Since the contest’s inception more than 10 years ago, SEAA has recognized complex and unique steel erection projects throughout the world. Past projects demonstrated successful completion while overcoming unusual conditions, tight time constraints, or other challenges. The 2013 winners reflect the importance of safety while sticking to the job’s schedule.”

 

1. LPR Construction Company, Loveland, Colo, for Denver Union Station Train Canopy. (Class I—Under USD 500,000); The visual centerpiece of Denver’s transit center project in Lower Downtown’s residential and nightlife district is the canopy of Train Hall. The sculptural canopy is supported by a skeleton of steel tubes, a curving structure that is 70’ tall at each end and 22’ tall in the center. Its length is nearly 1-1/2 football fields long.

 

LPR Construction worked within a 10-month long erection process that had to be precisely orchestrated as the project involved extremely tight site constraints, and concurrent construction of the RTD bus station within the footprint of the Train Hall below grade. The canopy is held up by 32 arched cantilevered steel trusses of various lengths and 11 arched steel trusses that span 176 feet and are raised about 18 feet above the pedestrian level. The trusses are held together by thousands of pinned, bolted and welded joints and are supported by A-frame kickstand column pairs that cantilever out of the ground and carry the loads down to the pile foundations.

 

2. JPW Structural Contracting and JPW Erectors, Syracuse, NY, for the Destiny Regal Theater in Syracuse. (Class II—USD 500,000 to USD 1 million); Regal Entertainment Group wanted to add IMAX and RPX theaters to the company’s 17 screen complex in time for the premier of Superman: Man of Steel. Remaining on schedule was a priority in order to meet with the release of the movie. The challenge was to complete work while the mall remained fully operational during the harsh, winter months. All steel was erected in the blind. Many pieces weighed 11,000 pounds and the crane was lifting at close to maximum capacity at its 300-foot radius.

 

JPW worked closely with mall management and security to coordinate traffic (22 million people annually visit the sixth largest mall in the U.S.) where a 300-ton Link Belt crawler crane with 400 ft. boom was assembled, operated, and disassembled.

 

3. JP Cullen, Janesville, Wis, for the Deep Space Auditorium in Verona, Wis. (Class III—Over USD 1 million); Deep Space is an 11,400 seat auditorium for Epic Systems Inc a medical software company in Verona, Wis. The auditorium was built for the company’s Annual User Group Meeting, monthly staff meetings, and events on the 811 acre campus. The 830,000 square feet auditorium contains more than 17,000 tonnes of structural steel.

 

Epic wanted the auditorium to look invisible, as if it were a cave carved into a hill. Deep Space stands five stories tall, but from the southeast it appears to be below ground. From the west, a glass curtain wall with stone façade resembles a natural cave. Deep Space also features a 6-acre rolling green roof allowing people to walk on top of the building. The roof is a free span design measuring 110 ft. wide at the front and more than 650 ft. along the back radius with trusses spanning up to 280 feet.

 

4. Honorable Mention: Peterson Beckner Industries (PBI), Houston, Texas, for the ExxonMobile Campus Project - Energy Center in Spring,Texas. (Class III—Over USD 1 million); The Energy Center is the gateway to ExxonMobil’s new office building campus that will house approximately 10,000 employees. The entire project consists of approximately 20 buildings, including low-rise offices, parking garages, a wellness center and child development center. The Energy Center is the architectural gem of the complex. Energy Center consists of 180’x180’x50’ tall steel framed, glass-enclosed structure perched on 60 ft. cantilevered sections of two opposing 210’x90’x100’ tall structures. Framing included heavy built-up box members up to 4.5” thick.

 

Mr Craig Peterson project manager of SEAA said that “Probably the most daunting task was to properly position the heavy node weldments, which in many cases had six members framing into them. If the columns weren’t kept close to perfectly plumb, and all bearing surfaces properly seated, the geometry of the framing of the heavy braced lines above would result in major problems down the line. Careful attention to placement of mill to bear members and proper welding procedures resulted in final location of Cube trusses, including expected deflections, within 1 of theoretical in all directions.”

 

 

 

(Source - www.steelguru.com)

 

 

 

Newport steel firm playing key role in construction of West Ham's new stadium - July 16

 

It is reported that Newport steel specialist Pro Steel secures GBP 1 million loan to carry out key work on West Ham FC's new stadium.

 

A specialist in steel construction and engineering has secured GBP 1 million loan from Finance Wales to carry out key work on a new stadium for football club West Ham at the Queen Elizabeth Olympic Park in London.

 

Newport based Pro Steel Engineering, which specializes in professional project management and construction services, has secured the finance from the Welsh Government’s Wales Capital Growth Fund, managed by Finance Wales.

 

The loan will provide working capital to deliver part of the GBP 200 million Queen Elizabeth Olympic Park strengthening and remodelling project. The firm is the first to benefit from investment from the Wales Capital Growth Fund, which was created in response to demand from Welsh SMEs for short-term working capital and performance bond requirements.

 

With West Ham United having taken a 99 year tenancy of the Olympic Park stadium, the redevelopment which will create nearly 100 sub contractor jobs for Pro Steel’s team will see the stadium transformed into a UEFA Category 4 venue, seating more than 54,000 spectators. It is scheduled for completion in 2016.

 

 

 

(Source - www.steelguru.com)

 

 

 

Deadline closes for bidding for assets of Lucchini - July 15

 

Italian media reported that the deadline for submission of binding offers for assets of Italian steel maker Lucchini expired on July 14th 2014

 

As per an exclusive report in The Mint, India’s JSW Steel Ltd made an offer to buy parts of Lucchini SpA’s plant. The reported quoted a Lucchini spokesperson as saying that “JSW made an offer for three rolling mills and some other parts of the plant. JSW was the only one to make an offer for the rolling mills for making wire rods, bars and rails.”

 

He however said that “There were four other offers but those were for other parts of the plant including some other companies in which Lucchini has stakes.”

 

Lucchini, formerly owned by Russia's Severstal, has a capacity of about 2.5 million tonnes making it Italy’s second largest steel plant. On 21 December 2012, the Italian Ministry of Economic Development has admitted Lucchini SpA to the extraordinary administration procedure under the Decree Law 347 of 23 December 2003, as converted into Law No. 39 of 18 February 2004 (Marzano Law) and appointed Special Commissioner Dr. Piero Nardi.

 

 

 

(Source - www.steelguru.com)

 

 

 

Feng Hsin to keep prices flat for rebar and section steel this week - June 10

 

Feng Hsin Iron & Steel Company, one of the major steel long product manufacturers in Taiwan announced to remain its prices for rebar, section steel and scrap purchasing price unchanged for this week.

 

After the announcement, its list prices for rebar are at TWD 17,900 per tonne those for section steel remained at TWD 19,700 per tonne to TWD 19,900 per tonne. Its scrap purchasing prices are at TWD 10,300 per tonne.

 

 

 

(Source - www.steelguru.com)

 

 

 

BHP Billiton happy to trail Rio in driverless road and rail - July 9

 

SMH reported that when it comes to breaking new ground on technology in the mining industry, BHP Billiton is happy to be first to be second..

 

Mr Mr Jimmy Wilson president of BHP iron ore said that “Rio Tinto is ahead of BHP on autonomous trucks and rail in the Pilbara, but that for any technology, the second generation is always better than the first.”

 

Mr Wilson said that “We don't have a deep desire to be first. We do have the need, however, to exploit the value that technology brings quickly and we would hate to see a competitor have that advantage for an extended period of time. We don't foresee that in either autonomous trucks or rail.”

 

He said that BHP can take some of the lessons that others have learnt globally from employing autonomous technology, citing work by Rio Tinto and Chinalco. The approach that I've taken throughout my career with technology is, quite simply, that it is great to be first to be second. So, BHP is interested in technological innovation when it is demonstrable it will benefit it.

 

Technology is important in the mining industry, particularly as a means of managing costs. In Western Australia, labour shortages and high equipment costs have put pressure on the industry and automation is a means of alleviating that.

 

BHP has 12 trucks running at its newest Pilbara operation, Jimblebar but Mr Wilson said that while the project is going well, BHP is not in a position that we can roll it out in the organisation just yet.

 

Rio has 53 autonomous trucks at three mine sites and may trial its first autonomous train later this year. It is spending USD 520 million on the introduction of autonomous trains on its Pilbara rail network to be rolled out next year.

 

Mr Wilson said that BHP is looking at automating trains but cautions that given the scale and value of the cargo, complete automation is unlikely. We are always going to want to have a person in a train so if things do go wrong, we can react very quickly; the economics drive us to make those decisions.

 

 

 

(Source - www.steelguru.com)

 

 

 

Output cuts expected to shrink China aluminium surplus - July 8

 

coming-soon (Follow @MetalsGuru on Twitter for important updates) Reuters reported that rising demand and the closure of some 2 million tonnes of aluminium capacity are likely to shrink an expected surplus of the metal in China this year.

 

That would help reinvigorate aluminium prices in the world's top consumer and producer of the commodity, underpinning a global benchmark that has already risen around 15% since touching its lowest in over four years in February.

 

Mr Wang Chunhui Shanghai based analyst at information provider SMM said that "The surplus looks better than what we expected at the beginning of the year.”

 

He now forecasts a surplus of less than 500,000 tonnes half the 1 million tonnes touted by analysts and smelters earlier in 2014. Smelters closed about 2 million tonnes of high cost capacity between late 2013 and May 2014 as prices tanked on worries over the surplus and as the economy slowed.

 

Although around 200,000 tonnes to 500,000 tonnes has come back online as domestic prices rose from 5 year lows touched in March, market participants said the closures would be enough to severely dent any production surplus even with more restarts expected later in the year.

 

An executive at a state owned aluminium smelter said that demand and supply would be in balance in 2014. He declined to be identified as he was not authorised to speak with media.

 

Official data showed that China's primary aluminium production grew 7.9% from the year before in the first 5 months of 2014 to 9.59 million tonnes, lower than an 8.2% rise in the same months last year.

 

Robust demand is also likely to sap any production surplus, with recent data indicating China's economy is stabilising. The executive at the state owned smelter said appetite for aluminium had climbed in the Q2 from the first quarter and a year ago due to consumption from the transport sector, as well as growing exports.

 

A senior executive at a large factory which uses primary aluminium to make semi finished products in Shandong province said that the firm's sales of products used in the transport sector had risen 30% to 40% in the first half from a year ago. We see aluminium prices between CNY 13,000 and CNY 14,000 in the H2.

 

 

 

(Source - www.steelguru.com)

 

 

 

Can mining companies survive USD 90 per tonne iron ore prices? - July 7

 

Standard & Poor’s Ratings Services observed that if iron ore prices stagnate at USD 90 per tonne through 2015, some miners key credit metrics might worsen significantly, based on scenario analysis on 10 major iron ore producers.

 

S&P Credit Analysts Mr May Zhong, Mr Diego H. Ocampo, Mr Andrey Nikolaev, Ms Amanda Buckland, Mr Elad Jelasko, and Mr Xavier Jean said that “In particular, miners with large iron ore exposure, but are unable to cut costs and are saddled with debt, will face a severe deterioration in earnings and credit metrics.”

 

They said that “Whether this deterioration triggers a downgrade depends critically on a mining company’s financial flexibility. If a miner can defer its capital expenditure and conserve cash, its credit quality should be able to withstand sliding iron ore prices. In addition, diversified mining companies are well placed, as they can rely on commodities with more resilient prices, such as oil.”

 

The credit ratings agency said that another important factor is the movement of mining companies’ local currencies, which could affect their costs and revenues. We observed that major players Australia’s BHP Billiton Ltd. and Rio Tinto, PLC, and Brazil’s Vale S.A, can accommodate declining earnings should iron ore prices stay at USD 90 per ton through to the end of 2015.

 

Other iron ore mines, Australia’s Fortescue Metals Group Ltd. and Brazil’s Samarco Mineracoa, S.A., too, should have sufficient buffer in their credit metrics to absorb the lower iron ore prices, notwithstanding the moderate impact on their earnings.

 

On the other hand, downward rating pressures could arise for Australia’s Atlas Iron Ltd., US based Cliffs Natural Resources Inc and South America’s CAP SA.”

 

Cliffs’ high cost structure and leverage profile following its acquisition of Consolidated Thompson Iron Mines in 2011 reduced its ability to absorb earnings deterioration at its current ratings.

 

On the other hand, Anglo American PLC is well diversified by commodity type; the impact of the US$90 per ton price will be low relative to pure iron ore miners. However, as its metrics are already under pressure because of its plans for large capital expenditure in 2014 and 2015, we believe that lower iron ore prices could further contribute to rating downside.

 

Among the global miners, we consider BHP Billiton, Rio Tinto, and Vale as being the most financially flexible to respond to weakening iron ore prices. They can defer their capital expenditure or sell their noncore assets. Nonetheless, we see that BHP Billiton and Rio Tinto have limited flexibility to adjust dividends amid weaker commodity prices due to their commitment to a progressive dividend policy.

 

Meanwhile, Vale’s leverage is increasing due to the additional debt associated with a tax settlement with the Brazilian government. Nonetheless, we believe that Vale will manage its investments in line with market conditions. Should iron ore prices fall to less than US$100 per ton for a prolonged period, the company has some financial flexibility to revise and postpone some projects.

 

 

 

(Source - www.steelguru.com)

 

 

 

Anglesey Mining updates on mineral interests in North Wales and Sweden - July 5

 

Anglesey Mining PLC issued a statement, updating on its major areas of mineral interest in North Wales and Sweden.

 

The company has been actively pursuing the restart of development activities at the Grangesberg iron ore mine in Sweden. Activities had been largely suspended for a number of months during the period in which private Swedish company Grangesberg Iron AB was undergoing corporate reconstruction and refinancing.

 

Back in May, Anglesey Mining made an agreement giving it the right to acquire a controlling interest in the Grangesberg Iron project in Sweden from Roslagen Resources AB.

 

Anglesey said that it had initially bought a 6% stake in Grangesberg Iron AB, with the target of re-opening the historic iron ore mine in Grangesberg. It also has the option to acquire a further 51% of the enlarged share capital of Grangesberg, which it will pay in the form of shares.

 

The company said that two major activities are now being progressed that together will enable GIAB and Anglesey to progress the development plan for the reopening of the Grangesberg mine. A detailed review of the mineral potential at its Parys Mountain zinc-copper-lead property in North Wales, is near completion, which will enable it to better plan

 

It continues to review the status of base metals markets to ensure that the commencement of production at Parys Mountain coincides as closely as possible with the expected resurgence in demand for base metals concentrates particularly in the European environment.

 

There are now positive signs that the long expected future shortfall in zinc concentrate supply related to major mine planned closures is coming closer to fruition.

 

 

 

(Source - www.steelguru.com)

 

 

 

POSCO solves the problem of noisy apartment flooring - July 4

 

South Korean steelmaker POSCO might be coming to the rescues of apartment block residents subjected to the problem of noisy neighbours, thanks to the in-built sound reduction properties of high manganese steel.

 

According to POSCO, floor noise has become a big social issue in South Korea. It has become such a problem that the government has strengthened floor thickness and floor impact noise standards and is considering extending them to cover general housing complexes.

 

As a result, POSCO has dived in head first and signed MoU for Steel Construction Materials Research Cooperation in the field of floor noise and sound proofing using high manganese steel.

 

The MoU was signed on 20 June at the company's Global R&D centre in Incheon. A range of companies are involved in the research including POSCO E&C, Dong A Steel Technology, Yoochang, Woojin and S I Pan.

 

The ultimate objective is to develop low noise floor structure systems constructed with high manganese steel, which, it is claimed, can reduce sound levels by 60%.

 

POSCO is currently manufacturing high manganese applied products for test, and will focus on developing and establishing a manufacturing standard by September 2014 with a view to mass production in 2015.

 

The South Korean steelmaker plans to develop various structural systems and assembly methods to improve the constructability and economic efficiency of high manganese steel applied products.

 

 

 

(Source - www.steelguru.com)

 

 

 

African steel strike costs ZAR 300 million per day - July 3

 

An employers body said that the wage strike by 220 000 steel and engineering workers, which began on July 1st 2014, will cost the economy more than ZAR 300 million or 0.014% of GDP a day.

 

The Steel and Engineering Industries Federation of SA said that the local chief executive of a major US car manufacturer had indicated that he was under pressure from his head office to close down South African operations and move to a country with a more stable labour environment.

 

 

 

(Source - www.steelguru.com)

 

 

 

Azerbaijan can meet domestic demand for metallurgical products in coming years - July 2

 

Trend News Agency cited Mr Samir Jafarov head of the Azerbaijan Steel Production Complex CJSC as saying that Azerbaijan can meet its domestic demand for metallurgical products in next 3 or 4 years.

 

Mr Jafarov underscored that currently, it is one of the important and topical issues. Azerbaijan spends around USD 1.3 billion for purchasing steel and steel products from neighboring countries. Steel is supplied to Azerbaijan from Ukraine, Georgia, Russia, Kazakhstan and Turkey.

 

Mr Jafarov said that "Azerbaijan has never produced metal. Iron ore was previously supplied to Georgia, where it was produced with the domain method. We intend to start metal production as well as steel and steel products production in Azerbaijan.'

 

He said that “Our long term goal is to enter regional markets as well. Industrial enterprises will be opened in Ganja, Dashkesen and other regions of the country.”

 

 

(Source - www.steelguru.com)

 

 

 

Tanzania Bureau of Standards warns Arusha steel mills over substandard products - July 1

 

All Africa reported that the Tanzania Bureau of Standards has issued stern warning to all Arusha based steel mills after reports started floating here that some are churning out substandard products.

 

The TBS Inspector issued the directive when the state watchdog team was inspecting an Arusha based Bansal Steel Rolling Mill located near Kisongo area. Manufacturers need to be aware of quality requirements on what they produce.

 

Mr Joseph Mwaipaja the TBS Inspector Incharge of Standards said that following incidences of collapsing buildings and bridges in the country, all manufacturers and importers of heat rolled concrete reinforcement steel bars should make sure they produce quality products for the safety of buildings and people who rely on such products.

 

Mr Mwaipaja said that "TBS remained vigilant on this and will ensure that all the products meet standards. TBS is carrying out a campaign against all those who don't comply with standards. Manufacturers to inculcate a habit of testing their products regularly to maintain standards.”

 

He said that "I urge businessmen to put priority on human beings rather than money calling the public to chip-in the fight against counterfeits. However, the impromptu inspection is held at the factory to ensure that what they produce is in line with TBS requirements.”

 

He added that but, we came to learn that there are some shortfalls as some steel bars have too much carbon content, something which is not good as it makes them easily break, calling the Bansal Steel Rolling Mill Ltd to work on the shortfalls before continuing with mass production.

 

TBS lawyer, Mr Baptister Bitaho said that it is the responsibility of manufacturers to meet the set standards. TBS is not there to close down some industries, but rather to make sure that buyers and consumers get quality products noting that the standard's watchdog is there to protect consumers.”

 

Mr Gurmail Singh executive director of Steel Rolling Mill said that his plant is still new as it started six months ago and was working hard to ensure the produced bars meet the required standards.

 

 

(Source - www.steelguru.com)

 

 

 

Welded stainless steel pressure pipe from Malaysia, Thailand and Vietnam injures US Industry - USITC - June 28

 

The United States International Trade Commission determined that a US industry is materially injured by reason of imports of welded stainless steel pressure pipe from Malaysia, Thailand and Vietnam that the US Department of Commerce has determined are sold in the United States at less than fair value. The USITC also made a negative critical circumstances finding with respect to subject imports from Malaysia.

 

Commissioners Mr Irving A Williamson, Mr David S Johanson and Mr Rhonda K Schmidtlein voted in the affirmative. Chairman Mr Meredith M Broadbent, Vice Chairman Mr Dean A Pinkert and Commissioner Mr F Scott Kieff voted in the negative.

 

As a result of the USITC's affirmative determinations, the US Department of Commerce will issue antidumping duty orders on imports of this product from Malaysia, Thailand, and Vietnam.

 

The Commission's public report Welded Stainless Steel Pressure Pipe from Malaysia, Thailand, and Vietnam (Investigation Nos. 731-TA-1210-1212 (Final), USITC Publication 4477, July 2014) will contain the views of the Commissioners and information developed during the investigations.

 

 

(Source - www.steelguru.com)

 

 

 

Brazil to impose anti dumping duty on seamless pipe imports from Ukraine - June 27

 

Brazilian Chamber of Foreign Trade has announced that Brail will impose for imposition of a provisional anti-dumping tax on seamless steel tubes imports from Ukraine.

 

The imposition of anti-dumping period would valid for 6 months. Meanwhile, CAMEX has indicated the seamless steel pipe will be taxed including the outer nominal diameter up to 5 inches.

 

Anti dumping rates range from USD 145.78 per tonne for companies including Interpipe Niko Tube LLC and PJSC Interpipe NTRP to USD 637.74 per MT of other companies.

 

 

(Source - www.steelguru.com)

 

 

 

Iran and Kuwait ink steel agreement to build steel plant in Iran - June 26

 

It is reported that Iranian and Kuwaiti officials have agreed to build a large steel plant in Iran.

 

The two sides have signed an agreement to make joint investment for establishing a steel plant in Iran.

 

The construction will be in four phases and the two sides have inked 6 Memoranda of Understanding in different fields to pave the ground for the further expansion.

 

Iran’s crude steel output totaled 6.3 million tonnes in the first five months of this year, up by 4.4% compared to the corresponding period of 2013.

 

 

(Source - www.steelguru.com)

 

 

 

Brazil's scrap exports slightly increase in May - June 25

 

Brazil’s exports of scrap reached 33,200 tonnes in May up by 2.4% compared to last month and up by 38.3% compared to same month in 2013.

 

During the first five months in 2014, the total exports of scrap reached 196,500 tonnes down by 3.8% from the same period in 2013.

 

According to Brazil’s National Institute of Ferrous Scrap Companies, which represents 47% of all scrap companies in Brazil, steel mills in China produced 60.2 million tonnes in May, an annual increase by 7.8% which lead to a great demand for scrap in Brazil.

 

INESFA sees a stronger scrap exports will have to depend on a good performance of Chinese economy during this year.

 

According to INESFA, 26% to 28% of crude steel in Brazil is produced by scrap, while the world average was 45% in 2012.

 

 

(Source - www.steelguru.com)

 

 

 

ArcelorMittal to launch new material for automotive frame structure - June 24

 

News has been released that ArcelorMittal is about to launch its 3rd generation high strength cold stamping product calls HF1050 in which the new technology will firstly introduce to automotive industries.

 

The new product allegedly reduces the weight of automotive frame up to 10% and has higher impact absorbing ability. Few automotive makers have successfully conducted formability and weldability trials.

 

Furthermore, the advanced material will be giving the automotive makers the advantage of passing more and more strict CO2 emission regulation. The vehicles build up with this advanced material will be formally introduced to the markets in 2016.

 

 

(Source - www.steelguru.com)

 

 

 

Tigers Realm Group buys Beringovsky port and coal terminal in Russia - June 18

 

Australian resources company Tigers Realm Group has bought Beringovsky port and coal terminal on the east Russian coast for just over USD 5 million.

 

TRG plans to refurbish the site and increase its coal handling capacity from 700,000 tonne per year to at least one million.

 

The port is a key logistical hub for the Nagornaya coal mine, with TRG taking exclusive ownership and management rights. It will also greatly benefit the company’s plans for its Amaam North deposit and proposed Project F mine, enabling it to transport large quantities of coking coal.

 

Mr Craig Parry, CEO of TRG, said that he was very pleased with the deal secured for Beringovsky, which would lay the foundation for key infrastructure for Amaam North, to the south. This project would involve the construction of a larger deep-water port at Arinay, 25 kilometres from the coking coal mine.

 

TRG believes that 464 million tonne lies at the site, with potential to explore for between another 120 and 205 million tonne. The lifespan of Amaam North is said to be around 20 years.

 

The port will give TRG a strategic advantage in the region, for few if any other coal companies have such access to their own dedicated port infrastructure. Importantly the port’s location on the Pacific Coast provides access for the shipment of coal directly into Asian markets.

 

During 2015 and 2016 TIG intends to undertake a general refurbishment of the port, which will include the purchase of new barges, construction of stockpile yards and some small scale channel dredging.

 

 

(Source - www.steelguru.com)

 

 

 

Taiwanese Feng Hsin to raise rebar and scrap purchasing prices - June 17

 

It’s reported that Feng Hsin Iron & Steel Company one of the major steel long product manufacturers in Taiwan announced to raise its prices for rebar and scrap purchasing prices by TWD 300 per tonne for this week.

 

Also, the company has kept its prices of section steel flat for consecutive nine weeks. After the announcement, its list prices for rebar are at TWD 17,900 per tonne those for section steel remained at TWD 19,700 per tonne to TWD 19,900 per tonne. Its scrap purchasing prices are at TWD 10,900 pe rtonne to TWD 11,800 per tonne.

 

 

(Source - www.steelguru.com)

 

 

 

Uruguay's steel imports fall during January to April - June 16

 

According to data released by Uruguay’s customs agency, the country’s imports of steel flat products including stainless cold rolled coil, hot dipped galvanized coils and cold rolled coils totaled 14,900 tonnes in the first four months of this year, falling from 24,500 tonnes from a year ago.

 

Among them, the imports of stainless cold rolled coils totaled 6,800 tonnes which is lower than 10,500 tonnes in a year ago. The imports of cold rolled coils amounted to 3,500 tonnes up from 3,300 tonnes in the same period of last year.

 

Meanwhile, the imports of hot dipped galvanized coils totaled 4,600 tonnes dropping from 8,100 tonnes.

 

 

(Source - www.steelguru.com)

 

 

 

Trade Union Solidarity and ArcelorMittal SA reach pay deal - June 14

 

Fin24 reported that Trade Union Solidarity and steel giant ArcelorMittal have reached a wage agreement.

 

Mr Marius Croucamp Union spokesperson said that "The agreement, that is retroactive to April 1 and will be in effect until March 31st 2015, includes a salary increase of 7% and various favourable changes to employees’ conditions of service."

 

Mr Croucamp said that the agreement, signed earlier this month also applied to members of the National Union of Metalworkers of SA. Solidarity and its members are satisfied with the positive note on which the negotiations ended. We are also intensely aware of the challenges confronting the metal industry.

 

He said that various allowances of employees in the bargaining unit would be increased by seven percent, in accordance with their salaries. Conditions of service were revised and several favourable changes were agreed to.

 

He added that as part of these changes, employees who are on standby on public holidays will receive a non compulsory day of leave, whether they are called out on the days in question or not.

 

 

(Source - www.steelguru.com)

 

 

 

Global aluminum sheet use in autos seen climbing five fold - June 13

 

Bloomberg cited Mr Derek Prichett VP of global recycling at Novelis Inc as saying that global aluminum sheet use in auto bodies will climb five fold by 2020 as car manufacturers seek lightweight material to improve fuel economy.

 

Mr Prichett said that sheet consumption will jump to 1.8 million tonnes from 350,000 tonnes currently. Atlanta based Novelis counts Ford Motor Company, Volkswagen AG’s Audi unit and the Jaguar Land Rover division of TATA Motors Limited as customers.

 

Mr Jack Clark senior VP at Novelis said that a push in the US and Europe to reduce carbon dioxide emissions and increase mileage is prompting carmakers to seek to replace heavier materials such as steel. Ford begins production of an all aluminum bodied F-150 pickup truck this year, and other car and truck manufacturers will follow suit, switching to aluminum over the next six years.

 

Mr Clark said that aluminum content in light vehicles around the world, including bodies, hoods and doors, will rise to near 35 billion pounds by 2025, making the auto industry a major market for aluminum.

 

Mr Jorge Vazquez MD at researcher Harbor Aluminum Intelligence Unit LLC said that “Demand for the metal in North America will exceed production by 1.255 million tonnes in 2015 up from an estimated 1.13 million tonnes this year, partly because of increased shipments to the region’s auto industry.”

 

 

(Source - www.steelguru.com)

 

 

 

Pakistan imposes 10pct custom duty on silicon and alloy steel - June 12

 

Business Recorder reported that Federal Board of Revenue has announced to impose 10% customs duty on Silicon and Alloy steel to stop mis declaration.

 

Sources said that the duty has been notified by FBR under the First Schedule of the Customs Act, 1969 which will be effective from July 1st 2014.

 

After a number of complaints from the domestic steel industry, Pakistan Customs Karachi Enforcement in May this year recommended and proposed FBR 10% duty on commercial import of Silicon Steel and Alloy Steel to curtail misdeclaration and enhance revenue collection.

 

Accordingly, the FBR under First Schedule of the Customs Act, 1969 has notified imposition of 10 percent custom duty on two flat steel products; Silicon Steel and Alloy Steel, as remaining flat products including Hot Rolled Coil, Cold Rolled Coil and Galvanised Steel were being imported in the guise of Silicon and Alloy Steel, which currently has zero duty compared to 10% on HRC, CRC and galvanised steels. With imposition of 10% customs duty on Silicon and Alloy Steel, all flat products will have equal duty slab.

 

According to customs data the import of silicon steel jumped by 330% to a monthly average of more than 7,600 tonnes during January 2013 to February 2014 as compared to monthly average of 2,300 tonnes during 18 months period (from July 2011 till December 2012).

 

 

(Source - www.steelguru.com)

 

 

 

New low cost and steel framed 3D Printers are coming to South Africa - June 11

 

3D Printing has been flourishing more and more in the United States and much of Europe, as people realize all of the incredible things that can be created on these increasingly affordable machines.

 

In Africa, however, it hasn’t been quite as quick to catch on. Having said this, one man, named Peter van der Walt has set out to change this fact.

 

Mr vanderwalt2Peter van der Walt, is the owner of a company called OpenHardware, which makes and sells different 3D printers (RepRaps), CNC machines, spare parts and other electronics. They are also the only organization in South Africa that promotes opensource hardware.

 

After selling RepRap 3D printers such as Printrbots, Ecksbots, Prusa Airs, and Morgans for a couple years, Mr van der Walt decided that it was time for a change. He decided to utilize some other technologies that were at his disposal and create a printer that could be more affordable and more feasibly made.

 

He said that “Primarily in South Africa we have cost issues. A set of stainless threaded rods for a Prusa style frame runs upwards of USD 25 and a set of printed parts around USD 50 whereas a lasercut steel frame and cnc bending plus powdercoating (through economics of scale) works out cheaper. That and you get a frame thats rock solid, perfectly square in all directions, and easily reproducible in small and large scale.”

 

So, Mr van der Walt and his team decided to come up with a design for a 3D printer, which would be both well made, and affordable. By utilizing sheets of metal, CNC machines and a laser cutter, they created a 3D printer that is extremely solid, while finding a solution to the cost issues of building traditional RepRaps.

 

After some tinkering around, they came up with not one, but three separate 3D printers. They are all the same design, but different sizes. The 100x100x100mm build volume (actually slightly larger) version, which is referred to as the ‘Babybot’, although it has yet to be officially named, will be priced at under ZAR 5000. The mid-sized version which will feature a build volume of 200x200x200mm will be priced at ZAR 7250. The largest version will be 200x200x300mm, and priced at ZAR 9000.

 

As for some of the specs on these new printers, Mr van der Walt tells us that they will print with layer heights between 0.1 mm and 0.3 mm, with speeds of approximately 80mm/s. As for resolution, we are told that they will be similar to that of the ‘run of the mill FDM machine.

 

van der Walt plans to begin taking pre-orders for these printers, via his website, sometime this month. He will also be shipping demo units to other retailers in South Africa, such as Communica and the hackerspace at the University of Pretoria. These retailers are also expected to start selling the printers shortly.

 

 

(Source - www.steelguru.com)

 

 

 

Large Chinese fund to invest in Russian zinc and lead deposit - June 10

 

It is reported that New Horizon Capital of China may invest USD 200 million in Russia’s Noion Tologoiskoye zinc and lead deposit near the lake Baikal.

 

A source close to the negotiations said that the deal implies investments in the development of the Russian deposit with the participation of an experienced Chinese mining operator Baojin its branch is already investing in the project and the participation of a large international co-investor New Horizon Capital.

 

Baikalruda, owned by Chinese mining company Baojin, has already invested around USD 100 million in the construction of an ore dressing plant located near the deposit.

 

The plant with an annual capacity of 500,000 tonnes of ore will be launched in 2014. The company plans to raise the capacity to 3 million tonnes per year, which requires USD 200 million in investment. The works will start in 2016.

 

 

(Source - www.steelguru.com)

 

 

 

The drive to cut energy costs in production of aluminium - June 9

 

With investment in aluminium in the Arabian Gulf expected to reach USD 55 billion in 2020, competition between aluminium smelters is set to become fierce.

 

And the difference between industry leader and industry laggard may be down to who can run the most efficient plant.

 

To help ensure it ends up in the former category, Emirates Aluminium Company (Emal), the UAE’s state owned aluminium smelter, has turned to the Masdar Institute’s researchers to help improve the efficiency and speed of aspects of the plant’s operation.

 

A typical aluminium plant comprises three areas: the aluminium smelter, the carbon anode, and the cast hour.

 

In very simple terms, aluminium production involves dissolving naturally occurring alumina aluminium oxide at very high temperature, placing it in a steel-shelled vat lined with graphite, known as a reduction pot, that serves as a cathode and adding a carbon anode. An electrical current is then passed through the molten metal, causing aluminium metal to be deposited on the lining of the vat.

 

Three areas of this process are ripe for improvement. The first is related to the energy efficiency and environmental impact of the gas fired furnaces within the cast house. Our research has found room for improvement, resulting in 22% savings in gas consumption, depending on furnace design and operation.

 

The second area is related to the voltage drop in the aluminium smelter from contact resistance in the anode’s assembly parts essentially, making sure that as much of the electricity generated is used for the separation process itself as possible, rather than being wasted in other parts of the system.

 

By saving a few millivolts in the cell-voltage drop, a significant amount of power can be saved. The third area is in the reduction pot rebuild area. Because the process requires aluminium to be deposited on the lining of the vat, every so often it needs to be stopped so the metal can be removed. This requires the pot to be cooled, and then taken apart to get the aluminium out and rebuilt.

 

The quicker this can be done, the better. We proposed an efficient cooling technique to save about 36 per cent of cooling time - which means we need about half the space for storing pots that are being cooled or rebuilt.

 

Collaborations like these are beneficial to both industry and academia. For those of us in academia, working with industry leaders like Emal can provide the opportunity for our students to become familiar with the aluminium-smelting process in practice and apply thermal science to relevant industrial applications.

 

By working together to solve industry problems, we are helping to put both Emal and the Masdar Institute on the sector map, adding to the body of knowledge about aluminium manufacturing through conference presentations and journal publications, and helping to train skilled and innovative engineers who can eventually play a key role in contributing to the economic growth of the UAE and the region.

 

 

(Source - www.steelguru.com)

 

 

 

Pressure on Italy to appoint new Ilva chief as losses mount - June 5

 

It is reported that Italy's government must find a new boss for its failing Ilva steel mill, stakeholders warned, as the scandal hit plant has failed to attract the investors needed to safeguard the thousands it employs in the economically deprived south.

 

Ilva was put under special administration after magistrates seized EUR 8.1 billion from its owners the Riva family, amid allegations by prosectutors that the plant's toxic emissions caused abnormally high rates of cancer.

 

But special commissioner Mr Enrico Bondi appointed last year to run the plant and oversee a cleanup programme has failed to staunch losses of millions of euros a week, meaning the 20,000 people Ilva employs in the southern Italian city of Taranto are still at risk of losing their jobs.

 

Mr Gianni Venturi the national co ordinator for Italian union Fiom Cgil said that "There is an urgent need that the government take its decisions about the choice of a new commissioner and about a new business plan fitter to the ongoing industrial events."

 

Italian steel industry body Federacciai estimates the plant is currently losing cash at a rate of EUR 60 million to EUR 80 million a month. Last week, the ministry for economic development held meetings with top global steelmaker ArcelorMittal and with representatives of the Riva family, in a bid to convince them to invest in the plant

 

Mr Antonio Gozzi president of Federacciai said that "The government focus is a good thing, they realise its urgent and they're reflecting on what course of action to take. From a cash point of view I don't know the situation but I believe they have some time before collapse maybe months."

 

Both Riva family representatives and Italian steel producer Marcegaglia and have said that they are ready to invest in Ilva if they are given clarity on the true financial position of the plant. ArcelorMittal has declined to comment.

 

An industry source said that Renzi told a democratic party meeting last week that the government wants to take action in finding a solution for Ilva. Substantially, this only means that commissioner Bondi will be replaced.

 

 

(Source - www.steelguru.com)

 

 

 

USA President plan to cut greenhouse gas emission by 2020 - June 4

 

At the end of his first year in office, President Mr Obama made a bold promise: the United States would cut its greenhouse gas emissions substantially by 2020.

 

Unfortunately it was a risky pledge that hinged on Congress. After President Mr Obama was unable to get his major climate change proposal through Congress in his first term, it seemed as though his pledge to the rest of the World and planet Earth might disintegrate into thin air.

 

But today, President Mr Obama said that plans to bypass Congress entirely. By using his executive authority under the Clean Air Act, he proposed an Environmental Protection Agency regulation to cut carbon pollution from the nation’s power plants 30% from 2005 levels by 2030. It’s one of the strongest actions ever taken by the United States government to fight climate change.

 

He said that “The shift to a cleaner-energy economy won’t happen overnight, and it will require tough choices along the way.”

 

He added that “But a low-carbon, clean-energy economy can be an engine of growth for decades to come. America will build that engine. America will build the future, a future that’s cleaner, more prosperous and full of good jobs.”

 

The regulation targets the largest source of carbon pollution in the United States: coal-fired power plants. So naturally it has already met huge opposition.

 

Senator Mr Michael B Enzi of Wyoming, the nation’s top coal-producing state, in response to President Obama, said that “The administration has set out to kill coal and its 800,000 jobs. If it succeeds in death by regulation, we’ll all be paying a lot more money for electricity — if we can get it. Our pocketbook will be lighter, but our country will be darker.”

 

But rather than forcing coal plants to immediately shutdown, the EPA. will allow States several years to retire existing plants. They estimate that by 2030, 30% of US electricity will still come from coal, down from about 40% today.

 

The regulation also gives a wide range of options to achieve the pollution cuts. States are encouraged to reduce emissions by making changes across the electricity systems. They’re encouraged to install new wind and solar generation technology. This will create a huge demand for designing and building energy-efficient technology.

 

 

(Source - www.steelguru.com)

 

 

 

GR Engineering wins AUD 6.8 million Rio contract - June 3

 

The West Australian reported that GR Engineering Services has won AUD 16.8 million contract at Rio Tinto's iron ore operations in Paraburdoo.

 

The lump sum turnkey contract involves engineering design, procurement, construction and commissioning works associated with the company's Moisture Reduction Project. Work is expected to start immediately and be completed in February next year.

 

Mr Geoff Jones MD of GR Engineering said that “The company's strong track record in the successful and safe delivery of brownfield projects left it well placed to deliver value accretive project outcomes for Rio Tinto.

 

 

(Source - www.steelguru.com)

 

 

 

Baosteel Stainless hikes stainless steel prices for June - June 2

 

Baosteel Stainless, the second largest stainless producer in China announced to hike its domestic prices for 304 grade stainless steel by CNY 3,500 per tonne for June in order to reflect higher input costs boosted by rising nickel prices.

 

After the adjustment, its selling prices for 304 grade hot rolled coils with thickness of 3mm and cold rolled coils with thickness of 2mm are at CNY 20, 000 per tonne and CNY 21, 000 per tonne respectively.

 

Besides, Baosteel Stainless also increased its selling prices for 430 grade stainless products by RMB200/ton in order to reflect higher spot market prices.

 

 

(Source - www.steelguru.com)

 

 

 

Anglesey Mining mulls re opening historic Grangesberg iron mine - May 31

 

Anglesey Mining has taken an option to take control of the Grangesberg iron project in Sweden.

 

Grangesberg, in central Sweden, closed in 1989 when it was the third largest iron ore mine in the country with more than 150 million tonnes of iron ore was mined down to a depth of 500 meters.

 

Prior indications are that at least 115 million tonnes of iron ore containing around 40% iron remain adding the old mine is adjacent to the Swedish national rail system with a rail line to port still fully operational.

 

Using a conventional underground bulk mining operation and processing, output is estimated at be 2 million tonnes to 2.5 million tonnes per year of saleable iron ore concentrate for the European, Middle East and Asian steel markets.

 

Anglesey has already paid USD 145,000 for 6% of Grangesberg Iron, a private Swedish company which ash recently been refinanced and hold holds a 25 year exploitation permit covering the underground mining operations.

 

Anglesey also has 12 month evaluation option to acquire 51% of the enlarged share capital of GIAB for shares. During the option period, Anglesey will run GIAB and appoint three out of five directors including the chairman. The remaining 43% of GIAB is held by Roslagen Resources, a Swedish private company.

 

Mr Bill Hooley CEO of Angelsey said that "Grangesberg is a mine with a rich historical heritage and an exciting future potential. There is an opportunity to re-open the Grangesberg mine to provide a local source of high quality ironore, well known, to the European steel industry. The agreements announced give Anglesey the opportunity to evaluate Grangesberg, both technically at the minelevel in the Grangesberg area and commercially throughout the Swedish and European steel industry."

 

 

(Source - www.steelguru.com)

 

 

 

Federal Government will revive Ajaokuta Steel Company soon - Mr Sambo - May 29

 

Mr Namadi Sambo VP of Nigeria said that the Federal Government would revive the Ajaokuta Steel Company Limited soon to promote the development of the nation’s automotive sector.

 

Mr Sambo, who stated this at the foundation laying of Kogi House in Abuja, explained that the revival of the company would offer viable socio economic opportunities to Nigerians. President Mr Goodluck Jonathan had already directed him to ensure the speedy revival of the industry. Very soon, I want to assure you that the promise Mr President made sometime in Kogi State that the Ajaokuta Steel Industry will be brought back to life.

 

He said that “I want to categorically state that all the encumbrances that have been stopping the progress of this project have been removed by Mr President.”

 

We are supporting the private sector in development of 1,000 MW coal power plant as well as development of all the solid minerals and hydro carbons. We shall continue to partner with you in the development of Kogi State.

 

Mr Sambo urged other states government to emulate the strategy of Kogi State in achieving infrastructure development for the benefit of citizens.

 

Mr Wada governor of Kogi said that the foundation laying of the Kogi House had underscored the new branding of the State as the Confluence of Opportunities. He applauded the President Jonathan’s transformation agenda, which he said, had transformed the country.

 

He noted that the commissioning of Geregu Power Plant, the establishment of Federal University and a processing zone in the state had enhanced human development in the state.

 

Mr Wada further revealed that the Kogi House, funded by the proceeds of the Bond collected by the State government, would bridge the housing need and provide employment opportunities in the FCT as well as generate revenue for the State.

 

He said that the Kaibo Engineering Group Holdings Limited of China will contribute 20% of the total cost of the project while the state government will contribute the remaining 80%. The House, when completed, would be managed by the company under the Public Private Partnership agreement.

 

 

(Source - www.steelguru.com)

 

 

 

LME Mo inventory continues to be at low level of 60 tonnes - May 28

 

As of May 19, LME molybdenum inventory continues to be at a low level of 60 tonnes.

 

LME molybdenum price rebounded on March 28 and still maintains an upward trend. As a result of shipping from LME designated warehouses continuing due to the anticipation of a price rise in the market, the inventory level on May 14 (at the time of trading opening) was reduced to 60 tonnes and thereafter remained at a low level without an atmosphere of increase.

 

LME molybdenum price on December 31st 2013 was USD 21,500 per tonne (both cash seller and 3 month seller), and the inventory level was only 330 tonnes, for which the price on 19 May 2014 was raised by USD 1,000 to USD 30,500 (both cash seller and 3-month seller), and the inventory was 60 tonnes as aforementioned which represented a decrease of 270 tonnes.

 

This year, the production of special steels including stainless steel is in good from in Europe and USA and the actual consumption of molybdenum also is in good form. On the other hand, as to the production result in the period from January to March in 2014 by producer, many of producers curtailed production from the year earlier period, and the worldwide supply volume was reduced from the last year. Therefore, the tight feeling has come up in the market, which makes a push to price hike and decrease in the market inventory.

 

As for how high the molybdenum price will go up, many of market watchers see one upper limit will be somewhere around USD 31,000 per ton which is a production cost for molybdenum in China. It is understood that, if the price exceeds this level, the resumption of operation will be prevailing in China which leads to the increased export, and the world demand and supply balance will again return to excess supply. Besides, some of market watchers forecast the price will go up to somewhere around USD 32,000 to USD 33,000 until China's export increases.

 

 

(Source - www.steelguru.com)

 

 

 

Rio Tinto, Chinalco and IFC ink historic Investment Framework for Simandou iron ore project in Guinea - May 27

 

The Government of Guinea and its partners, Rio Tinto, Chinalco and the IFC, signed the Investment Framework for blocks 3 and 4 of Simandou, the Project, which will be the largest combined iron ore and infrastructure project ever developed in Africa, providing Guinea with the opportunity to reap the benefits of its rich mineral wealth and transform its wider economy.

 

Key terms of the Investment Framework

 

1. The Republic of Guinea becomes an active shareholder of the Simandou South mine

 

2. The Republic of Guinea now has 7.5% ownership of Simfer S.A., the mine owner.

 

3. The Republic of Guinea will have the option to increase this share in Simfer SA to 35% over 20 years: an additional 7.5% for free and 20% on a contributing basis (of the 20% - 10% purchased at historical mining cost, that is, the proportionate percentage of Simfer SA's costs in undertaking the mining activities, and 10% purchased at market value).

 

4. As a shareholder of Simfer SA, the Republic of Guinea will be able to receive dividends and contribute to the company's commercial strategy during board meetings.

 

The signing marks a significant milestone and provides the legal and commercial foundation for the project. It also allows the project to move towards realizing the opportunities it presents for Guinea and all the shareholders.

 

Within the coming days, the Government of Guinea will submit the IF for the consideration of the Guinean National Assembly in order to seek its ratification. Once ratified the project partners will finalize, within approximately one year from ratification, the Bankable Feasibility Study which will confirm all the project parameters including cost and timeline.

 

In parallel, the parties, under the leadership of Rio Tinto, are working together to assemble a consortium of investors who will finance, build and own the multi user 650km railway and deep water port infrastructure within the agreed timeframe and along procedures laid down by the Bankable Feasibility Study and involving all parties.

 

Mr Sam Walsh Rio Tinto Chief Executive said "Today is an important milestone in the development of this world-class iron ore resource for the benefit of all shareholders and the people of Guinea. I would like to welcome the Government of Guinea as a shareholder and thank the President for his continued commitment to the Project."

 

Mr SUN Zhaoxue General Manager of Chinalco said: "China and Guinea maintain traditional friendly relations, the two countries are highly economically complementary, Guinea has rich iron ore resources while China is the world's largest iron ore consumer. The signing of Simandou Investment Framework is of great importance, and Chinalco is willing to work with all the partners, to implement respective responsibilities and obligations to achieve earliest first commercial production and full capacity production of the project, which will benefit the State of Guinea and Guinean people."

 

Mr Jin-Yong Cai IFC Executive Vice President and CEO said "This Project is a priority for IFC, given its potential to bring jobs, infrastructure and revenues to Guinea. Projects of this scale require strong partnerships. This agreement is a testament to the strong collaboration of the Project partners, including the Government of Guinea, in developing a framework that will bring long-term positive benefits to the country."

 

The Project is a world-class iron ore mining development located in the south-east of Guinea. The Project partners include the Republic of Guinea (7.5%), Rio Tinto (46.57%), Aluminium Corporation of China (41.3%) and the International Finance Corporation (4.625%), a member of the World Bank Group. The Project will be the largest combined iron ore mine and infrastructure project ever developed in Africa, with the potential to transform the Guinean economy and transport infrastructure.

The project comprises three principal components

 

1. A high-grade iron ore mine (blocks 3 and 4 of Simandou) of 100 million tons per year at full production

 

2. A new 650km trans-Guinean multi-user railway to transport iron ore to the Guinean coast

 

3. A new deep-water multi-user port in the Forécariah prefecture

 

 

(Source - www.steelguru.com)

 

 

 

Iranian crude steel output in first Iranian month up by 11pct - May 26

 

It is reported that Iran, the biggest producer of crude steel in the Middle East produced over 1.49 million tonnes of steel products in the first Iranian calendar month of Farvardin (March 21 to April 20), up by 11% compared to the same period of last year.

 

Iranian crude steel production amounted to 14.89 million tonnes in the Iranian calendar year ended in March 2013. In the country's Fifth Five Year Development Plan (2015), the production output is projected to increase to 55 million tonnes.

 

The country’s crude steel output surpassed 1.45 million tonnes in the same month, showing a 15% rise YoY. Iran’s crude steel output rose by 9% in the past Iranian calendar year.

 

 

(Source - www.steelguru.com)

 

 

 

NLMK updates on steel segment production - May 23

 

In Q1 2014, Segment sales totaled 3.2 million tonnes (+16% QoQ), supported by improved market conditions at the end of the quarter and by the sale of stocks accumulated in the previous periods. Sales to third parties in Q1 went up by 11% QoQ to 2.7 million tonnes (+12% YoY).

 

Overall Segment revenue went up to USD 2,038 million (+13% QoQ) on the back of increased sales and prices on the export markets. Higher sales offset the reduction in average prices compared to Q1 2013 (+2% YoY revenue growth).

 

Segment EBITDA was USD 262 million (+72% QoQ; +215% YoY) due to widened spreads between steel products and raw materials prices and due to the weakening of the ruble. EBITDA margin was 13% (+5 p.p. QoQ and +9 p.p. YoY).

 

Outlook;

 

In Q2 2014, we expect a seasonal improvement in demand for steel products at our key sales markets that will positively contribute to the Segment’s operating and financial results.

 

 

(Source - www.steelguru.com)

 

 

 

US Service Center shipment declined in April - May 22

 

Growth continued in the United States for both steel and aluminum on a YoY basis. Canadian steel and aluminum shipments declined YoY in April.

 

US Service Center Activity; US service center steel shipments in April 2014 increased by 4.9% from April 2013. 2014 year to date steel shipments increased by 3.1% from the same period in 2013. Steel product inventories increased 3.7% from April a year ago. In April, US service center shipments of aluminum products increased by 9.4% from the same month in 2013. Inventories of aluminum products increased 6.7% from last year.

 

Canadian Service Center Activity; In April, Canadian service center shipments of steel products decreased by 5.6% from April 2013. Steel product inventories decreased 11.7% from April of last year. Canadian service center aluminum shipments in April decreased 5.3% from the same month in 2013. Inventories of aluminum products increased 6.6% from last year.

 

 

(Source - www.steelguru.com)

 

 

 

Stamping bottleneck squeezes boron steel supply - May 21

 

Faced with increasingly tough federal collision standards, automakers are turning to boron steel which is six times stronger than conventional steel to reinforce the body in white without adding pounds.

 

Boron steel is increasingly used for door pillars, door beams, body sills, roof rails and bumpers components that must protect the passenger cabin during a collision. But as demand grows, suppliers are short of presses that can heat the steel to the proper temperature for stamping.

 

According to an estimate by Ducker International, In the 2015 model year, a typical vehicle will have about 24 pounds of boron steel. That's up from 15 pounds in 2012.

 

Magna International Inc, Germany's Benteler Automotive and Gestamp Automocion of Spain are leading producers of boron steel parts. Boron steel got some attention last month when Magna and steel-maker ArcelorMittal won an Automotive News PACE Award for producing the boron steel door rings used in the Acura MDX.

 

While the use of boron steel is growing, there's a catch. The blanks used for boron steel components must be heated to 1,688 degrees Fahrenheit before they are stamped.

 

The heat treatment, along with the subsequent quenching process, allows manganese, boron and carbon additives to transform the steel into the particularly hard and strong boron steel.

 

According to the American Iron and Steel Institute, steel makers such as ArcelorMittal, Severstal and AK Steel can produce enough boron steel to meet demand. But the industry's bottleneck is downstream in the stamping plants. Suppliers must use special lines to produce hot stamped components.

 

In North America, there are about 40 stamping presses that can handle boron steel, up from 22 in 2012. To keep up with rising demand, Ducker estimates that suppliers will need as many as 60 presses by 2020.

 

Mr Dick Schultz MD of Ducker said that "You have to have special equipment. To get the weight out, they make these parts very thin. There are other problems, too. Hot stamped components require more time to produce, thus raising costs. Boron steel also is hard to form into complex shapes. Bumpers, for example, must be straight or only slightly curved.”

 

 

(Source - www.steelguru.com)

 

 

 

WISCO to hold prices unchanged on certain products - May 20

 

China's Wuhan Iron & Steel announced to remain its domestic prices on certain steel products unchanged for June delivery.

 

However, prices on some CR products and electro galvanized steel sheets will drop by CNY 100 per tonne. On the other hand, prices of wire rod, HR products, tinplate, section steel and colored steel will remain steady.

 

After the adjustment, its prices for Q235 hot rolled coils (HRC) with thickness of 5.5 mm are at CNY 3,370 per tonne; those of Q195 cold rolled coils with thickness of 1.0 million are at CNY 4,050 per tonne without 17% VAT

 

 

(Source - www.steelguru.com)

 

 

 

Saudi Arabian HRC import prices drop - May 19

 

It’s reported that Saudi Arabia's import prices for hot rolled coils have decreased due to weak demand and high stocks.

 

On May 13th, the import price for HRC with thickness of 2 mm was at USD 550 per tonne to USD 580 per tonne CFR, falling by USD 10 per tonne from a week ago.

 

Traders said that HRC demand will remain weak as summer holiday. The current HRC prices in domestic market drop by around USD 10 per tonne.

 

Meanwhile, the Import price for Egypt origin HRC with thickness of 1.2 mm and 2.0 mm was at USD 660 per tonne CRF and USD 590 pe rtonne to USD 600 per tonne CFR respectively.

 

 

(Source - www.steelguru.com)

 

 

 

Russian gas pipeline talks on track - Voestalpine - May 17

 

Reuters quoted Austrian steel and technology group Voestalpine as saying that talks with Moscow to supply steel for its planned South Stream Gas pipeline were on track, despite escalating tensions between Russia and the West.

 

Russia's annexation of Ukraine's Crimean peninsula earlier this year marked the biggest East West crisis since the Cold War and focused politician's minds on reducing the European Union's reliance on Russian gas.

 

There are concerns in Brussels that the 2,400 kilometer South Stream pipeline, which would reach Bulgaria and other EU members would further cement Russia's dominant role and regulatory approvals have been put on hold.

 

However, Mr Wolfgang Eder CEO of Voestalpine said that “The political situation has not affected talks about delivering steel. We are delivering for the first line and we will start in summer discussions for a possible share in the second. The timescale hasn't changed.”

 

 

(Source - www.steelguru.com)

 

 

 

Canadian iron ore exports up in February - May 16

 

Canada exported some 1.98 million tonnes of iron ore fines in February, up by 2 times than the last year. The exports of iron ore pellets totaled 1.01 million tonnes down by 10.7% compared to the same month of last year.

 

Among them, exports to China totaled 81.2 million tonnes and France’s iron ore shipments from Canada totaled 473,000 tonnes. Besides, Netherland occupied 387,000 tonnes.

 

During the first two months, Canada’s exports of iron ore fines and iron ore pellets totaled 5.76 million tonnes up by 25.7% compare to the same period of last year.

 

 

(Source - www.steelguru.com)

 

 

 

 

Good Time Steel plans new steel plants in Kalulushi in Zambia - May 15

 

GOOD Time Steel Company plans to invest USD 100 million into a new steel plant in Kalulushi.

 

Mr Jacky Huang GM of Good Time Steel Company said that “Once the company had secured land, it would proceed with designs for the new plant that was expected to create about 1,000 jobs for Kalulushi residents. Once we have secured land through the council, we shall go ahead with design works for the new plant. We are serious about investing in Zambia as a company, so that we can create more jobs for Zambians."

 

He said that the new plant would service the Copperbelt market, the neighbouring region of Angola as well as the Democratic Republic of Congo (DRC).

 

Mr Jacky was happy that the Zambian steel industry was growing at a fast rate due to the various construction and infrastructure development being spearheaded by the government. The business environment is conducive in Zambia, and we are hoping that more government projects can come on board year in and out."

 

He said that Zambia was lacking proper infrastructure for shopping malls, universities, schools and other vital area. It's good that the government has embarked on a robust infrastructure development, which shall benefit us as well, in terms of business.

 

Mr Jacky said that his company had also commissioned a steel tube pipes mall at its parent plant, constructed at a cost of USD 16 million. The plant was manufacturing 50,000 tonnes of tube pipes and galvanized pipes of up to 4 inches annually.

 

He said that "I believe we are the only company with such model equipment in Zambia. The tube mall has created over 100 jobs for local Zambian. The steel market in Zambia is growing with the government taking the lead through the many construction projects it is undertaking. We have seen that the government is putting in a lot of effort in infrastructure development, for instance the link-Zambia 8000 project, the erection of new schools and hospitals using our materials, which is good."

 

He was happy that the government had revoked Statutory Instrument No 55 on foreign exchange regulations, as the revocation had increased the cost of doing business.

 

 

(Source - www.steelguru.com)

 

 

 

Dannemora Mineral stops production and suspends payments - May 14

 

As a consequence of the Company's current situation, Dannemora Mineral has decided to suspend payments and to stop production. The decision applies until further notice.

 

Dannemora Mineral AB is a mining and exploration company of which the primary activity is mining operations in the Dannemora iron ore mine. The Company intends to engage in exploration activities to increase the iron ore base locally and regionally.

 

The Company's most important asset is the iron deposit in the Dannemora Mine, and activity is focused mainly on the mining of this deposit at present.

 

The Company is listed on NASDAQ OMX First North, Stockholm and Oslo Axess. The Company's Certified Advisor on First North is Remium Nordic AB.

 

The Company's independent qualified person is mining engineer Thomas Lindholm, Geovista AB, Lulea. Thomas Lindholm is qualified as a Competent Person, as defined in the JORC Code, based on education and experience in exploration, mining and estimation of mineral resources of iron, base and precious metals.

 

 

(Source - www.steelguru.com)

 

 

 

YKGI Holdings sees better results with expansion into new markets - May 13

 

YKGI Holdings Bhd is optimistic of turning in better financial results this year with its expansion into new markets in Sarawak, Sabah and Thailand.

 

Mr Lim Pang Kiam chairman of YKGI Holdings said that “The group’s timely expansion into Bintulu, Kota Kinabalu and Thailand, as well as its newly commissioned continuous colour coating line had enabled a stronger commercial presence of its products. With the Malaysian economy expected to grow between 4.5% and 5% in 2014, we expect revenue for financial year (FY) 2014 to at least improve in tandem with this.”

 

The group, which has plants in Demak Laut Industrial Park here and in Selangor, has a range of products that include pickled and oiled coils, pre painted galvanised iron coils, galvanised iron coils and cold rolled coils.

 

Mr Lim said that “The Government’s pledge to build more affordable homes and roll out various high impact infrastructure projects like the Light Rail Transit extension, Mass Rapid Transit and West Coast Expressway, augured well for the steel industry. However, he cautioned that the outlook of the domestic steel industry remained challenging as it remained largely influenced by macro factors in East Asia, with China still experiencing large excess capacity.

 

He said that the 14.9% increase in electricity tariffs from last January had disappointed the energy intensive industries like the steel industry, as this would affect the profit margins of steel companies. Nonetheless, YKGI was confident that it would be able to sustain its business in the tough environment as the group conscientiously worked on its 5 year business transformation plan to bring down cost and increase yield, achieve better economies of scale in group operations, and to grow revenue.

 

Mr Datuk Soh Thian Lai group MD & CEO of YKGI Holdings said that “After incurring two consecutive years of record losses, YKGI had turned around with pretax profit of MYR 540,000 for FY2013 ended December 31, on revenue of MYR 560.4 million against a pretax loss of MYR 20.7 million and turnover of MYR 461.7 million in FY2012.

 

He said that with the commissioning of the MYR 30 million continuous colour coating operation in its Selangor plant last September, it currently housed four major production lines with a total annual output capacity of between 250,000 tonnes and 300,000 tonnes.

 

 

(Source - www.steelguru.com)

 

 

 

Japan steel makers to export green technologies - May 10

 

It is reported that the Japan Iron and Steel Federation is stepping up the transfer of the industry’s advanced technologies to help cut carbon dioxide emissions to other Asian countries to tackle global warming.

 

The industry group has already supplied the technologies to China and India and is now poised to do this in Southeast Asian countries, where steel demand is seen growing and measures to reduce carbon dioxide emissions are inadequate. Producing a ton of crude steel releases 2 tons of carbon dioxide.

 

In Japan, steel makers are generating some of the electricity they use on their own from gas produced in furnaces or waste heat emitted in the process of making coke from coal. In this way, they are reducing electricity purchases from power suppliers, thereby helping slash carbon dioxide emissions.

 

According to the federation, energy efficiency at blast furnace steel makers in Japan is 10-30 percent higher than that at U.S. and European peers.

 

 

(Source - www.steelguru.com)

 

 

 

Steelmaker Arrium to shed 120 jobs - May 09

 

It is reported that steel and mining group Arrium is to cut 120 jobs as part of a restructure at its Waratah division.

 

Arrium said that it would reduce its workforce at Waratah's base in the NSW city of Newcastle by 20% by June 14th 2014.

 

Arrium's Waratah steelmaking business supplies fencing products to farmers and makes train wheels. The company had been a change in production requirements from the Waratah division including lower demand for rail wheels.

 

 

(Source - www.steelguru.com)

 

 

 

PT Resteel to build USD 500 million steel mill in Batam - May 08

how

 

PT Resteel Industry Indonesia, a JV between local steelmaker PT Trinusa Group and China’s major private steelmaker Shanxi Haixin Iron and Steel Group Company Limited plans to build a USD 500 million steel mill in Batam, Riau Islands, this year.

 

Mr Achmad Fadhillah main commissioner of Resteel said that “The construction of the mill, slated for completion within three years, might commence as soon as the end of this month. The first line of the mill will be complete within six months, so by the end of this year we hopefully

 

 

 

TATA Steel unveils improved steel grade for the Oil & Gas market - May 07

 

TATA Steel’s Speciality Steels business has unveiled an enhanced version of its existing 4145H modified alloy steel grade which combines high strength with toughness making it ideal for use in demanding downhole tool and completion equipment environments.

 

 

This improved bar product grade is manufactured at Speciality Steels production facilities in South Yorkshire, UK, which have been at the forefront of producing steel for the demanding oil and gas market for more than 60 years

 

Mr Mike Jeglic TATA Steel sales manager for oil and gas in Houston said that "This enhanced grade which combines high strength (130 ksi yield) with high toughness (42J@-20C) at sizes up to 12 diameter has been developed in direct response to customer feedback. The improved performance envelope of this enhanced offering compared to more traditional variants of 4145H modified grades gives our customer base the opportunity to rationalise their stock profiles as well as the opportunity to deploy this alloy in more challenging operating conditions."

 

Mr Richard Lowe GM of Speciality Steels Americas said that “The introduction of the grade is part of a series of ongoing initiatives that our dedicated oil and gas team has delivered in the past few months in response to customer feedback. These developments have included the introduction of imperial (inch) size rollings on the Stocksbridge (UK) mill, the launch of oil and gas grades in sizes less than 3 and improved central soundness guarantees across our product range."

 

 

(Source - www.steelguru.com)

 

 

 

Steel tube manufacturer seeks to bring 50 jobs to Milan - May 06

 

A steel tube manufacturer in Milan promises to bring 50 new jobs to the area if approved for USD 250,000 in a federally funded community development grant.

 

With the city’s administrative oversight and approval, Jaytec LLC, 620 S. Platt Road, will request the funds from the Michigan Strategic Fund’s Community Development Block Grant for training 50 new employees for semi skilled positions at the plant, as the company gets set to invest USD 3,100,000 in new equipment.

 

Jaytec, a subsidiary of L & W Engineering, has owned the Platt Road business since 2011, when it replaced Bay Logistics. Jaytec and its parent company have other locations throughout southeast Michigan. Jaytec initially received tax breaks from the city for investing in the property and bringing jobs to the community.

 

Last month, the city approved a tax abatement for the manufacturer in exchange for Jaytec’s agreement to make additional improvements to the property, purchase and install new equipment and machinery and create 50 new jobs within two years from December 31st 2014.

 

To be eligible for the federal grant funds, the city was first required to have community development plan on file, which city council members approved April 28, along with their approval for the block grant.

 

Mr Gerard Scherlinck City Administrator and Police Chief credited Tim Lake of the Michigan Economic Development Corporation with doing much of the research and writing for the grant and said the community development plan is an outline that the city can build on in the future.

 

Dawn Dayton of Jaytec and Lake were on hand at the Milan City Council meeting April 2

 

 

 

East Asian market of CR austenitic stainless sheets still slow - May 05

 

The market of cold rolled austenitic stainless steel sheets in the East Asian region is showing a slow reaction despite of a price hike of material nickel. Accordingly, negotiations for June shipment is unfolding to lack in upsurge.

 

As the LME price of material nickel exceeded USD 8.00, the Japanese mills had assumed that a speculative demand would have increased anticipating a rise in prices. However, customers are still showing a wait and see stance.

 

Against the backdrop, customers

way, they are reducing electricity purchases from power suppliers, thereby helping slash carbon dioxide emissions.

 

 

According to the federation, energy efficiency at blast furnace steel makers in Japan is 10-30 percent higher than that at U.S. and European peers.

 

 

(Source - www.steelguru.com)