The restoration of the prices of non-ferrous metals during the current year will be bigger than the preliminarily expected in spite of the forecasted low economic growth in 2003 and the eventual war in Iraq, according to the consulting company Gold Fields Mineral Services /GFMS/. According to the last research of GFMS among all metals the consumption of nickel will increase most considerably with 6 per cent due to the increased production of steel. The cash prices of the metal at LME will raise up to 7500 USD/t at average 6800 USD/t for the last year.
Source: Pari (03.01.2003)

The biggest producer of steel in Hungary Dunaferr agreed with its creditors USD 52 million from its debt to be rescheduled by January, 2005. In this way the state-owned company Dunaferr that gives work to 8500 people and is among the biggest employers in the country, owes loans to a consortium of 7 banks and will provide financing of the export.
Source: Pari (03.01.2003)

The electricity produced by Maritsa Iztok 3 thermal power plant (TPP) and Kozloduy nuclear power plant will be sold on the regulated market only, the State Energy Regulation Commission (SERC) said. The regulatory body also reminded that from July 1 the large consumers will be able to freely negotiate the prices of electricity supplies with producers. A request has been already submitted by Maritsa Iztok Mines. The freed power that will not be bought out by the National Electric Company has also been determined. It is as follows: 900,000 KWH from Maritsa Iztok 2 TPP; 760,000 KWH from Varna TPP; 370,000 from Bobov Dol TPP; 80,000 KWH from Rousse TPP, unit 4; and 60,000 KWH from Maritsa 3 TPP. SERC has also prepared a monthly schedule of the maximum quantities that can be negotiated directly by the power plants by the end of the year. All other independent power producers will be able to negotiate the whole amount of electricity generated by them directly with privileged consumers. By the end of the year this is expected to help liberalise some 10% of the electricity market. Experts reminded that in order for the process to be launched, the new Energy Act should be specified by experts first.
Source: Pari (08.01.2003)

Three companies submitted requests for direct dealing with the producers of electricity after the start of the market liberalisation as of July 1, 2003. These are Maritza iztok mines, Plama - Pleven and Toplofikatzia Sofia. At the moment only 16 companies in the State respond to the conditions for direct supplies of cheaper electricity. Among them are Stomana industry, KZM, Asarel Medet, Elatzite Med, Unicor Med, Devnia tziment, LUKoil Neftochim Burgas, Agropolichim and Neochim. Kremikovtzi and more of the chemical plants respond to the conditions for consumption of electricity but has huge debts to NEC.
Source: Monitor (08.01.2003)

The prices of the non-ferrous metals will slightly increase during this and next year, stimulated by the restored consumption, according to Economist Intelligence Unit /EIU/. In a short-term prospective the speculative demand of aluminium will keep its prices over the levels of 1300 USD/t but eventual change in the market conditions may appear if the bulks raise more. In 2003 there will be surpluses of 85 000 t. copper at the market and in 2004 a deficit of 165 000 tons.
Source: Pari (08.01.2003)

The subsidiary of Navan - Balkan Mineral and Mining will have to confirm its bank guarantee for searching of precious metals in Nedelino, Smolian region and in the municipalities Jebel and Kurjali. The company has to confirm its intentions by 2 months. During this week the syndics of Navan met representatives of the Ministry of Economy about the projects of the company in Chelopech and Krumovgrad. The subsidiary has not still received a license for searching of precious metals that will be valid for 3 years. The company plans to invest USD 250 000.
Source: Pari (09.01.2003)

Creditors initiated cases against Stomana JSC, announced the Executive Director Mr. Spas Hristov. The company with a personnel of 30 people, is the last state-owned structure of the metallurgic company. It exists with only one purpose - to execute the reconstruction plan. From the beginning of 2002 to November were initiated 19 cases and in December they are 40. Stomana JSC owes BGN 23 million to all creditors. The main capacities of Pernik-based metallurgic company are property of Viohalco and are under the name Stomana Industry.
Source: BTA (09.01.2003)

BGN 808 087 are spent for social activities in the Plant for non-ferrous metals (KZM) near Plovdiv in 2002. Among the considerable social expenses are the funds for holidays of the personnel that exceed BGN 192 000. In the frames of the social programme of KZM - Plovdiv, the employer provided over the last year BGN 82 910 for voluntary pension insurance of the workers.
Source: BTA (09.01.2003)

Other important moment in the trade argues between EU and USA are the duties on the import of steel imposed by Washington on the Europeans. The duties are over 30 per cent from the price of the imported steel. The countries from EU complained about that to WTO. The first decisions on this problem are expected in April, 2003. This will create potential conditions for the introduction of other sanctions from EU in connection with the American export.
Source: BTA (13.01.2003)

Canadian company TVX Gold declared force majeure circumstances in its lead-zinc mine Mavres Petres in Greece until the Greek government does not decide whether it is not necessary a new research for the influence on the environment of the enlarged mine. Mavres Petres is developed by TVX Hellas, the Greek section of TVX Gold. During the first 10 months of 2002 the company produced in Greece 25 400 t zinc and 21 700 t lead.
Source: Pari (13.01.2003)

The information about the unemployment in USA disappointed the market of non-ferrous metals and caused a decline in the prices. The three-month futures for copper closed the trade at LME with a drop of USD 18 up to 1637 USD/t and reduced the quotes of the rest metals. Only the price of lead increased with USD 1 up to 444 USD/t.
Source: Pari (13.01.2003)

Bulgarian economy is open but it won't be affected by the decline of the US dollar. After losing over 15 per cent of its amount from March, 2002 till now under the influence of the drop in US economy, from the beginning of 2003 additional negative effect on the dollar caused the threat of war in Iraq and the petrol strike in Venezuela. The imported metals are mainly from Ukraine and Russia. Romania offers metals in USD and EUÐ. European metals are more expensive but more qualified and justify their higher price.
Source: Pari (13.01.2003)

According to Mr. Anton Petrov who is a representative of Viohalco for Bulgaria, the cheaper US dollar influences on the export of metals abroad. At the first place it depends on the country to which is pointed the export. Viohalco exports mainly to Western Europe and almost does not work with American currency. That is why the cheaper dollar does not affect the business. At the same time the non-ferrous metals that are traded in USD, became cheaper because of the rate difference.
Source: Pari (13.01.2003)

MZ Metal Ltd. will open a new foundry. In the foundry are invested over BGN 200 000 and its capacity is 1.250 t past-iron products per hour at reduced cost of coke. The sample series for production of cast iron give highly qualified product, announced the Manager of MZ Metal Ltd. Mr. Naiden Josifov. The construction of the new work-shop is a part of the measures for reduce the prime cost of the production.
Source: Pari (13.01.2003)

The nickel was the star in the non-ferrous metals at London Metal Exchange (LME) over the week. The nickel has marked its highest amount since October, 2002 and reached USD 7950 per ton because of the new steel-extraction companies that will start to work in 2003 and will be the main consumer of this metal.
Source: Capital (13.01.2003)

Copper, traded on LME in the beginning of the current week, stabled around 1630 USD/t, drifting away from its 1-month maximum of 1649.50 USD/t, registered last week. Over the past 15 days, the price of the quarter deliveries of copper managed to go up by more than 6 per cent after some active buying by Chinese and Japanese traders - the first signals, that there is increased consumption, and the data, that the construction expenses in USA have grown. The prices of quarter deals began to go down on Friday, when their prices were calculated worse than expected.
Source: Pari (14.01.2003)

A group of US steel producing companies are demanding that President Bush’s administration should include 31 countries, one of which is Bulgaria, in the list of states, on whose production USA imposes high import duties since last year. The companies made this demand in a letter, sent to the permanent trade representative of USA Robert Zelik and to the Minister of Trade Don Evans on January 10. They complain, that the import of steel from developing countries has grown sharply, after they were excluded from the announced by President Bush three-year program for protection of steel production in USA through customs restrictions. The steel producing companies in USA claim, that the excluding of Mexico from the program for import duties has led to a 12-per cent increase of the import of hot rolled sheet steel from this country, since the duties were entered into force in April last year. The import of the other 30 countries over the first 10 months of last year, jumped to 1.6 million tons from 1.2 million tons over the same period of 2001, according to the companies.
Source: BTA (14.01.2003)

In expectation of the drop in the retail prices in USA in December, the prices of non-ferrous metal at LME were varying, with an upward trend. The three-month copper deals, which enjoyed huge interest, were contracted at 1657 USD/t (on Monday they were contracted at 1648 USD/t). In the early hours, copper marked the record 1666.50 USD/t, their 1-month maximum. The price of nickel before noon grew to its 2 ½ year maximum of 8150 USD/t, but dropped to 7 800 USD/t (it was 8010 USD/t at the closing on Monday). Zinc and lead quotes remained unchanged - 783 and 443 USD/t. Aluminum’s price went up to 1351.50 USD/t at 1348 USD/t.
Source: Pari (15.01.2003)

EUR 40 million were invested by the Greek group Viohalco in Bulgarian enterprises, announced Mr. Tomcho Tomov - PR manager. Half of these funds are invested in the Pernik-based metallurgical plant Stomana Industry. The new technological line Danielli was opened with them and the first electrical furnace was reconstructed. EUR 15 million were invested by the company for a new press in the Sofia-based enterprise Stilmet. Viohalco is the owner of eight factories in Bulgaria. Last year, the Greek owners invested EUR 10 million in the improvement of their ecological parameters.
Source: BTA (15.01.2003)

The Finnish mine-extraction mine company Outokumpu plans to invest EUR 88 million and to enlarge the capacity for production of zinc in its plant in Norway. At the moment it is 150 000 tons and by the end of 2004 when has to finish the work, will increase with 10 per cent.
Source: Pari (16.01.2003)

Kazahstan copper giant, monopolist at the domestic market - Kazahmis produced during the last year with 13.3 thous. tons more copper compared to 2001 or 431.7 thous. tons, announced the spokesman of the company. Kazahmis is the 9 by size producer in the world.
Source: Pari (16.01.2003)

In 2002 in France were produced 5.6 per cent more non-processed steel compared to 2001 up to 20.5 million tons, was reported from the French steel-extraction federation.
Source: Pari (16.01.2003)

7 American metallurgic companies required from the administration of the President Mr. George Bushthe import of steel from 31 countries including also from Bulgaria for which are not valid the higher duties in 2002, also to be included in the more strict regime. The import of flat rolled steel only from Mexico increased with 12 per cent in comparison with the same period of 2001 while the import from the rest 20 countries increased totally with 0.4 million up to 1.6 million tons.
Source: Pari (16.01.2003)

The prices and consumption of the non-ferrous metals over the current year will increase without considering the insecurity about the restoration of the world economy. The higher demand of all metals will be the leading force for the more expensive products. According to the average forecasts of the experts in 2003 the prices of copper, aluminium, lead, zinc will increase and over the next year some of them will increase with another 10 per cent.
Source: Pari (16.01.2003)

The salaries in Stomana Industry will be raised by 7 per cent as of March 1, announced Mr. Tomcho Tomov - PR Manager of the Greek Viohalco Group. The increase will be made in advance, due to the expected better production results, as well as on the insistence of the syndic as a compensation for the implemented employee dismissals. Currently, the last mass dismissal is in process in the enterprise. 400 people will be dismissed. 1300 is the final number of those who shall remain employed in Stomana Industry. An agreement was signed with Podkrepa today, negotiations with KNSB and Promiana are due to be held. Since Viohalco acquired Stomana on August 1 2001, the salaries have been raised by 34 per cent. With the new increase, their growth will go over 40 per cent. For the same period, 320 people have been dismissed, a big number of workers have been re-employed in Viohalco’s subsidiaries, which are operating well currently and receive good remuneration packages.
Source: BTA (16.01.2003)

Bosnia processor of aluminium Àluminij-Mostar has so far extracted the record 103.1 thous. tons since its establishment in 1981 and plans to increase its production during the next year up to 107 000 tons. However the profit of the company did not increase because of the low prices of the metal on the world exchanges. Àluminij-Mostar exports almost 50 per cent from the whole export from Bosnia. It exports to USA, Switzerland, Italy, Germany and Croatia. The plant has been recently renewed.
Source: Pari (17.01.2003)

The disappointing economic data from USA, as well as the expectations that the buying of funds will stop soon, had a negative impact on the prices of non-ferrous metals. The three-month copper deals finished the day at 1670 USD/t on Thursday, when the price of the metal grew to its 5-month peak. Aluminum's price dropped by 9 USD/t to 1371 USD/t, and zinc and lead - respectively by 3 and 1 USD/t to 802 and 458 USD/t.
Source: Pari (20.01.2003)

In the toplist of biggest companies exporters for 2001, metallurgy, which is traditionally among the most export-oriented branches, is represented by a number of companies - Union Miniere Pirdop Med, Kremikovtzi, KCM, Asarel Medet, OCK and Stomana Industry. The last company, through which the Greek company Viohalco acquired the main production of the Pernik-based metallurgical factory, marked the biggest export growth over the past year in comparison with 2001. Despite the high price of natural gas, the chemical enterprises are still present among the exporters - Solvey Sodi is leader in the branch, and the other representatives of the branch are Agropolichim and Sviloza.
Source: Capital (20.01.2003)

In the toplist of 100 biggest Bulgarian companies for 2001, the foreign investors are present mostly in the sphere of trade and services - Metro, Billa, Shell, OMV. Recently, the industrial enterprises constructed by foreign investors, such as the refrigerator factory Liebherr, the engineering EPI Q Electronic Assembly and Festo, the washing detergent producing company Hayat Chemical, the tobacco processing factory Sokotab and others, in a few years, will probably be among the biggest companies in Bulgaria. Due to the lack of consolidated data, some of the companies are occupying lower positions, because they are only represented by their separate enterprises. The Italian company Miroglio, for example, has four textile factories, which are not included in the list of the largest, but if their incomes from sales are accumulated, the group will for sure be among the top 100 companies in Bulgaria. The situation with the Greek company Viohalco is similar. It owns a number of enterprises, of which only Stomana Industry is included in the list. Steelmet and Sofia Med are not in it.
Source: Capital (20.01.2003)

Norwegian company Aker Yards announced that it bought 70 per cent from the shares of the Romanian shipyard SANAB SA. The shipyard is in the town of Braila and in it are working 2 9000 workers. The company invests in Romania as a way of reducing the expenses, partly because of the increasing purchasing capacity of the Norwegian crown. In the declaration of Aker is not mentioned any financial specifications for its agreement with its subsidiary Aker Brevik.
Source: BTA (21.01.2003)

According to the senior advisor on the economic problems in the Embassy of the Russian federation in Bulgaria Mr. Dimitrii Evstratov, the introduction of duties at the import from Russia of steels that are not produced in Bulgaria, with the definite quality and assortment, is not a threat for the Bulgarian production. Representatives of Association of the Bulgarian machine-building companies sent letter to the Ministry of Economy in which they are against the introduction of duties since their production will become more expensive. In this way it will become incompetitive.
Source: Pari (21.01.2003)

The increase of the prices of the railway freights to Kremikovtzi is 10 per cent in comparison with the last year. This increase can be also referred to the rest companies like Umicor and Stomana Industry, announced the Deputy Minister of Transport and Communications Mr. Lubomil Ivanov. If Kremikovtzi does not pay the debt to BDZ which at the moment are about BGN 7 million, the railway freights of the company will be stopped. Mr. Ivanov also added that in 2003 will be stopped trains that move on non-profitable lines. This does not mean that the lines will be closed.
Source: Pari (22.01.2003)

If the workers from the Russian plant Norilski nikel go on strike, that will influence on the market extremely bad. The plant is the biggest producer of nickel and palladium in the world and is among the leaders of platinum, copper and cobalt in the world. The prices will increase and the situation on the market will worsen additionally from the delayed deliveries from China. One of the trade unions of the plant that has 15 000 people reported that if the negotiations with the management do not lead to increase of the salaries, the workers will go on strike.
Source: Pari (22.01.2003)

The copper became more expensive - up to 1707 USD/t when on Monday started a strike in one of the mines of the third by size producer of copper in the world Grupo Mexico where are extracted 150 000 tons per year. With this increase of the copper's prices for the last 2 weeks it is about 8 per cent. The strike started when the strongest trade union in the mine extraction industry of Mexico did not manage to deal higher salaries for the 3000 workers in Cananea mine. The quotes of the copper also increased because of the threat of a strike in the Russian Norilski nikel.
Source: Pari (22.01.2003)

200 people will be dismissed from Radomir-Metali. This was announced the company's management. Yesterday, a notice letter was sent to the syndicate organisations in the enterprise. Currently, the company employs 1100 people. It is the second largest enterprise in the region, after Stomana Industry.
Source: Duma (23.01.2003)

Only the financial industrial group Ray Holding has submitted papers to receive a license for private carter in the Ministry of Transport, announced the Director of the Chief Directorate Railway Administration with the Ministry of Transport and Communications Mr. George Nikolov. Kremikovtzi has not deposited an application to obtain such license. One more company - Mlad Morzh, has submitted papers, but it has not defined whether it would like to receive a carter license, or would only like a concession for the line Vlado Pavlov - Pomorie.
Source: Pari (23.01.2003)

200 workers and employees will be laid off from Radomir metali JSC. The dismissals will be executed for optimisation of the personnel and is in accordance with the production for 2003.
Source: Dnevnik (23.01.2003)

USD 11 million will be invested in 2003 for renew and reconstruction of the production capacities in Alkomed JSC. By the end of the next week the owner of the plant for processing of aluminium - the Turkish company FAF Metal will execute its 5-year investment programme that envisages a total investment of USD 38 million. This week in Alkomed JSC will arrive a team of the English company VAI that takes part in the project, evaluated for EUR 7500.
Source: Pari (23.01.2003)

On Wednesday at LME the trend at the prices of the traded non-ferrous metals was increasing as a whole. The three-month copper deliveries were dealt again over the levels of 1700 USD/t when the former day closed at 1691 USD/t. The future deals with nickel were dealt at 8370 USD/t. Aluminum received 11 USD/t to its quotes and was sold at 1396 USD/t.
Source: Pari (23.01.2003)

The owed salaries, compensations and insurances to the present and former workers from Eliseina SP JSC were completely transferred. The total amount is BGN 1 145 000 and in it are also included debts to the National Social Security Institute. In the end of last year the Ministry of Economy took the engagement to provide the necessary funds for payment by February 10, 2003.
Source: Dnevnik (27.01.2003)

The world production of cast-iron and steel reached in 2002 a record high price of all times, according to experts from MEPS. Over this year is expected the demand to continue to increase in spite of the economic insecurity in the world. Countries like China, India and South Korea and the countries from the Near east and former USSR are expected to reach a growth. The increase in them will completely compensate the decline in the consumption in the developed countries. The world production of prime steel increased in 2002 with 5 per cent up to 894 million tons and in 2003 will reach 912 million tons, according to forecasts of MEPS.
Source: Pari (27.01.2003)

The export prices of the steel scrap has reached in the beginning of January its highest level for 5 years. The reason was a problem with the deliveries. The cold weather in countries like Russia, Ukraine and Romania that usually export million tons scrap to Turkey and Asian markets caused a decline in the supply. The ships in the ports of Black Sea and Finnish Harbor were frozen in the ices, but the traders do not want to hire new transport. Almost 80 ships waits in Azov Sea the ice-breaking ships, other 40 ships are stopped in the end of ice waters. The ships will be able to reach the port for the period of 5 to 14 days, said the traders. The producers from Turkey wanted a help from suppliers from Western Europe and USA that increased prices.
Source: Pari (27.01.2003)

Through introduction of a single fee in amount of 1.0-1.5 per cent on each ton steel will be created a fund with which to be financed the social and ecological expenses from decline of the surplus production capacity in the world with 70 million by 2005. European Association of the steel producers has already discussed with the European Commissioner for the trade problems Mr. Paskal Lami. The leading producers agreed that the key for stabilisation of the prices is the removing of the surplus capacity, concentrated mainly in Eastern Europe.
Source: Pari (27.01.2003)

Three are the major producers of ferrous metals in Bulgaria - Kremikovtzi, Stomana and Promet. Only Kremikovtzi is entirely ownership of our country, the other two are foreign property. The plant was privatised in 1999 against the symbolic price of USD 1. The buyer - Daru Metals was obliged to pay the debt of the company in amount of BGN 645 million and to invest in it another BGN 300 million by 2005. Promet, Burgas was privatised by Neva Holding in 1999 and bought 77 per cent of its capital for a little over USD 1 million.The main production of the metallurgic plant Stomana is a Greek property. Stomana Industry, a joint venture between Greek Sidenor /75 per cent/ and Bulgarian company Eurometal /25 per cent/ became owner of the bankrupted in June 2001 Pernik-based metallurgic plant for the amount of USD 16.5 million. Sidenor is a subsidiary of the Greek Industrial Group Viohalco. The Group owns two steel-processing plants in Greece - Sidenor and Sovel. The Viohalco Consortium is a major owner also of the Sofia-based plant Sofia Med, and of the plant for aluminium profiles Steelmet, which is a green-field investment.
Source: Capital (27.01.2003)

According to Mr. Anton Petrov, representative of Viohalco in Bulgaria, the typical feature of the ferrous metallurgy in the world scale is its exceeding capacity. The prices are very close and the competition is quite strong. Over the past years in the branch in Bulgaria was not invested almost anything. In 2002 in Stomana were invested USD 20 million in a line for rolling of steel. Thus we have restructured the production and we have already produced knupels, which are demanded on the market. Concerning the import of Russia and Ukraine - the idea for introducing of limited measures in Bulgaria is positive. But the more serious problem is the gray economy - the illegal import and the non-paid taxes. The point is to be stipulated equal rules for all participants. We are looking now a Governmental protection against illegal import, but we are missing the more important fact - to make restrictions.
Source: Capital (27.01.2003)

The general result from the activity of the metallurgic companies in Bulgaria shows a huge decline in the manufacture - from 1.643 million tons cast-iron in 1997 to 1.018 million tons in 2001, from 2.628 million t steel in 1997 to 1.942 million tons in 2001 and from 2.242 million tons rolled iron from ferrous metals in 1997 to 1.197 million tons in 2001. At the lack of unified state politics to the branch and at increasing international pressure is probably the ferrous metallurgy to lose its leading positions in the export that would be a negative result.
Source: Capital (27.01.2003)

The Board of Directors of Burgas port that will convene a meeting on February 10, will look for a rational decision of the dispute between the port and Belgium company Umicor. The scandal between them appeared in the end of the last week because of an order of the one Executive Director of the port with which Umicor was obliged to load copper concentrate at a new ship place. The arguments of Burgas port are that the copper concentrate has to be processed at least at 1 km from residential buildings.
Source: Pari (28.01.2003)

Bulgarian Association of the traders of metals is a legal entity without trade activity that unites companies, sole traders and trade representations of foreign companies from the branch and gather, process and trade with secondary metal raw-materials. At the moment the companies - members of the organisation hold 80 per cent from the trade with scrap from ferrous metals and 90 per cent of scrap from non-ferrous metals. The incomes from the recycling industry form 2.7 per cent from GDP of the State. Totally for 2002 the sales of secondary raw-materials from ferrous metals /steel and cast-iron/ is 905 000 t. From them 612 000 tons are processed in the State and 293 000 are for export.
Source: Pari (28.01.2003)

In 2003 the processing of scrap from ferrous metals and from copper and copper alloys in Bulgaria will increase. 65 per cent of the total quantity of copper raw-materials will be recycled in the State. With about 15 per cent will increase the consumption of the local processors of scrap from ferrous metals. Main consumers of secondary raw-materials from ferrous metals are: Stomana Industry JSC - Pernik, Kremikovtzi JSC - Sofia, LeKoKo JSC -Radomir and Cast-Iron Plant JSC - Ihtiman. The secondary raw-materials from non-ferrous metals are bought up and processed in Umicor med - Pirdop, Sofia med, Alkomed-Shumen.
Source: Pari (28.01.2003)

It is typical for Bulgarian market that about 90 per cent from the traded quantities secondary raw-materials are scrap and only 10 per cent are technologic wastes for recycling. The forecasts of experts from the branch are that during the next 5-6 years at Bulgarian market will considerably dominate the volumes of old scrap over these of new scrap. The reason for this is the continuing liquidation and demounting of production capacities and installations. In Bulgaria there are 500 licensed scrap traders which shows that the share of the shady economy in the branch shrinks.
Source: Pari (28.01.2003)

The Director of sector analyses in the Ministry of Economy Mr. Andrei Breshkov: I don't want to comment the refusal of Vratza District Court to declare Chimko in insolvency. This is an independent power and the responsibility are entirely its. Some of its decisions are very strange - for example there would be an international scandal with Viohalco Group that bought KOZM-Sofia, now Sofia Med. The problem was generated with decision of Vratza District Court.
Source: Pari (29.01.2003)

According to the average forecasts of the experts included in the research of Reuters, in 2003 the prices of copper, aluminum, lead, zinc will be increased and over the next year some of them will raise with other 10 percent. The copper and nickel are the favourites of the research and according to it their prices will increase mostly. The average cash price of the copper at LME for this year is 77 CTS/lb and for the next year is 84.5 CTS/lb.
Source: Pari (29.01.2003)

The Turkish mine-extraction and processing company Beer Oner that was believed to regenerate the Albanian copper-extraction industry, still hesitates whether to demand concessions for other 2 mines. Beer Oner develops the biggest copper mine in Albania - in Munele. Beer Oner invested during the last year USD 1.12 million in Mujnele where the researches showed that there were huge fields of gold. It is expected during the next year to start the extraction. The Turkish company envisages to extract about 100 000 t ore in 2003.
Source: Pari (29.01.2003)

On Tuesday at LME in the prices of the non-ferrous metals was revealed the dislike of the traders to buy in the vague world geopolitical situation. The complex of non-ferrous metals became cheaper because of the fears of an eventual war in Iraq and the abrupt decline at the stock exchanges on Monday.
Source: Pari (29.01.2003)

The biggest producer of steel in the world - the company Arcelor intends to bid and to become owner of a big share from the Polish steel-extraction industry. Arcelor was formed last year after the merger of the metallurgic companies from France - Usinor, Arbed from Luxemburg and the Spanish Aceralia. Earlier this month Poland approved the final alternative of its programme for recovery of the steel-extraction, hoping to receive an approval from EU for the expected state subsidy for the sector. By 2006 Warsaw has to restructure the industry. The envisaged subsidies of USD 700 million for 8 plants in the period 2003-2006 have a crutial meaning for the planned sale of the biggest of them - Polski Huty Stali /PHS/ that produces 70 per cent from the steel in the world.
Source: Pari (30.01.2003)

Vratza District Court stopped the insolvency of Kombinat za obrabotka na zvetni metali JSC and erased the company from the trade register. The decision can be appealed in Sofia Appeal Court in a deadline of 7 days. KOZM was privatised by Bulmetal and later became property of the Greek company Viohalco.
Source: Pari (30.01.2003)

The Russian metal giant Norilski nikel, the biggest producer of nickel, with 20 per cent of the world production, will increase the export of this metal with 10 per cent in 2003 and it will increase 230 000 tons. The General Director of the company Mr. Maxim Finski Norilski who continues to negotiate with the trade unions in order to avoid the strike, will raise the export of copper with 0.3 per cent up to 355 000 tons. It is expected the production of the two metals to be stable in the current year and for the copper is planned an increase of 1 per cent. In 2002 the extractions of nickel were 218 000 tons and of copper 454 000 tons.
Source: Pari (30.01.2003)

Chilie copper-extraction company Antofagasta - one of the biggest in the country increased its production over the last year up to 460.7 thous. t compared to 445 000 t for the former year. At the territory of Chilie are situated 40 per cent of the world reserves of copper and the country is the top producer of copper.
Source: Pari (03.02.2003)

One of the biggest world companies that extract iron ore - Rio Tinto said that the prices of the raw-material will increase considerably over this year because of the huge demand. In December the import of steel in USA declined with 1.2 per cent to 2489 million tons compared to November.
Source: Pari (03.02.2003)

The second by size metallurgic company in the world - LNM Group reported that it finalised the acqusition of the Czech steel-extraction plant Nova Hut and would take part in the tenders for the privatization of the Polosh steel extraction industry. The private LNM, with a head-office in Great Britain, bought Nova Hut for USD 85 million plus USD 820 million as future investments, taking of debts and guarantees. Through the expansion LNM wants to receive èñêà äà ïîëó÷è predominance in Eastern Europe over the American US Steel. The latter has already been owner of the biggest metallurgic plants in Slovakia. Arcelor N1 is also ready to take part in the battle. Meanwhile the President of LNM Mr. Lakshmi Mital declared that by 2005 would be dismissed 2500 workers from the total personnel of 11 400 people.
Source: Pari (03.02.2003)

The aluminum company Alkomet reported a profit of BGN 420 000 for 2002, according to preliminary results, presented by the company to BSE-Sofia. For 2001 the plant reported a loss of BGN 5.375 million. This turn is more likely to be accounting and is realized by the financial activity in which Alkomet made serious positive exchange rates’ differences. The main activity of the company brought a loss of BGN 6.725 million., according to preliminary data. The major owner – the Turkish Faf metal plans to invest USD 11 million over this year.
Source: Pari (04.02.2003)

According to the Ambassador of Ukraine in Bulgaria Mr. Viacheslav Pohvalski the Ukranian metals are cheaper than the Bulgarian. At the same time the Bulgarian metallurgic plants and particularly Kremikovtzi imports the iron ore including from Ukraine. Our country does not have any plans to introduce any measures since there will be damages in any case on the Bulgarian machine-building and economy as a whole. From the other side the Ukrainian economy won't be harmed because our metallurgic companies without a problem will export its production to other countries and will not bear the loss on the Bulgarian market.
Source: Pari (04.02.2003)

By the middle of February Umicore JSC - Pirdop will present in the Ministry of Environment and Waters programmes for maintenance of objects, was reported from the Ministry of Environment and Waters. Representatives of the administration, of the Ministry of Finance, PA and of other administrations met for finishing of the pilot project for improvement of the environment in the region of MDK JSC - Pirdop.
Source: Dnevnik (05.02.2003)

Two-floor hotel-wagons will produce the wagon factory Intercom in Dryanovo. The regular production will start during the autumn, announced the President of Intercom Mr. Goran Lazarov. According to Mr. Lazarov within a week will be concluded a contract for the production of 56 wagons with the German company Optima trade, Munich. The license for the production of hotel-wagons was purchased from the Canadian company Bombardier. The hotel-wagons will be used for long trips on European routes. There are two routs on which will travel the wagons by this moment - Berlin - Prague - Vienna - Budapest - Bucharest - Istanbul - Salonica and Athens - Neapol - Rome - Nice - Paris - Amsterdam - Berlin. Not all elements of the luxury wagons will be produced in Bulgaria, explained Mr. Lazarov.
Source: BTA (05.02.2003)

The Japanese export of steel has grown during 2002 reaching the second record level, was reported from the Japanese Iron and Steel Federation. The group announced that the growth is due to the raising with 19.2 per cent up to 36.3 million tons of the demand for steel in Asia during 2002 as compared to the previous year. This was the sixth consecutive year of growth in the export of steel from Japan. The biggest growth was registered in the sales in South Korea, Thailand and Taiwan. During December the Japanese export has fallen with 0.5 per cent to 3 million tons. The export for China has declined with 13.4 per cent to 443 000 tons, as China limited its import of steel.
Source: Pari (05.02.2003)

Pleven-based company Metacom SlZ JSC will build a laboratory for chemical analysis in order to specialize in making of alloys, announced the Executive Director of the company Mr. Petar Naidenov. The point of the company is to produce expensive products and not everyone can produce them. The new details that will be produced by Metacom SlZ JSC are for the English Joseph Roads that works in the ceramic and ore-extraction industry.
Source: Dnevnik (06.02.2003)

Sofia Mayor Stefan Sofianski suggests setting up a joint venture with the participation of Kremikovtsi for the building of a facility for utilisation and deactivation of hard household wastes. Due to the heavy financial condition of Sofia municipality an investor will have to undertake the engineering, Kremikovtsi will provide the plot, Sofianski said. Feasibility studies have shown that the steelworks has a suitable site for the facility. The proposal is expected to be approved by the municipal council today.
Source: Pari (06.02.2003)

The first Bulgarian car will be presented 2003 at the international car exhibition in Frankfurt, Germany during October, announced the Deputy Minister of Economy Mr. Milen Keremedchiev, who was in France. Mr. Keremedchiev had a meeting with the Bulgarian inventor Mr. Rumen Antonov. Up to April 1, 2003 will be made the prototype of the chassis of the first luxury car, which will be produced in Bulgaria. During his visit in Bulgaria Mr. Rumen Antonov elected three companies the Plovdiv-based Dimex and V&RUS and Company for Engineering and Development in Dobrich (the former Mayak factory). On February 21, 2003 Mr. Antonov will come to Bulgaria to make his final choice which of the three companies will produce the chassis. During December the Minister of Economy Mr. Nikolay Vasilev had a meeting with Mr. Rumen Antonov. At the meeting the Bulgarian inventor announced his plans to develop the first Bulgarian car. Several years ago Mr. Antonov invented an automated gear-box, whose license has been purchased by Honda.
Source: Pari (06.02.2003)

A group of American companies, suppliers of cars, complained that the duties imposed by the President Bush led at least to raising of their expenditures and to reducing of the work-places The companies, which are among the top consumers of American steel, announced that they intend to import steel or steel products from countries on whose import is not imposed a duty such as Brazil, Argentina or Turkey. Each time, when it is possible the companies will purchase products with finalized stage of processing from foreign companies, which offer lower prices, announced the Vice President of the company-provider for Arvin Meritor, which during 2002 purchased 1 million tons of steel. Arvin Meritor, which produces wagons and parts for cars and trucks blamed the imposed duties for the closing of one of its factories for steel products. Meanwhile it was announced that a research proved that the new duties will lead to the unemployment of 200 000 workers from the American steel-processing industry. During the spring of 2002 USA imposed a duty in amount of between 8 and 30 per cent over the import of steel in order to protect the troubled local steel-producing industry from the dumping import. The American Trade Commission will have to decide by September 2003 what will be the effect of the duties but it is not obliged to take in consideration what are the consequences for the American steel consumers. Than the Commission will make a proposal the President if he should change the duties.
Source: Pari (06.02.2003)

International Steel Group /ISG/ will acquire the bankrupted Bethlehem Steel. Thus will be established the biggest American metallurgic company. The conditions for the deal will be presented to the Board of Directors and to the creditors of Bethlehem Steel, which have to adopt it. Former employees of the company, who are also creditors of Bethlehem Steel voted against the acquisition There are rumors that ISG offered USD 1.5 billion for the bigger part of the assets of Bethlehem. The representatives of the company rejected to announce the exact figures for the deal. The price will be announced next week. The acquisition came after several bankrupts in the American metallurgy industry over the last years. ISG states that it after the acquisition of Bethlehem it will become the biggest steel producer in North America with more than 16 million tons of production.
Source: Pari (07.02.2003)

Security guards protect the trains, which transport the scrap, announced the President of Bodyguard - FAER - K SPLtd Mr. Nikolay Katzarski. According to Mr. Katzarski the total value of the thefts of scrap from the suppliers of Stomana Industry over the year is BGN 3 million.
Source: BTA (09.02.2003)

According to the financial report which was presented in the Bulgarian Stock Exchange, Kremiikovtzi JSC reported a loss in amount of BGN 44.5 million as for 2002. The financial report has not been audited yet. There is a significant decline in the loss of the company as compared to the loss in amount of BGN 62.2 million, reported during 2001.
Source: Cash (10.02.2003)

The managers of the Russian steel-producing companies requested Moscow to double the export fee for scrap from ferrous metals in order to limit the export from the country. At the moment the fee is in amount of USD 25/t. It is expected that the request of the steel-producing companies will be satisfied, because they have strong positions in Moscow. This measure will lead to a counter-strike from EU. The price of the Russian scrap type 3A already reached 110 USD/t as compared to 75-80 USD/t during October, which raised the expenditures of the steel producers. Over the period the export prices of the Russian metal rose as well - from 85 USSD/t to 125 USD/t FOB. During 2002 the country exported about 6 million tons of scrap. Its main market is Turkey - the second biggest importer of scrap from ferrous metals after China.
Source: Pari (10.02.2003)

A manufacture division of the top steel producer in the world - Arcelor conducted a 24-hour strike as protest against the ceasing of the investment programme of Arcelor in the local blast-furnace. The Cackerill Sambre factory is situated near the Belgium city Liege.
Source: Pari (10.02.2003)

The prices of the strategic metals were consolidated over the last week because of the weak interest due to the Chinese New Year‘s celebration. The price of the Chinese magnesium rauised with USD 50 from USD 1500 to USD 1550, as Noranda announced that it is ceasing the manufacture in Quebec until the quotas raise. In EU on the import of the Chinese metal is imposed a duty in amount of 70 per cent, therefore on the continent is imported Russian magnesium, which is with USD 300 more expensive.
Source: Pari (10.02.2003)

In the end of last year on London Metal exchange appeared a decreasing trend caused by the liquidation of the long positions. The aluminum with three-month supplies was closed at a price with USD 7 lower - 1398 USD/t. The price of the copper fell as well. The price of this at the closing was 1684 USD/t, which is with USD 6 lower. The price of the zinc was with USD 13 lower and reached 795 USD/t. The price of the lead was USD 2 lower - 470 USD/t . Only the prices of the nickel and the tin raised, as it follows with USD 60 to 8370 USD/t and with 35 USD to 4415 USD/t.
Source: Pari (10.02.2003)

A project for a EUR 88.7 million investment by Greece's Viohalco in Sofia Med is the first one to receive the approval of the Minister of Finance Milen Velchev to use the relieved regime envisaged by the amendments to the VAT Act for this year. Yesterday the project was presented at the Ministry of Finance by Mr. Velchev, his Deputy Mr. Gatti al Jebouri and Viohalco's representative for Bulgaria, Mr. Anton Petrov. Three more requests for investment projects have been already submitted to the Ministry of Finance. The import of machinery and equipment for such projects will be VAT-exempt. A relieved regime for large projects carried out with Bulgarian goods will be introduced soon. The term for reimbursement of VAT for them will be reduced from 45 to 15 days, Mr. Jebouri said. An investment project amounting to some EUR 50 million started in the beginning of 2000 with the purchase of assets in the non-ferrous metal works in the capital city, KOTsM, Mr. Anton Petrov said. Later the company was registered as Sofia Med. The project was envisaged to be finalised by the end of 2003. The company will import machinery and equipment worth EUR 35 million but it will not pay effectively the EUR 7 million VAT due on the import, which will help it complete the reconstruction and renovation of Sofia Med a few months earlier, by August.
Source: Pari (11.02.2003)

The Board of Directors of Stomana Industry JSC, Pernik accepted a decision dated on January 17, 2003 for increase of the capital from BGN 35 546 000 to BGN 43 346 000 through issue of new 78 000 personal shares with face value BGN 100.
Source: State Gazette (11.02.2003)

The first approved investment project at which will be applied the special scheme for adding VAT at import of goods, is of Sofia Med JSC, a property of the Greek industrial group Viohalco. On Monday the Minister of Finance signed officially the permission for import of investment goods that will be freed from payment of VAT. With the project the company is obliged to invest EUR 88.7 million by the end of the year and to increase the work-places up to 450. At the moment in the plant are working 240 people. According to the scheme will be imported machines and equipments for about EUR 35 million, said Mr. Anton Petrov who is a representative of Viohalco for Bulgaria. The project envisages an entire reconstruction and renew of the production of Sofia Med JSC. It is expecting the annual production capacity to be increased form 35 000 tons up to 120 00 tons. According to Mr. Petrov this is a four time increase of the production output, which means that the plant annual turnover will reach the amount of EUR 350 – 400 million. Viohalco acquired the assets of the former Plant for Reprocessing of Non-ferous Metals based at Iskar Station, close to Sofia in 2000. The initial project for renovation of the plant was in the amount of EUR 50 million. Except Sofia Med JSC, Steelmet JSC and Stomana Industry JSC are other companies owned by Greek group Viohalco. According to Mr. Petrov 85 per cent of the total plants’ production in Bulgaria is exported abroad.
Source: Dnevnik (11.02.2003)

Bulgarian State Railways (BDZ) continues to transport the freights of Kremikovtzi, was specified from the metallurgic plant. The negotiations with Kremikovtzi for the price of the freigths have not still finished and probably will continue today, was added from BDZ. Because of the argue for the tariffs there is not still a concluded contract between the carrier and the plant. If the increase is over 10 per cent, the prime cost of the production will be more expensive with USD 30 per ton. Kremikovtzi paid the debts to BDZ within October 14, 2002 in amount of BGN 12 million.
Source: Pari (12.02.2003)

The three biggest world producers of steel in the world Arcelor, US Steel and LNM Group took part in the privatization tender for the biggest Polish metallurgic company Polskie Huty Stali /PHS/ that produces 70 per cent of the steel in the country and the German Thyssen Krupp gave up. Arcelor, US Steel and LNM Group submitted their initial offers on Monday but none of them revealed any specifications fromk their offers. According to market observers the final battle will be between LNM Group and US Steel since they are experienced in the acquisition of assets in Eastern Europe.
Source: Pari (12.02.2003)

The traders of scrap of stainless steel in Europe increased the buy prices from the countries out EU with EUR 20 because of the more expensive nickel at the stock exchange in London. The demand of scrap by the producers of stainless steel in EU is high since they increased their production capacities.
Source: Pari (13.02.2003)

The biggest producer of nickel in the Western world Inco that services 25 per cent of the world consumption, increased its extracts in 2002 with 2 000 tons up to 210 000 tons. The export of aluminum from Russia in the countries outside the former Soviet Union declined in 2002 to 2.75 million tons at 3.07 million tons for the former. There is a decline in the export of copper - from 592 000 tons to 514.6 thous. Tons.
Source: Pari (13.02.2003)

The production of refined zinc in 2002 increased with 2.9 per cent in comparison with the former and reached 5 million tons, was reported from International Lead and Zinc Group /ILZSG/.
Source: Pari (14.02.2003)

The private British steel-extraction company LNM Group that takes in the tender for privatization of the Polish metallurgic giant PHS, has already had 48 per cent in the Southern Korean producer of steel Iscor.
Source: Pari (14.02.2003)

The company Zhiti-Russe demanded the introduction of duties in the import of steel pipes, ropes, wire and wire products, announced Mr. Andrei Breshkov who is a Director of Sector analyzes in the Ministry of Economy. The company offers protective measures from 10 to 40 per cent for the different sorts of articles. A reason for this demand is the increased import of these products from Russia, Ukraine, Kazahstan. This is the second investigation for introduction of protective measures on the import of steel that the Ministry implements. The investigation had to finish in January 2003 but the Ministry decided to use in maximum the potential term in the decree that is 9 months.
Source: Pari (14.02.2003)

The Austrian oil-stations chain OMV has a presented a proposal for ecological management of the public waste in Sofia, was reported from the Municipality. At the moment the company is waiting to present its letter of intentions. On Monday the Municipal Council will grant to the Mayor Mr. Stefan Sofianski a mandate to negotiate for the election of an investor for the construction of a factory for burning the public waste. The factory will be based at the territory of the metallurgic plant Kremikovtzi JSC. For the purpose it is stipulated Sofia Municipality, the potential investor and Kremikovtzi JSC to establish a joint company in which the metallurgic plant will participate with a non-monetary contribution - the land.
Source: Dnevnik (17.02.2003)

The biggest lead-zinc complex in Bulgaria KCM S.A. announced in the beginning of January its plans to raise its production during the year with about 15 per cent up to 73 000 tons annually. The raising of the amount of the production of the factory is due to the greater capacity. In the end of 2002 KCM S.A. finalized a project at a value of USD 60 million. The project included lowering of the ecological damages and raising of production capacity.
Source: Pari (17.02.2003)

The German metallurgic and engineering group ThyssenKrupp reported that it intended to increase the prices of the produced by it carbon steel as of April, 2003 without pointing any further specifications. It became clear that over the first quarter of 2002 the company has a profit in comparison with the loss during the same period of 2001.
Source: Pari (17.02.2003)

On Monday at LME the future deals with non-ferrous metals were concluded at the levels close to those on Friday. Only the copper registered a more serious decline in the quotes that is caused by the expectations for delay of an eventual war in the Near East. The three-month deliveries were sold at 1658 USD/t in comparison with 1666 USD/t in the end of the last week. The aluminum traded only with 1 USD/t higher compared to Friday or at 1383 USD/t while the prices of nickel remained without a change - 8570 USD/t.
Source: Pari (17.02.2003)

The surplus at the market of refined copper over the last year started to shrink with fast speed. Over the first 10 months it reduced to 6000 t compared to 431 000 tons for the same period of 2001. The consumption of copper in the world in January - October 2002 increased with 1.9 per cent while the total production declined with 1.4 per cent. In the end of December the warehouse stockpiles at LME reduced with 14 229 compared to the end of 2001 to 1.293 million tons.
Source: Pari (17.02.2003)

The Belgium group Umicore, the biggest producer in the world of specialized zinc articles and owner of Pirdop copper-extraction plant, reported 31 per cent decline of the profit for 2002. The net profit also reduced considerably from EUR 111 million for 2001 to EUR 48.4 million. Umicore expects the market conditions of zinc to improve to the end of 2003 and that is why does not plan to reduce its extractions. Meanwhile the negotiations between Umicore and Belgium Lamitref for merger of their copper business continued.
Source: Dnevnik (17.02.2003)

The Board of Directors of Burgas port decided to provide to the Belgium company for copper Umicor-Pirdop 24th ship place for a period of 3 years. About a month ago the foreign company reported that it would move its activity in Varna port because of not arranged relations with the port in Burgas. Umicor insisted on taking 22th ship place where it has a laboratory. The Executive Director of Burgas port Mr. Borislav Botev explained that this place is strategically situated and can't be engaged for a long time.
Source: Pari (18.02.2003)

About 9 years after the change of the political regime Republic of Southern Africa plans 15 per cent of the mine-extraction assets within 5 years and 26 per cent after 10 years to turn into the hands of the black population. So far the mine-extraction industry in the country has been almost completely controlled by the white people who are minority in the country.
Source: Pari (20.02.2003)

ALCAN is the second by size producer of alluminum in the world and does not envisage to load the closed in 2000 and 2001 production capacities in the Northwestern American States.
Source: Pari (20.02.2003)

Nickel has become more expensive up to the highest levels since June 2000 - 8830 USD/t, supported by the declining stocks and the demand by the producers of stainless steel. The most important factor for this raising trend are the shrunk stocks to 17.3 thous. tons that are close to the lowest levels for the last year - 16.6 thous.tons. Since the beginning of 2003 till now they have reduced with 4.5 thous. tons.
Source: Pari (21.02.2003)

Cube is the fifth by size in the world producer of nickel and the second by stocks and intends to increase the production of non-refined metal with 30 000 t up to 100 000 t by 2007 and in 2014 plans to extract per 150 000 t. The nickel industry is among the most important for the country since the export of this metal provides the biggest incomes in the coffer. Over the last year the incomes from the realized export in over 20 countries reached USD 600 million. The export is mainly orientated to Europe and lately in China. In order to reach its goals Cube probably will construct another one refinery for manufacture of nickel and cobalt dust.
Source: Pari (21.02.2003)

During the current year the copper will be traded at 1735 USD/t and reaching higher levels will be very hard because of the warehouse stocks and extra production capacities. According to the latest forecasts, the extracted of exploitation capacities for manufacture of copper in the world are 765 000 tons and most probably a big part of them will be loaded again at a more permanent and serious higher prices of the metal up to 1750-1800 USD/t. From the other side the stocks of copper at LME - 830 000 t are the highest quantities for all time.
Source: Pari (21.02.2003)

The Italian company Marcegaglia will make a due dilligence of Kremikovtzi but did not engage with the exact date of its start, was reported from the metallurgic plant. Probably the legal and financial analysis will be assigned to international banks. The foreign company will be owner of 71 per cent from the capital of Kremikovtzi. The share in the joint-venture will be divided between the current owner Fin metals and the Italian investor. This is the third attempt of Marcegaglia to get use of its right to acquire by 50 per cent of Kremikovtzi how it is envisaged in the privatization contract.
Source: Pari (21.02.2003)

The Ministry of Economy did not accept the reconstruction plan that was developed by the syndics of lead-zinc company Osogovo. The Ministry seized Kyustendil District Court that was not agreed to reschedule the debts of the company for 12 years. There will be a meeting of the creditors and the biggest creditor is the State Claims Agency. The institution has receipts of BGN 5 million as a principal the Ministry of Economy. The other creditors have to receive fewer amount and hardly will be against the decision of the Ministry.
Source: Standart (24.02.2003)

The manufacture of steel in the countries of EU reduced inconsiderably in the period January-November 2002 - with 0.4 per cent to 146.6 million tons, according to data of the International Institute of Cast-iron and Steel. Over the fourth quarter the demand on the western European market was relatively active from the side of the automobile companies, machine-building companies and the companies from the construction sector. The group Arcelo that is the leader on the World market plans over the first quarter of 2003 to restrict the manufacture with 5-6 per cent in comparison with the same period of 2002.
Source: Pari (24.02.2003)

As a whole the prices of steel on the World market showed a remarkable growth over the last year. The average prices of hot-rolled steel of rolls were 260.8 USD/t - with 27 per cent over the average level in 2001. The cold-rolled steel of rolls was more expensive with 4 per cent up to 315 USD/t and the sort steel - with 5.4 per cent up to 245.8 USD/t. Corus increased in Great Britain its quotes with 18 GBP/t and on the market for single deals the increase during the whole 2002 reached almost 110 USD/t.
Source: Pari (24.02.2003)

Speculative purchase on LME proved to be a stable support of the prices of nickel during the last months and allow them to attack its highest levels for 3 years now. According to analizators the reason is in the positive prospectives for the market in 2003 since is expected the increasing demand to lead to significant finishing of the warehouse stocks of the metal and at the end to be formed a deficit in the supply. In the end of the last week the three-month quotes made the consecutive and the most serious attempt to attack the level of 9000 USD/t since the stocks reduced with 1100 t. to 16 200 t. Only in the frames of 1 week the quotes of the metal increased with over 5 per cent.
Source: Pari (24.02.2003)

The price of wolfram on the free market of strategic metals in London continued to raise. The ferrowolfram has reached its highest levels since November, 2001 because of the deficit of Chinese metal. Meanwhile the orders for antimony increased and this is a precondition for deficit of a cheap metal from China.
Source: Pari (24.02.2003)

The Trade Union leaders in Norilski nickel ceased on Friday their starving strike that organized on February 6 against the low salaries and short holidays. There will be a meeting between the leader of Trade Unions Federation Mr. Valeri Melnikov with the Director of the arctic section of Norilski nickel Mr. Vitali Borbov.
Source: Pari (24.02.2003)

The company Sofia med received the right to apply the relieved scheme for calculation of VAT at the import. This was allowed by the Minister of Finance Mr. Milen Veltchev. This is the first case for application of the special of the special order for payment of VAT in the big investment projects. It was voted at the amendments in the tax acts over the last year and became efficient as of January 1, 2003. The new regime entites the importer to calculate the tax on the import alone (without paying it) and in the frames of the same tax period to calculate the amount the tax as a tax credit.
Source: Capital (24.02.2003)

Sofia med is the first company that will import machines and equipments on own investment project without paying VAT at the import. Yesterday the Minister of Finance Mr. Milen Velchev issued an order with which approved the first investment project for which will be used the relieved regime. The special order was introduced over this year with the last changes in the VAT Law. They envisage local and foreign investors to import goods on investment projects without paying VAT. So far at export the tax was contributed efficiently and at proved right of a tax credit, it was restored. At the relieved procedure the investor will use VAT but won't contribute it really in the budget.
Source: Sega (24.02.2003)

Import of machines without VAT allowed the Minister of Finance Mr. Milen Velchev. Sofiamed will import equipments for EUR 35 million. This is the first investment project that will use alleviations on VAT. According to the new regime tax alleviations are used for projects in amount of over BGN 10 million at which will be opened at least 50 work-places. The project of Sofiamed is for EUR 88.7 million.
Source: Standart (24.02.2003)

With VAT alleviations will be calculated at the import in VAT declaration but won't be contributed in the budget. Yesterday Viohalco group, the owner of Sofiamed received the prize from the Ministry of Finance - a return of a VAT credit immediately. Company’s representative Mr. Anton Petrov participated at the event.
Source: 24 chasa (24.02.2003)

At the alleviated procedure VAT will be calculated at the import in VAT declarations but will not be contributed in the budget and this will give an opportunity to the investors for using efficiently their funds in circulation. The first importer that will use the alleviations is Viohalco - owner of the former KZM - Gara Iskar, now Sofiamed. According to the Minister of Finance Mr. Milen Velchev the company is the first that had submitted the whole necessary documents for approval of the project.
Source: Monitor (24.02.2003)

Nine companies and each of them plans to invest over BGN 10 million. They wanted the Ministry of Finnace to be freed of VAT at the import of machines and equipments, announced the Minister of Finance Mr. Milen Velchev. Viohalco's investment in Sofiamed was approved. According to the changes in VAT Law, the import of machines and equipments for investment projects in amount of BGN 10 million is without VAT as of the beginning of the year.
Source: Trud (24.02.2003)

The Minister of Finance Mr. Milen Velchev refused to comment the position of IMF when handed a document to the representative of Viohalco group Mr. Anton Petrov for the first approved project, according to which at the import of investment goods will be used VAT alleviations. For this purpose the investment project has to be approved by the Ministry of Finance, the company has to be registered on VAT and not having debts to the State.
Source: Duma (24.02.2003)

The metallurgic plant Sofia med is the first investment project for which the import of machines and equipments will be without VAT. By August the owner of the plant - the Greek group Viohalco will invest EUR 88 million for enlargement of the manufacture. The Minister of Finance Mr. Milen Velchev signed an order for application of the alleviated regime on VAT for projects over BGN 10 million.
Source: Novinar (24.02.2003)

Maritza-iztok mines SP JSC, Stomana industry, KZM-Plovdiv, Assarel-Medet, Elatzite Med, Umicore Med, Devnia tzument JSC, LUKoil-Neftochim-Burgas, Agropolichim and Neochim have now a statute of privileged consumers of 100 million kWh. Per year and are without debts to NEC SP JSC. On December 17 was decided initially 9 per cent of the stations' capacities:: TPS Maritza-iztok 2, TPS Varna, TPS Bobovdol, TPS Russe - bl. 4, and TPS Maritza 3. Over the last 6 months of 2003 will be freed more capacities of these stations. The ponit is to reach 18 per cent.
Source: Pari (25.02.2003)

It is quite possible the Italian company Marcegalia to give up buying a part of Kremikovtzi. The Italian investors do not want to take the debts of the plant to the State, said the representative of the State in the Supervisory Board of the plant Mr. Andrei Breshkov. Kremikovtzi also has latent debts. In the end of last year the Italians sent a letter to the Management of the plant for their official intention to buy 50 per cent of the shares. At the moment there are only negotiations, was reported from Kremikovtzi.
Source: Monitor (25.02.2003)

LNM Holding, a property of the British businessman of Indian origin Mr. Lakshmi Mital and took part in the tender for the Polish giant PHS, now holds 47 per cent of the South African company Iscor. LNM is among the leading producers of steel in the world.
Source: Pari (26.02.2003)

A team of experts of the British company VAI installed computer systems in the four looms of the roller workshop in Alkomet JSC. The process of stretching is modernized, announced the Maintenance Director of Shumen-based company Mr. Kosta Tanev. The value of the investment in the renovation is EUR 7.5 million.
Source: Pari (27.02.2003)

The import of steel in USA increased with 8.4 per cent in 2002 compared to 2001 and it was 29.6 million t. According to representatives of the metallurgic industry the data shows that the introduced by the President Mr. George Bush duties in 2002 on the import of steel articles were imposed and even crucial for their business. The import for January reduced with about 15.7 per cent.
Source: Pari (27.02.2003)

The nickel price became higher over 9000 USD/t for a first time for 20 months now because of the reduced stocks, the increased production of stainless steel /over 60 per cent of the nickel iare consumed by this industry/ and the expected deficit on the market. The nickel quoted at 9045 USD/t against the quotes on Tuesday - 8940 USD/t. At the moment the stocks are the lowest since June, 2001 and are only 14.5 thous. tons. The strike in Norilski nickel, the biggest producer in the world also supported the prices.
Source: Pari (27.02.2003)

The third alternative of the Industrial Zones Act has already been a fact and will be discussed in public. Its purpose is to turn the trend of 2-year decline of the investments in the State and to provoke the big world corporations to include Bulgaria in its business plans. It is high time Bulgaria changed its position as a country which is attractive only with its chep labour force, commented Mr. Anton Petrov who is a representative of the Greek investor Viohalco in the State. According to him there is still the problem with the grey economy that sets in unfair positions the different players on the market.
Source: Pari (27.02.2003)

250 employees of Radomitr-metali JSC will lose their job, announced the Executive Director of the company Mr. Plamen Paskalev. The reducing of the number of the personnel is inevitable, because the factory works at a loss. Radomir-metali JSC is the second biggest enterprise in Pernik district. It holds 67 per cent of the capacity of the factory for heavy machine-building in Chervena Mogila.
Source: Novinar (28.02.2003)

The top producer of steel in Russia Severstal intends to start construction of a new plant in which will be produced per year 400 000 tons steel pipes with biger diameter. This decision is just in time because such production is searched by the biggest gas company in the world - Gasprom that is also the biggest consumer of the pipes. So far it has used Ukrainian and German pipes but lately has complained about the quality of the first and the high prices of the second ones.
Source: Pari (28.02.2003)

Slowly improving main market factors will make the zinc more expensive. According to CRU International the zinc will finish 2003 quite over the levels at which started the year. However it will be sold at lower prices over the first six months. The potential war in Iraq is the biggest threaten for decline of the metal's prices in a short term. The analyzators are more sure in their forecasts that in 2004 the trend of zinc will be scandent. .
Source: Pari (28.02.2003)

As of the beginning of 2003 on the VAT was also introduced a new regime. This is the so called special order for calculation of VAT at the import of defined goods. This is the first permission for the use of such a stimulus - it was issued to Sofia med and is expected to speed up with about 6 months the launching of the Plant for non-ferrous metals at Iskar station.
Source: Banker (01.03.2003)

Radomir-metali JSC wants a state support for financial stabilization of the company and development of the metallurgic branch that is main in Pernik region. The Management is forced to lay off a part of the personnel in order to reduce the expenditures and to keep the company. That is why Radomir-metali wants to reduce the prices of the electricity with about 40 per cent and of the natural gas with not less than 40 USD/1000 cubic metres.
Source: Monitor (04.03.2003)

Finmetals holding, which is the owner of the metallurgic factory Kremikovtzi has purchased the Plovdiv-based machine-building company MTA. At the moment the company has a minimum personnel and it has ceased its activity. Ten years ago the name of MTA was Anton Ivanov. The company one of the greatest machine-building factories in Plovdiv.
Source: Duma (04.03.2003)

This year is anniversary for the contemporary Bulgarian metallurgy since in the far 1953 was launched the metallurgic plant in Pernik. In this period also finishes the construction of the zinc production in Kurjali. Now in the metallurgic sector are working over 27 000 people which is 0.94 per cent of the employees and 4.27 per cent of the employees in the industry but they form over 7 per cent of the industrial production. Nowadays this sector is orientated mainly for export. For 2001 the metallurgic and manufacture of metal articles realize export for BGN 1 872.7 million. This is 16.78 per cent of the export and 11.35 per cent of the total export of the country.
Source: Pari (04.03.2003)

The restrictive measures and the general decline in the consumption of steel products in the world in 2002 lead to decline of the main steel products in Bulgarian export. The flat rolled iron forms the main production of Kremikovtzi JSC and Stomana industry JSC. In 2001 the manufacture of hot-rolled iron in EU and Northern America reduces respectively with 4.8 million tons and 6.8 million tons. The reduce of the manufacture in Bulgaria is expected to be overcome after introduction of protective measures at the import of steel products.
Source: Pari (04.03.2003)

The Swiss producer of metals Glencore International has a serious interest in the acquisition of the Bosnian refinery for processing of aluminum Aluminij in Mostar when its argues about its property are solved. Since the argues continue, the World bank will appoint an arbitrage commission that will solve them. They appeared after the end of the war more than 10 years ago. Glencore intends to enlarge the manufacture in Aluminij if becomes its owner and if the price of aluminum incraeses and those of the electricity declines.
Source: Pari (04.03.2003)

The salary and bonuses of the President and Executive Director of Alcoa Mr. Alen Belga for the last year were lower with 17 per cent than in 2001 and are USD 2 million. He took the position after the leave of the former Director Mr. Paul O'Neal.
Source: Pari (04.03.2003)

For a second consecutive week the trade with non-ferrous metals was completely dictated by the increasing trend of the nickel. The higher prices of the nickel are as a result of the quickly declining stocks and the increasing manufacture of stainless steel. According to Mr. Angus McMillen from Prudential Bache International although the foundamental market factors of the nickel look like very solid, the deficit in 2003 won't be sufficient in order to keep the price over USD 9000 per ton.
Source: Capital (04.03.2003)

According to the Executive Director of Bulgarian Association of the metal traders Ms. Ivana Radomirova said that the registration of the labour contracts is a good approach from one side because many labour places would be revealed. However from the other side the registration is one more obstacle for the business because the mechanism is very complicated.
Source: Capital (04.03.2003)

Kurjali invest and the Cyprus company L Z Metal trading bought up the major part of the shares of OZK in Kurjali at the increasing of its capital from BGN 2.103 million to BGN 8.413 million. The Central depository published the changes in the major shares in OZK after the new issue. According to them Kurjali invest increased its share from 11.87 per cent to 47.49 per cent. OZK has so far been connected with the Economic and Investment Bank and probably the offshore company is close to this financial institution. The loss of the complex in Kurjali for 2002 is BGN 9.077 million, according to preliminary information. The reason for the bad financial result are the reduced almost two times net sales of the company that were BGN 41.856 million for the last year.
Source: Dnevnik (05.03.2003)

In spite of the low prices at the international stock exchanges and the extra supply, Australia will produce and will deliver more zinc and copper on the world markets over 2003-2004, according to ABARE. Australia which is among the top producers of metals in the world will extract with 11 per cent more refined copper - 630 000 t and the production of zinc will be with 1 per cent higher in comparison with the current year and will amount to 500 000 tons. The production of iron ore will increase from 5.2 per cent in 2003 and will be 195 million tons and the export will increase with 15 per cent up to 176 million tons.
Source: Pari (05.03.2003)

About 700 Bulgarian companies owe to the National Social Security Institute over BGN 400 million together with the interest rates, was reported from the institute. Only the 50 biggest debtors have to pay back BGN 213 205 056. Stomana-Pernik is also among the first with a debt of BGN 21.6 million. At the same time Stomana executes a reconstruction programme on which also owes contributions, the company is in procedure of insolvency.
Source: Trud (05.03.2003)

The evaluations for the imposed by Mr. George Bush duties on the import of steel articles in USA are contradictory. The duties were introduced for 21 categories articles for a period of 3 years and vary from 8 to 30 per cent. Their main purpose is to be provided a space of the down and out US steel extraction and in that is why the cheap import is limited. However many experts consider that the effect is low, if there is any, and the higher prices of the local steel are in favour mostly of the possessors of corporate papers than the workers.
Source: Pari (06.03.2003)

Kujstendil-based mine Osogovo JSC most probably will be declared in insolvency, became clear at the General Meeting of the creditors of the company. State Claims Agency that is the biggest creditor of the mine with a receipt of BGN 4.5 million, refused to accept the reconstruction plan of the company. The direct result of this is that the Court will declare Osogovo JSC in insolvency. In July 2000 the mine was privatized by MEBO Mini Ruen SP JSC. From then till now the debts of the company increased more than 7 times.
Source: Dnevnik (07.03.2003)

Slovak copper-extraction company Kovohuty Krompachy plans to increase the production over this year up to 20 000 t. copper and 25 000 t. copper wire at only 16 000 t wire for 2002. The increase of the production will be possible thanks to the introduction of fresh capitals in Kovohuty. In the end of last November the Austrian company Montanwerke Brixlegg became owner of 66.6 per cent of it.
Source: Pari (07.03.2003)

The gloomy macroeconomics factors and political instability connected with Iraq did not allow the non-ferrous metals in London to reach higher prices. The three month copper deals were concluded at 1681 USD/t. The zinc became more expensive and the price of nickel declined.
Source: Pari (07.03.2003)

By this moment four companies - three Bulgarian and one Russian company, has purchased documentary for participation in the auction for the sale of the steel-processing complex Danieli. The equipment is property of Pernik-based factory Kamet. It was purchased during 1989 for the price of DEM 145 million. The equipment has never been in use. The initial price at the auction is EUR 10 million.
Source: Dnevnik (10.03.2003)

The market of non-ferrous metals that were more expensive because of active speculative purchases over the last several months is about to slow down because of the negative foundamental factors and gloomy economic data. The hedge funds were ready to buy metals in January and February when the fund managers were disappointed of the Securities, the low dollar and the American economy.
Source: Capital (10.03.2003)

The prospectives for the producers of steel in USA remain stable since the planned reduction of the manufacture of automobiles in the second quarter will be compensated by the higher prices of the steel. Over the last week the leading automobile constructors in USA declared that would shrink its production when in February the sales of cars and small trucks reduced with 7 per cent. General Motors will produce over the second quarter with 10.5 per cent less automobiles. Ford Motors will also limit its production. National Steel still calculates the effect of the car makers' plans.
Source: Pari (10.03.2003)

The unfavourable business news and worries from the Near East hold the quotes of the non-ferrous metals at LME. In the end of the afternoon trade on Friday, the copper on the three-month deals became more expensive up to 1668/1691 USD/t. The price of the aluminum reduced to 1393.5 USD/t after 1398 USD/t. Nickel, zinc and tin became cheaper.
Source: Pari (10.03.2003)

The shareholders of Polimery JSC - Devnya did not vote the resolution for distribution of the profit of the company as of 2002. The profit of the company is in amount of BGN 43 000. The Extraordinary General Meeting convened for March 7 was postponed for March 28, 2003, announced the manager of Investors relations Mr. Rumen Nikolov. The incomes of Polimery JSC as of 2002 has grown from BGN 695 000 during 2001 to BGN 33 210 000.
Source: Capital market (11.03.2003)

The Deputy Chairman of the Supervisory Board of Kremikovtzi Mr. Alexander Tomov said that the financial and legal analysis of the plant had started. He did not specify from which financial institution were hired the experts. The due diligence will be realized by the Italian company Marcegaglia. In the end of last year the investor declared its intentions to become a shareholder in Kremikovtzi through creation of joint-stock company. It will be owner of 71 per cent from the capital of the plant.
Source: Pari (11.03.2003)

The aluminum factory Kar in Podgoritza, Monte Negro will raise the production of alumina up to 400 000 tons annually. The company will use investments at a value of USD 40 million, received from Alu Chem Inc., USA and the European Bank for Reconstruction and Development. Kar produces 280 thous. tons of aluminum and 102 thous. tons of alumina annually.
Source: Pari (11.03.2003)

The fifth biggest copper-producer Norddeutsche Affinerie with a capacity of 550 thous. t. annually intends to work during 2002-2003 at full capacity despite the fire during the weekend and the temporary ceasing of the work. The Chinese steel-producing complex Anshan Iron&Steel Group will raise the extraction of steel with more than 3 million tons over the next five years. The annual production of the Chinese company will reach 13 milion tons.
Source: Pari (11.03.2003)

The first among the non-ferrous metals, which showed a trend for a growth in the demand and manufacture, was nickel. According to the data of the International Nickel Survey Group during January 2003 the Western countries have raised the extraction of primary nickel up to 74.1 thous. as compared to 73.4 thous.t. during December 2002. The consumption in the developed Western countries has grown during January has grown with 3 thous. tons to 85 thous.t. as compared 82 thous.t. during December 2002. It should be mentioned that the world nickel producers increased their stocks up to 90.8 thous.t. as compared to 89.1 thous.t. in order to be able to satisfy the expected growth in the demand. The revival of the steel-producing industry and car-makers lead to stabile price of steel at the level of 8000 USDS/t. It is expected that the price will reach 9000 USD/t when the Russia giant Norilski nickel starts to gave information for its stocks.
Source: Pari (11.03.2003)

The company Vai U Cay, a unit of the Austrian Voest Alpine Industrieanlagenbau, signed an EUR 3 million contract with the Shumen-based aluminum producer Alcomet for modernization of the combine’s capacities. This was announced by the Dow Jones information agency. “ Alcomet’s reconstruction project is to the total value of EUR 5 million and its realization started in December 2002,” stated the member of the company’s Board of Directors Mr. Fikret Kuzudzhu. According to plan, it is due to be finished in September 2003. The major stake of Alcomet, which was formerly called Alumina, was privatized in 1999 for USD 9 million. The buyers were the Turkish company Faf Metal (51 per cent) and MEBO Alumina Invest – 24 per cent. Consequently, after a threefold capital increase, the company’s control stake of shares was acquired by Alumetal, in which Faf Metal and Industrial Holding Bulgaria have a 50-per cent share each. After last year’s scandal, the holding sold its share to the Turkish company. Currently, 74 per cent of the Shumen-based company’s capital are held by Alumetal, and Faf Metal holds around 17 per cent. After the increase of the capital and the sale of a part of its papers, the MEBO remained with a minimum share in the company. The enterprise definitely needs fresh funds, which could be seen from the non-audited accounting report published as of December 31 2002. Over the period, Alcomet realized a loss of BGN 6.452 million, and its incomes dropped from BGN 51 million to BGN 47.9 million. The company’s debts went over BGN 50 million. After the modernization, however, the factory is expected to export monthly production for USD 4-5 million to Italy, Turkey, Germany, Spain and other countries.
Source: Dnevnik (12.03.2003)

The second biggest steel-producer in Europe Corus is ready to close plants and reduce the number of its employees. These measures are needed because the deal for the sale of a part of the aluminum business of Corus to the French company Pechiney negotiated by the Board of Directors during October was not approved by the Supervisory Board of the British-Dutch group. The value of the deal was USD 828 million. The deal was considered to be the key for the survival of Corus. Earlier last year the management of the company announced that it will release about 12 000 employees and will close several plants. According to the preliminary calculations the incomes from the sale were going to be used for financing and reducing the capacity of the loss-making factories of the company in Britain. According to the experts the failure of the deal with Pechiney could be the beginning of the end of the British-Dutch group. The confrontation with the Supervisory Board forced the management to file a claim in Amsterdam Appeal Court. It is expected that the court will give permission for the sale on Thursday.
Source: Pari (12.03.2003)

There are preconditions copper, which recently reached its six-month maximum of 1760 USD/t and at the moment is traded at a price of 1689 USD/t, to become cheaper in a short-term with another 4 per cent, because the geopolitical and economic instability in the world will delay the trade with this metal. According to the British analyzers and dealers, who made this prognosis the prices of the red metal will not reach the minimum level as of December at a value of 1548 USD/t. The quotas of 1620 USD/t seem most real at a long-term support of 1600 USD/t. The consumption at the moment is enough to preserve the present prices at a level of over 1600 USD/t. The price of copper will collapse to the level of 1550 USD/t if the prognosis for an easy war in the Gulf is not realized and the American economy enters a new phase of recession. The prices of the three-month deliveries at LME grown with 11 per cent over the first two months of the year as the hedge companies left the stock exchange and started to trade with bourse commodities. As of March with the greater threat of a war copper lost about USD 70 of its price. Yesterday on LME it was treaded at a price of 1689 USD/t. Apart from the threat of a war the unstable economic conditions also effected the prices. According to the analyzers of SG Securities the market position of copper is better than the rest of the non-ferrous metals as the companies-producers follow a strict supply policy. The demand is also at the necessary level. It seems that one of the main market players – China has not lost its interest in purchasing.
Source: Pari (12.03.2003)

The American steel producing company US Steel, which is one of the top companies in the country expects a net and operative loss as for the first quarter of 2003. The negative financial result is due growth in the expenditures for pension insurance and the higher prices of the natural gas. The results as of 2002 were with USD 1 million lower than preliminary announced figures.
Source: Pari (12.03.2003)

The Indonesian company Timah, which is the top producer of tin in the world has produced over 2 000 tons of metal more during 2002 as compared to the previous year. The total production of the company is 40 000 tons of tin. According to the experts the growth in the production will have a small effect on the world market because it is expected that there will be a record deficit of tin during 2003.
Source: Pari (12.03.2003)

The only factory for production of alumina in Bosnia and Herzegovina Birac may restore its activity during May as the dispute for the privatization and the debt with the Lithuanian investor were solved, announced the Minister of Economy and Energetics of the Bosnian-Serbian Government Mr. Milan Bogitzevich. The solution was found as the Government decided to lower the value of the investments which the Lithuanian bank Ukio has to made in the factory to USD 6.2 million. The credit institution became an owner of 63.8 per cent of the capital of Birac in the end of 2001. The bank paid DEM 10.2 million for the stake. As a result of the agreement the factory will start to produce alumina in the end of May as the annual production will reach 200 000 tons. Representatives of Ukio confirmed the agreement. The foreign bank threatened the government in the beginning of 2003 that if both sides do not reach an agreement the factory will bankrupt. Since the war during 1992-1995 in Birac were produced 600 000 tons of alumina annually. After the Lithianian bank gained the property it ceased the production in order to renovate the equipment. It was expected that the factory will become the engine for the economic growth of post-war Bosnia. Before Yugoslavia fell apart during the 90-s Birac along with Aluminij satisfied almost totally the demand for alumina in country.
Source: Pari (13.03.2003)

The management of Sofia Med (former Plant for processing of non-ferrous metal) plan to raise four times the capacity of the plant. It is expected that within the middle of 2004 the capacity will reach 120 tons of production annually, announced the Executive Director of the company Mr. Andreas Deligianis. In order to raise capacity the plant has invested EUR 88.7 million. By this moment the management has purchased new equipment at a value of EUR 35 million.
Source: Dnevnik (14.03.2003)

The prices of the non-ferrous metals on LME on Thursday kept the trend for decline. The prices of nickel and copper fell most significantly. The three-month deliveries after mass exchange sales were traded at prices with 30 USD/t lower as compared to Wednesday. Their prices were 8250 USD/t. Most of the brokers expected further drop in the prices to the level of 8000 USD/t. As of the end of February, when the nickel was traded at the price of 9140 USD/t., which was the highest level as of June 2000, the price of this metal declined with 1000 USD/t. The main reason for the drop in its price was the growth in the stocks and the decision of the workers in the greatest producer of nickel in the world – Norilski nickel that they will not support a strike. The price of the copper fell with 3 USD/t. On Wednesday ICSG announced that the surpluses of refined metal on the market during 2002 were 235 thous. t. while the prognosis was for 105 thous.t.
Source: Pari (14.03.2003)

Sofia Med received a quality certificate ISO 9002, announced the Director of the company Mr. Andreas Deligianis. Sofia Med is property of the Greek concern Viohalco, who also owns Stomana Pernik.
Source: 24 chasa (14.03.2003)

A group of romas attacked guards from the company Bodyguard Fire, announced the Director of the guards Mr. Radoslav Kostadinov. The company is accompanying scrap compositions according to a contract with the Metal Traders Association, because in 2002, the losses from theft were for over BGN 3 million. The fight happened on the railway lines near the complex of Rudnichar. The guards managed to reach and warned the engine-driver of the train, travelling from Sofia to Stomana Industry.
Source: Trud (14.03.2003)

By the middle of 2004 the total value of the investments in Sofia Med will reach EUR 88.7 million, announced the Executive Director of the company Mr. Andreas Deligianis. The company produces articles from copper and copper alloys. As of 2003 will be launched new equipment at a value EUR 8.5 million The furnace for preliminary heating of copper block Techint, at a value of EUR 3.5 million is almost finalized and is tested at the moment. The purpose of the owners is the production capacity of the factory to be raised four times as compared to 1999 and to reach 120 000 tons. As of 1999 the Greek holding Viohalco is the owner of the factory. The production of flat sheets and tapes will be initiated during June. The company received a ISO 9001-2000 certificate LRQA. The sales of Sofia Med as of 2002 were at a value of EUR 12.5 million. 75 per cent of the production of the company is exported in Germany, Italy, Spain, Portugal, USA, Slovenia and Romania. The amount of the planned sales as of 2003 is EUR 18 million.
Source: Pari (14.03.2003)

The manager of the English certifying company Lloyd's Register Quality Assurance Mr. Tim Vener officially granted a certificate ISO 9001-2000 to Sofia Med. As of April 2003 the company for copper and copper alloys will open 180 new work places, was reported from the Greek holding Viohalco whose property is the Sofia-based company. The amount of the planned investments as for 2003 is EUR 88.7 million. They will be used for the execution of one of the greatest invest programme in Bulgaria. Over the last three years the Greek owners of the factory has purchased equipment at a value EUR 35 million. It is planned that by June 2003 will be bought new equipment at a value of EUR 8.5 million. The first investment project was already finalized. The furnace for preliminary heating of copper blocks is tested at the moment. The ambition of the Greek group is to turn Sofia med in the leading producer of copper products, not only on the Balkan peninsula but in Europe as a whole. The planned capacity of the factory is 120 000 tons annually, was reported from the management. Three years ago the company started with a personnel of 180 employees and in the end of 2003 is expected that the number of the workers will reach 350. The sales of the company as of the previous year were at a value of EUR 12.5 million. 75 per cent of the production is exported, mainly for the countries from EU. During 2003 will be produced 11 500 tons of copper. Meanwhile will be initiated the development and launching in exploitation of a programme for protection of the environment in accordance with the ISO 14001 standards.
Source: Cash (14.03.2003)

The representative of Lloyd’s register in Bulgaria Mr. Tim Verner granted a certificate ISO 9001-2000 yesterday to Sofia Med JSC. The former factory for non-ferrous metals is property of the Greek group Viohalco. In the factory is prepared a production - of flat products, announced the Executive Director Mr. Andreas Deligianis. The new production will be launched during the summer. The new products - sheets and tapes will allow the company to be competitive on the market. Viohalco will invest EUR 88.7 million by the end of 2004, explained Mr. Deligianis
Source: Novinar (14.03.2003)

If the aluminum industry in the countries from the former Yugoslavia restores its previous production capacity, the Balkan peninsula region has the chance to become of the leading regional producers in the world. In order to be realized these plans are needed capitals for renovation and increasing of the capacity and cheap energy. There are over 400 million tons of deposits of the main raw material for this kind of manufacture – bauxite. In the end of 80-s and 90-s the combined production of aluminum, alumina and bauxite in Monte Negro, Bosnia, Slovenia and Croatia was as it follows 365 thous.t., 1.2 million t. and 3.5 million t. annually. Because of the wars in the region the Croatian refinery Sibernik ceased its work during 1991. The same happened to the plants in Mostar and Taklum – Bosnia and Herzegovina. The refinery in Birac was closed in the summer of 2001. According to the analyzers of Brook Hunt the regional production of alumina will reach again 1 million tons. It is expected that the Mostar-based refinery will start working during 2005 again. It will produce 250 000 tons of aluminum annually. Few days ago the Bosnian government announced that as of May Birac will start work. According to Brook Hunt during 2003 in the region will be produced over 350 thous. tons of aluminum.
Source: Pari (17.03.2003)

The production of the lead mines in the world during January has increased with 5 per cent as compared to the same period of 2002. It has reached 2324 thous., tons, announced the International Lead and Zinc Survey Group /ILZSG/. On the other hand the volumes of the refined metal have dropped with 2.4 per cent reaching 543 thous.t.. The consumption has grown with 1.7 per cent up to 539.8 thous. tons.
Source: Pari (17.03.2003)

The French company Pechiney, which could not gain a part of the aluminum business of Corus is ready to re-negotiate the deal in the future. At the same time it became clear that the company intends to gain another two or three aluminum assets out of Europe.
Source: Pari (17.03.2003)

Erato Trimex Ltd. Haskovo purchased at auction with open bid tenders a workshop for casting under pressure, self-contained part of Wazov’s Machine Building plants, Sopot. The company, 90 per cent of whose capital are property of Erato holding was the only applicant purchaser. Erato Trimex Ltd. bought the workshop at the initial price of BGN 750 000. The deposit for participation was BGN 100 000. The price of the deal will be paid by a bank transfer as 50 per cent of the sum will be paid in the day the contract is concluded and the rest of the sum – within 15 days after that.
Source: Dnevnik (18.03.2003)

The second biggest steel-processing factory in North America - International Steel Group /ISG/ is already one step from finalizing its ambitious plan to become N1 in USA and on the continent. The company has finalized the agreement for acquisition of the third biggest company in North America - Bethlehem Steel Corp., which is a procedure of bankruptcy. The deal includes the bigger part of the steel producing business of Bethlehem, for which ISG will pay USD 1.5 billion. On April 22 the Bankruptcy Court gave its approval for the deal. ISG was established dating February 2002 with the purpose to gain first class steel assets, which after modernization could be competitive. During 2002 the company became an owner of the main metallurgy assets of LTV Corp. and of several other factories and companies. If the acquisition of Bethlehem is finalized successfully the annual production of ISG will reach over 16 million tons. Thus the company will become the biggest steel company in USA and North America.
Source: Pari (18.03.2003)

Azerbaijan exported primary aluminium for the first time after the Soviet Union broke up. Th only company, which processes aluminium - Sumgait, situated near the capital city of Baku, is already property of the Dutch company Fondel Ìetal. The management of the company intends to export 20 000 of the 29 000 tons of aluminium which the factory has produced. The first lot was sent several days ago to Turkey. The capacity of the factory is 55 000 tons.
Source: Pari (18.03.2003)

Europe's second largest steel producert, the British-Dutch company Corus, which dismissed its executive director Mr. Tonny Pedder on Friday, is considering his replacement with Mr. David James, known for his success in the saving of hard up companies. Formerly, he headed Millenum Dome.
Source: Pari (18.03.2003)

KNSB trade union officially supported the protest, organized by BTA journalists against the General Director Mr. Stoyan Cheshmedzhiev. During one of the protest meetings on Monday afternoon in front of the building of BTA, KNSB trade union leader Mr. Zhelyazko Hristov demanded that Mr. Cheshmedzhiev should hand in his retirement. The meeting was joined by representatives of the miner trade unions, the workers in Stomana - Pernik and Kremikovtzi.
Source: BTA (18.03.2003)

Umicore, the Belgian non-ferrous metal producer and world largest zinc producer, as well as owner of the Pirdop-based metal producing combine, is planning to double its production capacities in the battery plant in South Korea later this year in order to meet the rapid demand growth. Batteries are applied in hi-tech products such as laptops and mobile phones. This measure is undertaken due to the increased demand of rechargeable batteries. Umicore is one of the top producers of lithium-cobalt dioxide, key element in the production of lithium batteries. USD 4.5 million will be invested in additional capacities, which are expected to enter into exploitation during the next quarter of 2003. Due to them, Umicore’s production in South Korea will jump to over 2 thousand on an annual basis.
Source: Pari (19.03.2003)

KCM S.A. (Combine for Non-ferrous Metals) – Plovdiv is emits twice as less poisons in the atmosphere after the new workshop for production of sulphur acid began to work. Due to the new installations, the emissions of sulphur dioxide, emitted in the air, were reduced from 2500 to 300 mg/cubic meter. The Ambassador of Japan Mr. Yasuyoshi Ichihashti has already arrived for the opening of the new facility. Japan provided USD 60 million for the construction of the new factory.
Source: Standart (20.03.2003)

The zinc-processing factory Lead and Zink Complex-Kurdzhali ceased its activity. Representatives of the management explained that the company has problems with the deliveries of zinc concentrates as of the beginning of the year because the supply of the raw material on the world market is insufficient. As of the middle of March the management of the factory initiated the execution of the programme for regular deliveries of zinc concentrate
Source: Standart (20.03.2003)

A client of Bank Biochim became the biggest buyer of shares from Alkomet JSC – Shumen at yesterday’s exchange auction for sale of the remaining state share in the company. 24 offers were submitted for the 156 199 shares (3.49 per cent) which remained unsold after Tuesday. Half of them were sold for a total of 147 041 shares.
Source: Pari (20.03.2003)

The repeat sale of privatized enterprises is gaining speed. The start of the second ownership change was marked by Devnya Cement. The factory was sold in 1997 for the fantastic amount of USD 44.5 million to the Bulgarian-Spanish company Marvex. Two years later, the buyer was absorbed by the second candidate in the bidding – Siman France, which is a subsidiary of one of the leading world cement producers – Italcimente (currently in control of Devnya Cement). So far, the transformation list is pretty long. Some of the companies finally came to the right manager, after they were driven to the edge. This is the case with the Combine for Non-ferrous Metals – Gara Iskar, currently Sofia Med, bought by a company owned by the former deputy and current prisoner Mr. Tzvetelin Kunchev, and brought to total decay. The Greek company Viohalco, however, acquired its assets and invested EUR 35 million in machines and equipment.
Source: Trud (20.03.2003)

The General Staff assured the population, that there is direct military threat for Bulgaria. The intelligent services, however, do not exclude the possibility of terrorist attacks due to our firm US support in their strikes against Saddam, and also due to the US military base in Sarafovo. The military officials have been repeating for three months now, that the protection of risk targets in Bulgaria, such as NPP Kozloduy, Stomana-Pernik, Chimco-Vratza and LUKoil Neftochim is guaranteed.
Source: Trud (20.03.2003)

Immediately after the beginning of the war in Iraq, the prices of non-ferrous metals will jump, but in the end of the operation, the attention will be concentrated on the weak consumption and they might drop, according to specialists. Copper prices grew by USD 50 for 24 hours. This affected the prices of other non-ferrous metals widely used in industry, because it became obvious that the war in Iraq is inevitable. Since the end of December, copper price grew by 9 per cent in London, but dark economic perspectives and poor demand will sooner or later have their influence. According to traders at the exchange, even if the war is short, after it ends, the market will have to fight weak consumption anyway. Analyzers agree that the most serious consequences from the Near East conflict will be those on world economy and after that, on non-ferrous metals. According to a SG Securities expert, over the past 2-3 days, their prices will most probably grow, but in case it become clear that war is not going anywhere, the prices of aluminum, nickel, copper, zinc, lead and steel (most closely related to industry) will be affected by the downward movement. The prices of the metal complex are currently going up, moved by the hope, that the war will end quickly. If, however, this does not happen, the market will react immediately and the prices will drop. According to another trader, after investors assess the consequences from the war, the hedgefunds’ interest in non-ferrous metals will decrease.
Source: Pari (21.03.2003)

BGN 24 million will be invested in expanding of the technological base of Steelmet during 2003 and 2004, was reported from the company. The factory for aluminium profiles, which is a greenfield investment is a property of the ETEM company and Euromerchant Balkan Fund, managed by Global Finance. Over BGN 9 million were invested in the factory during 2002. The capacity of Steelmet was raised with 45 per cent. The company could produce annually 10 000 tones of production. Now about 70 per cent of the company’s production is exported. Steelmet has a ISO 9002 and its major markets are Europe, South Africa and countries from the Middle East. The company’s production includes aluminium architectural systems ETEÌ, standard construction profiles and specialised by client’s order. 250 new working places have been opened up to now. Steelmet was established in 1994 with basic activity of trade with non-ferrous metals. The company stared to work as a producer of aluminium profiles in 1999. The company has an advanced distributive network in the whole country and has own store bases in Varna, Plovdiv and Blagoevgrad. The initial investments for development of Steelmet are more than the amount of BGN 26 million.
Source: Dnevnik (24.03.2003)

On Monday, in response to the general market instability, resulting from the war in Iraq, all main non-ferrous metals – copper, aluminium, zinc, nickel, recovered from the recent losses and their price began to gi up slowly. On Thursday, however, there was a descending correction, which was expected by the brokers, due to the low consumer interest. “ No matter how long the war continues, there exists a risk of disappointment about economy revival – after insecurity disappears, we are going to face weak economy” – that’s the explanation, given by the Analyzer Ingrid Sturiby from Barclays Capital about the long-term quotes instability.
Source: Capital (24.03.2003)

Large investment projects executed with Bulgarian products will be awarded the benefit of obtaining a VAT reimbursement within 10 days, the Deputy Minister of Finance Gati al-Jebouri said. The provision is included in the regulations to the VAT act, to be promulgated in a few days. The current time limit for VAT reimbursement is 45 days. Effective of January 1, 2003 the regulations included another benefit, under which large investment projects worth over BGN 10 million can be VAT exempt per discretion of the finance minister. Bulgarian suppliers are fully eligible for the benefits, introduced with the sole idea if encouraging investments, Mr. al-Jebouri said. So far only the Greek Viohalco was permitted by Minister of Finance Velchev to import machinery and equipment worth EUR 35 million for Sofia Med with VAT exemption. A few more large projects have applied for the same status.
Source: Pari (24.03.2003)

The conflict with the State because of the unequal conditions it offers to Bulgarian and foreign producers on the new scheme for import of commodities, including large investments, was expected last year with the accepting of the amendments in the VAT Law. Sofia Med and other companies will be more interested in purchasing equipment from import, claims the Director of Heavy Machine-building Radomir Mr. Maxim Cleitman. The company has produced equipment for Stomana Industry, property of the Greek holding Viohalco, but now it is not sure of the Greek company would prefer the Bulgarian producer. According to Mr. Al Djebury Mr. Kleitman is only partially right.
Source: Pari (24.03.2003)

USA announced that it has excluded from the list of the imposed during 2002 duties of between 8 and 30 per cent over the imported steel and steel products another 295 products (400 thous.t). The new claims for remitting the duties will be accepted during November,. The decision if another products will be excluded from the list of the duties will be announced during March 2004. By this moment from the list was excluded about 3 million products. The initial list included the import of 13 million products.
Source: Pari (25.03.2003)

The head of the Sector Analyses department of the economy ministry, Andrey Breshkov said that he expected the European Commission (EC) to appoint a consulting firm to prepare "the restructuring program and viability plan" for the Kremikovtsi steel works. According to Breshkov this is related with the talks on the Competition chapter of the acquis. The Ec thinks that Kremikovtsi had in fact obtained a state aid by ZUNK debt write-offs under the privatisation deal. The commission, examining Kremikovtsi's request for protection customs duties on some types of steel imports will come up with a decision by end-May. The steel works filed the request back in June, 2002.
Source: Pari (25.03.2003)

The largest aluminum processing factory in Russia and the second biggest in the world Ruskiy Aluminiy plans to become the top producer in the world within the next 10 years. For this purpose the present production capacitors of the factory will be raised with 1 million. The company plans to built several new factories and to modernize the old ones. The giant company was established during 2000 after several mergers and acquisitions At the moment the company owns several of the biggest aluminum factories in Russia. During 2003 RusAl will produce totally 2.51 million tons as compared to 2.48 million tons during 2002. The biggest producer of aluminum in world – the American concern Alcoa, which intends to produce 3.42 million tons has production capacity for 3.52 million tons annually. At the moment the Russian giant works on four projects. After they are finalized its annual production will be raised with 1.37 million. The biggest of these factories with annual production of 500 thous.t. of aluminum is built in Krasnoyarsk region. The management of the company is discussing tech building of other smaller factories for processing of aluminum Alcoa also plans to expand its manufacture abroad – In China and Iceland. At the same time the factories of the company is the Northern states, were the electricity and resources are too expensive are not working.
Source: Pari (25.03.2003)

The leading position in the commodity circulation with the countries from the Balkan peninsula region occupied Turkey and Greece, as they represent between 50 and 65 per cent of the total commodity exchange with the region. There is a trend for constant growth in the amount of the trade with the these countries, as the trade balance preserves its positive values. Over the last four years Greece traditionally occupies the fourth place among the trade partners of Bulgaria worldwide The countriy occupies the second or the third position among the countries from EU. As of 1996 the commodity circulation is constantly growing: 1996 – USD 519.4 million, 2001 – USD 693.7 million, 2002 (January-December) – USD 469.1 million. The commodity structure by countries is characterized by high rate of saturation - the production of three branches forms about 75 per cent of the trade with a certain country from the Balkan peninsula. Over 65 per cent of the export of electricity, oil products and wooden materials is for the countries from the region. Textile materials and products represent about 40 per cent of the export for Greece, and the ferrous and non-ferrous metals – 23 per cent.
Source: Pari (26.03.2003)

The importance of China for the world zinc and lead-processing industry is rising. Five of the seventh projects for construction of new lead refineries in the world will be built in China. Apart from that over 50 per cent of the growth in the lead production in the world over the last year in amount of 470 thous.t., comes from China. According to the International Zinc and Lead Organization apparently there is unconformity between the extraction and processing of lead. The global extract capacities of lead have declined over the last three years with about 300 thous.t. While the processing capacities have grown with 200 thous.t. The unconformity in zinc is even stronger. While the extraction capacities were expanded with 200 thous.t. the refining capacities were raised with 1.2 mln. tons. The record growth of the processing capacities was followed by another rising with 100 thous. t. in China. The growth during 2003 will be another 100 thous. t. According to ILZSG during zinc processing capacities will be raised with another 460 thous.t. One of the factories built in China this year will raise the global zinc production with 150 thous.t. It is expected that during 2003 China will produce 2.04 million tons of zinc.
Source: Pari (26.03.2003)

Despite the fact that the leading producers of steel in Japan will report a drop in the end of 2002 –29003 they are on they way to turn the dark trends as of the last few years due to the rapid development of the export from Asia and the reducing of their production. If the prices of steel continue to raise this will be an additional stimuli for the Japanese metallurgic companies during 2003-2004. As a significant success for is considered the fact that the Japanese companies managed to agree higher prices of their products with the final consumers. The companies will report improvement of their financial results due to the consumption of the car making and construction industries in the key export markets in South Korea and China. All top producers, led by JFE Holdings lowered their profit prognosis for 2002-2003. The second and the fourth biggest companies Nippon Steel and Kobe Steel, reconsidered their November prognosis significantly. The first company expects a loss of JPY 45 billion, while the former prognosis was for 25 billion. The second company lowered its prognosis from 1 JPY 10 billion to JPY 1 billion. Nevertheless JFE, Nippon Steel and Kobe Steel expect rising of the sales. The stronger positions of JPE forced Nippon and Kobe to built a capital merger in other to face JFE and the surpluses.
Source: Pari (27.03.2003)

EU canceled the dumping duties over the import of steel products from Thailand after the term of five years during which they were efficient. Meanwhile it became clear that the import of steel during February has declined with 34.6 per cent as compared to January and with 51 per cent as compared to the same period of 2002. According to the data of Trade Department the import was in amount of 1.491 million tons.
Source: Pari (27.03.2003)

On Monday March 23, 2003 on London Metal Exchange the complex of non-ferrous metals was traded without any recognized trend. The main market force was the War in Iraq. The price of the copper continued to fall. The interest of dealers in copper was not significant. The three months copper contracts were traded for 1682 USD/t as compared to 1690 USD/t at the closing on Tuesday. The drop in the price of aluminum was small - only 1 USD/t. The contracts were trade for 1380 USD/t. The price of nickel rose with 50 USD/t to 8320 USD/t. The price of zinc dropped with 1 USD/t to 804 USD/t. The quotations of lead remained the same as on Tuesday – 457 USD/t. the tin was traded on the price of 4775 USD/t.
Source: Pari (27.03.2003)

The investment project of the Plovdiv-based glass factory Druzhba is the second project in which will be used a special programme for calculation of VAT for the import of commodities is expected that by this project will be opened 144 new work places. The value of the import which will be free of VAT is BGN 34.550 million. Owner of the factory is the Greek concern Yula Glassworks. This is the second investment project, which the Minister of Finances approved since the beginning of the year. The first company, which won the right to import machinery and commodities by this scheme, was Sofia Med, property of the Greek industrial group Viohalco. By this project the Greek group took to obligation to invest EUR 88.7 million by the end of the year and to raise the number of the workplaces to 450. By this scheme will be imported equipment and machinery at total value of EUR 35 million, announced the representative of Viohalco in Bulgaria Mr. Anton Petrov. The project includes full reconstruction and renovation of the manufacture of Sofia Med.
Source: Dnevnik (27.03.2003)

Druzhba glass factory is the second company which received the right to import machinery and equipment on investment project, without effectively payment of VAT. Sofia Med was the first investor which received the right to use the preference on VAT. It is expected that during the next days Minister Velchev will give permission for another investment project.
Source: Sega (27.03.2003)

American buses may be assembled in the Plovdiv-based company MTA. This is the first of the projects of the company's new owners for its revival. For a few months now, 90 per cent of the company's capital is owned by Fin Metal Holding, which is also the owner of Kremikovtzi. A couple of days ago, MTA was renamed to Fintechmash, but it is going to keep its brand MTA.
Source: Duma (28.03.2003)

The protection duties imposed by USA on the import of steel products are violation of the rules in the international trade, is the preliminary decision of the World Trade Organization. The decision of the organization was presented for revision to the Governments of the USA and EU. According to the experts the final decision of World Trade organization, whose members are 145 countries will be announced during April, it is expected that it ill be no different from the preliminary announced decision. On March 20, 2002 USA imposed duties of between 8 and 30 per cent on the import of 21 categories of steel products for a term of three years. Right after that EU and many other countries, among which were Japan, China, South Korea, Switzerland and others, applied in the World Trade Organization their official complaints against the act of USA. According to the representatives of the steel producing industry in USA the decision of the Trade Organization was expected but nevertheless the administration of President Bush has to appeal it. Representatives of the authorities in USA announced that if this is the final decision of the Organization USA has to appeal it at the Arbitrage Court of WTO.
Source: Pari (28.03.2003)

As of July 1, there will consumers with privileges on the electricity market in Bulgaria. These are the companies which consume over 1001 mln. Kilowatt/hours annually. They will have the right to purchase electricity directly from the producers. Among these companies are Maritza Iztok mines, Stomana Pernik, Asarel Medet, Umicore med, Agropolichim, Neochim, Devnya cement, Lukoil Neftpochim, Elatzite, Non-ferrous metals complex. 9 per cent of the annual capacity of TPS Maritza Iztok 2, TPS Bobovdol, TPS Rousse and TPS Maritza Iztok 3 were will be used for this purpose. State Energetics Commission announced that the privileged consumers will be able to apply for the purchase of electricity.
Source: 24 chasa (28.03.2003)

Old buildings of the metallurgical combine Kremikovtzi will be blown up. The procedure starts today. The destruction is a part of the enterprise’s ecological program, which was approved by the Ministry of Environment and Waters.
Source: Standart (31.03.2003)

The delay in the development of the world economy will affect the quotations of the non-ferrous metals if the War in Iraq continues longer than the expected of the financial markets 1-2 months. The latest prognosis for the military campaign varies between several weeks and several months. The prognosis that the insufficient military deliveries will cause raising of the demand for metals and thus their prices will grow is not very probable. If the conflict continues the value of the economic investments will decline. The price of the non-ferrous metals on London \metal exchange during the last three days of last were falling due to the insecure development of the crisis in the Gulf. According to the data Salomon Smith Barney the longer war will prolong the period during which the prices of the metals were lower. The bank revised its former prognosis for the world economic growth, it canceled it statements for the revival of the prices of metals during the next year.
Source: Pari (31.03.2003)

The prices of copper fell down to 1585 USD/t on Friday, but they managed to restore their positions of 1600 USD/t. The three year contracts were traded at the prices of 1608 USD/t or 14 USD/t as compared to the prices on Thursday. The prices of the metal reached their lower levels as of the beginning of January due fears that the global economy is not recovering and the War in Iraq is continuing longer than expected. The prices of the copper reached its twelve-week minimum. The price of lead dropped with USD/t to 788 USD/t. The price of aluminum fell with 7.50 USD/t and was traded for 1355.50 USD/t.
Source: Pari (31.03.2003)

The dealers on London Metal Exchanges reported one of the most toughest times ever during the last week. The fact that this market depends on the demand and the economic activity is extremely unfavorable, commented Mrs. Ingrid Sternby from Barclays Capital. Mrs. Sternby added that both American and global economy are in worse condition than expected. The decline in the trade with non-ferrous metals is also related to the War in Iraq, which causes insecurity and prevents the investments. Quotations dropped due to the activity of the funds, which liquidated their long positions because of the expected recession in USA.
Source: Capital (31.03.2003)

A year after introducing anti-dumping duties, President Bush’s administration found itself in a difficult situation – from the outside, after last week’s preliminary WTO decision, that duties violate free trade rules, and from the inside – because of the continuing high import of cheap production, metallurgical companies bad financial results and high prices of local steel. The evaluation of the effect of duties is disputable, and rather negative. Obviously, they did not manage to become the expected painkiller for the US inefficient and fragmented industry. The anti-dumping duties in the amount of 8-30 per cent, were introduced on a wide range of products, starting March 20 2002, and were due to remain into force for a period of 3 years, and were due to be gradually reduced. They, however, caused the sharp disapproval of USA’s main trade partners - EU, Japan, China, Australia, etc. Washington tried to sooth their dissatisfaction by constantly exempting different products from duties (the number of the products exempted from duties already reaches 1000), but after the final decision of WTO, which is expected in April and will obviously not be different than last week’s preliminary decision, shall have to remove all duties or, otherwise, suffer new losses.
Source: Pari (01.04.2003)

Initial steel production in the 63 countries, monitored by the International Cast Iron and Steel Institute, reached in February 71.1 million tons, which is 7.5 per cent over its volume in February 2002, but 4.8 million tons less than January 2003. In Northern America, February production reduced compared to January by 878 thousand tons to 9.7 million tons, and USA reported a drop of 634 thousand tons. EU production in February grew by 1.2 per cent compared to February 2002 and reached 12.7 million tons, but this is a drop compared to January this year. In other European countries, according to the institute, production grew by 8.8 per cent compared to February 2002 to 3.6 million tons. Turkey’s production output is shrinking, as compared to January, but marked a significant growth compared to February 2002 – by almost 30 per cent. Commonwealth of Independent States’ production amount dropped in February to 7.7 million tons, as compared to 8.6 million tons in January, but marked a 4.4 per cent growth compared to February 2002. According to monitors, over the first quarter, competition on the world flat steel products market was stronger due to the return into exploitation of unoccupied capacity, and this in a period of weak demand, since steel production consumers formed their supplies during the fourth quarter of 2002. For the current moment, European metallurgical plants do not meet resistance of the higher prices announced in January, since the offering by third countries is small. In Eastern and Central Europe, the best –developing business is that of Czech and Slovak producers, which still enjoy high foreign demand. Over the first quarter of the year, Poland also demonstrated signs of revival, but quite weak.
Source: Pari (01.04.2003)

World coke trade occupies a very small share (5-6 per cent) of global consumption of this product, since most producers of cast iron and casting enterprises have their own coke-producing capacities. They, along with the casting factories for iron and zinc, are the main coke consumers. There are only a few enterprises in the world, completely depending on foreign sources of coke supply, and the current market situation creates great difficulties, because coke’s relative share could reach 30-40 per cent. Some of the enterprises will probably prefer to reduce their capital expenditures rather than constructing their own coke batteries. China maintains its key positions. The specialized Metal Bulletin publication wrote that almost 2/3 of the world trade with metallurgical coke is realized by China. The referential price of the deals with this product on the world market is fixed by the FOB price of the Chinese port Tianjin. Over the past year, China’s coke deliveries reduced so much that its prices increased twofold. The price of coke with 10.5 per cent ash content, which is usually widely used in developed countries, reached in the beginning of February an average of 130 USD/t FOB, and exceeded the previous minimum from the middle of 2000 – USD 40. Experts expect that Chinese coke supplies will continue to reduce.
Source: Pari (01.04.2003)

The Greek industrial group Viohalco JSC was created in 1937 as a company for processing and production of copper and aluminum articles. Today the group is the biggest by realized turnover in Greece and it includes 10 companies. A main part of them possesses a quality certificate ISO 9002 and the biggest among them are Elval S.A., Halcor S.A., Sidenor S.A., Etem S.A, Hellenic Cables S.A., Fitco S.A., Erlikon S.A., Sovel S.A.
Source: Cash (01.04.2003)

Over 2400 people are working in the companies of Viohalco in Bulgaria. Among the bigger of them are: Stilmet JSC was created in the beginning of 1994 as a trade company. It started its activity on July 13, 1999. So far the company has invested more than USD 12.5 million investment capital and BGN 15 million turnover capital that makes Stilmet one of the biggest foreign investors in Bulgaria in 2000. The plant offers standard aluminum profiles, architecture profiles ETEM system and profiles by clients' order. The annual capacity of the company is 10 000 tons which is 2 times more than the consumption at the Bulgarian market at the moment. The product group includes over 3000 profiles and 210 workers are employed. Stilmed JSC is the sole trader of the the production of the plants from Viohalco group for Bulgaria. As a trade company Stilmed JSC has warehouses in the biggest towns: Sofia, Plovdiv, Varna, Blagoevgrad and has distributors in more than 10 Bulgarian towns. Stilmed has warehouses in Odessa and Moscow. Sofia Med JSC – the company created in the beginning of 2000 after acquisition of the assets of the plant for non-ferrous metals KOZM, gara Iskar in Sofia. The management plans the investments in the company to reach EUR 88 million. The annual capacity now is 40 000 tons. The Executive Director is Mr. Andreas Delianis.
Source: Cash (01.04.2003)

Stomana Industry JSC is the biggest company of Viohalco JSC in Bulgaria. It was created in the middle of 2001 after acquisition of the assets of the plant for ferrous metals Stomana JSC - Pernik. The investments in Stomana Industry JSC will reach EUR 60 million. The company produces mainly steel articles and the annual capacity is 1 million ton. 1 750 people are employed in the company. The activity of TeProMetal SP Ltd. includes export of raw-materials and products from Bulgaria to Greece. The company is the biggest exporter from Bulgaria to Greece with a net annual turnover that exceeds USD 30 million. In 2001 it bought a work-shop of Stomana JSC. So far have been made investments in amount of BGN 7.5 million and other BGN 1.5 million are expected to be invested. In the company work 18 people and is managed by Mr. Anton Petrov. Lesko Ltd. is producer of wood material, based in Blagoevgrad. The company is a leading producer of wood wrapping in Bulgarian and produces minimum 1000 cubic m per month. It was created in 2000 and has 50 workers. Its Manager is Mr. Temistoklis Fotiadis. Teprostil SP Ltd. and Sigma IS JSC are newly created companies of Viohalco in Bulgaria.
Source: Cash (01.04.2003)

As of April 1, 2003 Stilmed JSC launches a new construction system that is called by the Executive Director a revolutionary. It has a thermal bridge and is exclusively proper for the Bulgarian conditions. The system offers a big variety of profiles. The new construction system was presented by the official representative of Viohalco in Bulgaria Mr. Anton Petrov. Stilmed JSC also offers a programme for construction crediting. There is not limit for the credit. The deadline of the leasing is 12 months and at initial contribution of 30 per cent from the whole amount, the interest rate is only 1 per cent.
Source: Cash (01.04.2003)

Japan’s second biggest metallurgical company Nippon Steel is starting to implement 3-year strategy, aimed at reducing expenses by JPY 130 billion (USD 1.10 million) and increasing profit by JPY 260 million. In order to achieve this, the company is going to increase the amount of steel export, directed to China. Lately, steel demand in China is extremely big, and Nippon is not going to miss the opportunity to sell its production – especially high quality steel products. According to Nippon’s analysts, in 2003 consumption in China will jump with 10 per cent to 232 million tons and with another 10 per cent next year. As a part of the strategy, the Japanese are going to cooperate their business with local companies. Besides, they also intend to tighten their relations with the world’s top steel producer Arcelor and the South Korean company POSCO. In this way, Nippon will stabilize its positions on the world market and is going to challenge its competition. In 2002, its position on the local market was seriously threatened, after two competitive companies joined and established JFE.
Source: Pari (02.04.2003)

One of the world’s biggest aluminum producers, China, is planning to put out of exploitation its old production lines with capacity 450 thousand tons of metal per year by the end of 2005. The measure shall affect the eight biggest aluminum factories in the country. Lately, a lot of them have been increasing their production capacities through introduction of new environmental-friendly technologies. Out of a total of 5.3 million tons of aluminum, which China is expected to produce this year, 1.3 million will be produced using the old lines Sodeberg, which are still in exploitation. Over the past two years, China’s aluminum production capacities have grown by almost 2 million tons. There are over 120 aluminum processing factories in China. In 2002, the total production output reached 4.4 million tons. Aluminum quotes on London Metal Exchange (LME) are currently moving around 1347 USD/t. Although they exceed the January minimum of 1335 USD/t, they are still much lower than the peak since the beginning of 2000 (1754 USD/t). Meanwhile, this year, according to market monitors forecasts, 5.8 million tons of alumina (used for aluminum production) will be produced in the country. This is almost 0.4 million tons more than the previous year. 5.7 million tons of this amount will be prodced by Chalco, the aluminum monopoly-holder on the Chinese market.
Source: Pari (02.04.2003)

EU cancelled the anti-dumping duties on the import of the strategic metal magnesium from China. China is the world's biggest magnesium producer, and the duties date back from 1998. This permit has been long expected, especially after the only European magnesium-producing factory was closed down. It was owned by the French company Pechiney. Over the past few days, the prices of Chinese magnesium jumped to their highest levels since May 1999 - 1700 USD/t.
Source: Pari (02.04.2003)

Grupo Mexico, the world's third largest copper producer, was granted a USD 200 million credit, which it intends to use for reducing its debts and restructuring the finances of its US unit Asarco.
Source: Pari (02.04.2003)

On Saturday, thieves reached the copper producing factory in the village of Eliseyna. They stole 100 meters of gummed cable, which was under pressure. The 95-mm wire supplied the filter department of the combine.
Source: Shans Express Vratza (03.04.2003)

The leading American steel-producing company US Steel is going to buy the bankrupt Serbian steel producer Sartid and its six units for USD 23 million. The deals will be implemented through its subsidiary US Steel Balkan and is due to be finished in the end of 2003 third quarter. The American company is hoping to re-structure Sartid into a winning and compatible producer. Sartid’s annual unprocessed steel production capacity is 2.4 million tons, and that of the factories producing steel sheets and tinned steel, based in Northern Serbia, is 130 thousand tons. Recently, with a view to the company’s financial difficulties, the production output is considerably smaller than its capacities. US Steel Balkan is planning to invest USD 150 million in the rehabilitation, modification and modernization over the next 5 years. They are also planning to forbear from personnel dismissal by the middle of 2006. The deal should be approved by the regulatory bodies in the two states. The new gain will allow US Steel to satisfy the demand of tinned and sheet steel on the European markets and, particularly, on the markets of Balkan countries.
Source: Pari (03.04.2003)

The downgoing trend in non-ferrous metal prices continued yesterday, and the main moving force were the sales of funds and the technical pressure on aluminum. After breaking the supporting levels of 1335 USD/t, around noon, the metal's prices dropped and it was sold at 1327 USD/t, while on Wednesday trade was closed at 1337 USD/t. The quarter copper deals were contraced at 6 USD/t lower, or at 1582 USD/t. Zinc's price dropped by 6 USD/t, and lead - by 2 USD/t. Nickel was the only metal which price was raised yesterday. It added 20 USD/t to its quotes and was sold at 7820 USD/t.
Source: Pari (04.04.2003)

The biggest world producer of steel Arcelor increased the prices of its production with 15 EUR/t as of April 1. They will be valid over the second and third quarter of 2003.
Source: Pari (07.04.2003)

The profit of the biggest producer of aluminum in the world - the American Alcoa for the first quarter of 2003 reduced because of the higher prices of the energy resources. The net profit of the giant is in amount of USD 151 million at USD 218 million for the same period of 2002.
Source: Pari (07.04.2003)

The biggest producer of nickel - the Russian Norilski nikel will shrink its production of copper from 454 000 tons for 2002 to 420 000 tons by 2005. At the same time it will increase the production of nickel with 12 000 tons per year compared to the extractions over the last year up to 230 000 tons during the next 3 years. Meanwhile the giant decided through its marketing section in London Norimet to acquire 51 per cent in the big American producer of paladium and platinium Stillwater Mining.
Source: Pari (07.04.2003)

The second by size producer of copper in Europe and owner of Umicore-Med, Pirdop, the Belgium group Umicore reported that it plans to reduce the investments for the planned alliance with Lamitref even if other competitive companies want to join the alliance. Umicore and the private Belgium company Lamitref set the beginning of negotiations for union of its copper business in the beginning of the year. In February became clear that other players from the European copper industry is interested in taking part in the formation. Most probably there will be a second part in the negotiations.
Source: Pari (08.04.2003)

The top producer of aluminum in Russia and N 2 in the world Ruski aluminii has plans to export 2.205 million tons from the light metal in 2003 at 2.229 million tons in 2002. The deliveries for Europe will decline but the share of these will increase for USA and Asia. The extracted refined lead in the world increased with 0.7 per cent in 2002 up to 6.543 million tons and the consumption reduced with 1.7 per cent to 6.361 million tons.
Source: Pari (08.04.2003)

The Greek National Telecommunications Company OTE, the state oil and gas group Hellenic Petroleum and the metallurgic holding Viohalco plan investments at a value of EUR 183.5 million in Bulgaria over the year, according to the Greek newspapers Express. The investments are a part of the long-term business plans of the three companies. The sum of EUR 183.5 million represents about one third of the potential foreign investments in Bulgaria as for 2003. According to the Express OTE will invest EUR 100 million in its subsidiary GSM operator GloBul. Last year the Greek owner invested about EUR 300 million in the mobile operator. Hellenic Petroleum, which has business in Bulgarian since last year through specially established company Eco–Elda Bulgaria, has the intention to invest the amount of EUR 21 million in 2003. Hellenic Petroleum has 5-year investment programme for entering on the Bulgarian fuel market, which is in the total amount of EUR 110 million. According to the pointed data Greek company invested in Bulgaria EUR 1.15 million in 2002. The owner of three metallurgic enterprises in Bulgaria, Greek holding Viohalco, intends to invest in them EUR 62.5 million in 2003. The amount of EUR 6.5 million will be invested in the plant for aluminum profiles and fittings Steelmet. Almost EUR 35 million will be allocated for the copper plant Sofia Med. The remaining fund will be invested in Stomana Industry – Pernik. Greece is the second largest foreign investor in Bulgaria since 1992. Almost 1500-registered in Bulgaria Greek companies have invested in the national economy up to now the amount of USD 575,5 million, according data of Foreign Investment Agency since September 2002.
Source: Dnevnik (09.04.2003)

The Executive Director of MEBO-Elatzite JSC and member of the Supervisory Board of Elatzite Med JSC said that have been reached the highest results in the history of the company since 1976. The extraction of mine aggregation is about 28 million tons and 12.5 million tons are ore that then will be processed in the company. He also added that on average are extracted about 215 000 tons concentrate from which are got 40 000 tons copper, 1.5 tons gold and the same quantity of silver. 79 per cent from the capital of the copper-extraction company Elatzite med were privatized by the MEBO – Elatzite med in the summer of 1999 for BGN 10 million. In 2000 the State sold other 17.98 per cent to the company Retel Ltd.
Source: Dnevnik (09.04.2003)

On contrary to the other industrial sectors that were strongly concerned by the delay of the world economy, the German economy meets higher sales of its production and expects to keep them over the next year. According to data of the federal statistics office, over the last month the produced in the country steel is with 12.4 per cent more in comparison with February. Many companies and analyzators consider that the German production is mostly wanted in China and South Korea which stimulates the producers to increase its production. 10 per cent of the industrial production in Germany are for the metals. The giant ThyssenKrupp is the fifth by size company in the world for manufacture of steel.
Source: Pari (11.04.2003)

No VAT will be charged on deals with ferrous and non-ferrous metals scrap deals, the parliamentary budget committee decided last week after the second reading of the amendments to the tax Code of Procedures. The draft amendment, sponsored by the Ministry of Finance, is meant to curb the loopholes used to syphon VAT reimbursements from the treasury. Tax credit is thus abolished for metal scrap trading. It is not yet clarified whether the scrap collection and recycling activities will be subject to VAT. The Association of Metal Traders objected the move by stating it will restrict the business opportunities for traders investing in this type of activity. The number of licensed metal traders stood at 293 in 2002. The overall VAT declared stood at BGN 15.897 million, while the VAT reimbursements total BGN 124.471 million. In other words some BGN 109.573 million were syphoned from the state budget, said Deputy Minister of Finance Gati al-Jebouri.
Source: Pari (11.04.2003)

Stomana-Pernik opened a competition for the election of an auditor of the annual accountant report of the company as of 2003. By this year with a decision of the parent company – Viohalco the independent financial audit of Stomana, Steelmet and Sofia Med was executed by Ernst & Young Assurance Ltd., announced the representative of the Greek holding for Bulgaria Mr. Anton Petrov. Greek company is an owner of the majority production of Stomana, Steelmet and Sofia Med. The management of Viohalco has decided for this year the independent auditor to be selected trough a competition. The contract with Earnest & Young has expired with the end of the accounting year in the end of March. I think that for large company as Stomana it is better to by used a competition method for selection of auditor, said Mr. Anton Petrov. He explained that the competition is opened and all interested auditing companies could submit offers. The dead-line is May 15, 2003.
Source: Dnevnik (14.04.2003)

The deals with ferrous and non-ferrous wastes and the conditions on their extraction and processing to be freed from VAT, was voted by the Parliament Budget and Finance Commission in the end of last week. The change will become final when the Parliament accepts at a second reading the changes in the Tax Process Code that were approved by the Commission over the last week. The amendment means that these deliveries will be without VAT added and for them there won’t be a right for use of a tax credit.
Source: Dnevnik (14.04.2003)

The biggest producer and exporter of ferrous ore in the world – Brazilian company CVRD plans to increase the sales in 2003 with 5 per cent and to rise the prices with 10 per cent since the world economy is not almost affected by the war in Iraq, declared the Executive Director Mr. Roger Anielli.. According to him the higher prices are quite realistic although the negotiations with the clients are about to begin. In 2002 the price of ferrous ore was cheaper with 2.5 per cent because of the stagnation in steel-extraction sector but over the second half of the year was revealed a boom of the demand of steel and steel products.
Source: Pari (14.04.2003)

Excluding the short-term rise of the prices in the beginning of the week, the non-ferrous metals over the week became cheaper. The market was under pressure of the weak economic data from USA. The concern for the state of the American economy and for the corporate profits was considerable. Observers of the market and traders reported trade in small volumes and think that the market won’t change until the data for March retail sales and the calculations of the consumers’ trust during April in USA is not revealed.
Source: Capital (14.04.2003)

The news that the biggest non-ferrous metal market in the world – London Metal Exchange is considering the idea for launching the trade with future deals with some steel products as of the beginning of the 2004, led to drop of their prices. By this moment the Exchange has chosen the deals with North American and European HRC and Euro-Asian riffle iron. All three contracts will be in amount of 100 tons. The decision of the Exchange immediately affected the prices of the European HRC and they declined with EUR 20-30 to EUR 320-325 over the last week. China, which is among the biggest consumers at the moment, ceased its purchases as the country has accumulated stocks. The exported from Russia and Ukraine, which are the main suppliers for China, lowered their prices with EUR 50 to EUR 280-285 FOB. Dealers expect that China will restore its purchases of steel during the next month.
Source: Pari (14.04.2003)

Chinese plans to build a huge company for aluminum processing are developing at rapid speed. It is expected that the conglomerate will start working within the end of April. The conglomerate was established after the transformation in the aluminum-processing industry, whose main purpose was to make the sector more competitive on the world market and to be able to overcome all risks. Under the hat of China Aluminum Group will be merged 60 companies. It will control over 70 per cent of the manufacture of primary metal and almost the total extraction of ore. The top aluminum producer in China - Chinalco will also be included in the group. The new conglomerate will be among the 120-th huge companies, which the Government wants to establish in order to make the Chinese metal-producing industry more competitive. China produced 4.4 million tons of aluminum over the last year. The country is already the leader in production and export of metal in the world. The production capacity of the country was doubled over the last three years and reached 5.2 million tons annually. By this moment the sector was fragmented, which was a huge problem for its further development. There are over 120 factories for aluminum processing in the country, which is more than the total number of this kind of factories in the world as a whole. Each of these factories produces 30 000 tons annually, as compared to 190 000 tons, produced by the other world refineries. At the moment there are more production capacities in China than there are in USA. At the same it is expected that the company will suffer deficit of 100 million tons of aluminum over the next 20 years.
Source: Pari (14.04.2003)

The plans of China to create a huge company for processing of aluminum are progressing and by the end of this month is expected the conglomerate to start working. Its foundation became after a restructure which aim is the aluminum industry to become more competitive and to be able to take all market risks. Under the hat of China Aluminum Group will be united 60 companies, it will control over 70% from the manufacture of prime metal in the country and almost the whole extraction of aluminum. In the group will be also included Chinalco, the biggest producer of aluminum in China. The new conglomerate will be among the 120 huge companies that the Government wants to form in order to make Chinese metal sector more competitive.
Source: Pari (15.04.2003)

Sofia-based company Intertrust will assemble American autobuses with the mark Blue bird in the machine-building plant Fintechmach in Plovdiv. The ambitions of the company are its production to be realized in the State, meeting the necessities of the public transport and its plans are to be assembled 200 buses annually. The capital of the company is entirely held by the major owner of Kremikovtzi – Finmetals holding.
Source: Dnevnik (16.04.2003)

First-quarter profits fell sharply at Alcan, the world's second-biggest aluminum producer, hit by foreign exchange effects and higher energy costs. Net earnings fell to US$13m or 4 cents a share, against $86m or 26 cents last time. However, on an operating basis earnings rose to $122m or 38 cents a share for the quarter, against $107m or 33 cents last time. Operating performance, despite being hit by an $18m increase in pension expenses, was in line with Alcan's recently lowered forecast and slightly ahead of analysts' estimates. Revenues rose to $3.27 bn from $2.94bn. "This is our fourth consecutive quarter of improved operating earnings year-over-year despite ongoing economic head winds," said Travis Engen, chief executive. The bottom line was affected by a $96m after-tax charge for foreign currency effects, the weakening of the US dollar against the Canadian dollar and other currencies. A year ago the charge was $21m. Alcan forecast western world aluminum demand would rise 3.3 per cent this year, against an estimated 3.4 per cent rise in 2002.
Source: Capital market (17.04.2003)

Romania sold the huge debtor copper complex in Baia Mare which is the biggest processor of copper in State but the buyer is kept in secret, announced the liquidator – the London Grant Thornton that took the control of the complex when the based in GB group for trade of metals RBG Resources did not manage to recover it. The deal is successfully concluded but the buyer did not want to be revealed announced Mr. Kris Edward who is one of the Managers of Grant Thornton. The copper-extraction refinery is with capacity for production of 40 000 tons copper lists per year but its production is under these capacities. The spokesman of Romanian Agency for Assets Recovery declared that there was appointed a new public tender for the assets of RBG that 5 years ago bought 69.99% from Baia Mare for USD 37 million.
Source: Pari (17.04.2003)

DOE RUN LEAD, the top producer of lead in Northern America and USA does not expect the prices of metal to continue to reduce, on contrary the company consider they will be higher. This was declared by the Vice President and Executive Director Mr. Jeffry Zelms. At the moment the quotes of the lead in London are moving at the level of 460 USD/t. In January were registered its lowest prices over the current year - 437 USD/t and in May, 1996 it was traded at the highest prices for 10 years - 861 USD/t. There are not any surpluses on the market for the time being and the arrival of new lead stockpiles at LME is sporadic and there is a trend to be kept at the its current volumes that are 170 00 tons. At the moment Doe Run Lead exports about 2 000 tons prime metal to Europe.
Source: Pari (18.04.2003)

The news that LME considers as of 2004 to introduce the trade of term deals with some steel articles caused a drop in their prices. For the time being the stock exchange concludes deals with Northern American hot-rolled coils /HRC/, European HRC and Eurasian riffled iron. The three contracts will be for 100 t per each. The decision of the stock exchange reflects immediately on the prices and the European HRC and they reduced with 20-30 EUR to 320-325 EUR over the last week. The exporters from Russia and Ukraine that the major suppliers of China, dropped the prices with 50 EUR to 280-285 EUR FOB
Source: Pari (18.04.2003)

The export of copper concentrate from Mongolia for 1 year by the end of March increased with 7 per cent up to 123 000 tons. The dominant part of the export in amount of USD 33.1 million was for China. In 2002 were exported 538.8 thous. copper concentrate. The produced steel in France in March is 1.9 million tons – with 49 per cent higher in comparison with the same period of the last year. ÑÎDELCO, the biggest producer of copper in the world expects the prices of the metal to increase after the consolation of the market because of the end of the war in Iraq.
Source: Pari (18.04.2003)

Kremikovtzi can’t burn the rubbish from the hospitals in Sofia since it does not have the necessary clearing equipments. According to the Management of the company the destruction of the scraps in the furnaces will cause a risk for the health of the workers.
Source: Standart (18.04.2003)

A radioactive source was found out in a scrap transported in Stomana Industry in Pernik, was reported from the local police department. A waggon with iron was delivered in the metallurgic plant from the town of Parazdzhik on April 13, 2003. In the waggon was found powerful radioactive source. It was cesium 137 and the supplier of the scrap was the company PADA Ltd. The source is with a length of 10 sm. This was announced by the Director of Civil Security Department in Stomana Industry Mr. Kiril Spasov. The irradiation is hundreds times more than the regular radioactive measures. During the entering of the waggon in Stomana Industry the plant’s emergency plan have been started immediately and the load have been unloadde from worker with protection clothes. The control in the metallurgic is 100 per cent guaranteed and radioactive iron could not enter in the plant, Mr. Spasov said. The workers have not been affected. The source have been reloaded in a special truck and transported with police security in the depository of the Agency for Nuclear Regulation in Novi Han on April 17, 2003. Similar accidents became every year, explained Mr. Spasov. Machines in abandoned plants have been cut in scraps recently. The new owners of the abandoned plants do not know that there are radioactive sources in the most of the machines, added Mr. Spasov. He appealed for higher control in the country.
Source: Dnevnik (19.04.2003)

A radioactive scrap was found out in a waggon of the Pernik-based Stomana Industry. The source is Cesium 13. The scrap was loaded in Pazardzhik and it is property of Pada Ltd. An irradiation of the workers can not be possible for the worker, was reported from Stomana Industry. It was possible the workers in the Pazardzhik to be irradiated.
Source: 24 chasa (19.04.2003)

A radioactive source was found out in a scrap transported in Stomana Industry in Pernik, was reported from the local police department. A waggon with iron was delivered in the metallurgic plant from the town of Parazdzhik. In the waggon was found powerful radioactive source. It was cesium 137 and the supplier of the scrap was the company PADA Ltd. The source is with a length of 10 sm. This was announced by the Director of Civil Security Department in Stomana Industry Mr. Kiril Spasov. The irradiation is hundreds times more than the regular radioactive measures. During the entering of the waggon in Stomana Industry the plant’s emergency plan have been started immediately and the load have been unloadde from worker with protection clothes. The workers have not been affected. The source have been reloaded in a special truck and transported with police security in the depository of the Agency for Nuclear Regulation in Novi Han.
Source: Monitor (19.04.2003)

A radioactive scrap was found out in Stomana industry, Pernik. A waggon with iron arrived on April 13. The radioactive emission was found out 4 days later - on April 17. The supplier of the contageous scrap is Padi Ltd. that bought the scrap from the places for scraps in Pazarjik There is not any danger for the workers of Stomana industry.
Source: Trud (21.04.2003)

The analyzator from Credit Lyonnais Rouse Mr. Maxwell Ahmed said that the short positions are very popular. According to Standard Bank the cease of the war activities in Iraq stimulates the consumers’ trust and the business develops. The comments of the experts were confirmed by the higher prices of the most non-ferrous metals between USD 4 and USD 15 per ton except the lead which became inconsiderably cheaper – with USD 1 for a whole week.
Source: Capital (21.04.2003)

The demand of the new products of Stomana Industry is increased, announced the Production Director Mr. Dimitar Minchev. The manufacture of the articles started in December, 2002 after launching of a new metallurgic loom Danielli. The articles are used by the construction for manufacture of concrete iron and the interest in it is big especially after the end of the war in Iraq. Pernik-based company expects more orders for its new articles from Greece.
Source: Duma (22.04.2003)

The common opinion is that after the end of the war in Iraq the demand and manufacture of aluminum in the world will increase when over the last month the market was in stagnation and the companies preferred to postpone the filling of the stockpiles. However, the experts refuse to give any forecasts and think that all depend on the conditions of the automobile market. Even before the war in Iraq the main problem for the aluminum producers were the high prices of the electricity that forced them to look for alternative sources to supply the plants. According to evaluations of the Geologic department of USA in 2002 were produced 25.4 million tons prime metal – with 41 per cent more than in 2001. In spite of this the extraction remained under the capacity in the world in the end of 2002 in amount of 29.1 million tons. In USA the manufacture of prime aluminum in 2002 reduced with 2.4 per cent to 2.7 million tons because of the slow rates of economic growth and drastic expensive prices of the electricity in the North-western regions. The reduced extraction was compensated with increase of the import – 6.9 per cent.
Source: Pari (22.04.2003)

In 2002 the incomes of Stomana JSC are BGN 52.998 000. From them BGN 41.445 000 are from sales and the financial incomes are BGN 11. 549 000. BGN 3 155 000 are from the sale of assets. The incomes from paid debts to the creditors have the biggest share – BGN 37 240 000. In accordance with the execution of the reconstruction plan of Stomana in the company came BGN 8 905 000. From them to ÒSBank were paid BGN 3 040 000. For the receipts were paid BGN 553 000 VAT, BGN 1 898 000 to National Social-Security Institute, BGN 306 000 on Corporate Income Taxation Act and BGN 394 000 to the budget. In the warehouses of Investors’ control directorate were found out lacks in amount of BGN 2 336 715. The shareholders of Stomana changed the Board of Directors. The Chairman of the Board of Directors Ms. Raina Ivenova was replaced by Ms. Olga Shishkova from the Ministry of Economy. Mr. Spas Hristov remains Executive Director of the company.
Source: Pari (23.04.2003)

The American steel-extraction giant US Steel, the biggest producer in Northern America and USA, presented to the Polish Ministry of Finance its official offer for the biggest producer of steel in Poland - Polskie Huty Stali /PHS/. The details of the offer were not revealed since they are confidential, according to the tender for privatization of the company. US Steel reports that if its offer wins, the company will follow the successful model that has already been used in Europe – American type of management and focus on new capital investments.
Source: Pari (23.04.2003)

Stomana paid compensations to former workers in amount of BGN 10.7 million, announced the Director of the company Mr. Spas Hristov. The funds are provided by rescheduled contributions of the new owner of the company – the Greek company Viohalco.
Source: 24 chasa (23.04.2003)

Over BGN 10 million are the paid salaries and compensations of the former workers of Stomana – Pernik, announced the shareholders at the General Meeting of the insolvent company. By May 2005 will be paid all amounts to the employees. For the last year the incomes are BGN 52 million and 78 per cent of them are from sale of tangible assets. The debts to the creditors reduce – with about BGN 37 million.
Source: Dnevnik (23.04.2003)

The copper-extraction company in Eliseina again stopped working when with decision of the Regional Court in Mezdra was ceased the contract with the leaseholders of the main production. According to the Director of the company Eliseina Mr. Slavcho Todorov this happened because of LM Impex that accumulated debts in amount of BGN 220 000. Sofia-based company hired the capacities in 2002 with intention to restore the manufacture of black copper. For this purpose except own workers it hired 40 specialists from the plant. However LM Impex paid its monthly rent of BGN 22 000 by November, 2002 and then stopped the payments.
Source: Duma (24.04.2003)

The tangible assets at a value of BGN 3 079 545 and stocks at a value of BGN 176 754 , property of Stomana Pernik are missing, was the conclusion of the commissions which performed the revision of the company by an order of the former Executive Director of the company Mr. Spas Hristov.
Source: Pari (24.04.2003)

The biggest company in the world for manufacture of aluminum – the American Alcoa reported that would reduce the extractions in three of the US plants and would lay off its employees since it is influenced considerably by the shrunk consumption of the metal and the high energetic expenses. The corporation with the head-office in Pitsburg reduces its production volumes with 60 000 tons per year and will dismiss 850 workers from other two plants. These measures were taken because the market is overwhelmed of aluminum, the state of the world economy does not improve as fast as it was expected and the experts consider that the prices of the metal may drop even more. At the moment Alcoa restructures its business because the over supply, the shrunk demand of the aviation industry and the expensive energetic sources affected the prices of the metal.
Source: Pari (25.04.2003)

Dutch-British company Corus, the second-sized producer of steel in Europe, appointed the former Executive Director of the French aluminum company Pechiney Mr. Philip Varin for its Executive Director. Mr. Varin who had 25-year experience in the metal business will receive annual salary USD 1.1 million. The Swiss company Corica that is from the group J&W Holding became owner of 1/3 from the sole producer of aluminum in Alumini Kazakhstan for which it paid USD 21 million. As a part of the deal Corica will build the first in Middle Asia aluminum processor of aluminum with annual capacity of 240 000 tons.
Source: Pari (25.04.2003)

The biggest world producer of steel Arcelor does not consider that the prices of steel will reduce later this year even if the expectations for raise of the demand are not realized, said the Executive Director of the company Mr. Gay Doll. According to him there is not any chance the quotes of steel in 2003 to decline. In February Arcelor reported a profit for 2002 in amount of USD 850.6 million /before taxation /. The prices of steel in Europe were supported by the increased demand of China, the introduced duties as a reply of the American tariffs and the producers’ discipline. The deliveries of flat steel products for industrial clients /with exception of auto industry/ this year will drop with 6-7 per cent or with over 1 million ton. The company plans to export approximately 300 000 tons steel beyond the Ocean over this year at 550 000 tons in 2002.
Source: Pari (25.04.2003)

Russal increased the extractions of prime aluminum compared to 2001 with 23 000 tons up to 2.48 million tons and of the secondary metal – with 20.5 per cent to 221.7 thous. tons. In 2003 the company plans to increase the production of prime metal with other 29 000 tons. According to its valuations in 2003 the demand of aluminum in Russia will increase with 3-4 per cent and in USA and Western Europe – with about 5 per cent.
Source: Pari (25.04.2003)

French company PECHINEY reported losses in 2002 in amount of EUR 50 million and closed three plants /one of which with capacity 50 000 tons per year / because of the higher prices of the electricity. Over this year it intends to reduce the manufacture in many plants of special aluminum alloys for the automobile industry, of aluminum profiles, used in the construction.
Source: Pari (25.04.2003)

The prices of the non-ferrous metals at LME were fluctuating but more likely to decline. The anxiety that the spread of the A-type pneumonia virus will affect the economic growth of some Asian countries, especially China and will limit the demand of metals caused a pressure on the market. China is a big importer of copper and the consumption of copper may be affected.
Source: Capital (25.04.2003)

The losses of NEC from unpaid debts of industrial companies are in amount of BGN 200 million, said the CEO of the company Mr. Vassil Atanasov. The biggest debtor is Kremikovtzi that has to pay 1/3 of the debts to NEC, the rest are Chimko - Vratza, BDZ, Radomir metali, totally 92 industrial companies owe money for electricity to the electric company. NEC also lost BGN 84 million from the sales of electricity to the electric-distributing companies, announced Mr. Mitko Hristozov.
Source: Monitor (01.05.2003)

Pernik-based metallurgic company Stomana owes to its employees over BGN 4 million for salaries and BGN 10 million for social insurances. The total amount of the company's debt to its workers is BGN 14 million, announced the Deputy Chairman of SITUB Mr. Valentin Nikifiorov. Mr. Nikiforov explained that despite the difficulties the current salaries of the employees in Pernik mines and Stomana will be paid.
Source: Monitor (07.05.2003)

Kremikovtzi JSC is the biggest public company in Bulgaria with incomes from its activity in amount of BGN 717 million for 2002. The metallurgic giant outstripped in the Top 50 list even Bulgartabac holding and LUKoil-Neftochim. The public companies in Bulgaria realized incomes from activity for about BGN 5.5 billion in 2002 that is equal to 17 per cent from GDP of Bulgaria
Source: Pari (07.05.2003)

The third by size producer of copper in the world - the Mexican company Grupo Mexico reported a net loss of 677 million peso for the first quarter of the year at a profit of 347 million peso for the same period in 2002. The financial result is explained with the smaller volumes of traded copper.
Source: Pari (07.05.2003)

The short-term prospectives for the market of stainless steel remain unstable because there are signs that the consumption will hardly increase, according to the Finnish company for manufacture of metals Outokumpu. The prices of the cold-rolled steel in Europe over the second quarter will be the same as during the former year.
Source: Pari (07.05.2003)

9 companies wanted to be privilege consumers of electricity, was reported from State Energetics Regulation Commission. These are LUKoil Neftochim, Stomana industry, Maritza iztok mines, Asarel Medet, Elatzite Med, Umkumur Med, Devnia tziment, Agropolichim and Neochim. If the Commission, headed by Prof. Konstantin Shushulov approves the requests of the candidates, they will receive cheaper electricity than the rest industrial consumers in the State through direct deliveries from the producers and will pay only fee for transfer to NEC.
Source: Monitor (08.05.2003)

Kazahstan produced 348 000 tons aluminum during the period January - March at 303 000 tons for the previous year.
Source: Pari (08.05.2003)

The biggest copper mine in the world Escondida reported a profit for the first quarter of 2003 of USD 90.3 million which is with 80 per cent more than the profit from the last year because of the increased sales. The mine is situated in Chilie but it is controlled by BHP Billiton..
Source: Pari (08.05.2003)

Top producer of metals in the world, Austrian-British company BHP Billiton, reported a profit for the quarter and gave an example to the rest from the branch how to survive in times when the demand of metals is shrunk. The profit of BHP Billiton for the quarter increased with 11.6 per cent in comparison with the same period one year earlier and is in amount of USD 444 million. The higher prices of oil before the beginning of the war in Iraq also influenced the financial result. As a whole over 2003-2004 the production of BHP Billiton will remain at the levels from the former year. In 2001 the two companies - BHP and Billiton united and thus created the biggest producer of metals in the world.
Source: Pari (08.05.2003)

I expect that Washington will appeal the decision of World Trade Organization that duties on import of steel products, imposed by USA last year are illegal. Nevertheless I am sure that EU will win the battle, announced the European Trade Affairs Commissioner Mr. Paskal Lami. Although World Trade Organization announced its decision that the duties in amount of between 9 and 30 per cent, imposed by USA are illegal and violate its decrees, the world expects that USA will appeal the decision. The duties were imposed with the motif that American market was flooded with cheap imported steel, which dumps the prices of the local steel producers. The real purpose of the duties was to revive the American economy, but they provoked the anger of the rest of the world. Mr. Paskal Lami claimed that Appeal Court will reject the claim of Washington. If this really happens and the USA don’t cancel the duties the EU will have a green light to take the counter measures. Meanwhile several days ago the American steel-producing companies demanded before the Trade Representative Mr. Robert Zelik and the Trade Minister Mr. Don Evans the term of the duties, which is 3 years to be preserved.
Source: Pari (09.05.2003)

Aluminium of Greece, the bigger part of whose capital is property of the French Pechiney, reported a sharp decline in its profit as for the first quarter of 2003. The decline in the financial result of the company was caused by growth in the price of EUR and of oil. The pre-tax profit of Aluminium of Greece has dropped with 49 per cent reaching EUR 8.97 million.
Source: Pari (09.05.2003)

Vietnam plans to start the construction of a new zinc refinery at a value of USD 13 million in September. The purpose of the refinery will be to reduce the dependence of Vietnam on the import of zinc. The refinery will start working in the fourth quarter of 2004. The capacity of the new factory will be 10.5 thous. tons of zinc annually. About 30 per cent of its production will be exported and the rest of the production will satisfy the domestic demand.
Source: Pari (10.05.2003)

The prices of non-ferrous metals on London Metal Exchange rose during the last week. The speculative purchases and the active opening of short positions caused the growth in the prices. On the other hand the dark economic situation indicates that the growth of the prices of the non-ferrous metals is short-term phenomenon. Some of the brokers even believe that it is already losing strength. The general market trends and the weak position of US dollar created an opportunity for rising the price of copper, which provoked the interest of the brokers and led to speculative purchases, was the comment of the analyzer Barclays Capital Mrs. Ingrid Sternby. Mrs. Sternby explained that it is expected that the opening of short positions in aluminum will continue and its price may reach 1405 USD/t.
Source: Capital (10.05.2003)

The schedule for opening of the electric energetic market is ready and approved by the State Energetic Regulation Agency, announced its Director Mr. Kostantin Shushulov. After July 1, 2003 the so called privileged companies will have a right to conclude direct contracts with a part of the producers of electricity. The privileged companies are the ones that consume over 100 gw/h electricity and pay regular its accounts to NEC. At the moment 10 companies are in accordance with the requirements: Mini Maritza-iztok JSC, Stomana Industry – Pernik, KZM – Plovdiv, Assarel-Medet, Elatzite-Med, Umicor, Agropolichim, Devnia cement, LUKoil Neftochim and Neochim. Their consumption covers about 15 per cent of the market of electricity. In 2004 the condition for the privileged consumers will be changed to 40 gw/h and to the list may be added Kremikovtzi, Solvay-Sodi and BDZ and several more Bulgarian companies with high incomes.
Source: Banker (10.05.2003)

The Commissioner of Trade Mr. Paskal Lami said that Europe does not have any pretences to Bulgaria. However Mr. Nikolai Vassilev admitted that our country has one trade problem with EU – its policy for import of steel. Bulgaria bears a double protective measure at the export of steel products to EU, explained Mr. Vassilev. From one side Bulgaria is under anti-dumping procedure because of which sells at a higher price. On the other side there are also temporary protective measures against Bulgaria. Our biggest problem is the hot-rolled steel for which Bulgaria didn’t receive a national quote for import in EU, added Mr. Vassilev.
Source: Trud (11.05.2003)

The second by size producer of ferrous metals in the world – the Japanese company Nippon Steel reported for a second consecutive year a net loss in spite of the boom in its export to the Asian countries. For the financial year that expired on March 31, 2003 Nippon generated a loss of JPY 51.7 billion but expects during the next 2003-2004 a profit of JPY 70 billion. The weak consumption at the domestic market and the spent for the restructure costs compensate the reduction of the costs and the boom in the export to China and Republic of South Korea. There is a favourable forecast for the next year, regarding the increasing fears of A-type pneumonia would slow down additionally the rate of development of the world economy and mostly this of China. China is hit hard most heavily by the disease and is the biggest market for the production of Nippon. In November Nippon united its capitals with these of Kobe Steel and Sumitomo Metal that was apprehended as a first step to stabilization of the Japanese metallurgy.
Source: Pari (12.05.2003)

The Ministry of economy will prolong with two months as of April 8, this year the procedure on investigation of the increased import of some steel products in Bulgaria. The decision is promulgated in State Gazette. The investigation concerns products with tariff position 7208 that includes iron products or products of plain steel with width 600 mm or more, hot-rolled. This means that the decision for introduction of duties on the imported steel will be taken in June. Over the last year Kremikovtzi JSC wanted the Ministry of Economy to introduce protective measures against import of steel from Russia and Ukraine. Importers of metals, machine-building companies and the trade representations of these countries in Bulgaria opposed against this claim. According to the Deputy Prime Minister the State has a problem in the trade with Europe connected with the steel and steel products. Bulgaria is one of the few countries with double protective measure of the import of steel and steel products in the Euroblock.
Source: Pari (12.05.2003)

The Deputy Minister of Economy Ms. Sofia Kasidova will lead from Bulgarian side the 8th meeting of the Subcommittee ¹ 3 Trade, industry and products of European Community for Coal and Steel on May 12 in Brussels. The meetings of the subcommittee are a part of the negotiations for association of Bulgaria to the European Union. In the agenda of the meeting are included questions for the restructure of the steel-extraction sector and the prospectives of the trade between Bulgaria and EU.
Source: Ministry of Economy (12.05.2003)

The present business climate is not favorable for the metal dealers from Germany. It is expected that these conditions will be preserved or even worsened over the next quarter. About 50 per cent of the participants in an inquiry answered that the demand for metal has declined over the last three months. Another 30 per cent believe that there have been no changes in the demand.
Source: Pari (13.05.2003)

We filed a claim against the Privatisation Agency for remittal of BGN 77 million debts of the company to the tax administration, the steelworks' CEO, Valentin Zahariev, told the PARI daily. The debt was incurred in 1999-2000: BGN 25 million to the Customs Agency, interest excluded, BGN 19 million to the Chief Tax Directorate and BGN 31 million to the National Social Security Institute. According to Kremikovtsi, the receivable is disputable because the state did not claim it within the six-month legal term after the privatisation of the company. Late last year the ministry of economy demanded that the debt be written off by decision of the cabinet but the proposal was rejected by the finance ministry. Later on deputy economy minister Nikola Yankov and the state's representative of Kremikovtsi's supervisory board, Andrey Breshkov, said that the steelworks had to claim writing off of the debt in court. The company is holding talks on selling part of its capital to Erdemir, the PARI daily learned. The Turkish metallurgical giant was one of the candidates for privatisation of the steelworks. According to insiders, Valentin Zahariev is in very good relations with the Turkish investor and last year the Bulgarian company opened a representative office in Turkey. Erdemir has a serious presence on the global markets, which experts believe is a good basis for partnership. The truth is that about a year ago we invited the Turkish company to exchange shares, Zahariev explained. But Erdemir is a state-owned company and the deal has to be approved by the Turkish government, he added. It is not true that we are holding negotiations with the Turkish company, we have a serious partner and that is Italy's Marcegaglia, supervisory board deputy chairman Alexander Tomov said. As early as in 2001 Kremikovtsi said they had received a letter of intent from the Italian investor, proposing the setting up of a joint venture that would hold 71% of the steelworks' capital. Each of the parties would have 50% in the venture. The official start of the negotiations was announced in April 2003, when it emerged that two banks were participating as intermediaries: UBS of Switzerland and Unicredo of Italy. According to Kremikovtsi's privatisation contract, Marcegaglia can acquire a stake in the steelworks. Meanwhile the PARI daily learned that Kremikovtsi was interested in buying Botevgrad-based Chavdar bus manufacturer, which is in receivership.
Source: Pari (14.05.2003)

The German company Geokompetentzentrum-Freiberg is interested in the metallurgic company Eliseina, was reported from Vratza administration. The foreign company unites private consulting, engineering and mining companies, the Ministry of Economy of Saxonia. For several months the Czech company Re-group that works with capitals from USA and Italy is also interested in Eliseina. The company broke its contract with LM Impex that rented the metallurgic production in August, 2002 and now owes BGN 220 000.
Source: Pari (14.05.2003)

Burgas District Court declared the registration in the Trade register of Promet JSC – Burgas for insignificant. In this way was solved the dispute between the two alternative owners – Promet and Promet steel. In the decision of the Court is noted that Promet JSC was ceased without liquidation because of its merge in Neva Ltd. The two companies and their management teams argued over the last year for the property of the metallurgic plant near Burgas. Then Burgas Appeal Prosecutor’s office ordered that the Management of Promet JSC was illegal and had to leave the plant. Now, one year later the Court has a decree in which is written that the registration is insignificant. Burgas District Court sued Promet JSC to pay to Promet steel JSC the amount of BGN 120. By the registration of Promet steel JSC in 2002 the metallurgic plant near Burgas was with major owner Neva holding JSC – Plovdiv that held 77 per cent from its capital.
Source: Dnevnik (14.05.2003)

The zinc production that is produced by Portovesme continues to be with about 20 per cent under the normal volumes because of the high prices of electricity. The lead-zinc complex in Southwestern Sardinia which extracts 110 000 tons zinc per year threatened last year that would stop its work since the prices of the electricity are very high and amount to ? of all costs of the refinery.
Source: Pari (14.05.2003)

Pernik District Court decided on April 29, 2003 to declare in liquidation Stomaneni otlivki I izkovki SP Ltd.-Radomir – a subsidiary of Radomir JSC. It includes all main work-shops without mechanic-processing ones. The Chief Director of Radomir metali JSC Mr. Plamen Paskalev announced that the liquidation was required by the Board of Directors. Mr. Ludmil Alexandrov was appointed for a liquidator. Mr. Paskalev explained it was not a total liquidation or selling off but for restructure of the production. The subsidiary was created in February. At the moment Radomir metali produces from 500 to 800 tons production per month. According to the Directors of the company the State kills the producers by means of the monopolists NEC and Bulgargas.
Source: Pari (15.05.2003)

The biggest in the world producer of copper – the Chili-based company Codelco extracted about 5 per cent more of the copper in the first quarter - 367.9 thous. t. However the sales dropped with 8.6 per cent to 423 thous. tons because of the decision of Codelco to accumulate own stockpiles while these in the world reduce.
Source: Pari (15.05.2003)

The established in the 60’s company Erdemir /Eregli Demir Celik Fabrikalari/ is the biggest producer of steel in Turkey. The annual turnover for 2002 exceeds USD 900 million. By 2002 it produced about 3 million tons steel. In 2002 Erdemir bought the company Iskenderun Demir ve Celik Fabrikalari /Isdemir/ for USD 50 million, increased its annual capacity up to 5.5 million tons and is among the 10 biggest producers of steel in Europe. The planned investments of USD 650 million have to be realized within 2006. From them 85 per cent will be provided through loans and the rest 15 per cent by the company.
Source: Pari (15.05.2003)

The Czech state-owned producer of steel Vitcovice Steel registered even a little profit for 2002 thanks to the restoration of the industry over the second half of the year. The profit of the company before taxation is USD 1.7 million. Over the first 3 months of the current year the company increased its production with 20 per cent up to 242.1 thous. tons and the produced sheet steel is 210.6 thous. t. At the moment Czech Government is negotiating with the second-sized producer of steel in the world - LNM Group, a property of Indian businessman, about the sale of Vitcovice Steel. It has already been owner of its competitor in Czech Republic - Nova Hut.
Source: Pari (15.05.2003)

Two of the biggest producers of aluminum in Russia – RusAl that is the second by size in the world and SUAL increased their production of aluminum in the first quarter of 2003. The Russian top producer RusAl extracted with over 18 thous. tons more metals and alloys in comparison with the same period of 2002 or 626.7 thous. tons. In the seven refineries of SUAL over the first three months were produced with 4.3 per cent or 9.2 thous. tons more prime aluminum.
Source: Pari (16.05.2003)

The complex of non-ferrous metals at LME traded without any considerable changes. The market expected the announcement of series of data for the presentation of the American economy in April. The quarter deals with copper concluded at 1675 USD/t in comparison with 1678 USD/t on Wednesday. The red metal permanently stopped over the rate of 1650 USD/t and for the time being its positions seem to be stable. The aluminum continued its struggle for keeping over 1410 USD/t It was dealt for 1413 USD/t at 1411 USD/t.
Source: Pari (16.05.2003)

The bankrupted American steel-extraction company Bethlehem Steel will submit a plan for liquidation to the Bankruptcy Court when the bigger part of its assets were sold to International Steel Group /ISG/. The acquisition of Bethlehem Steel is the third consecutive big deal for the established in 2002 ISG. The company will become the biggest producer of steel in Northern America with its extractions of 16 million tons per year.
Source: Pari (16.05.2003)

Slovene Ministry of Environment and Energetics will invite two of the three candidates-buyers of 85.6 per cent from the state-owned processor of aluminum Talum, namely the Slovene Investment Bank Sinal and Magyar Aluminium to do a due diligence in the company .
Source: Pari (16.05.2003)

The manufacture of nickel in the western countries increased in March up to 72 800 tons in comparison with 66 300 tons in February. The mine extraction also increased - up to 75 400 tons in comparison with 71 600 tons in February. The consumption in the western countries raised from 86 500 tons to 90 100 tons which was not an obstacle for the producers to increase their stockpiles from 91 100 tons to 94 600 tons.
Source: Pari (19.05.2003)

The disputes with Kremikovtzi about the new fees for transport that were offered to the metallurgic plant have continued for 6 months now when Bulgarian State Railways (BDZ) offered to increase them with 40 per cent. A contact for the new tariffs has not been signed yet. Kremikovtzi continues to pay for transport of the cargos at the old tariffs and accumulated a new debt to BDZ in amount of BGN 10,6 million. The problem with Kremikovtzi is still not solved in spite of the efforts we do, admitted Mr. George Neshev. We offer a price of BGN 0.30 per ton for km and the plant insists on BGN 0.26 per ton for km, he explained. At the moment the average tariff for cargo railway transports in the State is BGN 0,46 and our offer for Kremikovtzi is more than sensible. Instead to agree with this tariff, Kramikovtzi hecticly prepares to ask for a license for a railway carrier.
Source: Monitor (20.05.2003)

Ms. Sofia Kasidova, Deputy Minister of Economy: Bulgaria has to present a plan for the steel-extraction industry that will include both Stomana Industry and Promet? -The report will include an evaluation of this how passed the privatization process and how were restructured these companies. These two companies did not receive any aid from the State. In the report has to be revealed what production investments will be made by the companies during the association process, i.e a full investment programme. On this base will be considered the share of Bulgarian steel-extraction in the common European manufacture. This programme also has to be approved by the European Commission (EC). Its contents and structure was preliminarily coordinated with the Commission and with the three companies. Kremikovtzi will also have to cooperate with the consultant at providing information and is engaged to keep it as a trade secret.. What are the deadlines? - By the beginning of September we must have a programme which also includes the capacity of Kremikovtzi. The consultant will have 3 months in order to prepare this plan. It will arrive in June and will become clear which it is. However, according to Kremikovtzi there was not provided aid from the State and that is why it seized the Competition Protection Commission (CPC)? - CPC will be able to deliver a judgment on the base of the State Aids Law but it does not have a back operation. The Law was passed last year and I can’t consider the type of decision of CPC, perhaps with any recommendation or interpretation. Our legislation is very clear and exact in this direction. Besides we sent letters to all companies from the branch, not only to Kremikovtzi, what means state-owned aid in the steel-extraction and why the aid since 1999 has been state-owned? Have you reached any agreements about the protective measures in the steel-extraction? - Bulgaria and Romania will remain in the list of the countries for which EU will continue to apply protective measures in the steel-extraction. While from the beginning of 2004 the ten countries that were associated, are excluded from all restrictions – duties and antidumping which is expressed in the definition of a price under which can not be sold any products. However this will be valid for Bulgaria and Romania until the association even though we try to set the drop out of this problem earlier. Except this at any products of Kremikovtzi there are two kinds of measures – antidumping, i.e a definition of a price under which the company can’t export to EU hot-milled rolls and protective duties for import of steel articles. The second measure is expressed in a general quote which is not even national and includes even countries from Africa. At our meeting with the European Commissioner on the trade questions in Bukuresht Mr. Paskal Lami became clear that Kremikovtzi will set the question directly before the European Commission.
Source: Pari (20.05.2003)

The big floods in China that took the lives of 40 people may influence on the local manufacture of metals because of the irregular supply with concentrate.
Source: Pari (20.05.2003)

The biggest processor of aluminum in Russia and the second by size in the world RusAL continues its expansion. It will buy 75 per cent of a project for construction of a refinery in Sibir which is supposed to produce 250 000 tons per year.
Source: Pari (20.05.2003)

Kazakhstan produced over the first quarter of 2003 with about 9 per cent less copper - 138.4 thous. tons. A considerable part of the extractions are of Kazakhmyst, the 9th by size copper company in the world.
Source: Pari (20.05.2003)

A consortium with Bulgarian participation is among the five companies that declared interest in the privatization of 57.99 per cent from the capital of the Monte Negro metallurgic plant Jelezara Nikshich holding company. According to Reuters it is about a union between Rua invest and trade and Fiost Alpine intertrading. The rest candidates are the Swiss company – Technosteel holding, Kurum Demir from Turkey, Global infrastructure holding – Great Britain and the company from Nishich Rusmontesteel corporation. The tender is expected to take place in the beginning of June. The capacity of the plant is 300 000 tons per year and produces concrete and profiled irons. Analyzes of this production in Bulgaria are developed by Kremikovtzi, Stomana-Pernik and Promet-Burgas. The company Rua invest can’t be found in the registers of the lectronic issues APIS and Daxy. According to sources from the steel market these are undertakers from Plovdiv who have not so far in the field of metallurgy.
Source: Pari (21.05.2003)

The biggest producer of stainless steel in the world – the German Thyssen Krupp was forced to buy up its shares from Iran at 3 times higher than the market price in order to protect the business interests of its offices in USA. It paid EUR 406 million for them to a company from Iran because it does not want to be put in the black list of Washington..
Source: Pari (21.05.2003)

By 2006 with finances on ISPA programme of EU will be launched in exploitation in Bulgaria a national centre for dangerous scraps. The project amount of the centre is about EUR 80 million and it is developed by the Danish company Chemcontrol A/S which has over 20 years experience in the construction of equipments for preservation and processing of harmful industrial scraps and for 3 years now has been working with the Ministry of Environment and Waters for solution of this problem in the State. About 800 are the big industrial companies that pollute the environment. Among them are Kremikovtzi, LUKoil, Kombinat za tzvetni metali in Plovdiv, Petrol JSC, Devnia tziment, Tzelhart Pazarjik, Zhiti Russe, Umicor, Monbat and others. Every year in Bulgaria are thrown over 700 000 tons dangerous wastes.
Source: Pari (22.05.2003)

A zinc refinery starts working in October in Kazahstan with capacities 100 000 tons per year on a project that costs USD 150 million. Considering the production of the new processor, Kazahstan will extract over 385 000 tons and will be placed in the world top 5. The project started in 1999 in the town of Balkhash and as of the end of this month 95 per cent of the refinery have been constructed. It will be a property of the local copper corporation Kazakhmys, which extracts 90 per cent of the copper in Kazhstan. The monopolist at the market sells the half of its products in China and the rest 50 per cent in Europe. In the plant the zinc will be refined through the hydro metallurgic method which happens for a first time in the country. The Management of Kazakhmys comments that the production of the refinery will be exported to the world markets without pointing the potential clients and countries. The South Korean industrial giant Samsung holds 25.33 per cent from the shares of Kazakhmys and Sansung Hong Kong - 17.22 per cent.
Source: Pari (22.05.2003)

A consortium with Bulgarian participation is among the five companies that declared interest in the privatization of 57.99 per cent from the capital of the Monte Negro metallurgic plant Jelezara Nikshich holding company. According to Reuters it is about a union between Rua invest and trade and Fiost Alpine intertrading. The rest candidates are the Swiss company – Technosteel holding, Kurum Demir from Turkey, Global infrastructure holding – Great Britain and the company from Nishich Rusmontesteel corporation. The tender is expected to take place in the beginning of June. The capacity of the plant is 300 000 tons per year and produces concrete and profiled irons. Analyzes of this production in Bulgaria are developed by Kremikovtzi, Stomana-Pernik and Promet-Burgas. The company Rua invest can’t be found in the registers of the lectronic issues APIS and Daxy. According to sources from the steel market these are undertakers from Plovdiv who have not so far in the field of metallurgy.
Source: Dnevnik (22.05.2003)

In order to start a business in Bulgaria, a foreign company has to cope with 29 permissions that will take at least 5 months. This is one of the reason for the small investments in the State. A survey in 32 countries reveals that Bulgaria is at the first place by this indicator, followed by Turkey and Latvia, announced the Chairman of Foreign Investments Agency Mr. Pavel Ezekiev. He pointed that the official costs for the penetration of a foreign company in Bulgaria are USD 291 and the total costs – USD 6023. In 2003 the expectations are the level of the foreign investments to exceed USD 700 million from which USD 500 million on green. The strongest year for the foreign investments in Bulgaria was 2000 when entered USD 1 billion. In 2001 was observed a small decline and in 2002 they reached USD 500 million. Austria and Germany are the biggest foreign investors in the State in 2002, mainly because of the privatization in the bank, trade and services and heavy industry sector. In 2002 the biggest amount of investments on green – respectively USD 40 million and USD 30 million for construction of petrol stations invested LUKoil, Russia and OMV, Austria. After them are Sokotab, Sweden with USD 25 million in tobacco processing, Viohalco group, Greece – with USD 20 million in the metallurgy, Festo, Germany with USD 15 million in the electric technics and Miroglio, Italy with USD 10 million – in the textile sector.
Source: Monitor (22.05.2003)

The second-sized producer of steel in Europe Corus may sell its northwestern factory in Teeseed. The step is the reaction of the company for more stable capital structure. This will relieve its negotiations with the bank-creditors, according to Financial Times. At eventual sale of the section, the expected incomes would be about GBP 200 million. At the same time Corus will lay off about 200 workers in connection with future operative reforms. In this way the industrial giant hopes easier negotiations for new credits at the amount of GBP 700 million.
Source: Pari (22.05.2003)

The production of anode copper in the Bulgarian division of Umicore sharply grow after the 5-year plan for raising the capacity of the company is finalized, announced the Executive Director Mr. Kirko Kirkov It is planned the annual production will reach 210 000 tons of anode copper as compared to BGN 181 000 tons during 2001.
Source: Pari (23.05.2003)

Thousands of copper, plundered from the electric network and buildings in Iraq, lest the borders of the country every day, announced traders of this metal on May 20. The exported copper from Iraq is equal to over one-third from the usual world offering of scrap. The copper scraps in Western Europe at the moment cost EUR 1350 per ton. The copper scrap is pointed mainly to consumers from Iran and smaller quantities go to the buyers from India and China. Agents announce for Iraqi aluminum scraps for which there are not still firm offers.
Source: Banker (24.05.2003)

The construction of the metallurgic plant Promet-Debelt near the city of Bourgas has been one of the most megalomaniac projects since the time social system The construction of the factory started during 1980 an d was finalized during 1987. All the machinery of the factory were produced by the German company Sket by a license of Krupp. The metallurgic furnaces, produced and installed by the French company Steinhurt, were the most modern equipment for its time. The plan was the factory to be developed as an integrated enterprise, which includes steel extraction, manufacture of hot-rolled products and other specific steel products. These ideas were not realized. The only successful project was Stan 300. After the changes during November 10, 1989 the construction was not finalized. Since it lost most of its significant markets in the former socialistic countries Promet entered a deep financial crisis. During 1996 the factory was registered in the list of the State companies for liquidation. Two years after that was adopted a plan for the financial reconstruction of Promet. During 199 the company was privatized by Neva Holding JSC. At the moment the company has accumulated significant debts to the State, NEC and many private companies. The financial status of the factory is bad as it works with low production capacities.
Source: Standart (26.05.2003)

The dealers on London Metal Exchange commented that the moving power on the market is the currency factor and mostly the intrigue EUR-USD. The power of EUR towards USD is a factor leads to active purchase in the average funds and decline in the stocks. Most of the contracts are traded in a tight range because of the fears of the economic dimness.
Source: Capital (26.05.2003)

The USA accused the Chinese company North China Industries Corp., which is the biggest military factory in the world, of illegal deliveries of rocket steel in Iran. USA declared sanctions against the Chinese company and the Shahid Hemmat Industrial Group for organizing of illegal deals. The sanctions include a two-year ban for cooperation between both companies and American governmental and private structures. The Iranian Shahid Hemmat plays a key role in the execution of the rocket programme of Teheran. The USA made the decision for the sanctions against both companies on May 9, but was officially published in the Federal register on May 22. USA claims that Iran is a participant in the so-called Axis of Evil and does not intend to cancel the trade ban, which is valid for the trade with third countries as well.
Source: Pari (26.05.2003)

The Federation of Aluminum Consumers in Europe (FACE) threatened the European Commission with court procedures in it last attempt to invalidate the import duty in amount of 6 per cent on the primary aluminum. FACE claimed that the duty on the import of primary aluminum replaces competition and damages the interests of the independent producers and consumers, who are not members of the Federation. FACE represents 44 companies – consumers of aluminum in EU. Within 10-14 days its lawyers will present a legal memorandum to the European Commission. If the Commission still refuses to take any legal actions FACE will initiate court procedures. The Federation has the support of 12 countries-members of EU, but France imposed a veto on the decision. During may 2002 FACE sent an official request to the President of the European Commission Mr. Romano Prodi to propose to the Council of Ministers to invalidate the duty, which led losses at a value of hundreds of millions EUR, but the European Commission refused.
Source: Pari (26.05.2003)

The rates of growth in the consumption of prime nickel in the world during 2002 have been speeding up faster than the rates of production. In this case the experts expect in 2003 again a deficit of nickel on the world market. The consumption of 122.6 thous. tons in 2000 at production of 1082.5 thous. tons formed a deficit of 40.1 thous. tons in the nickel industry. The forecasts for the production of the metal in 2003 expect an extraction of 1236.9 thous. tons and demand of 1237.7 thous. tons and is very possible to be formed a deficit of 800 tons. At the same time the production of nickel in the world continued to increase with fast rates. Over the former three years the extraction of prime metal was increasing with 20-35 thous. tons per year while this year is expected a considerable activation and a growth of the extractions with about 57 thous. tons. The biggest growth in the extraction of refined metal is expected in Australia, Columbia and Norway.
Source: Pari (27.05.2003)

The repressed by the low market prices producers of zinc found a solution of the problem and in 2002 cut the production expenses on the extraction of the metal with 16 per cent. According to the Australian analyzator AME Mineral Economics during the last two years, the expenses for 20 per cent of the extracted in the world zinc were higher than its average stock exchange price. This is with over 5 per cent more expensive than the production expenses for the period from 1997 to 1999. According to evaluations of ÀÌÅ in 2002 about 25 per cent of the lead in the world were also extracted at expenses which were higher than the market prices.
Source: Pari (27.05.2003)

Indonesia - one of the biggest producers of tin is preparing to increase the extractions over its initial plans because of the increasing demand from China. China is the first country in the world by extraction of tin but the exact quantity can’t be estimated because of the considerable manufacture of many illegal mines. For this year China expects extractions under 60 000 tons of tin in comparison with 80 000 tons in 2002. The deficit of tin in China caused an increase of the stock exchange prices of the metal which at the moment at LME are moving about 4760-4800 USD/t in comparison with 3620 USD/t in February, 2002. Indonesian trader shared that he hoped for prices of 5000 USD/t during the third quarter of 2003.
Source: Pari (27.05.2003)

The sole Bosnia aluminum plant in Birach, bought in 2001 by Ukio Bank for about USD 4.5 million, will start in July the manufacture with capacity of 300 000 tons per year in comparison with 600 000 tons before the war.
Source: Pari (27.05.2003)

The manufacture of precious metals of Norilski nikel will become more varied, mainly gold after the purchase of the biggest Russian gold producer Poluse.
Source: Pari (27.05.2003)

The Belgium group Umicore raised the amount of its deliveries of germanium tetrachloride for optical fibres during 2003. The raising in the deliveries is a result of the growth in the demand of the electronics and optical industry.
Source: Pari (27.05.2003)

Machinery at total value of EUR 7.5 million were installed in Alkomet JSC, announced the owner of the Shumen-based factory Mr. Fikret Indje. As result of the raised capacity of the factory over the last month were processed 1844 t. aluminum, which is a record amount for the company over the last 14 years. 85 per cent of the production of the company is exported in the countries from the EU. The sales incomes as of the beginning of the year are at a value of USD 4.3 million.
Source: Pari (27.05.2003)

Chili increased the export of copper in April with 8.6 per cent up to USD 597.3 million compared to April 2002. From January to April, this year the export of copper from the country amounted to USD 2.341 billion – with 9.1 per cent more than the same period of 2002. The biggest Chili copper mine Escondida increased its production from January to April with 41.2 per cent. The export of copper from the country is 40 per cent from its total volume.
Source: Pari (27.05.2003)

The European Commission (EC) has given permission for state aid packages for steel firms in Eastern Europe in return for capacity reductions. Such deals could be closed for Romania and Bulgaria, which are hoping to join the EU in 2007, and Turkey, Croatia and Macedonia, a EC source told Reuters. These countries, however, will have to agree restructuring plans for their industries before winning support from the EC. EC's decision is connected with the pending acceptance of the best-performers in the EU next year, Politimi Paunova, chairwoman of the branch metallurgy chamber, said. According to her, the situation for Bulgarian steel production is different because a restructuring programme has not been yet approved. The issue about reducing the capacity of Bulgaria's three steel companies: Kremikovtsi, Stomana Industry and Promet Steel of Bourgas, will arise after the sector restructuring programme and Kremikovtsi's viability plan are approved. If the documents show that state aid has been provided to the sector, the capacity will have to be reduced accordingly. The Bulgarian government undertook to prepare the programme and the plan at the end of last year. The EC appointed consultants to draft the restructuring programme. Promet Steel's CEO Miroslav Borisov said his company had not used state aid. We are oriented to the American market and we are not even affected by EU's anti-dumping measures, Borisov said. Anton Petrov of Vio Halko, Stomana Industry's owner, said he was not yet acquainted with EC's decision but the company would have to be restructured.
Source: Pari (28.05.2003)

The market of aluminum scrap in the world is passing through a crisis because of the depression of the automobile and construction industry – the main suppliers of scrap. The pressure of the shrunk deliveries is speeded up by the high demand of import from China in spite of the increasing prices of the aluminum scrap. In 2002 China imported 3.7 million tons scrap of non-ferrous metals, one-third of them were from USA. Over the first two months of 2003 the import of aluminum scrap from USA was 85 000 tons in comparison with 67 000 tons during the same period of 2002. The situation concerns considerably the producers of secondary aluminum from USA.
Source: Pari (28.05.2003)

The world manufacture of steel in January-April, 2003 increased in comparison with the same period of 2002 with 8.7 per cent up to 305.02 million tons. The biggest growth is realized in China – with 19.4 per cent up to 65.73 million tons. In Japan the manufacture increased with 6.6 per cent up to 36.05 million tons and in USA - with 4.6 per cent up to 30.67 million tons. Ukraine increased the steel-extraction with 9 per cent up to 11.7 million tons while Russia produced 19.92 million tons - with 7.1 per cent more than during the same period of 2002.
Source: Pari (28.05.2003)

The world stockpiles of aluminum in the western countries dropped in the end of April to 2.990 million tons from 3.005 million tons in April, 2002. The drop owes to their decreasing in America and Pacific. The other regions of the world increased their stockpiles of the metal.
Source: Pari (28.05.2003)

Belgium producer of copper Lamitref continues the negotiations for partnership with Umicore and promised to close its loss-making productions. Lamitref has already closed the plant in Germany which costs EUR 25 million. The company manufactures 246 000 copper ready and semi-completed. Umicore searches for more proper candidates for partnership.
Source: Pari (28.05.2003)

Two Turkish companies will construct a new electric steel-extraction complex in the metallurgic plant Promed steel in Debelt. They are Izmir Demir Chipik whose activity is engineering and designers’ activity and the machine-building plant Asmash. The first company will design the engineering and will exercise the supervisor control on the construction of the new plant. The new plant will produce about 450 000 machinery parts that will secure loom 300 with raw-materials. The extraction part will close the production cycle and will reduce the prime cost of the production. According to preliminary data, the profit of Promed steel JSC will increase with about 20-30 USD/t. The investment is USD 25 million. A part of the funds will be provided by the shareholders of the company and the rest through a credit from a financial consortium. The deadline for the complex construction is 18 months.
Source: Pari (29.05.2003)

The deficit of steel scrap will increase the demand of prime nickel, mainly Russian when the big producers of stainless steel in Europe increased the extractions with about 10 per cent. The available sources of scrap reduced and it got more expensive after the shrunk of deliveries with high contents of nickel because of the depression in the airplane construction.
Source: Pari (29.05.2003)

The plant for non-ferrous metals in Plovdiv is the first company in Central and Eastern Europe that will install integrated information system for management of the production and administrative processes /ERP/, said Mr. Dimitar Nestorov who is IT Manager in the plant. The system will work on the most modern hardware platform of HP server Itanium2 with 64-byte architecture. The project is in partnership with Siemens Business Services and SAP-Bulgaria. The economic effect of the system is expressed in improvement of the whole activity of the company with 3-7 per cent. The annual net sales of the plant are over USD 100 million and over 2/3 of the production are for export.
Source: Pari (30.05.2003)

The manufacture of lead in Europe reached stable volumes after many cuts of the extractions in France, Belgium and Great Britain in the beginning of 2003. The other producers also keep the extractions to the levels of 2002. Since the beginning of the year the European production has shrunk with 10 per cent after the closing of the French company Metaleurop with annual capacity of 140 000 tons, Britannia Refined Metals Northfleet Refinery and reduce of the production of Umicore with 20 000 tons up to 30-35 000 tons in the Belgium plant Hoboken. In expectation of the increased demand of lead, concentrates and alloys of all kind, in 2004 all producers are ready to increase the extractions.
Source: Pari (30.05.2003)

The privileged consumers and producers of electricity discuss the future liberal energy market which is envisaged in the new energetic law. The Ministry of Energetic, State Energetic Regulation Commission, BIBA and NEC organized the meeting in Velingrad. Neither the privileged consumers, nor the producers of electricity know what will be their duties and dividends at the conclusion of direct contracts between them and this is an obstacle for the pre-liberalization of the market because the first participants in it are not prepared. The Commission gave a statute of privileged consumers to Maritza iztok mines, Stomana industry, KZM-Plovdiv, Assarel medet-Panaguyrishte, Elatzite med, Umicore med-Pirdop, Devnia tziment, LUKoil-Neftochim, Agropolichim and Neochim.
Source: Pari (30.05.2003)

Mr. Ludmil Stoikov, Manager of Eurometal and Chairman of the Board of Directors of Stomana Industry: The Governor of BNB has to be conservative and his decisions have to guarantee the thoroughness of the state-owned reserve and the stability of the Currency Board in order not to be repeated the situation from the end of 1996 and the beginning of 1997. Besides, the Governor of the Central bank must have a wide support and to be out of the Government which will prove his political independence. Unfortunately, I don’t know the features of the current candidates for Governors of BNB and can’t define who of them is proper for this position.
Source: Banker (31.05.2003)

Over 10 companies declared in the State Energetic Regulations Commission their want to receive a statute of privileged consumers, was reported from the commission. This statute allows the big consumers to conclude contracts with independent suppliers, as they will deal the prices and conditions of the deliveries. The most important condition for acquisition of such a statute is the companies to have annual consumption of over 100 000 mgw/h per year. 15 companies in Bulgaria respond to this condition. These are Kremikovtzi, Maritza iztok mines, Stomana, BDZ, KZM, Asarel Medet, Elatzite med, Umicore, Denvia tziment, Chimko, Toplofikatzia Sofia, LUKoil Neftochim, Neochim and Agropolichim. Some of these companies will drop out since do not respond to the requirement not to have any debts to NEC. There is still the problem whether the Commission will allow Kremikovtzi to become a privileged consumer because the plant has recently had serious problems with NEC because of rescheduled debts.
Source: Dnevnik (02.06.2003)

The demand of zinc in the world in 2003 will increase because of its huge growth in China but the increased consumption of lead in the country will cause a record deficit of the heavy metal. The world market of zinc remains under the influence of the surplus of deliveries that supposes a stagnation in the stock exchange prices except at extraordinary circumstances. According to the International Group of Lead and Zinc /ILZSG/ the global consumption of zinc in the world will increase in 2003 with 3.9 per cent owing to the increased with 5.7 per cent demand of zinc from China.
Source: Pari (02.06.2003)

The lead-zinc plant in Kurjali stopped temporarily its production of lead and zinc. The plant is working with imported zinc concentrate from Romania, Serbia, Turkey and Greece and lately also from Maroco, Mexico and Peru. The Managers of the plant are pressed by the deficit of zinc concentrate at the international market and the low prices of the metal. The manufacture of lead works with 50 per cent of its capacity.
Source: Pari (02.06.2003)

Canadian metallurgic company Inco in Sudberry stopped the manufacture of nickel because of a strike of the workers. The company produces 9 per cent of the nickel in the world and also considerable quantities of copper. Nickel is used mainly for the manufacture of stainless steel and lately its prices have increased at the international stock exchanges. The other big world producer – the Russian Norilski nikel continues to keep under pressure steel producers and traders as it does not reveal its intentions for sales.
Source: Pari (02.06.2003)

Romania sold a share of 70.76 per cent from the assets of the plant for pipes Tergo to the international conglomerate LNM Holdings NV, a property of the Indian businessman Lakshmi Mital. LNM has already possessed the Romanian plant for steel Sidex and the Czech metallurgic company Nova Hut. LNM takes part in the tender for the biggest Polish steel-extraction plant PHS.
Source: Pari (02.06.2003)

The export restrictions are the last chance to be stopped the mass export of copper scrap from Europe to China at prices which are higher than these at the domestic market. At the moment China is buying big quantities of copper and aluminum from Germany. This creates a deficit at the domestic market that is increased by the export restrictions, introduced by Russia and Ukraine. China can afford to buy at high prices because it works at protected domestic market and does not pay high ecological fees.
Source: Pari (02.06.2003)

The prices of nickel increased again just like in the end of February when was reached the amount of USD 9140 per ton – the highest level since 2000. This time the increase was not so big but enough in order to drag up the quotes of the rest metals from the group, traded at LME. The anxiety for the state of the deliveries increased when the Australian company Resolute Mining Limited voluntarily declared a bankruptcy. The nickel moved from USD 8675 to USD 8850 per ton.
Source: Capital (02.06.2003)

Mexico increased in March the manufacture of zinc with 32.1 per cent and with 8.6 per cent of silver.
Source: Pari (02.06.2003)

Promed steel JSC will invest USD 25 million in a new plant for steel-extraction that will be built near Burgas, announced Mr. Ishan Cholak who is Manager of Project and engineering department in the Turkish company Izmir Delir Cholak. The company will design the engineering and will exercise the supervisory control of the construction. The deadline for the construction of the new plant is 18 months. During the construction process will be provided work to over 1000 people. A part of the funds for construction of the plant are of the company’s shareholders and the rest will be provided through crediting of financial consortiums. The future plant will produce about 450 000 tons raw-materials that will entirely satisfy the needs of Loom 300. According to preliminary calculations the profit of Promed steel JSC will increase with about USD 20-30 per ton. The manufacture of the steel-extraction will be ecologically clean and the project will be in accordance with all requirements for preservation of the Environment. The Turkish machine-building plant Asmach in Izmir will work out a part of the metallurgic equipment for the steel-extraction capacities of the plant near Burgas.
Source: Dnevnik (03.06.2003)

The Belgium mine giant Umicore will start a programme for investments in new productions with higher added value after it bought the operations on extraction and processing of precious metals of the American OM group. The deal costs EUR 643 million and is the biggest acquisition in the history of the Belgium company and shows its desire for development in fields like the manufacture of fuel cells and catalizators. The analyzators consider that if the anti-monopolistic authorities approve the deal, Umicore will become one of the three biggest companies in the world for manufacture of catalizators for automobile engines. OM group has a serious potential for development in the field of the catalizators for diesel engines. However Umicore will also face serious difficulties since the finance of the deal will increase the correlation debt against shareholders’ equity from 12 to 70 per cent. Umicore is the major owner of the copper-extraction plant in Pirdop. The company has presented at Bulgarian market since 1997 and so far has invested in Bulgaria USD 300 million..
Source: Dnevnik (04.06.2003)

The total debts to the National Social-Security Institute-Burgas are BGN 22.650 million, announced the Director of the Institute Mr. Encho Zhekov. According to him for 6 months has been observed a continual trend for reduce of the debts. The biggest debtors of the Institute in Burgas are Burgas Port, Burgas copper mines and Promed steel. Burgas port had to pay about BGN 6 million but in March was prepared a plan for rescheduled payment. Now the company owes BGN 4.5 million. Promed steel has to submit BGN 4 million and Burgas copper mines has to submit BGN 2 million.
Source: Pari (04.06.2003)

The Canadian company INCO reported that it would not execute any of the obligations on regional contracts for delivery of nickel, copper, cobalt and other own products because of force majeure circumstances. The strike in Sudberry where are produced 10 per cent of the nickel for the world market still continues.
Source: Pari (04.06.2003)

The Russian steel giant Severstal – the biggest supplier of steel products in the Baltic region re-negotiates its export quotes with Latvia before its association to EU in May 2004. Severstal wants to increase the export of steel and steel products because of their increasing demand in the region but fears of any unfavourable change in the quotes. EU and Russia agreed for an alternative - a third country to deal quotes with the candidates for EU.
Source: Pari (04.06.2003)

The leading producer of zinc in the world Belgium company Umicore announced its intention to buy the section for manufacture of precious metals of the US group ÎÌ. The future deal costs EUR 643 million in cash and is aimed to confirm the positions of the Belgium giant in the branch. The forthcoming acquisition of the subsidiary of ÎÌ by Umicore will create a new bigger and stronger leader in the processing and recycle of precious metals, declared the Executive Director of the Belgium producer Mr. Thomas Laysen. The acquisition will contribute not only for the higher market amount of the company but it is expected a synergy effect from the merger. This separation was made in order to be given an opportunity of OM to focus on its main activity. As a result of this news the shares of Umicore increased with 2.13 per cent to EUR 40.79 and these of OM with 2.9 per cent up to USD 14.89.
Source: Pari (04.06.2003)

Over the first quarter of 2003 the extractions of prime zinc in the world increased with 3.2 per cent up to 2179 thous. tons in comparison with the same period of 2002 but the global consumption increased with 4.7 per cent, was reported from ILZSG. The manufacture of refined zinc over the period also increased up to 2422 thous. tons compared to 2344 thous. tons over the same period of last year. The trade stockpiles of this metal of the countries from West World increased in March, 2003 up to 1123.6 thous. tons compared to 1094 thous. tons in the end of 2002. In March, 2003 the reserves of the producers increased up to 323 000 tons in comparison with 318 000 in February and 315 000 tons in the end of 2002.
Source: Pari (04.06.2003)

The increasing demand and the decreasing stockpiles of lead will cause a rise of the prices of lead by the end of 2003, according to the Manager of the Italian branch for recycle of lead of the British company Eco-Bat Tehnology PLC Mr. Gaetano la Corte. At the moment the prices in Europe are low but after the cuts in the manufacture and the decrease of the reserves in September-November or even in July they will increase. All depends on the unexpected behavior of China where the domestic market is quite variable. The denominated in USD prices of the lead and its alloys may lead to fall off the producers’ incomes because of the more expensive euro but the production costs for lead accumulators and batteries and lead scrap remain unchanged. The manufacture of lead in Europe was reduced with totally over 10 per cent or 200 000 tons over the last 6 months after the closing of plants in France, Great Britain and shrink of the extractions Umicore-Belgium.
Source: Pari (05.06.2003)

The European Commission reported for creation of a joint-venture between the French company Arcelor – the biggest producer of steel and the Belgium company Umicore. They will cooperate its marketing and trade companies for metals and metal articles. Umicore confirmed the statement but also added that the deal was not still finalized.
Source: Pari (06.06.2003)

The Serbian company for copper Borilski mines will conclude a deal for research in the field Tzrni vrh for fields of copper, golden, silver, zinc and lead with Chili company Rio Tinto. Rio Tinto took also interest in research activities of Borska reka where there are 600 million tons ore that content 2.5 million tons copper.
Source: Pari (06.06.2003)

In March, 2002 USA imposed anti-dumping duties from 8 per cent to 30 per cent on a wide group of steel articles in order to protect the local manufacture. One year later the results of them are quite controversial – the local companies continue to report losses and in a preliminary decree WTO was said that the duties broke the trade rules. If the decision is confirmed, EU, Japanese, Brasilia and other countries will have a right to use defensive measures. The Ministry of Economy rejected the demand of Kremikovtzi JSC for introduction of protective measures for the imported steel. Kremikovtzi required one year ago the introduction of duties at the import of goods with tariff position 7208 which includes flat-rolled products of iron or of steels with width 600 mm or more, hot-rolled. On July 8, 2002 the Ministry of Mr. Nikolai Vassilev initiated a procedure on investigation of the increased import. In the statement of the plant was pointed that the increased import of the production, mainly from Russia, Ukraine and Kazahstan over the last 3 years caused serious changes in the market structure. Thus the domestic sales of the company of hot-rolled rolls and lists of steel dropped from 81.5 per cent in 1999 to 23.7 per cent in 2001 and in this way the company works with reduced capacity. The Ministry rejected the claim of the plant with motives that some of the products are not produced in Bulgaria and the introduction of protective measures will bother the companies that consume them. Besides, the financial results of the plant are getting better without a limit of the import. In the beginning of April the ministry of Economy prolonged with another two months the investigation. The Belgium group Eurostrategy Consulting is selected by the European Commission to make a plan for sturdiness of the plant. Representatives of the consultant have already arrived in the company. Their purpose is to find out whether to Kremikovtzi was provided a state-owned subsidy in amount of USD 100 million during the time of privatization in 1999. According to the European legislation this is inadmissible because it is forbidden the granting of state-owned subsidy in the steel-extraction.
Source: Pari (09.06.2003)

Nickel began to increase over the last week, overcoming new heights on its way to the amount of USD 10 000 that reached about three years ago. However, this time the rest non-ferrous metals, traded at LME (copper, zinc, lead, tin and aluminum) did not follow the nickel, just the opposite – they moved to lower levels than the registered ones lately. In the base of the higher nickel’s price is the weal supply of the metal at the international markets and the strike in the Canadian producer Inco which probably will plung the problem. On June 6 the nickel settled at USD 9410 per ton.
Source: Capital (09.06.2003)

The Council of Ministers accepted 2 decrees – for the electric energetics and for the natural gas. According to the decree for the electric energetics all consumers with over 100 million kw/h annual consumption has to be able to conclude contracts with independent producers in the State in 2003. In this way are guaranteed 18.9 per cent opening of the domestic market. For the time being is expected at the free market to be sold a part of the electricity of TPS Maritza iztok 2, of TPS Maritza 3, of TPS Bobov dol and of TPS Varna. In the near future will be also included NPS Kozlodui but first it has to start to pay the loans for the modernization of V and VI block and to stop to threaten the competition with antidumping prices. The companies that respond to the requirements for the statute of privileged consumers are Maritza iztok mines, Stomana industry, KZM, Assarel medet, Elatzite med, Umicore med, Devnia tziment, LUKoil-Neftochim, Burgas, Agropolichim and Neochim. The fact that these producers have a consumption over 100 million kw/h per year and are financially stable is sufficient proof that they won’t allow anybody to make a market liberalization on their account. It is not surprising that they are disappointed from the offer even before the negotiations. Deregulation of the electric energetics market is in accordance with the contemporary world trends for stop of the monopoly in the energy deliveries but at the scheme which is developed, the consumer is forced to take a quite high risk, according to Mr. Anton Petrov who is representative of Bulgaria for Viohalco – the Greek concern that is major owner in Stomana industry.
Source: Pari (10.06.2003)

London Metal Exchange has worked for a long time on the introduction of a futures trade with steel and steel products but in many countries this production continues to be under the protection of the country. This fact prevents from the regulation and the easier terms at the trade with steel which in world scale amounts to 900 million tons in comparison with the leading metals at LME – aluminum and copper. The introduction of this trade will require 12-month testing period.
Source: Pari (10.06.2003)

The lead-zinc plant in Kurjali (OZK – Kurjali) will renew the manufacture of zinc in the middle of June when got over the problems with the irregular import of concentrates, announced the Executive Director of the company Mr. Nikola Pashinov. In 2003 OZK intends to manufacture 22 000 tons zinc in comparison with 9530 tons in 2002. The annual capacity of the plant is for 27 000 tons zinc and 33 000 tons lead. OZK is the second by size producer in the State after the plant for non-ferrous metals in Plovdiv which also increased the extraction of zinc over this year and expects by the end of 2003 to produce 73 000 tons and almost the same quantity of lead compared to 60 614 tons in 2002.
Source: Pari (10.06.2003)

At the introduction of high protective duties for steel and steel articles in 2002 USA excluded from the list the sticks, set squares and wire of stainless steel. But the import of these articles from India increased over the first quarter for the set squares with 25 per cent up to 2761 tons from 785 during the same period of 2002. The import of sticks of stainless steel increased with 49 per cent and the total import of the two products for January – March, 2003 reached 6080 tons - with 97 per cent more. The import of special steels forms 2 per cent of the total import but the incomes are about USD 8 billion or 14 per cent of the total import amount.
Source: Pari (10.06.2003)

The strike in the biggest western producer of nickel – Canadian company Inco caused a rise in the price of the metal up to 3-year maximum of 9555 USD/t. But China declared that intended to increase two times the import of the metal up to over 60 000 tons from 31 489 tons in 2002. The country continues to develop the manufacture of stainless steel for its economy and expects to produce in 2003 1.3 million tons or with 30 per cent more than 2002.
Source: Pari (10.06.2003)

For a first time over the last two years young people began to come back in Bulgaria, declared the Minister of Economy Mr. Nikolai Vassilev at the final meeting of participants in the students’ project How to make a successful career in Bulgaria? This year the project gathered a record number of participants – over 6 000 and about 40 companies, announced the Executive Director of Aims Human Capital-Bulgaria Ms. Maria Shishkova. In the period May 9 – June 5 for the students were organized 18 professional seminars at which were announced practice positions in leading companies in Bulgaria such as Nestle, Sisco Systems, Viohalco, Albena JSC, Bulbank.
Source: Pari (10.06.2003)

The companies, which satisfy the requirements for privileged consumers of electricity in accordance with the new energetics strategy, adopted by the Parliament in the middle of 2002, are Maritza Iztok mines, Stomana industry, KZM, Asarel Medet, Elatzite med, Umicore med, Devnya cement, LUKoil-Neftochim Bourgas, Agropolichim and Neochim. The fact that these companies have electricity consumption of over 100 million kilowatt hours annually and are financially stabile should be sufficient evidence that they will not allow someone to liberalize the market for their extent. It is not a surprise that before they had the opportunity to negotiate directly for a purchase of electricity with the thermal power stations, they were already disappointed by the offer. The deregulation of the energetics sector is in accordance with the modern trends for lowering the monopoly in the branch, but the sheme which is used in Bulgaria forces the consumer to take an extraordinary risk, is the opinion of the representative of Viohalco group for Bulgaria Mr. Anton Petrov.
Source: Pari (10.06.2003)

The shareholders of Alumina invest JSC decided to continue the activity of the ceased through liquidation company. The major motive for restoration of the activity is the concluded contract with PA for the purchase of Alkomet JSC that expires on September 13, 2004, announced the Executive Director of Alumina invest JSC Mr. Hristo Dechev who also takes the same position in Alkomet JSC. In 1999 the consortium which included the Turkish company FAF Metal and the former MEBO Alumina invest won the bidding for 75 per cent from the capital of the former Alumina. Now the major owner of Alkomet is Alometal JSC that holds 74.61 per cent from the capital. The Turkish company FAF metal holds 16.90 per cent, Almed Ltd. has 3.20 per cent and Alumina invest JSC has only 0.19 per cent.
Source: Pari (11.06.2003)

The position of the biggest debtors to National Social Security Institute is headed by the metallurgic plant Kremikovtzi and the taken measures are distressed bank accounts. The plant is followed by Stomana-Pernik. There is an approved sinking plan for a part of the debts and a reconstruction programme for this company.
Source: Pari (11.06.2003)

Although Iraq does not produce prime non-ferrous metals, thousands tons of metals, mainly copper scraps, plundered from infrastructure objects, are exported daily from the country. The smuggler export passes through the frontier with Jordania, reaches the local port Akaba and then travels to definite destinations. At the moment the demand of copper and brass scrap from China and India is big and it is considered that namely these countries buy the Iraqi metal. The prices of the copper scrap in Western Europe at the moment are 1350 EUR/t or 1585 USD/t.
Source: Pari (11.06.2003)

The lead-zinc copper extraction and processing complex Trepca in Kossovo probably will restore its work by the end of 2003. It is expected at least 5 of the 8 lead-zinc mines to start operating until then.
Source: Pari (11.06.2003)

The biggest processor and producer of aluminum in the world ALCOA selected the private American company Bechtel Group for a partner of the Island engineering consortium HRV for the construction of its new aluminum refinery in Island which costs USD 1 billion. The US Alcoa will produce 322 000 tons metal in Island and the plant will start operating in the middle of the year.
Source: Pari (11.06.2003)

The biggest producer of steel in the world – the giant Arcelor will reduce its production of stainless steel in the summer with 50 000 tons per month because of the shrunk consumption, the accumulated warehouse stockpiles, the expensive euro and the shrunk export to Asia which is caused by the A-type pneumonia. Arcelor will take the measure in three of its plants, based in Belgium and France. It was created last year at the huge merger of three European companies – the French Usinor, Luxembourg Arbed and the Spanish company Aceralia. In 2002 in Europe were produced totally 5 million tons stainless steel. The other European top producers of stainless steel also intend to cut their extractions. It is expected the German giant Thyssen Krupp to take a decision even over this week for shrinking of its Italian branch production with 40 000 tons. From the company was reported that the demand of steel in the summer is conventionally weaker.
Source: Pari (12.06.2003)

The sole copper extraction and zinc extraction company in Uzbekihstan Almalyk plans to increase its production of copper cathodes in 2003 with 6 per cent up to 85 000 tons. The information that was given by Almalyk does not include data for the zinc manufacture in 2003 and in 2002 were extracted 78.9 thous. tons. The biggest producer of nickel in the western world – Inco envisages penetration on the global market in a period of considerable deficit that is calculated to about 30 000 tons.
Source: Pari (12.06.2003)

The biggest producer of zinc and lead in the State – KZM-Plovdiv reported that it increased its zinc production with about 2 000 tons during the first quarter of the year up to 17.506 thous. tons because of the higher production capacities. Thanks to the invested USD 60 million in March, the capacities with which KZM operates are with 17 per cent higher. It is expected in 2003 the plant to produce totally 73 000 tons zinc or with 17 per cent more compared to last year. Meanwhile the extractions of lead remained almost unchanged in comparison with the same period of 2002 and amount to 14.802 thous. tons. The rival of KZM – OZK-Kurjali reported over the last week that also planed to increase its production although it shrunk the manufacture and 1/5 of the employees in 2002 because of the low prices of the non-ferrous metals at the world stock exchanges.
Source: Pari (13.06.2003)

One of the 18 companies under the hat of the Serbian copper and processing complex Bor - Topionica i Rafinerija /TR/ most probably will be divided into other smaller companies in order to attract foreign investments for the modernization. According to the General Manager of TR Mr. Dragitza Jovanovich this measure will be taken since it is almost impossible to be found one strategic investor for the company which consists of 10 independent units. French and Italian companies took interest for the time being. There are rumors that it is negotiating with Greek Mytilineous but Mr. Jovanovich did not comment. It is expected the foreign partner to invest USD 20 million in the major business and the production to reach its maximum capacity of 23 000 tons. Over this year TR will produce two times less copper concentrate compared to 2002.
Source: Pari (13.06.2003)

Mr. Ludmil Stoykov, a President of Ladimex holding and Executive Director of Dujni JSC: How is developing the company Stomana-Pernik? - We entered Stomana-Pernik in January, 2000. We have worked independently for one year and a half and financial result was a profit. The plant recovered and international companies started to take interest in it. In June, 2001 we chose for our partner the Greek metallurgic company Viohalco to which we sold the major stake of shares. Besides its good financial state, the Greek company has very good credit rating which gives opportunity for using credits and financing from different banks. The Greek banks will be the main partners in our future investments in the metallurgy. Did you make any real investments in the metallurgy? - It was made a huge investment – we bought a new machine of Danielli. It is a brand new in the metallurgy and started to work in November, last year. Thanks to the investment we can produce qualified products, to enlarge the group and markets, to reduce the prime cost and in this way to be more rentable. We increased the manufacture with 30 per cent in comparison with 2002 and 2001. What are your joint plans with Viohalco? - We have a very ambitious programme together with Viohalco in the next 5 years to invest about USD 70 million and the plant to become one of the modern in Europe. Where do you sell the metallurgic production? It is mainly for export. We are known almost all over the world. In Europe Stomana had traditional partners in Spain, Italy, Portugal, Greece, Germany, Belgium. This year we have increased our partners – we export to Tunis, Maroco, Egypt. About 50 000 tons are exported to China. We also penetrated in America and Canada. How do you cope with the competition in the State? - The metallurgic plants in Bulgaria are not competitors because they produce different types of products. We complete a little bit with Promet – Debelt and with Kremikovtzi but only in some degree. We are not competitors even at foreign markets because we export different sorts of products. More specifically we produce and export sheet-irons with gauge exceeding 8 mm for the construction, ship and machine-building. In Kremikovtzi are produced sheet-irons from 2 to 8 mm. Promet produces the thin profiles of 25 mm, set squares up to 50 mm and we – over 50 mm.
Source: Dnevnik (13.06.2003)

The next two weeks will be crucial whether the biggest state-owned producers of steel will manage to make out for the preliminary text of the agreement for cutting the subsidies before the beginning of the meeting of WTO in September. During last week the 40 countries that presented at the meeting in Paris revealed advance in many directions. The text includes 8 items and if the countries do not reach an agreement, it won’t be presented at the meeting. The negotiations will continue after the meeting of WTO in Mexico from September 10-14 and the point is to be finalized by the end of the year.
Source: Pari (16.06.2003)

Over the last week the non-ferrous metals except nickel, traded at LME became cheaper under the pressure of technical liquidation of positions. The price of aluminum dropped with USD 60 in comparison with the reached quote of USD 1435 per ton 9 days earlier. The market retracted from nickel positions when the Russian producer Norilski nikel declared its intention to launch at the market 24 000 tons nickel from its stockpiles. The mood at LME is quite minor. According to one of the traders there would follow a stage at which would start a liquidation of positions of funds and banks.
Source: Capital (16.06.2003)

Canadian customs agency started a procedure on investigation of import of steel articles from Bulgaria, Romania and Czech Republic because of doubts for dumping. The investigation was initiated in connection with a complaint made by the third by size Canada steel-extraction company Algoma Steel Inc. The company points that the import of hot-rolled rolls and stable sheet-iron at dumping prices influence adversely on the local manufacture and cause a reduce of the market quotes of the Canadian companies, a decline in the prices and sales and insufficient use of the production capacities.
Source: Pari (17.06.2003)

The 7 per cent reduce of the nickel prices over the last week is a result of the shrunk production of stainless steel in Europe, the realized sale of 24 000 tons of the metal by Norilski nikel and the strike in one of the mines of the biggest producer of the metal in the Western world Inco. It is expected the strike to continue about 1 month and the company to extract with 9 000 tons less metal. On the other hand the Russian metal giant Norilski nikel for a second time over this year is trying to make a dumping of the market prices. In March it offered 36 000 tons nickel and caused a decrease of the prices under 8000 USD/t. In spite of the fall in the quotes, they are with 60 per cent higher in comparison with the beginning of this year and the nickel is one of the best performing non-ferrous metals over this period.
Source: Pari (17.06.2003)

One of the 18 companies which are included in the copper-extraction and processing complex in Bor, will conclude a deal in the beginning of July with the British-Australian mine-extraction company Rio Tinto. According to the deal the latter will invest USD 5 million over the next 3 years in research activities of the fields of copper, zinc, lead in the area of Cherni vruh.
Source: Pari (17.06.2003)

The export of copper concentrate from Mongolia, which is one of the leading producers in the world, has declined with 11.5 per cent at an annual base reaching 185.4 thous.t. during the first five months of 2003. During 2001 Mongolia exported 538 000 tons of copper concentrate. The export of this product represented 83.4 per cent of the total export of minerals from Mongolia.
Source: Pari (17.06.2003)

The private Chinese metal-producing company Dongling Group started the construction of a zinc refinery with a capacity of 100 000 tons annually. The refinery will start working during 2005.
Source: Pari (17.06.2003)

Bulgarian export of hot-rolled flat iron to Canada for 2002 in which are included hot-rolled sheet metals and lists is hardly 10 150 tons which is 1.3 per cent from the total export, said the Chairman of Ferrous and Non-ferrous Metallurgy Branch Association Ms. Politimi Paunova . In 2001 was not realized any export of products from this group. The export of cold-rolled iron from Bulgaria amounts to 52 tons for 2002. These quantities can not harm the steel-extraction of Canada. Maybe there was realized a re-export of Bulgarian steel or to be executed a criminal deed but if it was a single case, this can not harm the manufacture of Canada.
Source: Pari (17.06.2003)

Kremikovtzi owes BGN 17 million to BDZ SP JSC, was reported from the company. The accumulated debts are from non-paid transport of cargos from and to the plant. As of June 12 the debt was BGN 16.7 million and two weeks earlier – BGN 14.5 million. Kremikovtzi is the biggest client of BDZ. Because of the preferential tariffs for the plant, the latter forms under 10 per cent of the incomes of BDZ.
Source: Standart (18.06.2003)

The French producer of aluminum Pechiney still takes interest in the purchase of the aluminum business of British-Dutch steel-extraction company Corus. The sale failed several months ago because of the opposition of the Dutch Board of Directors. In April Corus reported that the sale had not been actual. The deficit at the world market of copper in the first quarter was 73 000 tons at surpluses of 213 000 tons one year ago.
Source: Pari (18.06.2003)

The increased mainly in Latin America mine-extraction capacities and the weak demand of copper are not conductive to reduce of the copper stockpiles although the wave of the production cuts off is not still stopped. In spite of the fall in the stockpiles in 2003, they are fluctuating about 1 million tons. Most probably the stockpiles will be exhausted in 3-4 years. According to the last report of the consulting house BLoomberg Mineral Economics /BME/ there are surplus capacities of 850 000 tons copper in the world per year. Unfortunately the extractions continue to show a growth of 3-3.5 per cent per year and that is why it can’t be expected a quick reduce of the stockpiles. According to experts from Brook Hunt in 2005 the global copper-extraction capacities will be 1.6 million tons per year mainly because of new projects in Latin America. It is about the projects concerning two mines of Codelco in Chili, a mine of CDVR and a project for development of a new mine in Chili near the biggest one in the world Escondida.
Source: Pari (18.06.2003)

The value of the deal for the purchase of 51 per cent from the US Stillwater by Norilski nikel has reduced with 1/4 since November which is due to the lower amounts of the palladium. Stillwater is the sole producer of the metal in America and Norilski nikel is producer N 1 in the world.
Source: Pari (19.06.2003)

The company for geologic researches and drilling works Bolkan Mineral and mining JSC was approved by the Government to make a research of the metal natural resources in Brestovo area, situated in the region of Blagoevgrad and Simitli Municipalities. According to the Executive Director of the company Mr. Nikola Savich at first the research will be of gold and if it is not found, there will be searched for non-ferrous metals, particularly copper. Bolkan Mineral and Mining is a subsidiary of the English-Irish company Van Mining.
Source: Monitor (23.06.2003)

The General Meeting of the shareholders of Alkomet JSC, held on Saturday, reporteä increased capacity loading and stable growth of production export. The roller production in the Shumen-based company is working with 63.6 per cent capacity, the press production - 50.3 per cent, foundry - 31.1 per cent. In 2002, 11 176 274 kg of founding rolled iron, 9 534 115 kg of rolled iron, 1 514 367 kg of press rolled iron were produced. The biggest sales were those of sheets and bands - 5 811 397 kg, foil - 3 652 718 kg, profiles - 1 199 476 kg. The export of Alkomet JSC is destined mainly to the countries members of EU. While in 2001 the production was exported to 16 countries, in 2002 the export markets expanded to 24 countries.
Source: Pari (23.06.2003)

The suppliers for the automobile companies and other processors, some of which republicans, called on the President of USA to postpone the duties for the steel. The American producers are in crisis and the tariff on the steel is a part of the problem. In the end of last week WTO held listenings about the effect on the companies-producers of steel and on the economy as a whole. By order of Mr. George Bush the commission develops a report whether the three-year programme reaches the result for promotion of the restructure in the local steel-extraction. After receiving the report, Mr. Bush will decide if to keep, to change or to postpone the duties that have already reduced from 30 to 24 per cent. During the third year of the programme they will be reduced more.
Source: Pari (23.06.2003)

The manufacture of nickel in the western countries reduced in April to 70 000 tons compared to 75 000 tons in March. The mine extraction also decreased – from 76 300 tons to 73 100 tons and the consumption reduced from 95 900 tons to 89 600 tons.
Source: Pari (23.06.2003)

The daily production of prime aluminum in May increased with 300 tons up to 59 900 tons, was reported from the International Aluminum Institute. In May the total manufacture reached 1.857 million tons compared to 1.788 million tons in April.
Source: Pari (23.06.2003)

Atomenergoremont, which lately has been widely discussed for its privatization, opened a procedure for election of a seamless pipe supplier. According to company information, they are looking for supplier of messing pipes for cooling installations. They added, that they have signed contracts with many Bulgarian and foreign suppliers of pipes and metals. Research among the companies, operating in this branch proved, that the only enterprise in the country, still producing non-ferrous metal alloys and capable of providing big volumes of seamless messing pipes, is Sofia med (former Combine for non-ferrous metal processing – Gara Iskar). Sofia med is the production enterprise, and Steelmet is the trade company. Together with Stomana Industry and Steelmet, the company is a part of the Greek industrial group Viohalco. According to Mr. Anton Petrov, representative of the Greek concern in Bulgaria, more than 85 per cent of the plants’ production is exported. The Greek company’s trade department said, that they are interested in the competition and are going to study the participation terms and requirements. Concerning the given parameters, company representatives explained, that the indicated standard GOST is Russian, and Bulgarian companies have been operating for 5 years under the European standard DIN. According to Sofia med’s management, there may be problems, arising from the fact that messing has different physical and mechanical characteristics according to the two standards, and the enterprise processes metal in accordance with European standards. At any rate, we will be able to offer the lowest price, the company is certain. Many Bulgarian companies import messing and seamless pipes. The biggest import comes from Russia, since Russian prices are the lowest, but there is also import from Germany. Istra SP Ltd. said, that they are capable of importing the necessary pipes, but are not willing to take part in the competition. The company has contracts with Enemona for the equipment of NPP Kozloduy.
Source: Dnevnik (23.06.2003)

Steelmet, aluminum profile maker, ownership of the Greek group Viohalco, recently launched a new opportunity for buying through leasing or credit cards for postponed payment. The company has a program for construction crediting, directed to entrepreneurs and citizens. The credit has no amount limitations. The term of the leasing is 12 months. If the initial payment is 30 per cent of total cost, the interest rate is 1 per cent, announced the company’s management. The credit receiver is not required to make a gage. One guarantee person is enough. The scheme is developed for hotel managers, as well as construction entrepreneurs, building public and production facilities, offices, homes. Under this scheme the hotels Maritza, Havana, the stores Mr. Bricolage and Technomarket, etc. were constructed. Another new service, launched by the company is be online – opportunity to order and trace through the Internet or mobile telephone the execution progress of the order and the amount of commodity credit. More than 2500 people are employed in the companies of the Greek group in Bulgaria. The average age of the 250 employees of Steelmet is 24 years. This is the first major investment, made by Viohalco in Bulgaria. The factory was built as a “green-field” investment in 1999. So far, it has invested more than USD 12.5 million investment capital and BGN 15 million turnover capital, which makes Steelmet one of 2000 biggest foreign investors for in Bulgaria, according to the company. Currently, additional capital investments are being made to the value of USD 4.5 million. After this extension, production capacity will grow by 30 per cent and 100 new job position will be opened. The product range includes over 3000 types of profiles, which are varied by another 450 every year. The annual capacity is 10 000 tons, which is two times more than current consumption on the Bulgarian market. The products of the Greek-Bulgarian enterprise, which are earthquake resistant, have been used for the construction of the face elevation of Athens Airport and the new olympic committee. Steelmet produce quality excel the cheaper analogues imported from Turkey. Unlike them, in cases of atmospheric changes, they do not allow precipitation of evaporation. Besides the usual problems, encountered by foreign investors in Bulgaria, related to the unstable legislative regulations and bureaucracy, the main hindrance in Steelmet’s way is unfair competition from trade with aluminum profiles, without VAT deficit, illegally imported from Turkey and Greece. Usually, they are cheaper, but do not meet any standards. As profiles and thickness they are not suited for Bulgarian climate. The legal rival on the domestic market is Alkomet – Shumen, specialized in rolled iron and aluminum and aluminum distortable alloys final products. As a trade company, Steelmet JSC disposes of stores in Bulgaria’s major towns: Sofia, Plovdiv, Varna, Blagoevgrad, as well as distributors in more than 10 Bulgarian towns. Sofia-based enterprise has its own store bases in Odessa and Moscow.
Source: Dnevnik (23.06.2003)

The Greek industrial group Viohalco JSC was established in 1937 as a company for processing and manufacture of copper and aluminum articles. Nowadays the group is placed at first place by turnover in Greece. The main part of the companies, included in the group has a certificate for quality ISO 9002. The biggest among them are Elval S.A. – a plant for roller production of aluminum sheets, bands and foil, Halcor S.A. - pipes, rods, sheets and copper and brass bands. The plant is among the few in the world that started the manufacture of copper pipes with inner threading. The production is exported to EU, USA and Japan. It has certificates for quality ISO 9002, RAL, BS. The plant Etem S.A. which is the major owner of Steelmet, manufactures aluminum profiles used in the construction of Grand Arche a la defence in Paris. In Viohalco family is also included the company for brass articles Fitco S.A., delivered the copper bands for Chaira Pumped Storage Power Plant by order of Toshiba. The main competitors of the Greek company are the three Bulgarian plants – Kremikovtzi, Stomana and Promet which, according to data of Ferrous and Non-ferrous Branch Chamber, have capacities for about 4 million tons annually while their manufacture is a little over the half of this quantity.
Source: Dnevnik (23.06.2003)

Sofia med was created in the beginning of 2000 when Halcor S.A. became owner of a part of the assets of the former plant for processing of non-ferrous metals (KOZM) at Iskar station in Sofia. The company acquired the pledge and mortgage right which KOZM gave to the International bank for trade and development for guarantee of a credit for money in circulation in amount of USD 3 million. Sofia med developed the manufacture and felt a pressure by the syndics who forced it to re-hire the former workers from KOZM which was not included in the legal engagements of the investor to the State. Now the employees in the plant are 280, a part of them were in the bankrupted company and by the end of the year the work-places will increase up to 450. The annual capacity of the company is 40 000 tons copper and brass semi-manufactured articles. It is expected to triple after finishing of the investment programme and to be exported to the European market. The company is the first in Bulgaria that uses an alleviation on VAT at the import of investment goods. Since the company is included in the project of the Ministry of Finance, the company is obliged to invest EUR 88.7 million. On the scheme will be imported machines for about EUR 35 million.
Source: Dnevnik (23.06.2003)

TeProMetal SP JSC is the biggest exporter of raw-materials and products of ferrous and non-ferrous metals from Bulgaria to Greece. The net annual turnover exceeds USD 30 million. In 2001 it bought the thermal gauging work-shop of Stomana JSC. So far have been invested BGN 7.5 million and other BGN 1.5 million are about to be invested.
Source: Dnevnik (23.06.2003)

Stomana Industry is the biggest company of Viohalco in Bulgaria and was created in the middle of 2001 when the Greek company bought a part of the assets of Pernik-based plant for ferrous metals Stomana. The planned investments are EUR 60 million. In the company are produced mainly steel products and the annual capacity is 1 million tons. The employees in the company are 1800.
Source: Dnevnik (23.06.2003)

Except in the metallurgy sector Viohalco has been investing for a third year now in a company for manufacture of wooden wrapping in Blagoevgrad. The fifty workers of Lesko Ltd. produce every month not less than cubic metres. TeProStil SP Ltd. and Sigma IS JSC are the newly-founded companies of Viohalco in Bulgaria for manufacture and trade with metal products, maintenance of electric and mechanic equipment.
Source: Dnevnik (23.06.2003)

10 companies are going to pay less for electricity, decided the State Energetics Regulation Commission. They receive a statute of privileged consumers because they spend over 100 GW electricity per year and don’t have debts. Maritza-iztok mines JSC, Devnia tziment, Agropolichim JSC, Assarel-Medet JSC, Elatzite med JSC, KZM JSC, Umicore med JSC, Neochim JSC, Sviloza JSC, Stomana industry JSC will use lower tariffs. The companies will deal themselves the prices of the electricity they consume. Kremikovtzi and OZK-Kurjali were not approved by the Commission.
Source: Standart (24.06.2003)

There is a reason to hope that the prices of copper will also continue to increase over the next year, according to the American analyzators who expect improvement of the major market factors and rise of the global economy during the second half of this year. According to the expert Mr. Fred Demler from Man Financial the market of copper gained over the last months from the considerable shrink of the warehouse stockpiles, the increased import in China and the decrease of the export from Russia. It is expected that the economy of China, the biggest consumer of copper in the world, not to be seriously affected by the TORS although over the last months the purchases of the metal in Asia reduced.
Source: Pari (24.06.2003)

The top producer of zinc in Russia – Cheliabinski zavod will extract 88 000-89 000 tons metal over the first half of 2003 or with 8 000-9 000 more in comparison with the same period of the former year. The management commented that they did not cancel their plans to produce over 175 000 tons for the whole 2003 but this will be possible when all capacities of the plant are loaded after a complete modernization of its infrastructure.
Source: Pari (25.06.2003)

The US company Bechtel starts the enlargement of the refinery of one of the biggest processors of aluminum in the Near east - Àluminium Bahrain /Alba/ for USD 1.7 billion. Now there are being extracted 520 000 tons and after the end of the operation in 2005 the production will increase with 50 per cent.
Source: Pari (25.06.2003)

E-COMMERCE SHOW 2001 was held for the second consecutive year in Athens. It presented an exhibition, conference and forum of the companies, operating in the field of the so called new economy. Mr. Pandelis Kalavritinos, Marketing Manager of Exodus, revealed that his company is making research to expand its activity on the Bulgarian market. The media giant - the Lambrakis Journalist Organization (DOL) does not reveal its plans to enter Bulgarian market, but Mr. Georgios Bolanis – DOL Digital Development Director, is looking north. Furthermore, DOL recently announced its cooperation for the construction of B2B marketplace with another Greek industrial giant – the holding Viohalco, which already has strong positions in Bulgaria through its subsidiary Steelmet.
Source: Pari (25.06.2003)

US STEEL presented to the Polish Ministry of Finance a new offer for the purchase of the assets of the local steel-extraction giant Polskie Huty Stali /PHS/. The US company with a head-office in Pitsburg which did not reveal the conditions of the new offer, made its first offering on April 22. On June 3 the Ministry of Finance of Poland reported that it would negotiate for the rpivatization of PHS with the two candidates - US Steel and the British LNM Group
Source: Pari (26.06.2003)

The consumption of refined lead over the first four months increased with about 2 per cent in comparison with the same period of 2002, was reported from ILZSG.
Source: Pari (26.06.2003)

The biggest producer of palladium in the world – the Russian giant Norilski nikel finalized the acquisition of 51 per cent in the biggest company for extraction of palladium and platinum in Northern America and sole in USA with a head-office in Montana Stillwater Mining. The Russian giant paid USD 100 000 and provided 877 000 tr. ounce palladium in order to become the major owner and the price of the deal amounts to USD 257 million. Owing to the deal Norilski nikel will strengthen its positions at the American market. The Russian company interrupted the sales of palladium at the spot market over the second half of 2001 because of a raze in its prices but last month announced that it would return. At least half of the company’s shares are property of the Executive Director Mr. Michael Prohorov and of the President of the parent company Interros Mr. Vladimir Potanin.
Source: Pari (26.06.2003)

Alkomet JSC, Shoumen will not distribute dividends as of 2002, was decided at the General Meeting of the company which was conducted on June 21. Alkomet JSC reported a loss at a value of BGN 809 000 as of 2002.
Source: Capital market (27.06.2003)

The Japanese steel-extraction companies will increase in July the prices of its deliveries for the local automobile producers with 5-10 per cent. The automobile sector is the biggest consumer of steel in Japan. During 2002-2003 most of the metallurgic companies again reported a profit. In the biggest copper mine in the world – the Chili Escondida in May were extracted 83.5 thous. tons or with 14 per cent more compared to the same month of the former year.
Source: Pari (27.06.2003)

London Metal Exchange (LME), world’s biggest non-ferrous metals market, is about to finish its preparations for the starting of the trade with steel deals for fixed period. By the end of the year, it is going to announce its decision as to whether or not to start trading with steel. Annually, 900 millions tons of steel are produced in the world, which is much more than the produced amounts of aluminum (24.5 million tons), and copper (15.5 million tons). For the time being, the Exchange stopped the deals with North American hot-rolled coils (HRC), European HRC and Euro-Asian rifle iron. All three contracts will be for 100 each, and the longest term futures will be for a period of one year. If a decision for trade with steel is made, this trade will require attendance on the official 4 exchange rounds and the unofficial trade. The futures will also be contracted through telephone connection and the system LME Select Screen. According to the Corporate Affairs Director of the LME Mr. Jonathan Haslam, the deliveries and price fixing mechanisms of the contracts will be different from those used for non-ferrous metals. Steel settlement prices will be calculated on the basis of the average measured trade the previous day. The Exchange is going to accept recommendations and comments from traders and specialists about their intentions and details related to the contracts it has announced no later than July 18. Currently, there is no exchange in the world which trades steel.
Source: Pari (27.06.2003)

DOE RUN LEAD, USA and North America top lead producer, does not expect lead prices to continue going down. On the contrary, there is reason to think that they will start going up. Currently, lead quotes in London are 468 USD/t. In January, 2003 lowest prices were registered – 437 USD/t, and in May 1996 it was traded at the 10-year maximum – 861 USD/t. So far, there is no surplus on the market, and the supplies of new lead stocks at LME are sporadic. The outlining tendency is of keeping the current volumes of 200 000 tons. The management of Doe Run Lead commented that they would raise their lead prices forecasts, if they stable around their lowest levels and after that start growing in a longer period. Currently, Doe Run Lead is working under its production capacities (410 thousand tons initial lead per year), due to the drop in the demand by the metal’s main consumer – telecommunication industry.
Source: Pari (27.06.2003)

OAE forbade for 2 years the import of scrap in order to protect from a radioactive metal from Iraq (25 km from Baghdad).
Source: Pari (27.06.2003)

83.5 thousand tons, or 14 per cent more compared to the same month last year, of copper were produced in the world's biggest copper mine - Chile-based Escondida.
Source: Pari (27.06.2003)

At the moment the amount of the main non-ferrous metals is exaggerated, according to experts. The traders accepted very easy the news that the US Federal reserve shrunk its interests with 25 basis per cent. It is expected over the next stock exchange days the aluminum and copper to test the low levels of support respectively from USD 1340-1350 per ton and USD 1635-1640 per ton. According to the economist in Sempra Metals Mr. John Camp, the prospective for the second half of 2003 continues to worsen. Over the next several weeks most of the analyzators will have to revise their forecasts for the growth of GDP, for the demand of metals and the market prices.
Source: Capital (30.06.2003)

The lead and zinc refinery Portovesme, ownership of Glencore, which recently threatened to terminate its production activity because of the high prices of power electricity, started negotiations with the local authorities for construction of private power station. Portovesme is based in Sardinia and its zinc production capacities are 200 000 tons; lead production capacities - 120 000 tons. The prices of power electricity in Italy are among the highest in Europe.
Source: Pari (30.06.2003)

The management of Kremikovtzi JSC reported taxable profit in the amount of BGN 680 000 for 2002 at the General Meeting held yesterday. The company paid BGN 155 000 taxes. This is the first time since 13 years ago that the company is going to pay profits tax. As a whole, however, the total financial result is a loss of BGN 10 525 million. This is BGN 13.2 million less than in 2001 and BGN 28.2 million less than in 2000. BGN 23 million former debts to Bulgarian companies and BGN 9 million debts to foreign companies have been liquidated.
Source: Company information (01.07.2003)

The former Management and Supervisory Board of Kremikovtzi JSC were dismissed at the General Meeting of the company and was selected a new Supervisory Board which includes Finmetals Holding JSC (represented by Mr. Bojko Bonev), Mr. Alexander Tomov, Mr. Lachezar Borissov, Konsul – 98 SP Ltd. and Ms. Tania Tzekova.
Source: Company information (01.07.2003)

About 300 workers will submit requests for work in the metallurgic plant at Eliseina station after the Czech-American Re-group took the management of the company. The rent of the plant is the consecutive hope of the local workers when the attempt with LM Impex failed.
Source: Duma (01.07.2003)

Serbian government did not accept the request of a western bank syndicate, headed by Bank Austria, to cancel the sale of the only steel-producing company in the country Satrid to the American US Steel and to organize a tender for this sale. The government has no power over the company after it went bankrupt in 2002, stated the Minister of Privatization and emphasized that only Serbia’s Commerical Court can settle this argument. The bank consortium protested against the low price of the sale – USD 21.3 million, adding that the assets of Satrid amount to hundreds of millions. Besides, according to the bank consortium, did not assume any responsibilities for at least a part of its debt, amounting to USD 1.7 billion. The consurtion has claims to the value of USD 100 thousands to the steel-producing company.
Source: Pari (01.07.2003)

Two foreigners were included in the Board of the world's top nickel and paladium producer Norilsk nickel. Their names are Mr. Heiz Schimelbusch and Mr. Ronal Freeman.
Source: Pari (01.07.2003)

Wednesday, the workers in the world's seventh largest copper producing company KGHM will decided whether or not to go on strike, after they did not reach an agreement with the management about 5-per cent salary rise for 2003.
Source: Pari (01.07.2003)

Chile is the world's biggest copper producer. In May, it produced 1.4 per cent more metal or 406.9 thousand tons.
Source: Pari (01.07.2003)

Nickel quotes will rise next year, as it was earlier forecasted, but there will be no large jumps, show London analysts latest prognosis. According to Barclays Capital, nickel will be traded at an average of 377.3 CTS/lb in 2003 (compared to 367.6 CTS/lb last year). The bank did not change its forecasts about the metal’s prices in 2004 – 388.4 CTS/lb, but increased its assessments for 2005 – up to 369.70 CTS/lb. Barclays expect a market deficit in 2004 and 2005. Shortage and serious growth in the metal’s prices have been recently avoided, when the biggest world nickel producer Norilsk Nickel released 2 000 tons of its stockpile right when the second largest company Inco was making efforts to put an end to the strike in one of its mines.
Source: Pari (01.07.2003)

The representative of the government in the board of directors of Kremikovtsi Andrei Breshkov, who also heads the sector analysis department at the economic ministry, was replaced by one of his subordinates, Latchezar Borisov. Marccegaglia CPA leaves the board as well, to avoid conflict of interest, since Kremikovtsi is currently negotiating with the Italian parent company, a Kremikovtsi source said. The re-elected board directors are Bozhko Bozhkov, representing Finmetals Holding, the leader of the Bulgarian Socialdemocrtats Alexander Tomov, Consult 98 EOOD and Tanya Tsvetkova. A transport affiliate will be set up as soon as the transport ministry issues the license, the steel works management said. last year Kremikovtsi had to suffer losses exceeding BGN 50 million due to the strike of the Bourgas port, the troubles made by the Bulgarian Railways in transporting the Kremikovsti imports and exports and the decision of the finance ministry's Customs Agency to block the processing of customs entry and exit statements and other documentation. Kremikovsti closed 2002 with a pre-tax profit of BGN 658,000, on which BGN 155,000 was paid in taxes. However, the total financial result is - BGN 10.5 million, which is BGN 13.2 million less than the negative result in 2001. In 2002 Kremikovsti invested BGN 127 million in equipment and technology.
Source: Pari (01.07.2003)

The shareholders of KZM distributed as dividends the profit for 2002 in amount of BGN 1 369 000. The yield per share compared to the face value is 5 per cent. According to the report of the Executive Director Mr. Nikola Dobrev the results in 2002 are not impressive because of the negative trends in the prices of the lead and zinc at the international market. The weak positions of US dollar also have a negative influence.
Source: Maritsa (02.07.2003)

Europe’s biggest steel producer the giant Arcelor, is pessimistic about the situation of its key markets in 2003 and does not expect a rise in copper prices within the next few months. Nevertheless, Arcelor’s performance in automobile industry in the first half of the year improved in volume, as well as prices, regardless of the shrunk car production output. Arcelor’s managers do not hide their fears that if Euro’s rates remain higher, there is a risk of tons of cheap steel with lower VAT penetrating into its markets in the autumn. In order to reach steel prices of EUR 100 per ton, 5-6 months of constant consumption growth will be necessary, while their collapse to EUR 50-60 per ton happened in two months only. Meanwhile, the prices of stainless steel scrap in Europe dropped by 10 per cent down to EUR 800 per ton in less than a month. According to specialists, this trend will maintain over the coming few weeks.
Source: Pari (02.07.2003)

Copper market balance will recover to a great extent in 2003 and 2004, according to forecasts made by International Copper Study Group (ICSG). According to its estimations, refined metal production (initial and secondary) will grow by 70 000 t in 2003 reaching 15.4 million tons, while consumption will grow by 2.2 per cent or 330 000 t to 15.42 million t. This will bring insignificant deficit amounting to 25 000t. For comparison, last year there was a 240 000t surplus on the market of refined metal. Next year, refined production is expected to grow by 850 000t to 16.25 million t. Consumption, however, will only increase by 800 000t to 16.22 million t and deficit will turn into a small surplus of 29 000t. Growing initial and secondary refined copper production capacity in Asia (mostly China, India and Thailand) will be the moving force of 2004 world production growth, forecasted the international group, based in Lisbon. Refined metal consumption in China is expected to continue growing at high rate. In Europe, this growth will not be as fast in 2003, but it will accelerate in 2004. In North America, however, consumption will continue to reduce in 2003 and only next year it will start to recover slowly. Copper mine production will grow by 3 per cent to 13.9 million t in 2003, and will post a 5.5 per cent increase to 14.66 million t in 2004. The biggest growth will be marked by Latin America’s mining industry, according to ICSG. Along with its newest copper market prognosis, ICSG announced 2003 first quarter data it had collected. This data confirms they have reason to be optimistic. As it turns out, market was well balanced in January and February, but registered a 74 000 t deficit in March. For comparison, in 2002 first quarter there was a 213 000 t surplus on the market. According to ICSG the deficiency is a result of the 6 per cent copper consumption growth and 1.8 per cent production drop in the first quarter of 2003. Consumption grew in Asia and Europe as a whole, but decreased in USA. Consequently, stocks, stored in London’s, New York’s and Singapore’s big exchanges in the end of May dropped by 36 000 t reaching a little over 1.1 million t, which is 192 000 t under their level a year ago. These trends had a positive impact on exchange quotes, keeping them stable and gave experts reason to think, that there will be a rise in the prices compared to their current levels. In the end of June, a Man Financial representative announced that average quotes are expected to vary around 75 CTS.lb by the end of 2003 (around their current level) and to rise to 85 CTS/lb in 2004.
Source: Pari (02.07.2003)

Zinc and aluminum’s prices are expected to rise, yet moderately next year, while copper and nickel quotes will most probably drop. This is the forecast, made by Goldman Sachs in its latest non-ferrous metal market review. According to the bank, the lowering of US interest rates and shrunk supplies of some of the metals create conditions for some consumption growth over the coming 12 months. What is more, after mid-2004, a deficit is expected, since demand will exceed offering. In short-term perspective, however, except for nickel, Goldman Sachs forecasted that prices would be moving within currently-fixed limits, because consumption is low. The average copper quotes at LME will drop to 1532 USD/t, while 2003 forecast was 1692 USD/t. This reduction in prices is explained by the shrunk copper consumption, except for house building construction, which will slow down the market’s entering into a faze of deficit. The average cash prices of aluminum will be 1439 USD/t compared to 1378 USD/t for 2003. For zinc, the average quotes in 2004 are 900 USD/t or 30 USD/t higher compared to 2003, which tendency will be boosted by growing demand from Chinese transport sector. Nickel’s potential, which last year was considered the undisputed favourite for rise in the prices, has been overestimated, according to Goldman Sachs. Nevertheless, it has potential to reach levels of 1000 USD/t next year.
Source: Pari (02.07.2003)

The Commission for Protection of Competition (CPC), Bulgaria's anti-trust body, will investigate Kremikovtsi steelworks in connection with the provision of state aid, the institution said. The opening of the procedure follows tipoffs of the ministry of economy and the steelworks' owner, Finmetals Holding. Experts of the CPC will have to decide whether a state aid was granted to the company when it was privatised in 1999 and when a USD 100 million debt under the Act to Settle Non-Performing Loans (known as ZUNK) was remitted. Under the European requirements, a state aid cannot be extended for steel production because it is considered a sensitive sector. As part of the negotiations with the EU on Chapter 6, Competition, Bulgaria is required to draft a programme for restructuring the whole sector. If Kremikovtsi is found to have received a state aid, a special viability plan will have to be carried out. The European Commission has already appointed consultants to investigate the matter. According to Kremikovtsi, however, no state aid has been provided. The commission will be ready with a stand in September at the earliest, insiders believe.
Source: Pari (02.07.2003)

Unit 330 of Non-ferrous Metals Combine (KCM) near Plovdiv started processing the golden flakes of the domes of the St. Alcxander Nevsky Patriarchal Cathedral Stauropigial Memorial-Church. The flakes were taken down during restoration works. The unit is specialized in precious metals extraction and production of alloys from them. Some time ago, KCM won the tender for the processing of the golden flakes. The tender was announced by the Ministry of Culture. Before the old gold is scraped in order to lay the new surface, the domes were covered in special material. The sawdust have stuck on it. Around 3 kg of gold with purity of three nines after the decimal comma is expected to be obtained after refinement. The owner of the gold will be the Ministry of Culture.
Source: Monitor (03.07.2003)

KCM S.A. (Combinate for Non-ferrous Metals) produced super-pure silver and put a 99999 stamp on it. This metal is used for manufacture of “targets” for the CD industry, explained the Head Manager of 330 workshop in KCM S.A. (Combinate for Non-ferrous Metals) Eng. Yordan Boychev.
Source: Maritsa (03.07.2003)

Umicore Med (Union-Minier Pirdop Med) – Pirdop re-directed all of its copper ore freights from Burgas port to Varna port. This was announced by the company’s Executive Director Mr. Kirko Kirkov. However, he refused to reveal the exact amount of the increase of the revenues of our northern port. Mr. Kirkov explained, that the freights are in the amount of 500 thousand tons per year. So far, the ore arrived in both ports and this resulted in bigger resource expenditure. A contract between Umicore Med (Union-Minier Pirdop Med) and Bulgarian State Railways (BDZ) for transportation of the raw material from Varna Port to Pirdop has already been signed. The copper ore’s re-loading from the ships to the carriages will be executed by the company Soda Ash Logistic Solution, which also serves Solvey Sodi.
Source: Dnevnik (03.07.2003)

CODELCO, the state-owned Chile company and world’s No 1 copper producer, is not going to resume selling its stockpiles before mid-2004, since by this time global copper reserves will already have reduced to 800 000t. This is exactly the level, at which, according to world’s leading producer, there will be no drop in price if they release a part of the metal in stock on the market. Last November, Codelco withdrew 200 000 t from the market, without reducing production output, in order to avoid accumulation of large stocks within a shrunk a consumption. Global copper stocks in the middle of June exceeded the minium 1 million t compared to 1.6 million t in May 2002. Experts, however, warned that growing production capacities mainly in Latin America, as well as slower consumption will hamper their exhaustion despite Codelco’s efforts. Analysts think, that the company’s policy is one of the factors for the rise in copper prices, which for the first half of 2003 reached an average of 74.9 CTS/lb, compared to 70.7 CTS/lb in 2002. The Executive Director Mr. Juan Vilarzu confirmed that the policy, executed by the Chile-based company will remain active in 2003. Although during the first quarter of the current year the world’s copper giant produced 368 000 t (4.6 per cent mre than the same period of 2002), sales were cut by 8.6 per cent.
Source: Pari (03.07.2003)

The strongest professional union in the Polish group KGHM, the worlds seventh largest copper producer and second largest silver producer, canceled its decision to organize a general strike. They change their plans, because they agreed to a 5-per cent salary increase with the management. 45 per cent of all toxic chemicals in USA are released during metal production. The biggest environment pollution comes from copper, silver and gold operations. The biggest Russian copper cathode maker Uralelectromed produce over the first half of the year was 3 000t smaller in amount (or 135 00t), compared to the same period of 2002 .
Source: Pari (03.07.2003)

Since zinc and lead prices in China are currently higher than those on the world markets. The state, one of the world’s leading world exporters of the two non-ferrous metals, is planning to shrink its export in the near future. Meanwhile, local companies, operating in this sphere, will also restrict their production in the second half of the years. For the first five months of 2003, 17.1 per cent less refined zinc (171.9 thousand tons) has been exported from China. Lead export was reduced to 188.5 thousand tons (13 per cent less). Over the same period, zinc production in China jumped with 4 per cent and amounted to 861.5 thousand tons. Produced lead amounts increased by 9 per cent to 555.7 thousand tons. According to some estimations, however, zinc consumption in the country will drop by 20 000 tons compared to 1.8 million tons in 2002, due to SARS outbreak.
Source: Pari (03.07.2003)

Norilski nikel said that it would take part in the tender for the rights for development of the giant golden field Suhoi Log. In 2002 the company took over the big producer of gold in Russia Polus that extracts 25 tons per year. Suhoi is situated in Irkutsk, Sibir and the reserves are estimated at 1000 tons. The tender will take place during this month and the results will be announced after 6 months.
Source: Pari (03.07.2003)

Yesterday rumors said that the lead-zinc complex Potovesme in Sardinia, ownership of the private Switzerland-based metal-trading company Glencore International, may stop operating for a period of around 5 months – starting the beginning of September or beginning of October. The news, according to well-informed sources, was announced by Portovesme’s manager, who explained that the decision was made due to the high prices of power electricity in Italy and the low prices of non-ferrous metals at the world exchanges. If the production process actually stops, a decision about the time of its resuming will be made next year. For months, the complex’s management was warning about such a measure, since the company’s revenues are in USD, and its production expenditures – in EUR. Its attempts to come to an agreement with the government about preference electricity prices were unsuccessful. Portovesme’s annual production output amounts to around 110 000t electrolytic zinc, 90 000t zinc and 80 000t lead.
Source: Pari (04.07.2003)

Analyzers from Prudentia: Bache International forecasted that nickel would be moving up and up over the next two years. According to them, western nickel market will be in a deficit of 85 000 – 100 000 tons in 2004-2005. The deficit may continue after that as well, if the planned new projects, such as Inco Goro in New Caledonia and Voisey’s Bay in Canada do not enter into exploitation. If there is lack of capacity by the first half of 2006, we will witness prices of USD 10 000 per ton, and levels of around USD 12 000 per ton will not be a rare view either”, claimed Mr. Angus McMillan from Pru-dentia: Bache International. The market week passed sluggishly and the prices of all non-ferrous metals moved down, though for different reasons. Sales made copper, aluminum and nickel prices go down. Lead, zinc and tin’s price decreased due to the lack of market interest in them.
Source: Capital (05.07.2003)

A drop in producer copper demand resulted in lower metal quotes. The LME quarter futures, most indicative of investor moods on Friday, dropped to USD 17 (or 1.02 per cent), reaching a level of USD 1660 per ton. Market observers remind that copper had passed the psychological level of USD 1700 per ton, but after that, started a purely technical drop, instigated by the surplus at the exchanges. Analysts from a number of investment banks, however, stated they expected consumption increase of the so-called main metals in mid- and long-term aspect due to the general opinion that a fast economic recovery is expected in EU and USA, which will bring increased production and demand of raw material. According to forecasts, in three months, copper will reach a price interval of around USD 1700-1705. Experts stated the metal’s quotes would be in opposite proportion to oil prices. A drop in oil quotes would bring faster macroeconomic and production industry growth. The first sign of such a tendency on the market would be a sharp jump in the amounts traded at the commodity exchanges. Nevertheless, in short-term aspect, a drop in copper prices is more probable. There are a number of reasons for this – EU’s investigation of a number of giants in the branch for cartelling and artificially keeping high prices, the expected additional increase of copper production in the country of most of the companies, in expectation of the forecasted jump in prices, as well as willingness by one of the world leading producers – Chile – to reduce its budget deficit through copper selling. Technical analysts stated that copper price dynamics would depend on the movement in exchange rates, most importantly EUR/ USD. Growing EUR exchange rate would bring increase in the traded denominated contracts at LME in USD and a wave of purchases for the purpose of consumer stocking. This will result in higher copper price in EUR in a short-term aspect and following drop coming from reduced demand.
Source: Dnevnik (07.07.2003)

European commission approved the plans of the Belgian non-ferrous metal producer Umicore (owner of Umicore Med-Pirdop) and Arcelor (world's biggest steel producer) to establish a marketing and trade joint-venture.
Source: Pari (07.07.2003)

In May, Chile (world number one copper producer) copper production grew by 0.6 per cent, compared to the same month last year. It reached 67.8 thousand tons.
Source: Pari (07.07.2003)

Antimony production output in China - the world's biggest producer and exporter of antimony - will drop by 20 per cent this year, compared to last year's 50 000t. The reason for this decline is the closing of a large number of small mines, which production is quite primitive.
Source: Pari (07.07.2003)

The staff of the auto parts maker Struma S OOD, have been rallying for three days now to block the sell-offs of the factory equipment and machinery, ordered by the Agency for Government Claims (AGC). The workers stand by their machines and do not allow the would-be-buyers to approach. The police, called to provide access for the buyers, failed as well. The problem is that while privatising the Sandansky-based enterprise three years ago, the privatisers left hidden debts to the National Insurance Institute (NII) and the Tax Administration, amounting to BGN 931,038 in principal, plus BGN 270,346 in interest. Under the agreement the debt had to be remitted after privatisation. The AGC employee sent to collect the dues, Ivanka Popova, submitted a list of 172 machines and other technological equipment, assessed at BGN 1 million total. Especially scandalous is the evaluation of the major technological equipment, which has been providing the basic activity of the plant for years. These are some 53 machines, assessed, according to Popova's list at BGN 73,225. Some of these machines weigh 10 tonnes. If sold for scrap, the total amount will be much larger. The point is that without them the factory will be automatically liquidated. The dubious actions of the government employee Ivanka Popova is further accentuated by two recent sales. A few months ago the recreation and vacation home of the factory in the Pirin mountain was sold at the price of a flat, against BGN 75,000. Some 100 tonnes of non-ferrous metals, with market price of 7.2 leva per kilogram with no VAT, were sold to some vendor from Oryakhovo against 1.8 leva per kilogram. The director of the Struma-S OOD, Nikola Bozhinov, said there were no other buyers, hence/the insignificant price. Bozhinov said further he had submitted a few months ago an investment program at the finance ministry, including a debt rescheduling scheme, but received no response. The factory management agreed an order for 27 types of electronic weights with German partners and work will start September. The equipment is suitable for developing a water generator for hydrogen fuel engines. Bozhinov said the dumping imports and contraband of Turkish automobile spare parts are the reason for the factory's poor financial condition. The Podkrepa labour confederation, which support the workers protests, has taken the commitment to rescue the Struma-S OOD factory._
Source: Pari (07.07.2003)

Canada's Alcan Inc. on Monday launched a hostile 3.4 billion (USD 3.9 billion) cash-and-stock bid for French rival Pechiney, in a deal that would create the world's largest aluminium company by revenue. Alcan said it would offer 123 in cash and three new Alcan shares for five Pechiney shares, valuing the French company at 41 per share -- a 20.5 percent premium to its closing share price Friday. The Canadian aluminium maker estimated the deal would be completed within four or five months and would generate USD250 million in annual costs savings. If successful, it would create a company with annual pro forma revenue of USD 24 billion, vaulting it above current world No. 1 Alcoa, which posted 2002 sales of USD 20.3 billion. The offer comes a little more than three years after Alcan, Pechiney and Switzerland's Algroup were forced to abandon a planned three-way merger because of objections by the European Commission. After Pechiney withdrew from that deal, Alcan went on to acquire Algroup. Pechiney has been unable to seal another major deal since then. Earlier this year, a planned 750 million purchase of Corus Group PLC's aluminium assets was blocked by Corus's Dutch arm. "Alcan is convinced that the fundamental strategic logic of the proposed (Alcan-Pechiney-Algroup) transaction, which was endorsed at the time by Pechiney's then and current CEO, remains valid and compelling," Alcan said in a statement. Source: FT (Europe)
Source: Other (07.07.2003)

The possible cut in a number of European lead-zinc refineries production output will probably have positive effect on the prices of the two metals at LME in mid- and long-term perspective. Nevertheless, the ores’ mine production should be reduced, and consumption – revived. The future of the lead and zinc complex Portovesme in Sardinia will be decided in January next year, unless the refinery and the Government come to an agreement for lower electricity prices before this time. According to British experts, if the whole complex is closed down, as last week’s rumor said, market supply will drop by 9-10 000 t of refined lead and 14-15 000t of zinc monthly. Regardless of the shrunk supply, prices are not expected to go up, if demand does not recover, emphasized Mr. Stephen Brigs, Socgen analyzer. According to him, lead’s price will rise to USD 500 in the coming months, but these levels could not be expected to become stable before the end of the year. In general, the news about possible termination of Portovesme’s operation will have a boosting effect on lead, rather than zinc, which global production is respectively 6 and 8 million tons a year. According to Mr. Brigs, over the next few months zinc price will vary around its current slightly higher levels, and in the end of 2003 it will reach USD 850. This year, Europe expects the closing of one of the losing refineries of Metaleurop in France and MIM in Great Britain. The overall tendency is of lead and zinc industry moving outside Europe, ended Mr. Brigs.
Source: Pari (07.07.2003)

The Board of Directors of Port Complex Ruse SP JSC revised the prices of the services offered in its ports so far, they were in USD, but from now on they will be in EUR). For example, from now on, instead of USD 1 for re-loading of each ton of loose cargo, the freighters will have to pay EUR 1. For the processing of one ton of metals – EUR 3.15, instead of USD 3.15, and for the processing of one 20-foot container – EUR 34 instead of USD 34, etc.
Source: Pari (08.07.2003)

The insufficient financial funds invested in the Serbian copper-extraction industry are to some extent the reason for the lower with 3 per cent forecasts, set in the data base of Reuters /MÐD/ for this year extractions of refined metal in Eastern Europe. The reduce may prove to be bigger than the expected in which are not considered the plans of the Russian giant Norilski nikel to cut the manufacture with 34 000 tons over this year. In the beginning of June the Serbian copper-processing complex in Bor reported that would cut the production and would differentiate its business in independent companies in order to become more attractive to the foreign investors. According to MPD the global production of refined copper will reduce with 1.1 per cent. This trend will also be kept during the next year but the drop will be only of 0.1 per cent. The refined copper production in Africa will reduce with 5 per cent because of the shrunk extractions in Zambia.
Source: Pari (09.07.2003)

The production of nickel in the Western countries declined during April to the level of 70 000 tons as compared to 75 000 tons during March, was reported by the International Nickel Market Research Group. According to the evaluations of the group there was a decline in the mine extraction as well – from 76 300 tons to 73 100 tons. The consumption of nickel has dropped from 95 900 tons to 89 600 tons. The daily production of primary aluminum during May grew with 300 tons, reaching 59 900 tons, announced the International Aluminum Institute. During May the total production reached 1.857 million tons as compared to 1.788 million tons during April.
Source: Pari (09.07.2003)

The pollution of the soil with lead in Kurjali is about two times over the average admissible rates. The citizens of the town with blood diseases are two or three times more than the average number for the State. These are the results of the research of the Hygiene, Medical Ecology and Feeding National Centre The main part of the pollution is from the activity of OZK-Kurjali and the company Bentonit. Kurjali is an ecological point because more than 10 years the level of pollution of the air with heavy metals continues to be high.
Source: National television (09.07.2003)

The world leader in the manufacture of nickel and palladium in the world and one of the biggest companies in Russia - Norilski nikel made a surprising step in order to gain the trust of the investors. The company included in the Board of Directors four independent Directors and for a first time in its history coordinate the amount of their annual remuneration. It is impressive - USD 115 000 or only USD 10 000 less than the remuneration of the Directors of the giant LUKoil. When Norilski nikel became owner of Polus, the share of the company from the produced in Russia gold will exceed 15 per cent. The inclusion of independent directors in the management of the company influenced positively on the capitalization of the plant. So far the capitalization has exceeded USD 7.3 billion and in the beginning of 2003 it was USD 4.35 billion. The prospective is to increase with other 50 per cent.
Source: Pari (10.07.2003)

The export of copper concentrate from Mongolia reduced with 11.5 per cent at annual base by 185.4 thous. tons during the first five months of 2003. The country is among the leading producers in the world.
Source: Pari (10.07.2003)

At last the prices of the lead permanently kept over the levels of 500 USD/t and even has - 515 USD/t for consolation of all processors all over the world and most of them report a loss. The main reason for the rising was the rumours for cut of the manufacture and the risk for the market to turn in a phase of deficit. The biggest contribution for this confusion at the market has the Italian lead-zinc complex Portovesme. One of the Technical Managers of the refinery said that the complex would stop its work over the next 5 months because of the high prices of the electricity in Italy. Portovesme has annual production capacities of 80 000 tons lead and 200 000 tons zinc. Every year in the world are produced totally 6 million tons. Some technical factors also supported the prices of the lead. At the same time the warehouse quantities of the metal at LME are only 170 000 tons or the lowest since May, 2002.
Source: Pari (10.07.2003)

The indicative measures of the Government and the good development of the Bulgarian economy create conditions for growth of the investments in 2003, declared the Prime Minister of the Government in Evsinovgrad. Their total amount so far has been with 34 per cent more than the respective period of 2002. Several huge investment projects have started: of a British company in the energetics, of Belgium companies – in the manufacture of non-ferrous metals, Italian companies – in the textile industry and Danish – in the brewery.
Source: Trud (13.07.2003)

The French processor of aluminum Pechiney announced that it also received other, better offers for buying up after the hostile bid of the second by size producer of the white metal – Canadian Alcan at the amount of EUR 3.4 million. Pechiney estimated the price offered by Alcan as a very low. If the transaction realizes, Alcan will become producer N 1 in the world, taking the first place of the US Alcoa.
Source: Pari (14.07.2003)

The duties on the imported steel, introduced in March, 2002 by USA break the rules of the world trade, according to the final decision of the World Trade Organization (WTO). The organization took a decision in favour of EU and other 7 countries their dispute with Washington about the duties that could have turned in a trade war. The decision of WTO was saluted mostly by EU. More than one year ago Washington imposed with duties by 30 per cent the import of definite steel articles for a period of 3 years. The American authorities reveal that they would appeal the decision of WTO, confirming that their purpose is to protect the local producers from the flows of cheap imported steel and will continue to apply the same tariffs. Meanwhile EU warned USA that could face sanctions of the export in amount of millions of dollars if USA do not cancel the duties or do not seize the Appeal Court in the frames of 5 days after the official acceptance of WTO by the countries-members. The Minister of Trade Mr. Don Evans announced that the President Mr. George Bush will decide in autumn whether to cancel the duties earlier or to be efficient for the whole period of 3 years. EU threatened USA with measures against its import in the Euroblock at the amount of USD 2 billion.
Source: Pari (14.07.2003)

The chargers on electricity transit (which is currently free of charge, as the only buyer is the National Electric Company) will acquire considerable importance on the domestic market, when the so called privileged consumers start using the network of the National Electric Company (NEC) for direct electricity supplies from the power producers. Compared to the internationally adopted, although unofficial, transit fee of some 2 cents per kWh, the Bulgarian domestic fee of 0.6 stotinki is low, experts commented. After its twofold rise it is still below the international one. The transit fees must be raised, as Bulgaria occupies a very important location and it will be reckless of us not to use it, allowing instead a foreign power to be transmitted through our territory practically free of charge, a source of the PARI daily said. Such ambitions of the multinationals cannot be curbed, unless we raise the transit fees up to at least the international levels, the source added. On the other hand, the fees must conform with the Bulgarian conditions. The best option is to introduce high transborder fees and domestic ones that will correspond to the standards of living in Bulgaria. Otherwise a process of redistribution of the markets will be triggered, said former energy minister Nikita Shevarshidze.
Source: Pari (15.07.2003)

The third auction this year for the Danieli metallurgical equipment of Kamet of Pernik failed after no candidates turned up. The start price of the line was set at EUR 10 million, increments, at EUR 100,000, potential bidders had to pay a EUR 1 million participation deposit. Kamet CEO Nikolay Traychev declined to comment. Economy minister Nikolay Vasilev recently said that auctions would be organised until the equipment is sold. Under the law, the Privatisation Agency (PA) has to schedule a new auction in three days. Last year vice premier Nikolay Vasilev cancelled a contract with Russia's Hansatico after the buyer demanded to pay through a letter of credit, not through a bank transfer. Earlier this year the investor appealed PA's decision to schedule a new auction but later withdrew its appeal. Danieli is steel production equipment designed to manufacture 200,000 tonnes of alloyed steels and 150,000 tonnes of rolled steel a year. The equipment includes two technological lines: for steel production and for rolled iron.
Source: Pari (15.07.2003)

As during the last week the price of the lead reached 520 USD/tr.ounce - the highest level over the last year and a half, the price of the non-ferrous metal declined insignificantly. Nevertheless the price of lead remained on the level of over 515 USD/ tr.ounce. If the lead-zinc complex in Sardinia Portovesme is closed the price of lead will continue to grow. The lead, which was recently in lethargy, by the end of the year will remain in the range of 485-525 USD/tr.ounce but it may exceed these levels in the end of 2003, is the opinion of the experts from Brook Hunt. The eventual growth in the price may be provoked by the closing of complex in Sardinia as the market will suffer a loss of 9-10 thous. tons of lead. The destiny of the complex will be decided during January. Portovesme is trying to overcome the extremely high prices of electricity and so far has not stopped working. According to the dealers as the price of lead exceeded the level of 530-540 USD/tr.ounce there will be no surprise if the prices about 600 USD/tr.ounce are tested. There was a revival on the market, stimulated by the decline in the supply and the serious growth in the demand from China and India.
Source: Pari (15.07.2003)

The biggest specialized producer of zinc in the world - Umicore is searching for a way to replace silicon with germanium in the production of chips with the hope that the company will be able to promote the alternative metal on the market by the end of the 2009.
Source: Pari (15.07.2003)

Taking into consideration the growth in the consumption of nickel and the limited production capacity it is expected that the prices of the metal will grow significantly over the next years, is the prognosis of the American experts from ÀÌÅ. There was a growth of 22 per cent in the prices as of the beginning of the year.
Source: Pari (15.07.2003)

The world market of refined copper was in deficit for the period January – April that reached 151 000 tons, according to ICSG. In the same period of 2002 there was a surplus of 196 000 tons at the global market.
Source: Pari (15.07.2003)

The top producer of zinc in Russia – Chelibinski zavod will extract 88 000-89 000 tons metal during the first half of 2003 or with 8 000 – 9 000 more in comparison with the same period of the former year. The management confirmed their plans to produce over 175 000 for the whole 2003 but this will be possible when all capacities of the plant are loaded after the whole renew of its infrastructure.
Source: Pari (15.07.2003)

The Government accepted a decree for change and additions of decree N 140 from 1992 for restructure of the mine extraction and closing of non-effective production capacities. In the list of the objects that will be closed or technically liquidated are parts of Burgas copper mines, GORUBSSO-Rudozem SP JSC – in liquidation, Eliseina, the factory in Majarovo, Elshitza mine from Panagujrski mines – in liquidation, Chiprovets – in liquidation, Eco – Medet SP ltd., Eco – Elshitza – SP Ltd. The financing of the working projects for technical liquidation or conservation, recultivation and monitoring will be opened after their acceptance by Inter-administration expert board. According to reports, made by experts in the former Ministry of Industry in 1998, at the eventual closing of the mine extraction in Bulgaria will be necessary about USD 420 million annually for providing of raw-materials for ferrous, non-ferrous and precious metals at the forecasted rates of increase of their consumption by 2015. The national programme for stable development of the mine-extraction in 1998 is in accordance with the taken engagements of our country to the countries from EU. The restructure by 2015 includes the closing of all objects with depleted stockpiles and non-efficient capacities.
Source: Pari (15.07.2003)

British-Australian mine-producing company Rio Tinto is ready to invest in mineral exploitation in Serbia and Montenegro, said the head of Rio Tinto's exploration team. He added the group was in serious talks with Serbia's state-owned mining and smelting copper company, based in Bor on carrying out exploration in eastern Serbia. Rio Tinto began to look at the area around the town of Bor back in 1997 because of the prospects in finding gold as well as copper there. In June, Serbia announced that the deal for joint exploration would be signed in July.
Source: Pari (15.07.2003)

The procedures and laws, which allowed customs to react against and to prevent cross-border frauds, are mainly applied to “casual” border crossers, and not to the big players in smuggling channels, said Ms. Sonya Petkova (Branch Union of the Leather, Fur, Footwear and Leather Goods Industry) on Monday. She explained that the work of customs administration has direct impact on Bulgarian leather, footwear and leather goods producers. “ It’s an established fact that a big quantity of smuggled and illegal import passes through customs. This actually causes the bankruptcy of all companies, relying on the domestic market”, Ms. Petkova added. She expressed positive opinion about the memorandum between Bulgaria and Turkey, according to which after August 30 all goods coming from our southern neighbor should be imported together with trade documentation. The policy of Customs Agency is exclusively directed to restricting the possibilities for illegal import, because the most frequent violations, found by customs clerks are related to fraud, and not to smuggling, stated the Agency’s Director Mr. Asen Asenov. He explained that, in cases of fraud, import was registered but the declared value and origin of the goods were fake. For anyone involved in production in Bulgaria, the main hindrance at the moment is the fact that the market is not protected from illegal import, stated the official representative of Viohalco Mr. Anton Petrov. This is a very serious problem, because, when you invest and start production in a country, no matter how small the domestic market is, the investor always assesses his possibilities to gain back what he has invested”, Mr. Petrov said. According to him, the lack of market regulation and unfair competition stand in the way of investors and do not allow them to assess their options.
Source: Dnevnik (15.07.2003)

The prices of the aluminum at the international market in the third quarter of 2003 reduced slightly even though namely this metal, together with the copper and lead continues to be the engine of the non-ferrous metals quotes at LME. According to analyzators from NYSE, the average price of aluminum over the third quarter will reach up to 62 CTS/lb in comparison with moments when at favourable factors it increased up to 65 CTS/lb. The usual seasonable activation of the metal demand during the fourth quarter of this year will form average price for the period of 67 CTS/lb. For the general reduction in the prices also contributes the delay of the so expected global economic growth. The purchases by the processors are limited only to the urgent needs without considering the future orders. At the moment the stockpiles of aluminum of LME are about 1.18 million. The few hedging deals also caused pressure on the prices and particularly on the premiums, mainly on the aluminum which is produced in the countries from Western Europe and taxed with duties. Usually the prices for future deals are lower than the spot price and changed the real market trend in a long-term period. The situation may become more complicated over the fourth quarter when at the market will intrude the production from the plants of Mozal in Mozambik, a property of the Australian metallurgic company BHP Billiton, which started to work in April, this year and they will reach the project capacity in the autumn.
Source: Pari (16.07.2003)

Zinc price grew to almost 18-month maximum of 850 USD/t and finally gave rise to producer hopes, which last year had to put up with 10-year lowest prices of the non-ferrous metal (780 USD/t) in the beginning of 2003. Despite the rise in the prices, zinc is still USD 150 away from the 1100 USD/t reached in Europe in 2002. The upward trend in zinc was pre-determined by the closing of a number of mining enterprises in Europe over the past few months and expectations for the production in the refinery Portovesme -–Sardinia to be closed down (the refinery’s annual production output is 150 000t). Experts emphasized that the main factors for the state of world market and prices will be China’s behaviour, the development of new projects there and in some other countries. According to Brook Hunt consultants, in 2005 the amount of lead produced in the mines will grow by 0.5 million tons compared to 9.3 million tons in 2003.
Source: Pari (16.07.2003)

British-based second biggest steel maker LNM, owned by Indian-born steel tycoon Lakshmi Mittal, and US giant US Steel – the two competitors for the purchase of Poland’s biggest metallurgical company PHS, criticized the organization of the tender for the privatization of PHS. Both sides are worried about rumors concerning the election of winner, due to be announced by the Polish government this week.
Source: Pari (16.07.2003)

Bulgarian State Railways (BDZ) caused loss to Kremikovtzi with BGN 75 million for non-transported freights. The losses were accumulated from September 28, 2002 by the end of June, this year, declared the Director of the plant Mr. Bojko Bonev. According to him, after the unilateral breaking of the contract last year, Kremikovtzi was pressed by BDZ to accept 40-45 per cent higher tariffs for transport of freights. The Deputy Director of the Supervisory Board Mr. Alexander Tomov said that the company would not accept the ultimatum conditions of the railways with the rise of the prices. He defined the manner of the management of BDZ as a lack of market concept. He also added that if the Government does not take interfering measures, Kremikovtzi would use all legal forms of protest, including a general strike. Bonev announced that because of the not transported by BDZ 10 729 wagons, Kremikovtzi was compelled to turn the quay for freights in bulk of Burgas port into a warehouse of the metallurgic plant. The construction of the quay can bear freights up to 100 000 tons and in the end of June we increased them, said he. The company offers two alternatives for solution of this problem. One is to be covered the difference in the price of the services through repair works of BDZ wagons, declared Mr. Tomov. The other one is to be issued a license to Kremikovtzi for private railway carrier. The metallurgic plant has already submitted documents for issue of a license for independent carrier on May 17, this year in Railway transport Agency. According to Mr. Bonev in this way Kremikovtzi will be free from the dictates of the state-owned monopolist BDZ and will transport its goods at lower prices.
Source: Monitor (17.07.2003)

Thailand is planning to repeal the anti-dumping duties on import of hot rolled steel from 14 countries, including Russia, Slovakia, Indonesia and Romania. Russia is going to increase the duties imposed on imported silicon to 20 per cent from the customs value in order to protect its producers. The measure will initially be imposed for a period of 9 months, after which it may become constant. Cheap import of silicon, mainly from China, is causing losses to Russian producers – SUAL and RusAl, mostly to the former, which produces 50 000 t per year. Kazakhstan manufactured 209.9 thousand tons in the first half of 2003, or 7.5 per cent less compared to the same period of 2002.
Source: Pari (17.07.2003)

During last week MG corporation sold the major stake of shares in Stara Zagora-based company for buying up and processing of scrap Splavcommerce, declared the Director of PR department Mr. Dimitar Nedkov. The new owner is not related to the group, added he but refused to mention its name. In the weekly bulletin of the Central depository was written that were transferred 131 568 shares from the company at the total issued 92 536 shares. This means that probably were realized several consecutive transactions. Splavcommerce holds bases for scrap in Stara Zagora, kazanluk, Chirpan, Radnevo and Gulubovo. The company was privatized in 1996 at times of Mr. Zhan Videnov Government and the buyer was Splavcommerce trayana from the structure of MG. The price of the deal was BGN 124 million, equal to nearly USD 2 million. 70 per cent of the amount was paid with Government long-term bonds. At the moment over 17 per cent from the capital of the company are state-owned and the bigger part of them were offered at the tender of the mass privatization, the submission of orders for which finished on July 4. The minimum price for participation was BGN 14.88 per share. One month ago the major shareholder in Splavcommerce was PFHC Anstalt which is registered in the capital of Lichtenstein.
Source: Dnevnik (17.07.2003)

The world's biggest non-ferrous market - London Metal Exchange, moved trade and the prices of most metals reached record-high levels last week. There was a big jump in the price of lead, which hit year-and-a-half top levels. Zinc re-conquered 16-month high positions. Copper, which posted a 100 USD/t raise in the price since the beginning of July, reached 5-month record values, and aluminum added 70 USD/t to its quotes (which is the highest level since a month ago). A number of market factors were of determining importance for the extraordinary upward trend at London Metal Exchange, but the uniting element was investor enthusiasm. Market observers warn there is a risk of the market outstripping the existing economic realities and the prices remaining without any serious support. A number of exchange analysts said the marked record-high levels were a result of active buyings by speculators and investment funds. Market sentiment is a strange thing, traders and players want the market to go up, but extreme emotions are dangerous, said Angus McMillan from Prudential-Bache International. According to Robin Bar from Standartd&Poor's, metals are boosted by the upsurge in the exchange market and the hopes for revival of the world's biggest economy - US, underpinned by the optimistic corporate results. It is not clear yet, however, whether the most important market factors - non-ferrous metal consumption, has overcome the stagnation from the past 2 years. According to Mr. McMillan's assessments, by all means it will be smaller than in 2003, although China will have the biggest contribution for this. Another analyst - Mr. Martin Square from JP Morgan warned that in the light of traditionally weak summer season, maintaining current price levels would be difficult even in the near future. Lead reached 520 USD/t. Lead market is currently delicately balanced by market factors that push prices further up. At the moment, lead inventories at LME have registered their lowest level since May last year and are only 170 000t. Still, the closed production in a number of European lead refineries, the expected termination of the activity of others and the obscurity around Portovesme's future, are the main driving forces for the increase in prices. The lead-zinc refinery, ownership of the Swiss-based Glencore, threatened it would terminate its production activity due to the high prices of electricity. First, the news that Glencore intends to close down its production capacities for a period of 5 months reached the market, but later it became clear that the management is leading negotiations with the local authorities for possible reduction in electricity prices. If the two parties reach an agreement, the market will be grasped by obscurity until early 2004, when Portovesme will have to decide on its future. The complex in Sardinia has production capacities of 110 000t of electrolytic zinc annually. Maxwood Ahmed, metal analyst from Credit Lyonnaise said lead perspectives were very good and forecasted prices of 625 USD/t next year and 725 USD/t in 2005. Experts saw zinc levels around 1100 USD/t. Some market observers, such as Cleave Green, LME broker, think that zinc could reach 1100 USD/t. For mine-extracting companies and shelters, which are already used to seeing quotes of around 750-780 USD/t, the current levels of 850 USD/t are good news as well. The raise in the metal's price was underpinned by shrunk production (resulting from zinc trade at historically low levels and speculations around the future of the lead-zinc refinery in Sardinia. If they close it down, the global market will lose 9-10 000 tons of refined metal per month. In order to support the raise of the prices, more mines will have to be closed down, and consumption will have to grow. Besides, in mid-term aspect, world industry will also depend on China's ability to use its zinc reserves to supply its processing capacities. According to market observers, zinc concentrate inventories available at the moment, are so small that if more mines are closed down, this will inevitable affect the market balance. If even one bigger mine stops operating for a period of 6 months to a year, this will result in higher lead prices. Regardless of the terminated operation of a number of zinc refineries in Europe and the expected new closings soon, the production capacity problem is not so significant because of the new projects in China. In contrast to the current market situation, China, as well as some other Asian countries, will probably continue to use 100 percent of their capacities, in order to meet domestic demand during the 2-3 years ahead. Market observers said there were other projects as well, and supplies form them could result in increased offering. For example, Rampura-Agucha mine's output is doubling to 400 000t per year, and Dan Christobal deposit (located in Bolivia) production will reach 250 000 annually. The same commentators think that investment under these projects could only be justified if zinc prices recover to 1000 USD/t (zinc is mainly used in steel production). The production process in the two mines should start in the end of 2005 and beginning of 2006. According to Ms. Louise Mortis from Brook Hunt, the global lead production in 2005 will be 9.8 million tons, compared to 9.3 million tons this year. She thought the if the closed mines start operating again, the prices will be higher than those at the time of their closing. According to her forecast, this year 100 000t capacities will be put out of exploitation. Meanwhile, the Finnish metal group Outokumpu, owner of Europe's biggest zinc mine Tara, based 64 km away from Dublin, confirmed that this year 200 000 tons of zinc will be produced, and the full capacities will be reached in 2005. Outokumpu's Executive Director Mr. Earo Laotio did not hide his hopes that zinc quotes could rise to 1000 USD/t over the coming 2 years. The question is how soon this will happen, because zinc inventories at the moment are quite large.
Source: Pari (18.07.2003)

The third tender for Danieli, ownership of Kamet, failed. This was announced by the Pernik-based company's Executive Director Eng. Nikolay Traychev. Representatives of three of the five companies, which bought memoranda for the bidding, appeared for the procedure, but did not pay in the obligatory fee for participation in the amount of EUR 1 million. The technological line Danieli shall be sold through PA at initial tender price of EUR 10 million.
Source: Standart (21.07.2003)

Rumors about reducing production in Europe and USA gave a rise to the prices of the basic non-ferrous metals – copper, zinc, lead, tin, nickel and aluminum. Experts commented that as far as zinc and lead were concerned, the rising of their prices is pure speculation, since it had nothing to do with supplying of stocks of processors, nor with growing consumer interest in general. This week zinc and lead marked respectively their 16-month and 18-month maximum. The prices of non-ferrous metals posted a growth since the beginning of 2003 and their move up split analyzers into two groups. One of them started talking about signs of world economy revival, and others expressed views that the growth in prices is insignificant, bearing in mind the weakening positions of USD, which, according to them, caused the rise in non-ferrous metals prices.
Source: Capital (21.07.2003)

On Monday the Polish Government announced its decision to continue the negotiations with the English-Dutch holding LNM for the sale of the country’s biggest steel maker Polskie Huty Stali (PHS). Thus, for the time being LNM becomes leader in the competition for acquisition of 75 per cent from PHS, leaving behind US Steel – the American holding, which was previously considered the best candidate. Poland’s Minister of Finance Mr. Peotr Chizhevsky announced that the Government was leading exclusive negotiations with the world’s second biggest steel producer LNM, but would ask US Steel to extend the term of its offer. In case Warsaw Cabinet, PHS’s creditors, Polish syndicates and the English-Dutch holding do not manage to come to a final agreement by August 22, US Steel will be given another chance to take part in the privatization of PHS. Polish Government did not reveal details about the offers, but stated that LNM’s offer was better than the one made by US Steel – in respect of the offered price, as well as the planned investment. Financia Times commented that the amount of the deal is expected to be around USD 1 billion (USD 400 million of which are PHS liabilities), which makes it one of Europe’s biggest privatization deals this year. PHS was established in the middle of 2002 through the merger of four state-owned enterprises. The company’s annual production output is 5.8 million tons of steel (which is 70 per cent of Poland’s overall steel production) and realizes sales of USD 1.5 billion per year. The privatization of PHS was canceled a number of times and was accompanied by a corruption scandal. In March, Polish Procurator’s Office started investigation after a Polish Ministry of Finance official was accused of trying to obtain a bribe from US Steel. If the deal ends successfully, LNM is going to double its assets in Central and Eastern Europe and will become the biggest steel producer in the region. Currently, the company, owned by Lakshmi Mittal – the steel billionaire, born in India, owns enterprises in Romania and the Czech Republic, which produce a total of 12 million tons of steel annually. The English-Dutch Holding demonstrated interest in the privatization of the Hungary-based steel maker Dunaferr as well. LNM’s assets also include a large steel company located in Kazakhstan, as well as factories in Algeria and South Africa. Representatives of US Steel, which also holds assets in Slovakia and Serbia, announced they were disappointed by the decision of Poland’s Government, but they were still interested in buying PHS.
Source: Capital (21.07.2003)

Arcelor of Luxembourg and US Steel, two of the world's biggest steelmakers, are embroiled in a row over alleged unfair state subsidies to US Steel's Slovakian plant., The Slovak government has been given permission by the EU to provide the plant with USD 500m of state aid for increasing production from the metallurgical plant in Kosice. This, however, according to Arcelor officials, is "in contravention of European Union principles”. The row underlines how the question of state aid to steel- makers in the former communist nations of eastern Europe is troubling steel producers in western Europe, particularly ahead of the EU enlargement in 2004 when 10 new members will join. Steel producers in western Europe fear their already fragile competitiveness could be further eroded by shipments of cheap steel to local markets from low-cost plants in the former Soviet bloc. They say some of these plants are being helped by government subsidies agreed in recent years. The situation is further aggravated by the tariff restrictions, imposed by USA on steel made by foreign producers. This is exactly what makes government officials and company managers from the so-called newly-emerging markets insist on maintaining the state aid for companies from the branch, in order to prevent possible wave of bankruptcies. Traditionally, eastern European countries offer much cheaper, but lower-quality steel.
Source: Dnevnik (22.07.2003)

World zinc produciton during the first five months of 2003 grew by 4.1 per cent, reaching 758.5 thousand tons. Compared to the same period in 2002, the amount of refined production jumped by 0.7 per cent, and the amount of consumption posted a growth of 2 per cent. This was announced from ILZSG. Producer inventories increased with 1000 t to 322 000 tons. Refined lead, produced over the same period, dropped by 0.1 per cent. Groove production remained unchanged, and demand grew by 0.5 per cent.
Source: Pari (22.07.2003)

A modern roller loom will produce aluminum foil in accordance with all European standards in Alcomet JSC. It is entirely managed by computers and its mounting continued about 4 months with the help of specialists from England. The capacities of the equipments are to manufacture 1000 tons production per month in the beginning and by the end of the year the volume to be increased up to 2000 tons. The management of Alcomet JSC claims that the quality of the articles won’t be worse than these which are produced in USA, Japan and the countries from EU.
Source: Pari (23.07.2003)

The Bulgarian company MBS JSC, jointly with the Norwegian-English company Aker Kvaerner is going to project the construction of a small installation for testing of new method for extraction of cathode copper from ore wastes. This was announced by MBS’s Executive Director Mr. Stoyan Mitov. The English unit of Aker Kvaerner – AK Engineering Services, will provide the technology for the pilot project. The Bulgarian company has been recycling residual components from the ore wastes of the ore-dressing complex (ODC) Acarel Medet. The construction of the pilot installation will cost around USD 2 million. Its capacity will be 4-5 tons per day. Construction will begin in early August and is expected to be completed by the end of the year. According to plan, the installation will operate for a period of 2-3 years. If things go well, we are going to construct a normal installation as well, with annual capacity of 15 000 t, added Mr. Mitov. This will not be possible before 2005. In May 2003, the company obtained a 35-year concession for copper extraction from the ore-dressing complex and has developed special methods for extraction of cathode copper from ore wastes. The installation is environment-friendly, Mr. Mitov firmly stated. The new method allows easier copper extraction through the use of physical and chemical means, and makes its level of concentration suitable for electrolysis process and cathode copper obtaining. Currently, Umicore is the only copper producing plant in Bulgaria. Until two years ago, Eliseyna also operated in this field, but currently the factory there is closed down. MBS was established in 1989 and was later renamed to Balkan Consult Architect Engineers. The company has constructed more than 10 purifying stations in the country, its activity includes recycling of waste waters, geodesy and environment protection. Until last year, the company was owned by Mr. Stoyan Mitov. Later on, a group of physical entities became co-shareholders in it. Recently, Aker Kvaener won a contract for technological modernization of a nickel plant in Cuba. The company is a world-leading provider of engineering and construction services, of technological products and integrated solutions. The company has annual revenues amounting to some USD 6 billion and employs 35 thousand people, working under projects in 30 countries all over the world.
Source: Dnevnik (23.07.2003)

Japan’s biggest steel maker Nippon Steel and China’s leading steel producer Shanghai Baoshan Iron and Steel signed an agreement for establishment of a joint venture by the end of this year. It is going to produce cold rolled steel sheets, used in automobile industry in China. The joint activity will be realized in the plants of the Chinese company, based in Shanghai. The new company in not expected to start operating before May 2005. Until then, Nippon Steel and Shanghai Baoshan Iron and Steel will have to settle all organizational problems. The production capacity is expected to be 1.7 million tons of cold rolled steel sheets, 450 000 tons of surface-processed steel sheets for cars and 350 000 tons of steel, used in home appliances industry. The joint venture initial capital will be RMB 45 billion (USD 378 million), half of which will be provided by Shanghai Baoshan, and the rest – by Nippon Steel and some of its foreign partners. The potential new owners are expected to be the world steel production leader – Arcelor of Luxembourg, and a number of Japanese companies. Thus, the share of Nippon Steel will probably be 35 per cent. The planned investment is in the amount of RMB 100 billion (USD 840 million). The production of the Sino-Japanese joint venture will be used mainly by Japanese, European and American makers of luxurious cars in China.
Source: Dnevnik (23.07.2003)

Steel production in EU member states within the period January-April 2003, grew by 3 per cent, reaching 53.1 million tons, compared to the same period in 2002, according to International Iron and Steel Institute figures. Metal Bulletin said that for the period April - June 2003, Western Europe's market demand was stable chiefly for sheet rolled iron by the main consumers - automobile companies. There is also demand for some types of sort rolled iron. According to experts from World Steel Dynamics, in 2003 second quarter world steel prices may mark a significant drop. Although in many countries steel produce demand might revive, high oil prices and sluggish economic growth in the leading industrial countries will have restraining effect on price growth rates.
Source: Pari (23.07.2003)

Over the past few months West European ferrous market was influenced by various tendencies. The large number of unfavourable production factors forming the market situation, such as weak consumer demand, underpinned by sluggish economy in leading European countries, considerable number of unused production capacities and serious competition among suppliers, etc, were supposed to exercise serious pressure on prices. But there was naturally no drop in producer prices under the given circumstance. On the contrary, for a series of articles, major European steel concerns managed to achieve not only nominal, but also real rise in prices (the smallest increase is in the prices of deliveries for EU consumers). 2002 world balance of ferrous metal demand was not in producers' favour. According to information published in the Economist, world steel production output in 2002 amounted to 847 million tons, while consumption was estimated at only 765 million tons. In the first half of 2003, world steel sales did not improve and exporters were forced to reduce the prices of many types of rolled products. Meanwhile, EU steel companies did not give up their attempts to forecast increase of futures prices, which turned out to be successful. Thus, in April 2003, they announced 3-5 per cent rise in the prices of most types of rolled products for delivery for the second quarter. The fact, that if in early 2002 West European steel concerns offered hot-rolled flat steel for 200 EUR/t, while in late June 2003, its prices reached an average of 330 EUR/t, proves the significant rise in producer prices.
Source: Pari (23.07.2003)

ALCAN, world's second largest aluminum producer, reported a USD 89 million loss for the second quarter of 2003. For the same period of last year, the company posted profit in the amount of USD 71 million. Two weeks ago, it made a hostile offer to acquire its French rival Pechiney. The offer was for USD 3.4 billion. Pechiney did not accept it and is currently maneuvering to avoid the acquisition.
Source: Pari (23.07.2003)

Chinese steel inventories exercised pressure on prices. Experts are concerned about the drop in the prices of the main types of steel products, observed on the world markets over the recent months, in particular, the accumulation of big inventories in China. Besides, US market development perspective remains highly indefinite. After market protection measures were introduced in EU against foreign steel suppliers (tariff quotes and rise in the import duties of 15 types of steel products from a number of countries by 14.9 - 26 per cent), rolled sheet steel import from EU dropped by 10 per cent to 1.3 million tons in 2002, compared to 2001. EU sheet steel market remained weak during the recent months. In this situation, EU steel producers maintained production growth, which resulted in increased domestic prices of these products in EU. Unlike cold rolled flat sheet steel, the market of hot rolled sheet steel was rather weak and its prices declined. As of April 1, British-Dutch company Corus raised the domestic prices of sheet rolled iron by 10 GBP/t. Arcelor group, which includes Arbed of Luxembourg, Usinor - France and Aceralia - Spain, increased the domestic prices of rolled sheet steel - hot- and cold-rolled steel in rolls, as well as sheet steel with holding for delivery during second and third quarter with around 15 EUR/t. The group's management was ready to reduce sales volumes in order to support prices. The decision to increase prices was based on the expected increased demand of sheet rolled iron on the world market in the near future.
Source: Pari (23.07.2003)

Bulgarian State Railways (BDZ) will insist on Kremikovtzi to pay its debt of BGN 18 million very soon, became clear during the meeting between the managements of the two companies. We can’t agree with the required amount because it is calculated on the base of the new transport tariffs and are included interests in it, said the Director of the Supervisory Board of the metallurgic company Mr. Bojko Bonev. On the other hand BDZ insists on increasing the tariff from BGN 0.024 per ton/km to BGN 0.03. Kremikovtzi is ready to pay BGN 0.027 per ton\km.
Source: Sega (24.07.2003)

The second by size copper-extraction company in the world and leading producer of iron ore RIO TINTO revealed an increased consumption of steel which was explained with the huge demand in China. During the second quarter the extracted ore is with 5 million tons more or 25.6 million tons and for the six months – with 11 per cent up to 49 million tons. The second by size producer of aluminum in the world Alcan expects the demand of the metal to rise with 3.4 per cent during this year.
Source: Pari (24.07.2003)

The Belgium producer of non-ferrous metals, the biggest company in the world for specialized zinc articles and owner of the copper-extraction plant in Pirdop – Umicore sold 1 million from its shares to a financial broker that will sell them to definite financial institutions in Europe. The transaction was realized in the frames of the long-term plans for finance of Umicore. At the moment the company is focused in four business directions: processing of copper, zinc, precious metals and high-tech materials. Meanwhile it paid USD 15 million for the takeover of the US company EaglePicher Technologies with seat in Oklahoma. This asset will be very useful to Umicore in its development and in the field of high-tech materials. EaglePicher Technologies now is called Umicore Optical Materials USA and the production will be used in infra-red and fibro-optic machines.
Source: Pari (24.07.2003)

Slovak aluminum alloys maker Sloval expects a 60-per cent drop in production output down to 6 000t per year, due to the declining automobile sales in Europe.
Source: Pari (25.07.2003)

The second-sized producer of nickel INCO that holds 25 per cent from the sales in the world registered a profit of USD 60 million for the second quarter. The strike in one of the mines where Inco extracts 1/2 of its nickel has been continuing for ninth week now and probably will influence on the performance for the whole year.
Source: Pari (25.07.2003)

The weak positions of USD and technical purchases raised the prices of non-ferrous metals in the end of last week at London Metal Exchange (LME), after in the beginning of the week, concerns about accumulated long copper positions at the New York commodity exchange Comex beat most of the quotes down. All metals at LME showed that the reduction in their prices was limited, after the downward trend of USD against EUR was resumed. The champion in the group (copper, aluminum, zinc, lead, nickel and tin) was aluminum, marking a five-month high of 1440 USD/t after consumers demonstrated interest. There was also an upward movement in the market of copper and nickel, and the other three metals - zinc, lead and tin simply followed this movement.
Source: Capital (28.07.2003)

The biggest metallurgic company in USA Nucor registered a profit of USD 8.4 million for the second quarter at USD 59.7 million one year earlier and expects to bear further results from the weak demand. Its deliveries for this period increased with 27 per cent up to 4.3 million tons steel and the average price was 357 USD/t at 351 USD/t one year earlier.
Source: Pari (28.07.2003)

The smaller copper-extraction and processing plants in Europe must consolidate regarding the crashed fee for recasting and refining and the deficit of scrap, according to some analyzators. The fees for processing reduced sharply to 12 USD and 1.2 CTS for recasting and refining in comparison with 105 USD and 10.5 CTS in 1997. Market speculations made the Belgium metal producer Umicore, owner of the copper-extraction plant in Pirdop, a partner of the Spanish branch of Freeport-McMoRan - Atlantic Copper in order to increase the extractions of 250 000 tons cathodes per year. And still according to any analyzators the more probable aim of Umicore is the Belgium Metallo Chimique with production 70 000 copper cathodes and 130 000 tons anodes per year. Metallo Chimique refused to comment such rumours and Umicore confirmed the negotiations with potential partners but did not point any concrete names. In fact Umicore and Metallo Chimique have already been partners in plants in Belgium and Spain. Umicore has been negotiating for nearly one year with the private Belgium Lamitreff but the negotiations stopped one month ago without any results. On other hand the Austrian company Montanwerke Brixlegg did not reveal the rumours that would transfer its shares in Slovakia in order to cut the costs.
Source: Pari (28.07.2003)

8 foreign companies and consortiums submitted preliminary offers for construction of the plant for daily wastes in Sofia, announced the Deputy Mayor on construction activity Mr. Ivan Gechev. They were selected after preliminary conversations with over 30 international companies from a working group with representatives of Sofia Municipality, Kremikovtzi and independent experts. The selected candidates are ready to execute the designers’ activities and construction of the plant for processing of the wastes with financing provided by them and to be operators together with Kremikovtzi on the base of a long-term contract with the Municipality, said Mr. Ivan Genchev. The future plant for daily wastes will be ready not earlier than 2005 and will be the first in Bulgaria. According to experts’ assessment its construction will cost at least EUR 100 million. The plant will be situated on the territory of Kremikovtzi. For this purpose is expected Sofia Municipality, the investor and Kremikovtzi to establish a joint-venture company in which the metallurgic plant will take part with a non-monetary installment. The municipality is also candidate for financing on ISPA programme.
Source: Dnevnik (28.07.2003)

The approval of the conditions at the world market of ferrous metals in 2002 caused a rising of the prices of scrap and compelled some companies-producers from Europe and especially from Italy and Turkey to stop the processing of metal scrap and even to reveal plans for cut of the steel production. However during the second quarter of the year the increasing trend was stopped at the main sorts of metal scrap – aluminum, copper and steel. The price of the copper scrap dropped with 80 USD/t in the middle of June in connection with the drastic reduce of the prime metal quotes. The traders from Europe were surprised by the unexpected turn in the trend because of the continual deficit at the European market. In the middle of June deals for scrap of copper N1 concluded for 1300-1320 EUR/t while N2 was sold at 1250-1270 EUR/t. According to brokers, the strong fluctuations in the prices of prime metals hamper the scrap trade since the buyers prefer avoid deals by the last possible moment. However, as a whole, the copper scrap is expected to keep on following the declining price trend because of the shrunk demand in Europe of ready products in the construction and manufacture of electricity. Except this, the inventories at LME in amount of 700 000 tons are still with 50 per cent over the level than the level one year ago although they are with 100 000 tons under the peak in the beginning of 2003. The infarct fluctuations in EUR/USD rate also affect the instability in the copper scrap quotes. The trade is executed in EUR but a big part of the scrap is sold outside the eurozone – in the warehouses at LME and the costs for their warehouse are in USD which makes the deals with this product very unprofitable when the European currency rises.
Source: Pari (29.07.2003)

The prices of the secondary metal of aluminum in Western Europe also remain unstable over the last weeks. The high-qualified material was favoured by the high demand of the producers of prime aluminum who paid in June a premium of EUR 50 over the quote at LME while the low-qualified scrap became cheaper due to the weak demand. The reduced consumption of metal in the industrial sector and mostly in the manufacture of automobiles led to deficit of highly qualified scrap. However, the low qualified scrap became cheaper since the expensive euro limited the export to the Asian countries. During the first quarter the European traders of aluminum scrap complained mainly of the huge export to China and Asia which consisted of low qualified secondary metal. However, the Chinese and Japanese prefer to buy scrap from USA than from Europe because it is more profitable. As a result the prices in the eurozone dropped with about 100 EUR/t to about 1150 EUR/t.
Source: Pari (29.07.2003)

The copper price has reached unprecedented rates at the stock exchanges since May, 2001 because of fears of deficit. The red metal gained over 15 USD/t and reached quotes of 1769 USD/t when the market was shaken by the news that the loss-making Australian section of the Japanese producer of copper Furukawa will be closed in August for indefinite time. In the beginning of 2003 the section Port Kembala Copper /PKC/ reported it planned to produce 100 000 cathodes at 59 000 for 2002. The news came just when the copper market began to lose inertia. In a long-term prospective the aim will be 1850 USD/t and analyzators from ITX pointed that by the end of the week may be reached 1800 USD/t.
Source: Pari (29.07.2003)

Within the current financial year, which started this April, the Brazilian company CVRD coordinated with the Western European consumers and partially with the world’s biggest steel maker Arcelor higher metal ore prices for 2003. CVRD managed to raise the quote of grinded ore from the Carajas deposit with 9 per cent to 31.04 CTS – 8.46 per cent higher from 2002. According to CVRD management, the increase is fully grounded, considering the improving situation on the ferrous metal market. During the first quarter of the year, world’s steel production output grew by 8.7 per cent to 305 million tons, according to company evaluations. The most active metal ore demand was by metallurgical producers from Asia, North and South America. European consumers, however, were not satisfied with the reached agreement, which is price-determining for the rest of the metal ore deals as well. German Thyssen Krupp Stahl and Anglo-Dutch Corus stated the increase of prices should not exceed 5-6 per cent. Japanese steel producers and Australian ore producers BHP Billiton and Hamersley Iron reached a similar agreement during their negotiations about the prices. According to the agreement, Japanese companies will buy Australian ore this year for 30.83 CTS per unit iron content. This will be 9 per cent more than the negotiated price level in 2002. Broken ore will be sold at prices 8.90 per cent higher (for 39.35 CTS). The high steel production growth rates in the world in 2002 (with 6.4 per cent) resulted in significant exhaustion of metal ore inventories. According to specialists, raw material supply situation may be additionally aggravated, because currently the leading producers are working at their full capacities and it will be hard to satisfy the new needs of the companies from the Asian region.
Source: Pari (29.07.2003)

Bulgarian State Railways (BDZ) is in negotiations with Kremikovtzi JSC for the payment in full of the outstanding BGN 18 million, which will be used to cover the delayed labour and social remuneration of BDZ's employees.
Source: Pari (31.07.2003)

Canadian steel-extraction and steel-processing plants (among which are the giants Alcoma, Stelko and Ipsko) want the country’s Government to initiate an investigationfor illegal dumping of Bulgarian, Romanian and Czech companies. According to sources of the Canadian Customs Agency, Romanian steel is sold with 63.8 per cent lower in the country, Bulgarian – with 20.6 per cent and the Czech steel - with 19.9 per cent. For 2002 the import of the steel from these three countries increased nearly three times up to 60 000 tons or about 20 per cent from the import in the country. Observers remind that for the last decade Canada initiated such investigations at least 5 times and most frequently ended with a sharp increase of the duties for the charged countries. The three countries hold a very tiny part of the consumption of steel in Canada. The share of Bulgarian and Czech goods is respectively barely 3.3 and 3.6 per cent and only Romania with its 13.1 per cent is a bigger threat to the local producers. In spite of this Canadian regulation authorities can initiate an investigation for dumping since all three countries exceed the set minimum of 3 per cent which is necessary for such an inspection. According to many analyzators the reason for the pressure, caused by Canadian companies is the abrupt drop of their profits (between 40 and 60 per cent on annual base) during this year because of the higher prices of the electricity and raw-materials and the bigger import in the country. Except this, the dumping leads to considerable falling of their sales, pressure on the prices and lower use of the capacities. Observers remind that in USA also started a three-year programme for impose of tariff restrictions of the import in March, 2002 for support of the American industry. According to the programme the imposed duties were between 8 per cent and 30 per cent for the different goods and the idea of the administration was the list of the goods and the level of the duties to reduce gradually. Few Bulgarian companies export steel articles to Canada. One of them is Pernik-based company Stomana industry. The management of the plant firmly denies the fact that it exported at dumping prices. We expect that the results of the inspection will show that Stomana industry doesn’t have any violations, said Mr. Anton Petrov, a representative of the Greek group Viohalco, owner of the plant in Pernik and of Steelmet. He also added that if there were imposed anti-dumping duties after the inspection, this would not be good for anybody since the access to one market will be limited. Kremikovtzi does not export to Canada and the eventual measures that may be taken by the Government will not influence on them.
Source: Dnevnik (31.07.2003)

A research, made by Råuters shows that the leading analyzators revise their forecast prices for the non-ferrous metals for this and next year and their shrunk supply will influence harder than the demand and nickel is the leader of higher prices. According to the analyzators, the average quotes of the nickel for 2003 will be 377.3 CTS/lb and 399.6 CTS/lb in 2004, considering the January forecasts at respectively 340 and 375 CTS/lb and on average 307.2 CTS/lb for 2002. The price of aluminum is expected to increase with 2.9 per cent during this year and 65.4 CTS/lb for 2003 and 2004.
Source: Pari (31.07.2003)

The top copper-extraction company in the world - BHP-BILLITON has not still decided whether to cancel the cut of its extractions in Southern America which started in 2002.
Source: Pari (31.07.2003)

The French Pechiney registered a profit for the second quarter of EUR 12 million at EUR 8 million for the same period of 2002.
Source: Pari (31.07.2003)

The European market of flat steel which LME intends eventually to start to trade as of 2004, stabilized over the last week when from April until now has been becoming cheaper. The quotes of the steel moved downwards because of the low consumption. The plans of the biggest market-place of non-ferrous metals in the world – LME include the trade of three steel futures – Northern American hot-rolled coils /HRC/, European HRC and Euro-Asian rifle iron. The prices of HRC in Germany, the biggest consumer of steel in Europe are 310 EUR/t including the delivery. The imported HRC in Europe, which is influenced by the prices at the local market, became inconsiderably up to 275-280 EUR/t C&F. The market is reviving again after the returning of China on it. The expectations of the traders are that the prices of the flat steel will keep about the current levels by the end of August.
Source: Pari (01.08.2003)

For six days in a row the prices of non-ferrous metals at the exchanges were going up, but this trend came to an end on Thursday. “Metals, however, are subject to trust, since their shares went down this week. Therefore, I don’t think there is anyone who is worried by this drop in prices,” commented London traders. The active copper sales did not change the positive atmosphere in the market .The information about forthcoming strike in the world’s biggest copper mine – Escondida – Chile, is also a hindrance for the downward movement of prices. A continuous strike in Escondida would have a significant effect on the market, considering the deficit in the market of copper raw material. Aluminum’s prices were moving around 1450 USD/t but could not reach higher levels. According to analysts, however, this limit will soon be eliminated. Experts think, that aluminum deficit will hardly be overcome and will continue at least until the end of the year.
Source: Capital (04.08.2003)

The efforts to resume the negotiations for termination of the strike in the Sudberry unit of the Canadian nickel producer Inco failed. This was announced by the labour unions.
Source: Pari (04.08.2003)

By 2006, the world's second biggest aluminum producer - RusAl of Russia, is going to double its sales of products with high added value - semi-manufactured household articles made of aluminum. This was stated by the company's Deputy Sales Director - Mr. Vladimir Smirnov.
Source: Pari (04.08.2003)

The metallurgic plant Kremikovtzi registered a profit of BGN 49.365 million for the first six months of 2003. The sales of the plant also increase – up to BGN 390 million in comparison with 265 million during the same period of 2002. The main part of the positive financial result is formed by the positive currency differences, which are for over BGN 96 million. Even without the negative differences of BGN 53 million there is again a positive result of BGN 43 million or over 90 per cent of the profit. Probably, the big increase of the earnings from currency operations is due to the fact that a big part of the debts of Kremikovtzi are in US dollars. The American currency was abruptly devaluated during the period January-June, 2003. The total debts of the company are BGN 915 million from which one third are to suppliers and clients and BGN 258 million are to related enterprises. The receipts increased almost two times and are already BGN 454 million. According to analyzators the main part of the growth of incomes of Kremikovtzi is due to the launching in exploitation of first furnace in the autumn of 2002. Beside this by the end of 2003 is planned to start the activity of the line for permanent casting of steel, said the PR of the company Mr. Todor Hristov. The chief executor of the project is the Austrian company Fiost Alpine and the hopes are the launching of the line to cut the costs for production per unit with 20 per cent and to be improved the quality of the steel. Among the factors, which improve the results of Kremikovtzi, is also the slight rising of the prices of the rolled rolls at the world markets. During 2002 they reached record low amounts. A serious problem of the company is the uncovered loss from past years for BGN 319 million. Except this, during the last week the Minister of Transport Mr. Nikolai Vassilev threatened the plant with a procedure of insolvency because of the debt to BDZ for BGN 18 million. He stated that the Management of the plant was unwilling to negotiate for payment of the funds. Any news about the negotiations with the Italian company Marcegallia for the purchase of a share from the plant can be expected in September-October. The idea is the western European partner of Kremikovtzi to acquire the half of the shares of Finmetals holding that holds the major stake of shares in the plant.
Source: Dnevnik (05.08.2003)

Observers at the market for non-ferrous metals are happy that their forecasts for higher quotes start to become real even before the beginning of the global economic progress after the 2-year crisis. According to the consulting agency CRU International the average annual prices of the non-ferrous metals are expected to be with 15-30 per cent higher than the same indicators for 2002. The sole exception most probably will be the aluminum, for which all experts envisage an increase of the price only with 7 per cent. The group of the six non-ferrous metals – copper, zinc, nickel, aluminum, tin, lead, quoted at LME, will become more expensive in 2004 with 13 per cent compared to 2002. On other hand, the experts remind that the prices of the non-ferrous metals in 2004 will be quite higher than these in 2002 but namely this year was the worst for them in the whole history of the stock exchange trade with non-ferrous metals. The prices of the metals in USD increase but the very US dollar also reduces its exchange equivalent, which in fact reduces the real profits of the big countries-producers like Australia, Canada, South Africa and Europe in their own currency. Only one of the six metals at LME – the tin is expected in the second half of 2003 to reach an average price over this at the moment and only three of them – tin, copper and zinc will continue to increase their prices in 2004, according to the experts. The nickel remains the hope of the industry.
Source: Pari (05.08.2003)

LME started an internal investigation of its trade with prime aluminum that may find eventual secret agreements between participants in the trade, subordination between the level of the stock exchange inventories, the trade acts and prices’ movement. The investigation will be lead by the regulating department of LME.
Source: Pari (05.08.2003)

Serbian copper-extraction company RTB Bor expects new western investments of USD 35 million in order to become profitable again during 2006. The production is expected to be over 3000 copper concentrate.
Source: Pari (05.08.2003)

Chili-based copper-extraction company Antofagasta, listed on LME, received a production certificate À in the COPPER group for 85 000 tons cathode copper from El Tesoro mine. The production is sold through LME.
Source: Pari (05.08.2003)

10 companies will buy electricity directly from TPS Varna, TPS Bobov dol and TPS Maritza-iztok 2 in September when is expected the Parliament to accept the new act for the energetics, announced the Director of Development of market liberalization department in NEC Mr. Plamen Popov. The companies are Stomana industry, Asarel medet, Elatzite med, Union minier, Devnia tziment, Sviloza, Neochim and Agropolichim, Maritza-iztok mines and KZM. In June State Energetics Regulation Commission defined the ten companies as privileged consumers. According to the decree for access of the privileged consumers, they have annual consumption of over 100 GW/h electricity and don’t have debts to the electric company. The ten companies will deal lower prices than the current weekend tariff of NEC, which is BGN 63.15 for MgW/h. At the same time with the introduction of the bilateral contracts the producers will be forced to reduce the costs for the capacities. However, the exact price, which is concluded between producers and privileged consumers, is a secret even for NEC.
Source: Dnevnik (06.08.2003)

One of the biggest companies-producers of steel in USA - US Steel, which makes its best to enlarge the positions in Eastern Europe, registered losses for the second quarter of the year. The losses amount to USD 49 million in comparison with the profit of USD 27 million for the same period of 2002. This result made analyzators comment again how successful proved to be the new steel duties, introduced by USA in 2001. Their amount was by 30 per cent.
Source: Pari (06.08.2003)

The top producer of copper in the world Chili will manufacture in 2004 5.8 million tons copper or with 7.8 per cent more in comparison with 2003. The prices will be 85 CTS/lb at 77 CTS/lb for the current year.
Source: Pari (06.08.2003)

One of the leading producers of steel INSPAT registered a profit of USD 14 million for the second quarter at USD 11 million for the same period of the former year.
Source: Pari (06.08.2003)

Bulgarian State Railways (BDZ) will offer to Kremikovtzi to sign a contract for transport of freights or will declare the company in insolvency, announced the Executive Director of BDZ Mr. George Neshev. The contract was broken in September 2002 and so far the national transporter and the metallurgic plant can not agree with the price for the transport. According to Kremikovtzi it has to be BGN 0.024 t/km and according to the railways – BGN 0.03 t/km. BDZ claims that Kremikovtzi owes BGN 18 million and the plant is sure that the amount from missed benefits and delay of the freights is for BGN 75 million. It was not reached an agreement on the defaults in the contracts, explained Mr. Neshev. During last week the Deputy Prime Minister Mr. Nikolai Vassilev stated that the Management of Kremikovtzi was not interested in further negotiations and there were other ways for solution of the problem. The negotiations are continuing and won’t comment any results from them, was explained from Kremikovtzi.
Source: Dnevnik (07.08.2003)

There was a deficit of 184 thous. tons refined copper at the world market in May, was reported from ICSG. At the same time of 2002 there was a surplus of 199 thous. tons. In its last monthly survey, the group with a head-office in Lisbon pointed that the deficit at the global market is a result from the increased consumption of copper with 4.6 per cent in the period January – May in combination with the drop of 1.6 per cent of the refined production. The biggest share in the increased demand is of the Asian countries. The consumption in Europe increased inconsiderably while in America was revealed a decline. Considering the manufacture, there was a rising of the extractions in Asia and a decrease in Europe and America. The total warehouse inventories at the stock exchanges in London, Chicago and Shanghai were 982.9 thous. tons and in the end of July practically for a first time since 2001 have reduced under 1 million tons. From the end of June to the end of July they reduced with other 53 000 tons and in the first two countries reduced and in Shanghai slightly increased. The average spot price of the copper for July is 1710 USD/t in comparison with 1686.50 USD/t for the former month, according to the actual data of ICSG.
Source: Pari (07.08.2003)

The top producer of steel Arcelor intends to sell to the Spanish Condesa its business for pipes as a part of the selling off of assets which are not included in the core business. Arcelor sold 1.3 million tons steel pipes in 2002 and gained earnings of USD 609 million.
Source: Pari (08.08.2003)

The Chinese monopolist in the manufacture of aluminum Aluminum Corporation of China /Chalco/ will increase its production in 2003 with 4 per cent up to 5.7 million tons.
Source: Pari (08.08.2003)

The second by size producer of zinc in Russia with over 100-year history, extracted more than 40 000 tons metal in the first half of the present year or nearly the same quantity during the same period of 2002. For the whole 2002 the production is 88.4 thous. tons.
Source: Pari (08.08.2003)

The top producer of nickel and palladium in the world – Norilski nikel stabilized its positions in the gold extraction sector after it bought 38 per cent from the company Matrosov for a little over USD 34 million. Matrosov that has a license for development of the field Natalkinskoe with confirmed reserves of about 250 tons and is with a head-office in Magadan region. In 2002 Norilski bought the biggest Russian gold-extraction company Polus with which confirmed its plans for enlargement the positions in the gold extraction and except this will take part in the tender for development of the huge field Suhoi Log.
Source: Pari (08.08.2003)

Polish Government intends to unite the two plants for manufacture of zinc in a holding and in this way to create one of the most tremendous companies in Europe, announced the Deputy Minister of Finance Mr. Taleush Soroka. HC Miasteczko Slaskie and ZGH Boleslaw whose total extractions for 2002 were 160 000 tons zinc, will get use of the consolidation because at the moment the world industry bears lower prices and surpluses of zinc at the market. Besides this, they won’t be competitors and will have free resources for joint investment in the development of zinc products with higher added value before the privatization of the holding. The creation of the joint-venture has to finish within May, 2004 as they will realize combined purchases and sales of production and investments but the whole merger is not relevant because of differences in the technologies of the two enterprises. According to data of the Ministry at zinc prices over 800 USD/t on the stock exchanges and the two companies will register a profit. Among the biggest deals connected with the privatization of the Polish metallurgic industry are the sales of the sixth by size producer of copper in the world KGHM and of the processor of aluminum Kety.
Source: Pari (08.08.2003)

BDZ will pay with priority the delayed remunerations of the railway workers from Loading and Passenger Office in Burgas. The agreement for this was signed by the Director of BDZ Mr. George Neshev. According to it the delayed remunerations will be paid by the end of September. The funds will come from Kremikovtzi. The broken contract with plant 10 months ago will be renewed, specified Mr. Neshev.
Source: Standart (11.08.2003)

The company Dundee Precious, unit of the Canadian company Dundee Precious Metals, obtained option for acquisition of the Bulgarian assets of the insolvent British metal producer Navan Mining. The option is valid until August 15 and in case Dundee agrees to use it, it is going to pay a total of USD 256.5 million. Since mid-February, Dundee Precious Metals has been in negotiations with Navan Mining’s creditor – the London branch of Deutsche bank. The total sum under the deal includes USD 10 million buying price of the assets, USD 4 million, which Dundee is going to pay in equal quarterly installments between December 31 2004 and December 31 2005 and USD 12.5 million, which should be paid when the Bulgarian Government gives the necessary permits for exploitation of the golden deposit near Ada Tepe, Krumovgrad region
Source: Dnevnik (11.08.2003)

A part of the privileged consumers of electricity – Stomana industry, KZM, Agropolichim, Elatzite med and Ferrous and Non-ferrous Metallurgy Branch Chamber submitted an objection in Supreme Administrative Court against the price for transfer of electricity from July 1, which from BGN 6 per MW was increased two times up to BGN 11.80 per MW /without VAT added/ in accordance with a decision of State Energetics Regulation Commission. At the moment the price for transfer of electricity in Bulgaria is not being paid by any company because NEC is the sole buyer. It will become very significant when the privileged consumers start to buy electricity directly from the stations-producers. The new Energetics Act will give the right to both sides to conclude contracts between each other and to deal the prices of the electricity on them. For the transporting activity the consumers will use the transfer network of NEC and will pay for the service on the tariff, defined by State Energetics Regulation Commission. The main motive for the double rise of the price was that there were missing investments for capital repair of capacities and on NEC network. The priviliged consumers are afraid that the high transport fee could eliminate the allowance for which will be negotiated with the producers.
Source: Pari (11.08.2003)

The zinc plant Belovo that accumulated serious losses and bankrupted in 2000, will knock off its activity after years of useless searching of a foreign investor. The production in the third by size refinery after Cheliabinski and Elektrotsinski plant, dropped during the last several years and thus accumulated losses. According to data of Zinc Development Centre with a head-office in Moscow, the operations in Belovo have already been stopped. However, the plant refused to comment anything. An official representative of the local administration said that on August 22 it stopped working because of technical problems and if by the end of November is not found a foreign buyer, most probably this will be the end for the plant. Belovo was built in 1931 as a part of Stalin’s plan for industrialization of the country and after the bankruptcy in 2000 was declared for sale. Several companies, including Euromin with a head-office in Switzerland, showed interest but after that retracted. In 2002 in the plant were produced 2840 tons dust zinc in comparison with 2924 tons for the former year and the drop in the production is explained with bigger costs and low prices of the metal on the world stock exchanges. In 2002 the producer N 1 in Russia – Cheliabinski plant extracted 165.8 thous tons zinc and Elektrotsink - 88.4 thous. tons. The Russian zinc industry will depend mainly on these two producers when Belovo will leave the trade stage.
Source: Pari (11.08.2003)

The continuing vagueness whether there will be a strike in Chili-based copper mine Escondida burdened on the market of non-ferrous metal during the last week too. A new factor appeared – LME starts an investigation for eventual conflict between participants at the market of aluminum. The analyzators are unanimous that the trade with this metal will be under a permanent pressure. The investigation will be concentrated on a deposit of 500 000 tons aluminum, used as a guarantee in a deal between European trade company and a company – member of LME. Both of the factors – Escondida and the investigation of LME influenced declining on the prices of the non-ferrous metals.
Source: Capital (11.08.2003)

After 10 months of negotiations, the contract for transport of production between BDZ and Kremikovtzi JSC was signed at last by the Executive Director of BDZ Mr. George Neshev and the Director of the metallurgic plant Mr. Valentin Zahariev. The contract was broken unilaterally by BDZ on September 29, 2002. Then, BDZ insisted on increasing the price from BGN 0,022 to BGN 0,03 t/km. The sign of the contract was executed when the new minister of Transport Mr. Nikolai Vassilev set an ultimatum to Kremikovtzi. The agreed new price contents the both companies, said Mr. Neshev. Now Kremikovtzi will pay with BGN 8 million more per year for the same volume of freights.
Source: Standart (12.08.2003)

The new transfer fee that will be paid to NEC by the privileged consumers, is defined in accordance with the costs for keeping a reserve of capacities in the energy system of Bulgaria, said the Director of Development of market liberalization department in NEC Mr. Plamen Popov. In the end of July Stomana industry, KZM, Agropolichim, Elatzite med and Ferrous and Non-ferrous Metallurgy Branch Chamber submitted an appeal in the Supreme Administrative Court against the decision of the State Energetics Regulation Commission the price for the transfer as of July 1 to be increased from BGN 6 to BGN 11.80 per MW. The four companies took a statute of privileged consumers from State Energetics Regulation Commission and will be able to deal the conditions and prices of the electricity as for the transfer will pay the fee to NEC. The direct contracts between privileged consumers and the stations will become efficient when the Parliament accepts the new Energetics Law. At the moment NEC, as a sole buyer, does not gather the fee but it will become significant for the company’s expenditures when the direct contracts are concluded. Our motives are that the new fee concerns the economic interests of the companies and is not based on real changes in the situation, explained the Deputy Chairman of the Chamber Mr. Kiril Brunikov. According to the consumers, the State Energetics Regulation Commission defined the fee quite subjectively. This is the first case after the experimental opening of electrical engineering market when such a dispute arises. The reserve of capacities on average at about 1500-1600 MW during the whole year will provide reliability of the system, explained Mr. Popov. The purchase of such capacities at these prices, defined by the Commission, is a expenditure to NEC. These expenditures have to be distributed between all consumers proportionally to the consumed electricity without regarding whether it is bought at regulated prices or through direct agreement. According to the experts such future disputes between the operator and the privileged consumers neither have to threaten the opening of the market, nor to delay the process.
Source: Dnevnik (12.08.2003)

USA submitted an official appeal against the decision of the World Trade Organization /WTO/ that declares for illegal the American duties for the imported steel. The duties became efficient in April, 2002. After the long expected step of Washington, WTO has two or three months to express an opinion on the appeal. The organization is expected not to change its decision, namely that the duties that vary from 9 to 30 per cent, break the rules of the organization. In spite of this, even if WTO confirms its decision, USA will have 9 months before the abolition of the duties and then practically will expire the 3-year period, for which they were introduced. This long process is a result of the slow procedure of WTO. Washington imposed the duties in order to protect the American metallurgic industry from the flow of cheap imported steel. The introduction of these duties was on the verge of starting a trade war between USA and the rest of the world. The President Mr. George Bush and the permanent trade representative Mr. Robert Zelik were under pressure by the steel-extraction lobbies to cooperate for the saving of the industry. In spite of the duties, several of the biggest companies from the branch registered a slump of their profits for the first half of 2003.
Source: Pari (12.08.2003)

The sixth by size producer and number 2 of silver in the world – the Polish company KGHM registered a smaller than the expected drop in the profit for the first half of the year. The non-consolidated profit reduced with 48 per cent to USD 14 million.
Source: Pari (12.08.2003)

The third by size producer of aluminum in China Qingtongxia Aluminium will double its production up to 500 000 tons annually in the end of the year.
Source: Pari (12.08.2003)

Kremikovtzi submitted documents for receiving of a license for private railway carrier, announced the Executive Director of the company Mr. Valentine Zahariev. The metallurgic company is the second company after Ray holding that is a candidate for such a license. The management of Kremikovtzi denied the connection between the requested license and the sign of the contract with BDZ. The documents are being considered at the moment, was reported from the railroad administration.
Source: Dnevnik (13.08.2003)

USA raised an objection against the decision of the World Trade Organization, according to which the imposed by the American President Mr. George Bush duty for the import of steel violates the international trade act. The duties will remain efficient until any appeal instance does not take a decision on the objection.
Source: Pari (13.08.2003)

Damages for totally BGN 9.972 million were found by the financial supervision bodies of the Agency for state internal financial supervision during audits in July, was reported from the administration of Ms. Ginka Draganinska. 240 internal audits are finished and are opened 170 new. Most of the violations were found in Pernik – for BGN 8.556 million, Kuystendil – BGN 408.9 thous., Sliven – BGN 331 000, Vratza – BGN 175 000, Veliko Turnovo – BGN 124.2 thous. More significant violations were found during the inspection of Stomana JSC-Pernik. The damages there are for about BGN 8.553 million. According to the analysis of the agency, the damages are as a result of sales of assets at prices, lower than their reported value, of irregularly calculated compensations on the Labour Code, of not calculated taxes and installments on Corporate Incomes Taxation Law. Some incomes from rent or interests in the company were not properly registered by the accountant.
Source: Pari (13.08.2003)

The sole producer of copper in Serbia – the copper-extraction and processing complex Bor hopes to become profitable thanks to fresh investments and concessions of western companies after 10 years of trials. The Director of Bor Mr. Borivoe Stojadinovich said that the copper complex would require from the Government aid for the faster restructure and the selling off of assets, different from the major ones. At least USD 35 million during the next 2 years will be necessary for stabilization of the extraction of 3000 copper concentrate per month, which will make Bor profitable company. The plans for 2004 are the production from the two mines - Borski Rudnici and Majdanpek to reach 2000 tons per month. Now the country subsidizes with USD 350 each ton copper production to prevent the complex from bankruptcy and to prepare for the privatization. According to the new legislation, concessions will be rented only for a period of 30 years, which will open the doors for the foreign investors. The future So far the giants Phelps Dodge and Rio Tinto have already took interest in the Serbian mineral fields.
Source: Pari (13.08.2003)

The biggest copper-extraction company in the world BHP Billiton will restart during this month the extractions of copper in the groove Tintaya in Peru. The production may reach 90 000 tons copper annually. The manufacture was stopped in January, 2002 because of the increasing levels of the inventories and the low prices of the metal on the stock exchanges.
Source: Pari (13.08.2003)

The Serbian mine Majdanpek won’t manage to produce the planned 4 000 tons copper concentrate because of lack of funds for purchase of raw-materials, which is due to the delayed start of the exploitation of the copper mine Coka Marin. Namely, the golden groove that had to start working in March, was the hope to turn into a source of fresh financial resources and to regenerate the operations in the copper mine Majdanpek. The Management of the latter thinks that there are quite few chances for Coka Marin to start working during this year. Majdanpek is one of the 18 Serbian extraction and processing companies under the hat of the copper complex Bor, which endured serious damages from the wars and the bad management in the 90’s. Now, every month in Majdanpek are extracted hardly 300 tons copper concentrate. In 2002 there were produced 100 kg gold, 743 kg silver and 3 000 tons copper concentrate. In Coka Marin is expected to be extracted 15 g gold and 150 g silver from 1 ton ore and 3.5-4 per cent copper.
Source: Pari (13.08.2003)

International Financial Cîrporation (IFC) is planning to invest EUR 30 million in Stomana Industry - Pernik. The corporation is a part of the World Bank's group, which operates in the field of private sector investment. According to plan, EUR 20 million will be granted to the steel company in the form of a loan, and the remaining EUR 10 million - as a shareholding interest. The project has been approved by the board of IFC last week. Its total amount is EUR 73.8 million, and the funds will be used for the post-privatization restructuring of Stomana. The target is to reduce costs and the improve the quality and competitiveness of the company's produce, while keeping the capacity. The executor of the project is Sideron, owner of Stomana. Sideron promised to invest EUR 13 million in improving the environment.
Source: Pari (14.08.2003)

The biggest producer of steel in the world Arcelor will reduce its production of stainless steel in the summer with 50 000 tons per month because of the shrunk consumption, piled warehouse inventories, the expensive euro and the limited export to Asia, caused by the SARS. Arcelor will take this measure in three of its plants that are based in Belgium and France. It was created in 2002 at the huge merger of three European companies – the French Usinor, Luxembourg Arbed and the Spanish Aceralia. In 2002 in Europe were produced totally about 5 million tons stainless steel. The other European top producers of stainless steel also intend to cut the extractions.
Source: Pari (14.08.2003)

One of the biggest mine-extraction companies in the world – the Australian Rio Tinto considers that it is too early to expect an increase of the consumption of copper in 2004. The giant holds 30 per cent of the biggest copper groove in the world Escondida, which is situated in Chili where the manufacture has been reduced with 200 000 tons since 2001 in attempts to be avoided the oversupply at the market.
Source: Pari (14.08.2003)

United Arab Emirates prohibited the import of scrap over the coming two years, in order to prevent possible import of radioactive metal from Iraq (25 km away from Baghdad), stolen from the Iraqi nuclear complex.
Source: Pari (14.08.2003)

The biggest company by extraction of iron ore, Cia Vale do Rio Doce /CVRD/ registered 15 times higher profit for the second quarter USD 426 million in comparison with the same period of 2002 thanks to the increased prices of the raw-materials and the more expensive local currency – real. CVRD also produces gold, copper and aluminum and is the biggest Brazilian exporter.
Source: Pari (15.08.2003)

The profit for the third quarter of the German steel-extraction group ThyssenKrupp before taxation reduced with 30 per cent to EUR 221 million. This weak financial result is a result from the reduced demand.
Source: Pari (15.08.2003)

The biggest producer of nickel that controls 3/4 of the market of platinum and extracts 10 per cent of the copper and 3 per cent of the cobalt in the world, Norilski nikel, intends to acquire the third by size top company for extraction of metals from the group of platinum – the British Lonmin. It is not a secret that the strategy of Norilski nikel envisages opportunities for acquisition of western assets but until now there is not any definite decision for purchase of this or other company, was explained from the head-office of the Russian giant. A month ago it became major owner of Stillwater, the sole producer of platinum and palladium USA. Lonmin produced in 2002 1.5 million tr. ounce metals from the group of palladium, its incomes are USD 697 million and the net profit – USD 185 million. The main assets are RUA and Gana /28 per cent in Ashanti/ and its capitalization is about USD 2.07 billion at USD 8.5 billion for Norilski nikel. Yesterday at the Russian Stock Exchange the papers of the Russian company became more expensive with 5 per cent and reached its consecutive historic maximum. However some analyzators consider that the British company is quite big bit to swallow since the takeover of 50 per cent costs at least USD 1 billion and Norilski nikel intends to spend USD 400 000 for the purchase of Matrosov groove. Besides this, last year it also acquired the biggest company for extraction of gold in Russia – Polus. Lonmin firmly denied the rumours for the purchase which appeared at the market and stock exchanges in Moscow and London. The profit of Norilski nikel for 2002 dropped with 29 per cent to USD 3 million and the net profit
Source: Pari (15.08.2003)

World’s top copper producer – Codelco of Chile, announced that the amount of its production output for the first half of the year has grown with 3.5 per cent compared to the same period of last year, reaching 741 thousand tons. This happened after the company loaded its capacities to the maximum. The sales and profit, however, dropped with respectively 14.9 per cent and 11.1 per cent, though prices were raised with 4.5 per cent. The annual profit is in the amount of USD 201.8 million. Concerning production this year, Codelco announced last month, that in 2003 it expected lower than expected production because of the delay of new copper production projects and strikes. Last year, the top company produced 1.520 million tons, and this year, according to the latest data, it is expected to produce 1.546 million tons. Meanwhile, the productivity per worker has been developing with a stable upward trend since 1998 and is currently 88.3 t copper per year.
Source: Pari (15.08.2003)

Lead was the central news at London Metal Exchange (LME) again last week, after it marked a 6-week minimum. Sales sent the price under the level of 500 USD/t. The three-month futures dropped to 481.50 USD/t on Thursday. The active hedge activity (risk insurance) of the funds sent wrong signals to the producers, creating the impression of stronger fundamental factors a year after the prices hit a historical maximum. Stephen Brigs, analysts in Societe General, commented that the decision to revive production in Chinese zinc factories within a higher-price environment, outlines the problem. On Wednesday, China’s fourth largest zinc producer – Baiyin Non-ferrous Metals Co., announced its intention to restore production to 100 000 tons per year after September 20, because the prices on the international markets have grown sufficiently. This is the typical problem, originating from the funds’ hedging activity. When the prices of zinc grow too fast, the fundamental factors are becoming worse, according to Brigs. Over the past few months, the prices of zinc started to go up underpinned by purchases by investment funds. On August 1, they jumped to 877 USD/t – a record level for the past two years.
Source: Capital (18.08.2003)

The amount of steel, produced in China in 2003 will exceed 210 million tons, according to the official issue of the local statistical bureau – China Information News. Asia’s total steel production this year amounted to 360 million tons. For the first half of the year alone, Chinese steel production jumped with 21 per cent on an annual basis, and import was 58 per cent higher from the first half of 2002. The remarkable growth in industry and import is a result of increased demand, which is in the bottom of the 30 million-ton steel import expected in the country this year. From 1996 until 2002, consumption increased with 14 per cent annually, while world consumption grew with only 4 per cent. Currently, China needs huge amounts of steel for the automobile industry (a record number of 2 million cars are expected to be produced in the country this year), for infrastructure projects, such as the gas pipe-line West East and for the construction of facilities for the Olympic games 2008 and Export 2010. Local producers are doing great. The branch’s top company Baoshan Iron and Steel reported 162-per cent growth in profits for the second quarter (profit reached RMB 2.09 billion), after 200 per cent jump in the first quarter. Besides, first half profit of the three companies, listed at Hong Kong Stock Exchange, will also grow impressively. Angang New Steel Iron and Steel, according to experts’ forecasts, will report double profit, and Maanshan Iron and Steel will post 6-times bigger profit.
Source: Pari (19.08.2003)

The events on the world metal market confirm analysts’ expectations for 2003 – non-ferrous metals quotes continue their sluggish growth and ferrous metal prices are gradually moving down. Though the market is characterized with regular collapses, most experts think that the significant variations in metal demand and prices will be their basic feature until the end of the year. Non-ferrous metals cannot find their balance. World non-ferrous metal market was doing quite well in the first half of the year, the prices confirmed expert forecasts and grew slightly. Just like in 2002, the growth was biggest in nickel quote, which jumped with over 23 per cent, after posting a record growth of 37 per cent last year. The results for the rest of the non-ferrous metals are more humble – the average quotes of aluminum grew with only 2.5 per cent, the prices of copper grew with 5.5 per cent, and of lead – with 11 per cent. Figures did not look bad at all compared to last year – in June 2003, nickel price was 24 per cent higher than in June 2002, lead – 9 per cent, aluminum – 4.1 per cent, and zinc and copper – respectively 3.1 and 2.4 per cent higher. Analysts from Societe Generale, however, expect the indicators improvement rates to slow down and prices to mark a growth of over 15 per cent before December. According to forecasts, world demand for the metals traded at LME will increase with some 5 per cent this year, which will bring stable support to the quotes. Nickel perspectives are most favourable. The strong start of this metal in 2003 justified hopes. In June, the strike in one of Inco’s units (the biggest producer among developed countries) additionally boosted prices, which came clos to 1000 USD/t.
Source: Pari (20.08.2003)

The inventories at London Metal Exchange are steadily reducing and are currently already a little under 17 000t compared with 26500t in January 2003. Nickel market is known as one of the most unstable in the complex, traded at LME. For comparison, in the end of 2001, quotes were varying around 4000 USD/t.. Now they are over 9000 USD/t, and if shortage becomes bigger, they may jumt to 15 000 USD/t.. According to analysts, there is a 50 000t deficit on the market this year, because consumption in China remains unstable and the new capacities, due to start operating, are comparatively small in number. In this situation, the only balancing factor appears to be the Russian giant Norislki nickel. The company used to have 60 000t metal in store as a guarantee for a credit amounting to USD 200 million. In April, Norilski sold 36 000t, and in the middle of June it sold the remaining 24 000t as well, in order to compensate for the shut down production operations in Inco’s Sudbury-based mine. Experts fear that next year there will be a 50 000t deficit again, but it is still not clear what kind of metal will be used to cover it, bearing in mind that because of the strike in Sudbury, Inco shrunk its monthly production with 8000t. Experts think that Norilski has another 20-30 000t stored in its warehouses in Russia, which could be offered in the market. However, the Russian giant is not willing to reveal official information about the exact amounts. For the rest of the non-ferrous metals, there are less questions and specialists are more confident in their forecasts. As a whole, copper, zinc, tin and lead quotes are expected to continue growing with the current rates. The perspectives ahead of copper and zinc are more optimistic. Their quotes are still in a process of consolidation. In short-term aspect, copper is expected to conquer levels of 1760 USD/t. If it goes beyond these levels, prices will move to levels near 1800 USD/t, according to Robin Bar from Standard Bank. The short-term target of zinc is 850 USD/t, and levels higher than 880 USD/t would clear the way to 1000 USD/t. The only exception is aluminum, which price will be moving up with slow rates. Analysts from Merrill Lynch even expect aluminum prices to go down in the third quarter, because of the growing inventories and shrunk demand. In the fourth quarter, however, they expect an opposite tendency as a result of the stabilization in demand. On the average, within the period 2003-2004, Merrill Lynch expects aluminum quotes to vary around 68 CTS/lb. The mid-term perspectives ahead of the complex of non-ferrous metals are quite positive. Despite the unstable prices, there are enough factors for their growth. For the time being, they will remain lower than their level from the beginning of 2001, but the difference will be melting and will be completely compensated when world economy fully recovers.
Source: Pari (20.08.2003)

The perspectives ahead of ferrous metals remain unfavourable, since the market is overcome with depressive factors, according to experts from LongBow Research. Therefore, specialists prefer to leave their forecasts about the prices of hot-rolled steel this year unchanged – 280 USD/t. Nevertheless, producers still have little hope that the situation may change. LongBow Research’s report even reads, that “there is light in the end of the tunnel”, but significant recovery in steel industry growth rates cannot be expected in the near future. The figures for 2003 second quarter remain negative underpinned by decreasing consumption. Only in July consumption increased slightly. Specialists from WorldSteelDynamics do not expect any big positive changes before September because of the traditionally low demand in this season. Only in some groups, the situation has improved, because in June the prices of scrap and cast iron reached levels close to their one-year maximum, registered in March. China is a major factor for the raise in the prices. It finally managed to overcome SARS negative impact on the economy and started to report higher rates of economic growth again – around 8 per cent. According to state statistics evaluations, steel production in the country will reach 210 million tons this year, and import will grow to 30 million ton. Optimism is boosted by higher domestic consumption, which stimulates 21-per cent growth in local production and 57.9-per cent increase in imports over the first half of 2003. The weak position of USD against EUR is another negative factor influencing European steel industry. European producers turn out to be non-competitive on the world market compared to their transoceanic colleagues, who report their expenditures in USD and are able to offer their production at lower prices. What makes impression is that the evaluations made by WorldSteelDynamics for the market of steel give more hope to the metallurgists than to their colleagues from LongBow Research. According to them, the world market situation is quite good, since in June the price of steel rolled iron grew with 40 USD/t. However, there are significant differences on the regional markets – the market in China, for example, shows promises of high prices and stable consumption volume, while in USA, demand is expected to remain low. In Western Europe, significant changes are not expected – producers in this region will be forced to reduce prices to limit their production. The position of the producers from former Soviet Union and Russia is extremely favourable – they enjoy growing home consumption and good positions on the markets in China and Europe.
Source: Pari (20.08.2003)

International Trade Commission (ITC) with US Ministry of Trade decided to cancel the previously reached agreement for antidumping investigation of hot-rolled steel sheets imports from Russia, Ukraine and China. The commission’s decision was motivated by “the risk of possible material losses for the American metallurgical industry” in case of repeal. Meanwhile, ITC interrupted the investigation of imports from the Republic of South Africa. As a result of this, only RSA will be able to restore the supplies of hot-rolled steel sheets in USA without any restrictions. The undertaken antidumping measures against import of steel sheets from Russia, Chain, Ukraine and RSA were introduced on October 24 2002. The agreement for termination of the antidumping investigation between the Russian producer (MMK, Severstal and NOSTA), and the US Ministry of Trade was signed during the visit of US Deputy Minister of Trade Mr. Pharyar Shirzad in Moscow in November 2002 and went into effect on January 23 2003.
Source: Pari (20.08.2003)

US steel industry brushed aside speculations that political factors would force President Bush to repeal the long-disputed duties imposed on the import of 12 categories of steel products, before the end of the year. The spokesman of American Steel Producers Union – Mr. Garry Hubert in person commented that it was silly to think that Bush would raise the duties before their effect becomes evident. The President must decide this fall whether to repeal them earlier or to leave them into effect until March 2005. The duties of up to 30 per cent were introduced for a period of 3 years in March 2002, aiming to save US steel production. On September 19, the middle report of ITC about their effect is due to be published. On the other hand, the coalition of steel consumers is pressing the President to repeal the duties. He is expected to wait and see the answer to his claim against the decision of WTO, according to which the import duties violate its regulations, and then undertake some measures.
Source: Pari (21.08.2003)

Europe’s leading copper and zinc maker – Umicore of Belgium, owner of the Pirdop-based copper combine, is expecting to report higher profit for 2002, due to the new acquisitions, although the company said it did not expect fast recovery of copper demand. Umicore stated it did not consider its role in copper industry consolidation a priority in the short-term aspect. The pre-tax profit of the top zinc producer for the first half of the year jumped with 1.4 per cent to EUR 49.4 million despite low metal prices. Precious metals and materials used in hi-tech industry, produced by Umicore, accounted for a large part of it. Lately, the Belgian group has partially withdrawn from its initial main activity – extraction, and has focused on recycling of precious metals and manufacture of IT products, such as solar satellite cells. The company’s sales for the first half of the year have dropped to EUR 1.48 billion compared to EUR 1.66 billion last year, and its net consolidated profit amounts to EUR 27.9 million. Sluggish copper demand will continue to influence Umicore’s financial performance, the company forecasted. At least EUR 30 million will be added to the results for the remaining five months of the year (or the year’s second half) from the acquisition of OMG’s precious metals unit. According to company data, the copper refinery in Pirdop is on the way of achieving the planned production of 210 000 tons of anodes this year.
Source: Pari (21.08.2003)

It is expected that the installation for processing of old vehicles in Stomana Industry will be laiuunched in exploitation in October, announced the representative of Viohalco Group for Bulgaria Mr. Anton Petrov. A year ago the company announced that it will invest EUR 10 million in the project. The new machinery will rise the production of steel and will reduce the expenditures. It also has a significant ecological effect. The first stage of the investment process in Stomana Industry will be finalized during October.
Source: Pari (22.08.2003)

Turkey’s largest steel producer Eregli Demir Celik Fabrikalari (Erdemir) raised its forecast for the company’s financial results in 2003, considering the positive business expectations and good profit for the first half of the year. Erdemir is already aiming at annual profit of USD 199.2 million (the pervious target was USD 67.4 million) and sales in the amount of USD 1.24 billion compared to USD 1.10 billion. Besides, the company revised its sales forecast from 3.25 million tons to 3.45 million tons of steel. Last month, Erdemir reported TRL 242.72 trillion (USD 173.2 million) profit compared to loss amounting to TRL 138.19 trillion for the same period in 2002.
Source: Pari (22.08.2003)

A new installation for processing of old vehicles is expected to start operating in Stomana Indistry, announced Mr. Anton Petrov, representative of the Greek company Viohalco – owner of the Pernik-based plant. A year ago, the company announced it intended to invest BGN 10 million in the project. The installation is going to break and separate old vehicles and home appliances by separating the metal from the leather and plastic parts. The machine has an annual capacity of 150-200 thousand tons. It raises the quality of the produced steel and reduces the costs, Mr. Petrov explained. The project will also have big ecological effect with a view to our commitments with EU to process old vehicles. A couple of months ago, we closed the Ecology chapter and undertook to establish two disassembling centers. Around 13 000 new cars and 80 000 second-hand cars are imported in Bulgaria annually. The first stage of the investment process in Stomana industry to the value of around EUR 40 million will be completed in October. Besides the line for processing of old cars, the modernization of the rolling production and production part and the reconstruction of one of the furnaces is also completed. What we want is to expand our production range, not our capacity, which is big enough bearing in mind the over production in the market, Mr. Petrov explained. In November 2002, the Pernik-based plant put into exploitation a new blooming machine, produced by the Italian company Danielli, to the value of EUR 17 million. The new installation replaced the old Russian machine and has a capacity of 120 to 180 tons per hour. This increased the company’s capacity to 740 000 tons of metals per year. The new machine expanded the company’s product range. Viohalco JSC is one of the biggest industrial groups in Greece. In Bulgaria, it also includes Sofia Med JSC, Teprometal SP Ltd. and Lesco LTd. So far, the Greek company has invested around BGN 200 million in Bulgaria.
Source: Pari (22.08.2003)

The world's sixth biggest copper producer - KGHM of Poland, is planning to produce 531 000 tons of copper next year.
Source: Pari (22.08.2003)

European Commission is going to announce whether it approves the offer made by the world's second largest aluminum maker Alcan to acquire Pechiney on September 29.
Source: Pari (22.08.2003)

SUAL, Russia's second important aluminum maker, producer 441.9 thousand tons of the metal during the first half of 2003, which is 29 per cent more than the same period in 2002.
Source: Pari (22.08.2003)

Sofia-based municipal company Galateya initiated the sale of a part of resort bases of the municipal administration in the country and of municipal plots in Sofia, which are appropriate for the construction of industrial bases and warehouses. Six objects were already sold, announced the Executive Director of the company Mr. Antoniy Lilov. The total sum, which was received from the sale of the objects, was about BGN 1 million.
Source: Dnevnik (25.08.2003)

World’s biggest steel producer Arcelor expects 47-per cent jump in its profit for the first half of the year due to the high steel prices. Pre-tax profit, according to analysts’ forecast, will be EUR 1.3 billion. The profit for the second half of the year, however, will suffer the negative influence of planned production cuts. Arcelor announced in June it intended to reduce its production output by 10 per cent, in order to boost prices.
Source: Pari (25.08.2003)

Selenium quotes jumped to 15-year record levels of 6 USD/lb. The main factor for this was shortage on the market and high demand mainly from China. The metal is chiefly used in steel production, manufacture of glass and electronics.
Source: Pari (25.08.2003)

Speculative buys pushed non-ferrous metal prices up at LME. The leader in the group was nickel, with quarter supplies reaching 9705 USD/t, a record level since May 2000. In the end of the week, the price stabled at 9515 USD/t. “Nickel fundamental market factors indeed justify the raise in its price”, Mr. Ingrid Sternby, London metal market analyst, thinks. The strike in Canada’s Inco, which has been ongoing for three months now, is another positive influence on prices. Each month the plant based in Sudbury, Ontario, deprives the world markets of 8000 tons of supplies.
Source: Capital (25.08.2003)

Only one of the world's five or six major aluminium makers would be suited to buy Montenegro's sole producer of the metal, Kombinat Aluminijuma Podgorica (KAP), its chief executive said. Mihailo Banjevic declined to name any companies as potential buyers of the plant, which the government hopes to sell within a year. "KAP can be bought only by a strategic investor, a company with a lot of money, financial power and which is an aluminium producer," he was quoted as saying. He said the buyer would have to pay the firm's debts of some USD 300 million, upgrade the plant, resolve environmental problems and offer an acceptable social programme for workers -- a term which normally refers to job safety, a minimum income level and redundancy pay. Banjevic said KAP's debts of some USD 300 million might be bought from creditors at a large discount."Considering the debts and modernisation, a realistic price for KAP could be around USD 250 million," he said. The sale of a 65.53 percent stake in KAP, which has installed annual output capacity of 280,000 tonnes of alumina and 102,000 tonnes of aluminium, is the government's top priority in 2003. Aluminium firms from Germany, France, Italy, Russia, Canada, Scandinavia and the United States have expressed interest in the plant, company sources earlier told Reuters. Pobjeda said industry sources had listed Swiss trader Glencore, France's Pechiney, Norsk Hydro of Norway, Canada's Alcan, U.S. major Alcoa and Russian firm Rusal as among the interested parties.
Source: Pari (25.08.2003)

The companies and enterprises from Pernik district owe to the National Social Security Institute BGN 34 421 775, was reported from the Social Security department of the district administration. Among the greatest debtors are the metallurgic factory Stomana with a debt in amount of BGN 24 172 000, followed by Bestechnika-TM Radomir - BGN 5 300 000.
Source: Monitor (26.08.2003)

The roots of metallurgy can be found in the lands of modern Bulgaria, according to archeologists. A group of specialists, headed by Mr. Krasimir Leshtakov, came upon a unique find while they were making excavations near the village of Yabalkovo in the region of Dimitrovgrad. The specialists found a piece of metal slag, dating back to the sixth millenium B.C. This is a scientific sensation, Mr. Leshtakov said. The discovery made by the archeologists is 2000 years older than those previously considered the most ancient signs of founding on the Continent.
Source: Dnevnik (26.08.2003)

The Greek company Sidenor, which is a part of the Greek metallurgical group Viohalco, is planning to invest EUR 60 million in its plant Stomana Industry in Pernik by 2005, according to a publication in the Greek newspaper To Vima. The investment will be used for modernization and refurbishing of the equipment in the Pernik-based combine. According to plan, the funds will be assimilated in two stages. By the end of the year, EUR 30 million should be invested. The reconstruction of the rolling production should be completed by then. The investments will mainly be used for the blooming machine, the reconstruction of the electric furnace and environmental projects costs. The money will be provided with own funds and credits. Currently, negotiations with the World bank are ongoing. Last year a machine for uninterrupted bloom casting was put into operation in the factory. Part of the funds from the investment program will be used for improvement of the facility’s operational efficiency. It costs EUR 10 million and was delivered to special order by the Italian company Danielli. The total cost of the investment, incl. installation, reached EUR 14 million. The facility’s capacity is 90 000 tons of ready produce per month. The Pernik-based enterprise is making around 30 000t of ready produce per month. In order to use the whole potential of the new equipment, modernization of one of the two furnaces in the plant is being implemented at the moment. After its renewal, it will have to give 100 tons of smelt per hour. Currently, this amount is around 70 tons, which is also the capacity of the second furnace. Together with the purchase of the machine from Danielli, the investments in Stomana Industry for the past year reached over EUR 18 million. Currently, the enterprise employs 1730 people. Almost 80 per cent of the produce is exported to foreign markets. Through its subsidiary Sidenor, Viohalco owns 75 per cent of the shares in Stomana Industry JSC, which bought the main production from the Pernik-based metallurgical combine. The remaining 25 per cent are held by Eurometal Ltd. The deal for acquisition of the assets was to the value of USD 16.5 million. The group Viohalco is trading and producing metals. The company Etem, which is also owned by the group, holds the Sofia-based company for aluminum profiles Stilmet. Another company of Viohalco, Halcor S.A., holds 89 per cent of Sofia Med JSC and the wood processing enterprise Lesco – Blagoevgrad. The consolidated sales of Sidenor for 2002 are EUR 453 million, 32.8 per cent bigger than in 2001. Its net profit for the last year has grown to EUR 26.6 million, which represents an increase of 132 per cent from 2001.
Source: Dnevnik (26.08.2003)

The former President of FC Miner – Mr. Kiril Alexov, who was in this post until 1994, is a candidate to become mayor of Pernik. Mr. Alexov was also deputy Director of the Radomir-based football team Strumska Slava, he has worked in Tezhko Mashinostroene, the cement factory in Batanovtzi, and is currently head of the Sales Department in the warehouse base of Stomana.
Source: 24 chasa (26.08.2003)

Osogovo mine owes 140 tons of scrap to Vtorichni Surovini – Kyustendil, according to the contract between the two companies. The syndics of the ore extraction company, which has accumulated debts of over BGN 5 million, refuse to continue its operation and are selling out the mine’s property against the law, according to the manager of Vtorichni Surovini – Mr. Krasimir Tzolov. Vtorichni Surovini remitted BGN 50 000 to the mine last year against a contract for scrap production. The ore extraction company was declared insolvent in March this year because of its debts to the state. After the contract with Vtorichni Surovini expired, unproduced amounts of scrap remained and the enterprise wants to extend the term. The syndics refuse to do that, but they are selling to Radomir-metals around 180 tons of decommissioned iron and equipment without invoices, according to the Manager Mr. Krasimir Tzolov. All sales have been made with the knowledge and permission of the Court, the syndic Ms. Chavdarova argues, showing documents, but she admitted that there were no invoices for the deals, there were only cash receipts. She refused to give any further comment before the General Meeting of the mine’s creditors. We are expecting the problem to be solved in September, Mr. Tzolov said.
Source: Pari (26.08.2003)

The third by significance producer of nickel in the world after the Russian Norilksi nikel and Canadian Inco - WMC Resources agreed with one of the leading producers of metals in China - Jinchuan Group to provide nickel during the period 2005-2010 and the deal is valued to AUD 1 billion or USD 649 million. The imported nickel from Australia after the processing will represent 20 per cent of the Chinese nickel production. China is the fastest developing export market for Australia and is its third by size trade partner. Jinchuan extracts 88 per cent of the produced in Cina nickel and the share of the country in the world consumption of nickel is 8 per cent. Meanwhile the Chinese import of Australian iron ore increase with 42 per cent up to 72.5 million tons during the first half of 2003.
Source: Pari (27.08.2003)

The consultant company Orgsystem Ltd. won the competition of the Ministry of Economy for development of a programme for restructuring of steel industry in Bulgaria by the end of 2006. The European Commission required the programme. The closing of Competition chapter of the negotiations with the European Union depends on the adoption of the programme. In the end of last week European institute that took part in the competition, submitted an appeal against the selection of Orgsystem as valuer, announced the Director of the Institute Ms. Juliana Nikolova. The appeal reveals that the company is classified despite of the offering price of BGN 50 000 and the competition is organized in accordance with the Decree for assignation of public procurements under limits which means under BGN 30 000, she also added. Except Orgsystem and the European Institute, in the competition took part Innovation centre – Ferrous metallurgy institute SP JSC and Consultative centre for association of Bulgaria to EU. The programme for restructure of the steel-extraction has to content information about the production capacities and sales of our three metallurgic plants – Kremikovtzi, Stomana industry and Promet steel in Burgas, explained experts. If the programme shows that these companies have so far got state-owned subsidies, they will have to restrict their capacities to the amount of the subsidy. According to the European norms the state-owned subsidies in the steel-extraction are inadmissible because the sector is considered to be “sensitive”. There are doubts for such subsidies to Kremikovtzi and that is why European Commission appointed consultants to develop a plan for sturdiness of the plant. The Minister of European Affairs Ms. Meglena Kuneva announced that the document was developed and adopted by the plant. Now the document has to be also adopted by the European Commission.
Source: Pari (28.08.2003)

Chili-based state-owned company Codelco, which is the biggest producer of copper in the whole world, plans to extract 1.799 million tons of the copper in 2004 that is about 10 per cent more in comparison with the expectations for the current year. The data includes the extracted production from the mines Radomiro Tomic, Chuquicamata, Salvador, Teniente and Andiana but they do not cover the 49 per cent share of the company in El Alba groove, controlled by Phelps Dodge. Codelco plans to produce respectively 1.802 and 1.838 million tons in 2005 and 2006 and the intentions of the company are to continue to keep the prices of the red metal between 55 and 60 CTS/lb and in this way to remain profitable in an average-term prospective. The giant has in warehouses about 200 000 tons of this year production and reported that would get free of the inventories when the world warehouse copper inventories reduce to 800 000 tons, which according to the company may happen over the second half of the year. The Mangers of Codelco consider that the kept quantities of copper in the warehouses have caused recently the higher rates of the copper with 3 CTS/lb. The company plans to distribute in 2004 USD 1 billion for investments and liquidation of rescheduled payments. The giant expects a gross profit of USD 1.1 billion on the base of average prices of the copper of 85 CTS/lb. Meanwhile the net profit for this year will be USD 660 million.
Source: Pari (28.08.2003)

Several days ago the nickel exceeded the highest amounts for 3 years now and then retracted with 6 per cent after the news that the second by significance in the world producer – Canadian Inco concluded preliminary agreement with the strikers from Sudbury mine where are produced 9 per cent of the nickel in the world. The nickel for delivery in October fell with about 500 USD/t to 8920 USD/t but then set at 9040 USD/t. Several days ago it reached the record 9850 USD/t and analyzators envisaged that it would attack the levels of resistance of 10 000 USD/t. There are other reasons for the more expensive metal, which are not connected with the strike – the shrunk supply and boom of the demand. As it is known, the main application of the nickel is in the manufacture of steel. Since last year the analyzators have pointed that nickel is the metal whose price would be the highest in 2003. A broker forecasted that the metal will be traded between 8900 and 9300 USD/t by the end of the week.
Source: Pari (28.08.2003)

The import of steel in USA in July dropped with 34.8 per cent and equaled to 1.822 million tons. The global zinc extractions from the mines during the first 6 months increased with 4.9 per cent compared to the same period of 2002 up to 752.5 thous. tons, the refined production registered a growth with 2.2 per cent up to 794.2 thous. tons, was reported from ILZSG. During the first half of the year in the world grooves was extracted with 2.8 per cent more lead, the refined volumes increased only with 0.3 per cent and the demand increased with 1.3 per cent, according to data of ILZSG.
Source: Pari (28.08.2003)

The Belgian company Eurostrategy Consulting, which was elected by the European Commission to prepare the reconstruction plan of Kremikovtzi JSC recommended one of the blast-furnaces of the factory. Thus the capacity of the company will be reduced with 30 per cent. Deputy Chairman of the Supervisory Board of Kremikovtzi Mr. Alexander Tomov denied the information. The European consultants offer to close some looms, which does not mean reduction of capacities but restructure and the concept coincides with ours, claims he. The sturdiness plan of Kremikovtzi is required for closing Competition chapter of the negotiations. The plant will have to realize this plan because before the privatization it received a state-owned subsidy at delisting of debts for about EUR 100 million on ZUNK. The current owners of Kremikovtzi JSC claim that at the purchase they were not aware of that fact. Apparently there was a state-owned subsidy and we have to take the sequels, commented they. Mr Tomov said that the State was not responsible for the acts of the Governors who realized the privatization in 1999. In June the plant required an attitude from Competition Protection Commission whether there was granted a state-owned aid. The Commission has not decided yet. In the sturdiness plan the European consultants also recommend an introduction of protective duties for the import of steel. In June, 2002 Kremikovtzi JSC submitted in the Ministry of Economy a claim for introduction of duties to 30 per cent at the import of steel. The motives were that the imported steel damages Bulgarian producers. It is imported in Bulgaria mainly from Ukraine, Russia and Kazahstan because of the lower prices. The Ministry of Economy appointed a commission to begin an investigation by the request of the metallurgic giant, according to decree of the Council of Ministers 300 from 1999. In the spring, this year the Commission prolonged the investigation with three months and in June rejected the claim of Kremikovtzi. The decision has not been promulgated in the State Gazette yet although according to the decree 300 this has to be done.
Source: Pari (29.08.2003)

The British LNM Group, which is the second leading producer of steel in the world, has reached an agreement with the Polish Government for the acquisition of the biggest steel-extraction plant in the country – Polski Huti Stali (PHS). The deal is evaluated at over USD 1 billion. Before the complete finalization of the sale LNM has to agree with the trade unions for the future of the 16 000 workers in the plant and to take an approval for the purchase from the local regulation bodies. LNM, which is property of the businessman with Indian origin Mr. Lakshmi Mital, received exclusive rights for negotiations with the Polish Government during last month. The British company was preferred instead of the American United states steel that develops profitable business in Slovakia and wants to speed up its deliveries for producers of automobiles and household appliances. At the same time the purchase of PHS, producing 70 per cent of the Polish steel, will give opportunity to LNM to double its capacity in the region up to 14-15 million tons. The British group has also plants in Romania and Czech. Warsaw did not reveal any specifications on the deal. Its sign was delayed with one week because of the negotiations about the debt of PHS to the state energetics suppliers and to the Polish railways. The debts of the company that amount to USD 400 million had to be bought on discount by the future strategic investor.
Source: Dnevnik (01.09.2003)

The metallurgic plant Kremikovtzi did not transfer on Friday the consecutive tranche to BDZ for the transportation of cargos, said the Deputy Prime Minister and Minister of Transport and Communications Mr. Nikolai Vassilev. I was informed for BGN 700 000 and this is not such a high amount but yet, if there is any indication, how the company will pay in the future, the situation will become serious again, declared Mr. Vassilev. In the middle of august the two companies concluded a contract for transportation of cargos after 10 months of negotiations for the period September 2002 – December 2003. The dispute between Kremikovtzi and BDZ was the price of the cargos but it remained a secret at the endorsement of the contract. Mr. Vassilev reminded that if the company did not pay by the end of the week, it was quite possible to be declared in insolvency. According to the spokesman of Kremikovtzi Mr. Todor Hristov it was a kind of misapprehension. Every Tuesday are issued invoices and within 7 days they have to be paid. The issued invoices on last Tuesday are for BGN 700 000 that have to be paid off on next Tuesday. So, practically there is not any payment rescheduling according to the clauses of the contract, explained Mr. Hristov.
Source: Dnevnik (02.09.2003)

The biggest steel-extraction company in Australia BHP STEEL plans to change its name to BlueScope Steel, with which aims to stop the associations with BHP Billiton, the biggest mine-extraction company in the whole world.
Source: Pari (02.09.2003)

The export of Bulgarian steel products increased with 11 per cent during the first half in comparison with the same period of 2002, according to data of Ferrous and Non-ferrous Metallurgy Association. For the first six months Bulgaria exported 535 000 tons at 482 000 tons for the same period of the last year. This year export consists of 473 000 tons flat products and the growth at them is 16 per cent and 62 000 tons long products, which is 13 000 tons fewer than period in 2002. I expect good results for this year production after the hard 2002, forecasted the Chairman of the Association Ms. Politimi Paunova. From the totally exported 535 000 tons, 392 000 tons are to the European Union, which is a growth of 9 per cent.
Source: Pari (03.09.2003)

Nickel became more expensive with 340 USD/t and conquered the levels of 9950 USD/t, the highest since the end of May, 2000 and in this way confirmed the expectations of the metal experts to be the best developed metal in 2003. The metal is about to attack the levels of 10 000 USD/t, according to experts. As it is known the nickel is used mostly in the manufacture of steel. Its price increased in the last weeks because of the strike in Sudburry mine of the Canadian company Inco, which lasted 13 weeks. Inco is the second by significance producer of nickel in the world after the Russian company Norilski nikel. Except this, the market is also supported by the expectations for global deficit, which has to continue by 2006, according to the last forecasts. China holds 17 per cent of the world consumption of nickel and in this per centage is included the demand of the metal for the manufacture of stainless steel.
Source: Pari (04.09.2003)

The biggest world producer of steel Arcelor reported that the increasing nickel quotes probably will influence on the volume of the production, which plans to produce in the fourth quarter after the cutting of 100 000 tons in the third quarter. The main reason for this are the high prices of the nickel, which makes the giant’s production more expensive and the increased production capacities in Europe. As it is known, nickel is used for the manufacture of steel and 2/3 of all quantities on the market are used for manufacture of stainless steel. Arcelor was created in 2002 at the huge merger of three European companies – the French Usinor, Luxembourg Arbed and Spanish Aceralia and is one of the leading world companies for stainless steel. Arcelor reduced its production of stainless steel in the summer with about 33 000 tons monthly because of the shrunk consumption, accumulated warehouse inventories, the expensive euro and the shrunk export to Asia, caused by the TORS. Some other European producers of stainless steel as Finnish-Swedish Avesta Polarit, the German TKS Group, North Ameriban Stainless and Posco raised its production capacities this year and thus the total world capacities reached 7 million tons. In 2002 in Europe were extracted about 5 million tons stainless steel. At the same time the Spanish Acerinox, which is among the three top producers of stainless steel with annual capacity of 2.5 million tons, reported that planned to reduce the extractions.
Source: Pari (04.09.2003)

Cuba will produce a little more than 268 000 tons steel in 2003 or with 8 000 tons more in comparison with the former year. The country exports abroad about 70 per cent of the steel. In 2000 there were extracted 337.3 thous. tons steel. Official representatives of the industry commented that it was expected to produce 600 000 tons per year by 2005.
Source: Pari (04.09.2003)

The biggest producer of zinc in the world – China will increase the production up to over 1.9 million tons in 2003, which is with 0.2 million tons compared to the former year. During the first 7 months of 2003 in the country were refined 1.26 million tons zinc or with 19.9 per cent more in comparison with the same period of 2002.
Source: Pari (04.09.2003)

World bank envisages the quotes for the non-ferrous metals to increase and the nickel and copper will take the highest levels, on the account of which the gold will retract from the current high levels. The bank is very optimistic about the nickel that registered a 3-year maximum of 9950 USD/t. Its price has increased with 75 per cent after October 2001 until now as a result of decrease of the inventories, the higher demand for the production of stainless steel and the restricted deliveries on the world market. Considering the fact that there won’t be functioning new mines during the next several years and the market will endure a deficit in 2004 and 2005, the World bank thinks that the nickel will be among the best selling metals. The copper demand will increase in 2004 when the market, wherever there are surpluses now, will face a phase of deficit. However the prices will be dependent on the degree of recovery of the world economy and on the cuts of the production in USA and Latin America. Meanwhile the red metal registered a 28 month maximum on Wednesday of 1814 USD/t.
Source: Pari (05.09.2003)

The Polish trade unions promised difficult negotiations for the social stake with LNM Group that dealt over the last week with the Government the conditions for purchase of the biggest steel-extraction plant in the country Polskie Huti Stali /PHS/. The latter extracts 70 per cent of the steel in the country. The condition for finalization of the deal that exceeds USD 1 billion, is coordination with the trade unions of the social programme for the 16 000 employees who work there and the approval of the local authorities. Last month the British giant took the right of exclusive buyer and was preferred instead of its American competitor US Steel. The demands of the trade unions are for definition of the workers’ salaries in a long-term plan, the volume of the investments and guarantees for the working places. For this purpose they hired lawyers, psychologists and interpreters for the negotiations with LNM.
Source: Pari (05.09.2003)

The French producer of aluminum Pechiney, which is an object of takeover by the Canadian Alcan, insists on paying at least 50 CTS per share. Alcan, the second by significance producer of the metal, offered an offer, in which the price per share was fixed at 44.5 CTS.
Source: Pari (05.09.2003)

The Finnish mine-extraction and processing company OUTOKUMPU declared its business with precious metals. It is selling its assets in the Australian Dragon Mining for USD 11 million.
Source: Pari (05.09.2003)

The biggest producer of lead in China Yuguang Gold and Lead Group started the construction of a lead refinery with annual capacity of 100 000 tons.
Source: Pari (05.09.2003)

The American investment bank JP Morgan increased the forecasted prices of the non-ferrous metals as a result of the increasing trust in the US economy. The bank revised the average prices of the copper for the next year of 84 to 85 CTS/lb and these for 2005 were increased from 88 to 92 CTS/lb and expected the producers to remain cautious. JP Morgan added that the higher price of the red metal is based on the forecasts for market deficit of copper during the next 3 years. The bank also revised the average quotes of aluminum in upwards position. The prices for 2004 were increased to 68 CTS/lb in comparison with 66 CTS/lb and for 2005 from 72 to 75 CTS/lb. However, according to JP Morgan, the market still has to get over the effects of the 3-year surpluses. The forecast quotes of the nickel of JP Morgan for 2004 are fixed at 455 CTS/lb compared to 375 CTS/lb and for 2005 are increased up to 475 CTS/lb compared to 370 CTS/lb thanks to the active Chinese demand and import and the higher consumption of the Japanese steel-extraction. The bank envisages that the lead will become more expensive up to 26 CTS/lb in comparison with 24 CTS/lb and the prices of zinc and tin to remain stable.
Source: Pari (08.09.2003)

Representatives of the US copper-extraction company Phelps Dodge, which is the second-sized producer of copper in the world, visited during last week the sole producer and processor of copper in Serbia - Bor. The giant is interested in a joint research and processing of field in Eastern Serbia. So far delegations of BHP Billiton and of other copper-extraction giant – Rio have visited Bor complex, under whose hat operate 18 companies. Bor has registered a loss for several years now.
Source: Pari (08.09.2003)

Canadian aluminum giant Alcan got over one of the main obstacles connected with the takeover of the French Pechiney after its offer was approved by the French Ministry of Finance. Now is expected the decision of EU on this problem.
Source: Pari (08.09.2003)

Fund purchases during the first three days of last week moved the prices of the non-ferrous metals upwards. The good economic news influenced favorably on the market. The good news was connected with the hopes for bigger consumption. The nickel was a champion and its price increased for a short time to USD 9975 per ton – the highest amount since 2000. On Thursday and Friday the market of non-ferrous metals cooled when the weekly data shows a raise of the unemployment in USA. However, the quotes were considerably higher compared to the former week on LME.
Source: Capital (08.09.2003)

The Deputy Prime Minister Ms. Lydia Shuleva will demand at the Ministers’ conference of WTO in Kankun Bulgaria to be extracted from the list of countries that caused damages on Canadian steel production. According to experts, for the last decade Canada at least 5 times started such investigations, which often ended with a sharp increase of the duties. In spite of the insignificant import and insufficient proofs for any damages, Bulgaria may also be sanctioned. Bulgaria is included in the list of countries together with Czech and Romania that caused damage on the local production of steel, decided the authorities in Canada, was reported from Viohalco, the owners of Stomana industry. There is not still a decision, taken by Canada whether will be imposed duties on our import for this country. In June Canada started an investigation against dumping import of Bulgarian, Romanian and Czech steel products. This happened by demand of the local producer Algoma. The Canadian company presented proofs that in November, 2002 Bulgaria imported 1.8 thous. tons hot-rolled flat iron. The selling price was USD 485 per ton at the price of the Canadian producers of USD 569 per ton. Canada is considered to be a huge producer, importer and exporter of steel and in 2002 in the country were produced 16 million tons steel, the import is 7.5 million tons, and the export - 5.6 million tons. In 2001 Canada imposed a duty on Bulgaria for products that are produced by Kremikovtzi although then the plant did not export to this country at all. We are in one group with countries that have very well-developed steel-extraction, was commented from the Ferrous and Non-ferrous Metallurgy Association. In 2002 Czech produced 6.5 million tons steel and exported 4 million tons. The production of Romania reached 5.5 million tons and the export - 2.7 million tons. For this period Bulgaria produced 2 million tons and exported 1.1 million tons. From them to Canada the export of hot-rolled flat iron is hardly 10 000 tons, according to the association. Stomana JSC was pointed by the Canadian authorities as exporter from Bulgaria. However the producer of this production is Stomana industry. Stomana JSC ceased its activity in 2001. It has to be specified whether there is a technical error in the name and to be found the declared origin of the products. Stomana industry categorically rejected these accusations and even the parent company in Greece is involved in the case.
Source: Pari (09.09.2003)

The Czech-American company Re-group intends to purchase the metallurgic factory Eliseina JSC, was reported from the company. Representatives of the foreign company have already applied the necessary documentary at the Privatization Agency and the Ministry of Economy. Re group states in its proposal that the company intends to invest in the production of sodium sulfate and to build an installation for sulfur acid. Re group will also pay the debts of Eliseina, which by this moment are in amount of BGN 16 million, accumulated mainly from unpaid salaries and social securities. The Czech-American company rented the metallurgy factory on Eliseina station June 30, 2003. The deal was concluded as the contract of Eliseina JSC with LM Impex was ceased. Sofia-based company LM Impex has rented the factory during October 2002 with the idea to produce black convert copper. Although LM Impex invested significant finances in the reconstruction of the furnaces and hired more than 60 metalworkers the production was never initiated. Meallurgy factory Eliseina, whose capacity is 1200-1250 tons of black copper monthly, ceased its activity in the end of 2001, as it remain with no operative capital. According to the former Executive Director Mr. Slavcho Todorov the reason was the low price of the copper on the international markets. The revision of the Territorial Department for State Internal Financial Supervision in Vratza showed that only five unfavourable contracts with foreign companies has caused to Eliseina losses in amount of BGN 9 million.
Source: Dnevnik (09.09.2003)

Many European companies contacted with the sole steel-extraction plant in Cherna gora, in Nikshich. The Government opened a tender procedure in July for privatization of 57.99 per cent from the plant. Seven of the companies purchased trade documents and the Board of Directors hope most of them to fill the documents before the deadline on September 30. The last chance for the plant in Nikshich is a foreign partner. It has to renew and restore the plant and to provide new technologies. In the first 8 months of the year in the plant were produced 36 000 tons steel at capacities of 190 000 tons. For the whole year the plant is expected to produce 50 000 tons. According to the Serbian media, its debts amount to EUR 57 million. Among the potential buyers are pointed Technosteel, connected with the Russian giant MMK, the Greek company Sidenor, the Turkish Kurum, GIH with head-office in London.
Source: Pari (09.09.2003)

Russian giant Norilski nikel increased the export of nickel and copper respectively with about 50 and 12 per cent during the first half of 2003 and reached 175.2 thous. tons and 258.1 thous. tons. The biggest producer of nickel and palladium in the world managed also to conclude a big deal for delivery of palladium with China and Republic of Korea. In the exported nickel are also included the 60 000 tons, which are deposited as a guarantee for obtaining of a loan. During the mentioned period Norilski nikel delivered at the domestic market 7.25 thous. tons nickel at 6.97 thous. tons one year earlier. The exported and offered copper at the domestic market amounts to 258.1 thous. at 230.4 thous. tons for the first half of 2002. Norilski nikel does not change its forecasts for the produced quantities of nickel and the management refused to comment whether has additional warehouse bulks, which can be exported for sale.
Source: Pari (09.09.2003)

Russia intends to sell about 18 per cent share of ordinary shares or 23.8 per cent of shares with a right of vote from the biggest steel-extraction plant MMK. The latter produced 10 million tons steel in 2002 and became the biggest Russian producer and beside this was included in the world top ten.
Source: Pari (10.09.2003)

The American bank Goldman Sachs increased the average forecast prices of the copper for 2004 with 153 USD/t up to 1785 and the aluminum prices with 51 USD/t up to 1490 USD/t. However, the bank assesses the future of the nickel as the most impressive. According to its forecasts, it will reach price levels of 13 000 USD/t at about 9760 USD/t now. At the same time the bank revises the average zinc prices for 2004 in declining motion with 40 USD/t to 860 USD/t in spite of the expectations that the market will face a deficit phase. In any case its experts announce that the quotes of the non-ferrous metals increased faster than its expectations. Initially Goldman Sachs envisages the quotes to reduce their levels before reaching the higher quotes. According to the bank the deficit of copper will be more tactile in the first half of 2004.
Source: Pari (11.09.2003)

By December 31, 2002 the Council of Ministers provided 16 concessions for extraction of metal natural resources. At the meeting today the Ministers approved the annual reports of the commissions for control of concessions for extraction of ores and minerals to the Ministry of Economy. The reasons for non-payment or delay of the debts on the concessions are due mainly to the economic problems of the companies, loss of markets or deficit of circulation funds for stimulation of the main activity. There were taken measures for gathering of the owed concession debts, interests and defaults by the Ministry of Economy. As of the end of 2002 the debts of the companies are of: Gorubsso-Luki JSC – USD 28 413 and interest for delay USD 613,63 and for 2002 was not provided a bank guarantee; Gorubsso-Kurjali JSC USD 23 102,63 and interest USD 489, 96 and defaults - USD 1 372 297; Gorubsso-Madan - USD 271 97, 55 and interests USD 592,31 and of Kremikovtzi JSC - USD 387 781,46, interests – USD 51 362,12 and default USD 48 901,80. According to the Government’s decision the receipts from Gorubsso-Luki JSC, Gorubsso-Madan JSC and Gorubsso-Kurjali will be paid through a legal procedure.
Source: BTA (12.09.2003)

Aluminum was the most significant metal at LME. The white metal renewed its rising motion on Thursday after the weakness on the former day. Its price increased with over USD 10 and settled down about the level of USD 1389 per ton at good volumes of trade. According to the stock exchange dealers, it is expected a return of the financial funds, which will be crucial for the market’s strike. At the same time was reported that the inventories at LME increased with 15 300 tons up to 1.36 million tons.
Source: Dnevnik (12.09.2003)

The deficit of refined copper in the world during the first half of this year is 271 000 tons, according to ICSG, compared to surpluses of 219 000 tons in the same period of last year. The reason for the abrupt change is the restored demand, which increased in Asia.
Source: Pari (12.09.2003)

The biggest Bulgarian processor of zinc and lead KZM increased the zinc production during the first half of 2003 and shrunk the lead extraction. The processed zinc increased with 2 000 tons in comparison with the same period of 2002 up to 33.7 thous. tons. In 2002 the capacities for extraction of zinc were increased with 17 per cent and were introduced in exploitation in March. The refinery expects to process 73 000 tons during this year. Over the first half it produced 30.2 thous. tons lead, with 14 000 tons less in comparison with 44.7 thous. tons one year earlier and official representatives of KZM refuse to comment the reason for the falling. Earlier was reported from the plant that this year production will be equal to this in 2002 - 60.6 thous. tons. According to the revealed data, KZM registered a loss for the first six months of BGN 2.456 million, which is due to the low prices of the metals at the world stock exchanges.
Source: Pari (12.09.2003)

Most probably the Canadian authorities will impose anti-dumping duties on the import of hot-rolled flat iron from Bulgaria. This became clear when last week Stomana industry – the company owner of Pernik-based metallurgic plant, received the decision of the Canadian Court, according to which the import of products from Bulgaria, Romania and Czech causes damages to the local manufacture. The decision was taken in the middle of August but the motives for it have not been still specified before the main suspect for the dumping import – Stomana industry, not even before the Ministry of Economy. In June Canada started an investigation for dumping import of hot-rolled flat iron from Romania, Czech and Bulgaria because of complaint from one of its major producers – the company Algoma. In the survey is quoted that in 2002 Bulgarian company Stomana sold at the Canadian market 1814 tons hot-rolled flat iron at prices, which were lower with about 20 per cent than the local production. The quoted quantity is quite few in order to cause any loss of the local Canadian production, was commented from Stomana industry According to their data, neither the quantity of the export, nor the company-exporter are true. The accusations quote Stomana, not Stomana industry, which is wrong, declared Ms. Lilly Samarjieva from the company-owner of the metallurgic plant. Stomana ceased its activity in 2001, reminded she. According to data of Stomana industry, during 2002 the company had a single export to Canada and in the near future does not plan new deliveries. According to the representative of the industrial group Viohalco in Bulgaria Mr. Anton Petrov, the export was not realized directly but through a mediator. Kremikovtzi doesn’t export to this market as well. So the eventual introduction of anti-dumping duties will not influence on the Bulgarian export but this is not good for the country’s image. And yet Canada is a big producer and market and its opinion is quite important in this sector, commented Mr. Anton Petrov. Canada is a huge producer of steel products and in 2002 in the country were produced about 16 million tons steel. It has not been so far clear why Bulgaria and Czech are included in the list of the accused of dumping countries when the import of each of the them in Canada does not exceed the 3 per cent of the total consumption in the country, which are necessary for starting of such a survey. According to Canadian authorities, the share of the two countries is respectively 3.3 and 3.6 per cent. However, Bulgarian statistics reveals an export only of 163 tons hot-rolled flat iron in 2002. In 2001 was not registered the export of such production. Only Romania with its 10 per cent share at the Canadian market could be a threat to the local producers. As a response of the accusations of dumping, the Deputy Prime Minister Ms. Lydia Shuleva demanded a special meeting with the Canadian authorities during the meeting of World Trade Organization in Kankun, Mexico. The Ministry of Economy does not have information about the implementation of this meeting. This is the consecutive dumping investigation, initiated by the Canadian Government because of a complaint of local producers. During the last decade are known several similar cases, which ended with increased duties for import from the charged countries.
Source: Capital (13.09.2003)

The International Financial Corporation (IFC), which is a part of the World bank, whose activity is investments in the private sector, grants a loan to Stomana industry – the owner of Pernik-based metallurgic plant. The amount of the credit line is by EUR 30 million, which can be spent by the end of 2006. The credit line is approved by the Board of directors of IFC in the beginning of August and the final sign is expected to realize in the beginning of October. The aim of the loan is improvement of the production’s quality, diversification of the products and investments in the environment, specified Mr. Anton Petrov who is a representative for Bulgaria of the industrial group Viohalco, which is the major owner of Stomana industry. The main part of the credit will be for the more rational use of waste waters in the manufacture, collecting of the filter dust and processing of some waste products that can be used as additions in the manufacture of cement. In the end of the period the investments in the environment of Stomana industry will reach EUR 13 million of the total planned investments for the period in amount of EUR 44 million. The fund will not be spent for increase of the production capacity of the company. At the moment Pernik-based plant produces about 800 000 tons products per year. The Greek industrial group Viohalco is owner of 75 per cent of the assets of Stomana industry JSC through its subsidiary Sidenor. The rest 25 per cent are held by Pernik-based company Eurometal Ltd. Stomana industry JSC purchased the major production of Pernik metallurgic plant Stomana for USD 16.5 million. Through other own companies, Viohalco is owner in Bulgaria of Sofia med JSC, the company for aluminum profiles Steelmet JSC and the wood-processing company Lesko JSC in Blagoevgrad.
Source: Capital (13.09.2003)

Sales of non-ferrous metals funds reduced the prices at LME. Some analyzators commented that it had to be expected a continual down motion during the next month. In its commodity survey, distributed during this week, the specialists of Goldman Sachs envisage a rising of the nickel price at USD 13 000 per ton and even more in 2004. The forecast is dictated by the big falling of the inventories because of the strike in the Canadian producer Inco. The improvement of the world economy will stimulate the consumption of metals and this will keep their prices at higher levels, commented from Goldman Sachs. However, the price rising will be restricted by the accumulation of huge inventories of the most non-ferrous metals – copper, tin, lead, zinc and aluminum during the next months.
Source: Capital (13.09.2003)

If the mandate of the State Energy Regulation Commission terminates with the adoption of the new Energy Act by the Parliament, this will postpone the opening of the electrical engineering market with 6 months, forecasted the representative of the privileged consumers of electricity Mr. Nikolai Minkov. The ten companies that received the statute of privileged consumers of electricity from the State Energetics Regulation Commission hope that the conclusion of the direct contracts with the stations and the purchase of cheaper electricity will start in November. At the moment the Ministry of Energetics is gathering offers for a second reading of the project. Before the summer holiday the Parliament adopted at first reading the new act that allows the mandate of the chairman, its deputy and the members of the regulations commission to be ceased when the new act becomes efficient. At the adoption of the project the Minister of Energetics Mr. Milko Kovachev promised to submit an offer that will guarantee the independence of the regulations commission. With the new act will be introduced the trade rules for opening of the market and a new decree for the electricity’s prices. In the end of last week representatives of Agropolichim JSC, Asarel Medet, Devnia cement, Elatzite med JSC, KZM, Maritza-iztok mines SP JSC, Neochim, Sviloza, Umicor med and Stomana industry JSC discussed the opportunity for creation of association, which will protect their interests. The decision is expected to be taken within two weeks. The privileged consumers have annual consumption over 100 Gw/h and will have the right to deal the prices and conditions of deliveries with TPS Maritza-iztok 2, TPS Varna and TPS Bobovdol. The ten companies consumed in 2002 totally about 2.7 billion kw/h, which is 9.3 per cent of the domestic consumption in the State. According to expert evaluations, their market is valued at USD 100 million.
Source: Dnevnik (15.09.2003)

The Board of Directors of the French aluminum giant Pechine adopted the offer of its Canadian rival Alcan to sell the company for a little over EUR 4 billion. In the press release is said that the deal has to be also voted by the General Meeting of the shareholders of Pechine. However, this will hardy prevent the conclusion of the deal because the offered by Alcan price is quite good at the current market conditions. The news surprised many analyzators who considered that the deal would be realized only if the offer was for at least EUR 4.25 billion. And yet, any observers regard the connection of the dealt price with the change of the EUR/USD rate. A very significant factor is also the dynamics of the aluminum price that has recently registered its highest level for the year of about 1470 USD/t but then reduced abruptly. The falling will continue, expect the experts. According to Financial times, the deal faces many a lot of problems, not only the necessity of approval by the shareholders in Pechine. The most serious of the problems is considered to be the eventual antimonopoly measures that can be taken against the deal by the European Commission. According to sources from Brussels, the Canadian company will agree with all reasonable administration requirements. The French giant Pechine submitted in the middle of July an offer for EUR 750 million for purchase of the aluminum business of its Dutch rival Corus. This was the second attempt of the French businessmen to acquire the Dutch company. Analyzators think that because of the antimonopoly rules in EU, this deal will fail completely if Alcan buys Pechine. As a result of this other investors will take interest in Corus and will initiate a consolidation process in the sector.
Source: Dnevnik (15.09.2003)

The Executive Director of Alcan Mr. Travis Enjen declared its assurance that the European Commission will approve the offer of EUR 4 billion that was offered for Pechiney. The finalization of the deal and the takeover of the French company by the second-sized producer of aluminum in the world Alcan is expected to be realized in the end of this year.
Source: Pari (16.09.2003)

By the end of the year in Stomana industry will be mounted the first of its kind in Bulgaria shredding installation, announced Mr. Anton Petrov, a representative of Viohalco for Bulgaria. The Greek company is a major owner of Pernik-based metallurgic company. The installation will process old automobiles, white technics and will be shred and separated the non-metal wastes. The installation can take the processing of all old cars, claims Mr. Petrov. Indisputably, this equipment will achieve an ecological effect in the whole country. On other hand in the furnaces of Stomana there won’t be non-metal scrap, which pollute the environment at their combustion. According to Mr. Petrov will be reached a lower consumption of electricity and higher rendition at the steel production. 95 per cent of the production in the company is for export. In the last two years were invested BGN 60 million in reconstruction of the production capacities in Stomana industry. This is the half of the amount, which is envisaged in the company’s investment programme. The second part of the investment programme of Viohalco in Pernik-based plant will be pointed to ecological projects, connected with improvement of the efficiency and quality of the produced products, specified Mr. Petrov. By the end of 2006 will be finalized the whole investment programme, planed in Stomana industry, assured the representative of Viohalco.
Source: Dnevnik (17.09.2003)

Kazahstan will begin to exploit the newest plant for processing of zinc with annual capacities of 100 000 tons – Balkash in October, as it was planned. Thus Kazahstan will manage to extract about 400 000 tons during next year. The country will export almost the whole production, just like the export of copper.
Source: Pari (17.09.2003)

Slovak producer of aluminum alloys Sloval expects a lower production with 60 per cent - to 6 000 tons during this year because of the reduced sales of the automobile industry in Europe.
Source: Pari (17.09.2003)

A silver installation for fragmentation of old cars and white techniques will be launched for exploitation in Stomana Industry during the next six months, was reported from the company. The value of the equipment is BGN 10 million. This is the first installation of that kind in Bulgaria. After it is launched in exploitation the installation will process old cars and technique by fragmentation. The non-metal elements will be separated and in the furnaces of the company will not be put other steel objects. Thus will be improved the ecological situation in the region. More than BGN 60 million will be invested in modernization of the production capacities of the company since Stomana Industry was purchased by the Greek concern Viohalco Group. This sum is more than a half of the planned investments.
Source: Pari (17.09.2003)

Representatives of the second by size Russian processor of aluminum – SUAL organized conversations with the Government of Montenegro about any eventual takeover of the local aluminum refinery CAP. Montenegro intends to sell the major stake of shares of 63.53 per cent in CAP, which has production capacities of 280 000 tons of processed aluminum and 102 000 tons aluminum. Now CAP extracts 10 000 tons of processed aluminum per month and intends to increase the volumes up to 112 000 tons. Many foreign companies take interest in the plant.
Source: Pari (17.09.2003)

The debts of the fifty greatest debtors of the National Social Securities Institute (NOI) by the end of the June reached BGN 218 973 319. This sum includes the principal and the accumulated interests. The leader among the debtors is the metallurgic plant Kremikovtzi, whose bank accounts are restrained, followed by Stomana-Pernik, for whose debts was adopted a payment scheme and reconstruction programme. Varna Shipyards occupies the third position, whose assets were sold to Navigation Maritime Bulgare and the full amount of the sum was transferred to Bank Consolidation Company. The fourth position is occupied by Vidachim, whose debts are compulsory collected by the State Receivables Agency.
Source: Pari (17.09.2003)

The old cars that clogged pavements and yards can be sold new at normal price. A shredding installation for fragmentation of old cars will be mounted by the end of the year in Pernik-based company Stomana industry, announced the member of the Board of Directors Mr. Anton Petrov. The amount of the installation is BGN 10 million and is the first in the State. With its launching will be processed old cars from the whole State but preliminarily will be removed the plastics and textiles on the compartments. In this way will be improved the ecology in the region of the company. The new equipment will be a mini plant and will start working by the end of the year. The automobiles and white technics will be pressed and this will make their transportation easier. After that they will be cut with knives and separated at parts, explained Mr. Anton Petrov. The shredding installation will be extremely powerful – 5000 horse power. According to Mr. Petrov, until now the buyers of metals did not prefer the automobiles and white technics and now even the compartments can be used. The installation is ecological because materials like tire and plastics won’t be burnt. The processing of these materials will be realized in the furnaces of Stomana industry. Besides this, the method is also economical because will be spared some electricity, added Mr. Petrov. The price of the buying out of vehicles and white technics is not still specified. The Greek concern Viohalco is owner of 75 per cent of Pernik-based metallurgic company Stomana industry, the rest 25 per cent are held by the holding Eurometal. With the introduction of Viohalco, for two years in the company were invested for modernization BGN 60 million, which is more than the half of the envisaged funds in the investment programme. The investment policy of the Management is pointed to modernization of the production capacities and enlargement of the assortment of articles, which increase the opportunities of the company for realization of the products at the international market. At the moment 95 per cent of the production of Stomana industry are exported abroad.
Source: 24 chasa (17.09.2003)

Steelmet presented profitable offers for substitution of the joinery in the apartments. Thus, the substitution of the wood joinery with aluminum joinery, which is with 5 years guarantee and 50 years guarantee for the profiles will cost BGN 50 per month, was explained from Steelmet, which is a subsidiary of the Greek Viohalco group. At purchase of aluminum joinery on leasing, the price is more expensive with 13 per cent, was reminded from the company.
Source: Monitor (18.09.2003)

Kremikovtzi demanded compensations from the State because of the fact that it was compelled to close old capacities. If Bulgaria does not compensate the private metallurgic plant, its management will receive the money through the Court. The Deputy Director of the Supervisory Board of the company Mr. Alexander Tomov specified that the productions are not a part from the company’s main body and gave example with the work-shop for long products. The closing of these capacities is necessary because of the requirement of EU for restructure of the metallurgic companies on the continent, which will create equal rights between them. If we did not start this process, there would be a real danger to be covered strategic capacities like these for hot and cold rolling, explained Mr. Tomov. He declared that the State had to pay the compensation since at the privatization of the company, it hid the requirements of EU from the new owners. Mr. Tomov did not mention whether the closing process of installations had already started or it was forthcoming. The restructure will not influence on the employment since lay-offs of workers are not expected. Mr. Tomov said that at this stage, it was cheaper for Kremikovtzi to import ore from Brasilia than to use Bulgarian raw-materials. However, the Management of the company decided to continue to develop Bulgarian fields too. The biggest ship that has ever sailed in the Bulgarian aqua territory is "Integra Duckling" and delivered 130 000 tons Brasilian ore for Kremikovtzi. It arrived on September 7 and was unshipped in open sea through the barge Bulk Kremi 1 in which the plant made investments. In this way were celebrated 40 years since the establishment of Kremikovtzi and 4 years since its successful privatization by Finmetals holding.
Source: Sega (18.09.2003)

Sofia-based company Steelmet bought 70 decares at which will be built the new production capacities of the plant, announced the Executive Director of the company Mr. Anton Petrov. The area is near the plant of Steelmet in Iliantzi. It is expected in 2004 to start the construction of a foundry and another one production line. Except this, different additional productions must be built. The necessary investments are about EUR 6 million. The funds will be provided by increase of the company’s capital and credits. Most probably, the new capacities will be launched in exploitation in the beginning of 2005. They have to increase the plant’s capacity with 30 per cent. In 2002 was launched the third production line, which increased the manufacture of Steelmet with 40 per cent. Thus the capacity reached 10 000 tons profiles per year. The total consumption of aluminum profiles at the Bulgarian market at the moment is between 6 000 and 8 000 tons. Steelmet exports 70 per cent of its production to the markets in Western Europe. One week ago was held the General Meeting of the company. At the meeting was decided the profit of BGN 1.8 million for 2002 to be reinvested. This decision shows that the profit is not the most important thing for the company but the penetration and its stronger positions at the Bulgarian market, explained Mr. Petrov. Steelmet produces aluminum profiles. Alcomet is a rival of the plant to some extent. However, Shumen-based company is specialized in the rolled production, while Steelmet produces profiles. The plant was built on green in 1999. The initial investment was EUR 12.5 million. Since then in the company have been invested over EUR 16 million. The company has warehouse bases in Varna and Blagoevgrad and it is also expected the construction of a warehouse base in Plovdiv. In the company are working about 270 people. The company is a part of the plants, property of Viohalco group. The Greek industrial group possesses in Bulgaria eight companies – Steelmet – Sofia, Lesko – Blagoevgrad (produces wood packing for the needs of Viohalco), Sofia med – Sofia, Stomana industry - Pernik, the thermal gauging plant in Pernik, Sigma - Pernik (repair activity), the holding structure Steelmet and TeProMetal – Pernik. The creation of the ninth company of the Greek group in Bulgaria is forthcoming. It will be in the field of the new technologies – the use of the sun energy at the manufacture of electricity and thermal energy. The company is in process of registration and by the end of the year will be revealed more, specified Mr. Petrov.
Source: Dnevnik (18.09.2003)

The Russian metal giant Norilski nikel, which is the leading producer of nickel and palladium in the world, is the most probable buyer of a share of 44.9 per cent from the local gold-extraction company Lenzoloto that extracted 9.2 tons gold in 2002. Several months ago the giant bought 6.9 per cent in Lenzoloto.
Source: Pari (18.09.2003)

According to the biggest company for processing of nickel in the Western world – Inco, 55 000 tons per year will be necessary during the next years to 2010 in order to be satisfied the expected consumption. During this week JP Morgan rejected the forecast of Inco for a market deficit of 51 000 tons for 2003 because of the put in pledge 60 000 tons metal from Norilski nikel as a loan guarantee.
Source: Pari (18.09.2003)

The greatest producers of copper in the world – the Chili state company Codelco and the American Phelps Dodge, second biggest producer and leader among the public copper companies, expect that the prices of the red metal will reach 80- 85 CTS/lb next year. The main indicators show that the quotations of the copper will be higher during 2004, but they depend of the economic situation, commented the Executive Director of Codelco. If US economy is consolidated and South Eastern Asia and China preserve the current rhythm of consumption, the quotations may grow even by the end of this year to the level of 85 CTS/lb. On COMEX the copper finished last day on the level of 81.75 CTS/lb. The last quotations of 85 CTS/lb of copper in USA were during February 2001. Both companies produce ? of the total amount of the worlds copper. The demand in China is very big, as well as the consumption in the Far East as a whole. According to the data of Phelps Dodge over the last 40 years the consumption of copper in world has been growing with the steady speed of 2.9 per cent. Codelco announced that it expects to produce 1.8 million tons of copper during the next year or with 10 per cent more as compared to this year. Nevertheless the copper giant believes that the small and medium-sized companies will preserve the volume of their production if the World Bank decided not to finance their projects. Some of the large mines have the support of this institution at the moment.
Source: Pari (18.09.2003)

The worlds top producer of aluminum – the American company Alcoa, reached an agreement for the purchase of 26 per cent of Aluminium Bahrain /Alba/. Thus one of the leading processing companies /with extraction of 512 thous.tons annually/, based in the Near East will collected the finances it needs in order to raise its capacity. Aluminium Bahrain stated that for 26 per cent of the capital of the company Alcoa will have to pay USD 600 000. The American company will also have to pay a part of the debts of Alba. The government of Bahrain holds 77 per cent of the capital of the refinery, Saudi Arabia holds 20 per cent and the German group Breton Investments is an owner of 3 per cent. Alba already adopted a project for the enlargement of the production capacities /at a value of USD 1.7 billion/, which will be finalized during 2003. After the execution of the project the company will reach capacities of 819 thous.t. The refinery plans to raise its capacity up to 1 million tons annually by the end of 2010.
Source: Pari (18.09.2003)

From BGN 150 to BGN 500 will pay the owners of old cars who abandon them in the street. The fine for the companies increases at BGN 700-2000. Within 2011 at least 50 per cent of the Bulgarians will throw their wastes in five separate containers, according to the plans of the Ministry of Environment. The fine for illegal trade with scrap from ferrous and non-ferrous metals will be up to BGN 50 000, decided the Parliament.
Source: 24 chasa (18.09.2003)

Next week representatives of the State and of Kremikovtzi are going to negotiate in Brussels with representatives of the European Commission for restructure of the steel-extraction, said the Deputy Minister of Economy Ms. Eugenia Koldanova. Bulgaria will present its position for adoption of the plan for sturdiness of the plant, developed by the selected by the European Commission Eurostrategy Consulting. The State and Kremikovtzi still specify their attitude. If the plant takes the responsibility for execution of this plan, the negotiating Competition chapter will be closed. Only for Kremikovtzi from the three Bulgarian steel-extraction companies is developed such a document because according to the European Commission the company has received a state-owned aid of about EUR 100 million before the privatization.
Source: Pari (19.09.2003)

The biggest copper mines in Zambia Konkola Copper Mines /KCM/ are expected to produce 300 000 tons copper in 2004 in comparison with 222 000 tons for the last year. In KCM are extracted 2/3 of the copper in Zambia. The country is among the biggest producers of the metal
Source: Pari (19.09.2003)

The top producer of stainless steel Arcelor gave up its plants to reduce its production in the last quarter when reduced its extractions with 100 000 tons during the current quarter. The decision for reduce of the production was taken in the end of August. Then the CEO of Arcelor explained that the situation at the market of flat stainless steel became worse because of the high prices of the nickel – the major raw-material for the steel production and the increased capacities in Europe. At the same time, the German-Dutch Corus, which is in a jam, will look for a way to find over USD 160 million for its own needs and for this purpose will try really hard to sell some of the secondary activities.
Source: Pari (19.09.2003)

The Prime Minister Simeon Saxe-Cobourg and the Greek Minister of Economy and Finances Mr. Nikolaos Hristodulakis will be among the guests at the 50-th anniversary of Stomana JSC and the official establishment of Stomana Industry. The Co-Chairman of the Board of Directors of Stomana Industry Mr. Anton Petrov announced that the development of the company is stable.
Source: Pari (19.09.2003)

The world production of refined lead in the first seven months of 2003 increased with 0.7 per cent up to 531.9 thous. tons compared to the same period of the former year and the extracted volumes from the mines are with 3.1 per cent higher and amount to 241.8 thous. tons. The consumption increased with 1.6 per cent and reached 576.4 thous. tons.
Source: Pari (19.09.2003)

The forecast of Goldman Sachs from the beginning of September that the nickel will exceed USD 13 000 per ton in 2004, was confirmed for a first time when the price of the metal was over the important level of USD 10 000 per ton. Such amount has not been reached since May, 2000. Behind the curtains of the higher price were banks and funds, which used long positions in nickel futures. The rising of the price is quite remarkable, considering the increase of the inventories lately. The fact that the price is higher, is a proof of the consumption’s power, according to analyzator from the brokerage house Man Metals. The active demand of nickel for manufacture of stainless steel, especially by China, will continue to move upwards the prices during 2004 as well. The rest non-ferrous metals that are traded at LME – aluminum, copper, tin, zinc and lead also followed the rising trend of the nickel, encouraged by the signs of world economic boom.
Source: Capital (20.09.2003)

The metallurgic plant Kremikovtzi has presented the information, needed by the British consultancy company Euro Strategy Consultants for the preparation of the sturdiness plan of the company, announced the Deputy Prime Minister and Minister of Economy Mrs. Lydia Shuleva as an answer to the question of member of Coalition for Bulgaria Mr. Krastio Petkov regarding the denial for access of the European consultant group in the plant. In the beginning of August the consultant has presented to the European Commission and the Bulgarian company the project for Individual Sturdiness Plan. During the same period the management of Kremikovtzi also made its recommendations. Mrs. Libya Shuleva announced that in the end of last month the consultancy company has presented to the Bulgarian government and the management of the company the final version of the draft plan. On September 24 in Brussels will be conducted a meeting of the Managing Board of the National Programme for Restructuring of the Steel Industry, on which will be discussed the sturdiness plan of Kremikovtzi. At the Ministry were received signals for dismissing of employees of the metallurgic plant, including members of the trade unions, announced Mrs. Shuleva. In the connection with this problem will be conducted an extraordinary meeting of the Branch Council for trilateral cooperation Metallurgy at the Ministry of Economy. If there are any doubts for illegal actions the Minister will cease the authorities. Mr. Krastio Petkov announced that last month in the plant were dismissed 17 members of the trade union. The British consultancy company, which participates in the auction procedure, organized by the European Commission, won the auction for election of a consultant during May this year. The company will participate in the preparation of the National Programme for restructuring of the Steel -processing branch, which apart from Kremikovtzi includes Stomana Industry JSC, Promet steel JSC. Since the programme is adopted by the European Commission will be guaranteed access and the free movement of the production of the Bulgarian metallurgic companies
Source: Dnevnik (20.09.2003)

Nickel is on the way of conquering a 13-year price peak of 10 500 USD/t in the coming six months as a result of the market deficiency. This forecast was made by British analyzers. The metal reached a three-year maximum on Thursday, when it closed at levels highest since May 2000 and is currently aiming at levels of 10 500 USD/t (unseen since January 1995). A combination of factors stands behind the metal’s trend. First of all, consumption from China grew, which caused market deficiency; secondly, there was revival in steel production (which uses 2/3 of world nickel production); third, world economy revival is expected. Besides, as early as last year most market observers forecasted that nickel will be the star among all metals in 2003 and 2004. Furthermore, other nickel projects will not go into effect before 2006. The world market deficit, according to the latest surveys, will amount to 55 000 t per year.
Source: Pari (23.09.2003)

Representatives of the Swiss Glencore, owner of the zinc complex in Sardinia Portovesme, will decide its closing as of October 1 because of the quite high price of the electricity that gets the production more expensive. The zinc production reached 110 thous. tons but now it shrunk with 10-20 per cent.
Source: Pari (23.09.2003)

The second by size producer of copper in Russia UMMS reported that two of its units increased the extractions for the period January-August respectively with 3.9 per cent up to 51 000 and with 9 per cent up to 20.8 thous. tons.
Source: Pari (23.09.2003)

Peru-based company Southern Peru Copper, which is one of world's top ten copper producers, is planning to produce 6 per cent more copper next year (850 million lb).
Source: Pari (23.09.2003)

Almost the whole production of Alcomet JSC can be orientated to the packing sector, declared the Chairman of the Board of Directors of the company Mr. Fikret Kuzuju. Now the company satisfies the needs of United Milk Company JSC for caps for yogurt and for of medicines. Mr. Kuzuju who is one of the co-owners of Alcomet JSC specified that under 10 per cent of the packing production of the company are for our market. One of the traditional packing products of Shumen-based company for processing of aluminum is the foil, which is also the most popular product. When we came in Alcomet JSC five years ago the monthly production was 100 tons foil, said Mr. Kuzuju. Now in the plant are produced 1000 tons foil and during the next year are planned 1500 tons per month. The annual turnover of Alcomet JSC has already been USD 50 million and in 2004 it will reach USD 70-80 million. So far the owner – FAF Metal has invested USD 15 million in Alcomet JSC. According to the requirements of the privatization contract, by the end of this year will be invested totally USD 26 million.
Source: Pari (24.09.2003)

The Russian billionaire Mr. Roman Abramovich sold share in the leading Russian producer of aluminum RusAl to his partner, announced Vedomosti newspaper. The newspaper quoted sources from the investment company of Mr. Abramovich - Millhouse Capital, according to which the 50 per cent stake was sold to Basic Element, which holds the other 50 per cent of the capital of the group. The 36-year old Mr. Abrampovich purchased during July the British professional football team Chelsea
Source: Pari (25.09.2003)

Serbia plans to give during next year concessions for research of the copper mines and enlargement of other mines, announced the Minister of Energetics Mr. Slobodan Rujich. The lack of Law for mines, which does not allow any penetration of foreign capitals in the sector, will be soon changed, not later than the end of the year. According to Mr. Rujich, the first international tender for the exploitation of mines, this time is one boron groove, will be appointed in the first quarter of 2004. The mineral is used in the cosmetics and in the manufacture of artificial fertilizers. The giant Rio Tinto and one American company have already taken interest in future tenders. Rio Tinto is also interested in researches of the rich in copper eastern parts of Serbia in cooperation with the local copper-extraction complex Bor. In August the two companies were close to sign a five year agreement for research of the copper fields but the Government stopped the contract, declaring that the public tender is the best way to be selected the most appropriate candidate. Except Rio Tinto, the second by size producer of copper in the world Phels Dodge and the biggest copper-extraction company BHP-Bilitton also contacted the Management of Bor. The point of the Government is to find out a partner that will invest in the industry, to engage local working force and to invest in other fields too, which have already been developed by Bor complex.
Source: Pari (25.09.2003)

China plans to impose temporary anti-dumping duties on the imported cold-rolled steel from Russia, Ukraine, Kazahstan, Republic of Korea and Taiwan because the production harms considerably the interests of the local producers. The Trade Ministry took the decision after 18 months of investigations. The duties will be introduced for a period of 5 years but for the time being is not specified the exact date. China gave a green light to the investigation whether the import of the cold-rolled steel from the mentioned countries harmed the local production in March, 2002, soon after USA introduced tariffs up to 30 per cent for some groups of imported steel products.
Source: Pari (25.09.2003)

In the next 3-4 years there will be a deficit in the global market of processed aluminum. The spot prices will vary round the levels of 3000 USD/t during the next 2-3 years, is the prognosis which experts made at the conference in Derban. At the moment the prices of processed aluminum on LME are with 20 per cent lower than the price of aluminum
Source: Pari (25.09.2003)

Mr. Anton Petrov: It is difficult to forecast when the market principle is missing. The plants of Viohalco in Bulgaria are Steelmet – Sofia, Sofia med – Sofia, Stomana industry – Pernik, Thermal-gauging plant in Pernik, Lesko – Blagoevgrad, Sigma – Pernik, the holding structure Steelmet and TeProMetal SP JSC, which controls the activities of all companies. The ninth company is in a process of registration. It will be in the field of the new technologies and will use the sun energy at the manufacture of electricity and thermal energy. The General Meeting of Steelmet decided the profit of Steelmet for 2002 in amount of BGN 1.8 million to be reinvested. A while ago we bought 70 decares near the plant of Steelmet in Iliantzi. There will be built new production capacities. Our plans are in 2004 to start the construction of a foundry and another one production line. The necessary investments are about EUR 6 million. The funds will be provided by increase of the company’s capital and credits. The new outputs will increase the plant’s capacity with 30 per cent. During last year was launched a third production line, which rose the production of Steelmet with 40 per cent. Thus the capacity reached 10 000 tons profiles per year. The total consumption of aluminum profiles on Bulgarian market at the moment is between 6 000 and 8 000 tons. Steelmet exports 70 per cent of its production to the markets in Western Europe. The export, which Stomana industry realized to Canada is under 10 000 tons list rolled iron. In comparison with the produced quantity of 240 000 - 250 000 tons, this is quite insufficient. In spite of this fact, the Canadian market is big and important t and no one is indifferent if there are any obstacles to penetrate to it. The very procedure at the moment reveals the accusations. The accusations are to Bulgaria, Romania and Czech. Since we have been owners of the company (since the second half of 2001) BGN 60 million have been invested. The deadlines, in which were invested these funds are quite impressive. The installation of the machine Danielli proves this. The mounting was executed for record short deadlines – taking a decision, project and mounting. They are provided by credits. At the moment the negotiations with the World bank are on the verge of finalization. The bank will grant between USD 18 million and USD 20 million. I don’t want to comment the credit’s conditions but we can say it is a long-term investment credit. A credit institution that gives funds, can grant them as a credit or can give them as a shareholders’ participation. These USD 18-20 million are granted as a credit. But there is an opportunity for the World bank to become a shareholder. However the stage is very initial. This is an idea that exists in every trade bank. The problem with the raw-material is a fact, which we knew when we bought Stomana. The raw-material is scrap and it is limited in Bulgaria. When one industry does not function, the scrap is limited. At the moment we rely on raw-material from the shredding of old production outputs. But this restricts our abilities – between 700 000 and 1 million tons annually. And this is one of the reasons for the purchase of the shredding installation. The price of the equipment id BGN 10 million and has to star working by the end of the year. The machine has already been purchased from Germany. Through it will be processed old automobiles, white technics and the non-metal wastes will be shattered and separated. The installation can take the processing of all old cars. In this way in the furnaces won’t fall any non-metal wastes, which pollute the environment at their burning. Your plants are big consumers of electricity. How do you estimate the situation in this branch? We estimate positively all moves of the Government, which are connected with the liquidation of different barriers through the business. But I don’t think that if the tax rate of the profit tax becomes 20 per cent from 22.5 per cent, this will solve our problems. Our business programme is in accordance with the current conditions. In our work the prices of the electricity and natural gas are quite influential. The measures for liberalization of this market, which are taken at the moment are more important than the rate on the profit tax. Unfortunately, the liberalization of this market develops more slowly than we expected. But still it is done something and I was a pessimist about any moves in this direction. I think that it is important to perceive the idea that weekend energy must be equal to the night energy. This is profitable to us and to the producers. If this electricity is equal to the night, we will be able to increase our production. This is important to all companies, big consumers of energy. They produce mass loads, which are one of the major in the country. At the moment we discuss the problem with the transport structures. When one structure like BDZ is monopolist, it is difficult to forecast when the market principle is missing.
Source: Dnevnik (25.09.2003)

The top producer of steel in the world Arcelor reached an agreement with the Turkish company Erdemir for the construction of repair centres out of Turkey..
Source: Pari (25.09.2003)

The steel-extraction company LNM with head-office in Great Britain, a property of Indian businessman and selected for a buyer of the Polish giant PHS, will demand a postponement for reaching an agreement with the trade unions about the social conditions. Several months ago it was selected for a buyer of PHS, which produces 70 per cent of the steel in Poland. The amount that LNM paid was USD 1 billion and the deal was signed under the condition for agreement with the trade unions. It became clear that LNM demanded a one-week postponement for reaching the agreement on the disputable conditions. There are not more details about the sale. According to market analyzators, the price is USD 1 billion. The deal will allow the company to double its production capacities in Central Europe where is owner of plants in Czech and Romania.
Source: Pari (26.09.2003)

The only processor of aluminum in Bosnia - Aluminij /Mostar/ prognoses that it will exceed the preliminary planed amount of the production as of 2003 with 3 000 tons and will process 110 000 tons of aluminum. During 2002 the company has produced the record 102 000 tons of aluminum. Per cent of the metal are exported in Germany, Switzerland, Italy, Croatia and the USA
Source: Pari (26.09.2003)

The export of Japanese copper scrap will reach record levels during this year because of the big demand by China. Only for the first five months it was with 40 per cent higher or 116.1 thous. tons. Meanwhile the export of refined copper reduced with 32 per cent compared to the same 5 months of 2002 to 120.8 thous. t. The main export markets for Japan are China and Thailand.
Source: Pari (26.09.2003)

The sturdiness plan of Kremikovtzi JSC was adopted at a meeting of the joint committee between the European Commission and Bulgaria in Brussels, at which presented representatives of the plant as well, was reported from the Ministry of Economics. The three parties have adopted the document prepared by the consultancy company Eurostrategy Consulting. The sturdiness plan of Kremikovtzi is needed in order to be closed the Competition chapter of the negotiations with the European Union, because the metallurgic plant had received financial aid from the State, therefore its capacities has to be lowered with the amount of the state aid. In the sturdiness plan the consultants have proposed reducing of 30 per cent of the production of the factory. Representatives of the Ministry explained that there will be additional negotiations which capacities of the pant will be closed. The negotiations will be made within the frames of the general programme for metallurgy, which is being prepared at the moment. In the programme will be written the amount of the production of Kremikovtzi JSC, Stomana Industry – Pernik and Promet Steel – Bourgas by 2007, when it is expected that Bulgaria will become a part of EU. The programme for the metallurgic branch is written by the consultancy company Orgsystem. It is expected that it will be finalized in the beginning of October.
Source: Pari (29.09.2003)

The aluminum producer Alcomet may considerably change its product strategy and re-orient its product range to production of packages. This was stated by the Shumen-based company's Chairman of the Board of Directors Mr. Fikret Kuzudzhu. He explained that the change is related to the fact that the use, as well as demand of aluminum in the packaging sector is constantly growing. According to Mr. Kuzudzhu, in the Western countries aluminum is used for the making of 80 per cent of the packages of soft drinks, cans and natural juice, and aluminum foil's use in drug industry is rapidly expanding. If the Shumen-based company re-directs its products strategy, the main part of its production will be exported. The market of packages in Bulgaria is small compared to Alumina's capacity, and the demand for aluminum for production of packages is still unstable and with seasonable character. It is bigger in the summer season, but it falls in winter, added Mr. Kuzudzhu. Nevertheless, dairy and pharmaceutical companies in Bulgaria are potential clients of the aluminum company. Their production is traditionally in big amounts because of the stable consumption of dairy products and medicines. Alumina will consider it a success if it manages to realize 10 per cent of its future production on the domestic market. The company is currently making around 1000 t of aluminum foil per year, and according to the production program, next year this amount is supposed to grow with 50 per cent. According to the Chairman of the company's Board of Directors, Alumina's incomes from sales this year are going to reach USD 50 million, and next year - between USD 70 million and USD 80 million. When in 1999 the former Aluminum combine was privatized, its incomes from sales were between USD 4 million and USD 5 million. Since 1999, USD 15 million have been invested in the aluminum enterprise. The main part of the funds has been invested in modernization and technical equipment of the production processes. Alcomet is the only company in Bulgaria and one of the biggest on the Balkan peninsula, specialized in production of rolled iron and final products made of aluminum and aluminum mixtures alloys. The company is also producing a wide range of consumer products: ladders, shower cabins, television aerials, drips. The Turkish company Alumetal holds 74.6 per cent of Alcomet's capital, 16.9 per cent are held by Faf metal, Alumina Invest owns 0.18 per cent and the remaining shares are distributed between small shareholders.
Source: Dnevnik (29.09.2003)

Two of the biggest producers of steel in Russia – Evrazholding and Severstal declared that they did not still reached an agreement for merger but admitted the current negotiations. During last week the Russian daily newspaper Izvestia and the British Financial Times reported that the two companies are negotiating preliminarily for a merger, through which will be created a metallurgic giant with capitalization USD 5-6 billion. The spokesman of Evrazholding Mr. Alexander Karlashov confessed about the consultations with Severstal but reminded that some time ago there were such consultations with Novolipetzkia zavod and with different companies for coals and iron ore. After the eventual union the two companies will produce 22 million tons steel per year. Reuters quoted analyzators who declared that the Russian steel-production sector is ready to consolidate but they doubt about any deal in the next years. The general opinion is that the union of Evrazholding and Severstal is proper since the two companies will mutually add the product assortment – one of them produces construction products and the other – flat articles for the automobile construction and manufacture of pipes.
Source: Pari (29.09.2003)

World zinc production grew with 4.9 per cent over the first half of the year, compared to the same period in 2002, reaching 4.524 million tons, International Lead and Zinc Market Research Group reported. The production of refined metal has also grown, though at a smaller rate - with 1.1 per cent to 4.787 million tons. The growth of consumption is a good sign. It marked a modest growth of 2.2 per cent in the first half of the year, reaching 4.726 million tons. Zinc inventories also increased - to 1.145 million tons compared to 1.094 million tons in the same period of 2002. World zinc quotes started to recover this year and in August they even marked their two-year maximum. Nevertheless, thy remain at an average annual level lowest since 70 years ago. The downward trend started in the late 90’s because of the world market surplus, caused by enormous export from China and putting into operation of a number of large mines. In 2000, the metal was traded at an average price of 1200 USD/t, but in the beginning of the new century the price sharply dropped, pressed by world recession and big inventories. Currently, the quotes are 18 per cent higher than those registered a year ago.
Source: Pari (29.09.2003)

Bulgarian company Metalsnab holding will offer new plastic pipe systems to the Austrian-Belgium company Pipelife. They are used for transfer and distribution of water, energy and other industrial application and are good alternative of the steel pipes. Pipelife is a leading world producer and supplier of complete plastic pipe systems /pipes and fittings /. The group operates in over 26 countries all over the world and has 32 plants producers on the territory of Europe, 4 of them are in China and one in USA. Metalsnab holding is the major owner of its products in Bulgaria. The Bulgarian company is the biggest group in the trade with metals and metal products. The company has installed a system for quality management on ISO 9001:2000. The system is certificated by TUV Rheinland, Germany in 1999.
Source: Pari (29.09.2003)

The former Manager of Lead-zinc complex in Kurjali Mr. Russi Dafinov is accused of corruption was reported from the District prosecutor’s office. Against Mr. Dafinov was submitted an accusatory act in the court for ownerless activity in the period 1993-2000. He has to be responsible for scattering of property - 826 tons lead and as a result the company was damaged with over BGN 500 000. According to the prosecutor’s office the metal was taken out of the plant and now is not a property of the plant.
Source: Novinar (30.09.2003)

The big companies like Kremikovtzi, Polimeri, Devnia cement take interest in taking on concessions of quays in Varna and Burgas, announced the Deputy Minister of Transport and Communications Mr. Nikola Yankov. He explained that the interest was not declared in letter of intends. On the contrary to the airports, the seaports in Varna and Burgas probably will be given on concession in accordance with the quay principle, i.e. if I can say at a piece, said Mr. Yankov. According to him, the investors’ interest in the ports depends on the volumes of the cargos. The interest of Kremikovtzi is pointed to Burgas port since there pass about 75 per cent of our turnover, was explained from the metallurgic plant.
Source: Dnevnik (30.09.2003)

A new alliance of six Chinese copper processors is going to start operating as of the next week in order to obtain more profitable deals for import of concentrate and improvement of the market positions. Jiangxi Copper, Yunnan Copper, Tongling Non-ferrous Metals, Dave Metals, Jinchuan and Zhongtiaoshan will take part in the new alliance.
Source: Pari (30.09.2003)

The export of copper concentrate from Mongolia, which is among the leading producers in the world, reduced with 11.5 per cent on annual base up to 185.4 thous. tons during the first months of 2003.
Source: Pari (30.09.2003)

Russian metal giant and top producer of nickel in the world - Norilski nickel confirmed officially that it would increase the extraction of the metal in 2003 up to 238 000 tons or with 20 000 tons more in comparison with the former year regarding the higher global consumption. The news was announced by the CEO of Norilski nickel – Mr. Mihail Prohorov. Earlier in June from the company was reported that it would increase the annual production up to 235 000 tons because of the deficit of the metal on the market. The major production unit of Norilski – the Polar division reported that would raise its production with 19 per cent and would produce record quantities of nickel during this year. Except this, the company also intends to enlarge its positions in other metal sectors. It has recently bought several gold-extraction companies and now is among the 10 biggest producers of precious metals in the world. Mr. Prohorov revealed his intentions Norilski to start also a manufacture of titanium, which is used in the airplanes’ construction.
Source: Pari (02.10.2003)

European Court confirmed at final instance the imposed fines in amount of millions euro on 6 European steel companies because of illegal joining a cartel. The companies dealt about the prices, about the market shares and exchanged information between each other. Among the fined companies are the German concerns Salzgitter AG that has to pay EUR 8.6 million plus interests; Tissen Stal AG – EUR 4.4 million and Krupp Hoesch Stal AG – EUR 9000. However, the European court stopped the case against Luxembourg-based company Arbed, which is a unit of Arcelor. In this way the company avoided a fine in amount of EUR 10 million.
Source: BTA (03.10.2003)

EU Court annulled a fine in amount of USD 11.7 million of Arbed, now part of Arcelor, for participation in a cartel for definition of the prices of the steel. However, the Court confirmed the penalties against 6 other companies, among which Corus and ThyssenKrupp. The fine against Arbed was canceled because now it is a part of Arcelor and the parent company is not responsible for its actions. This case has dated since 1994.
Source: Pari (03.10.2003)

The third by size Japanese producer of nickel Sumitomo Metal extracted with 16 000 tons more metal in the period October – March or with 136 000 tons.
Source: Pari (03.10.2003)

The Governor of Chukotka region and owner of London football club Chelsea Mr. Roman Abramovich sold 25 per cent of his share in Ruskii aluminii – the biggest producer of aluminum in Russia. The share was sold to the CEO and owner of 50 per cent from the company Mr. Oleg Deripaska.
Source: Capital (04.10.2003)

At the General Meeting of Umicore med on November 10, this year will be offered to the copper-extraction company to establish a leasing company under the name Umicore Bulgaria leasing SP JSC. The sole owner of the capital of the new company will be Umicore med. At the general meeting on November 10 will be adopted the report for the company’s activity for 2002. There will be also made changes in the Board of Directors of Umicore med and in it will be selected Mr. Mark van Sande. The main activity of Umicore med is extraction of anode and cathode copper, precious metals and sulfur acid. The former copper-extraction plant Pirdop was privatized in September 1997 when 56 per cent of its capital were sold to the Belgium concern Union Minier against USD 80 million. Two years ago the company was renamed from Union Minier Pirdop med to Umicore med. In June 2002 the major shareholder in Umicore med - UMICORE S.A. – Belgium, which then held 95.51 per cent from the capital, made a tender offering to the rest shareholders for purchase of their shares at BGN 14.01 per each. After the successful finalization of this process, the company was written off from the public companies register. In the end of 2001 the Government rescheduled the investment programme of the company with 2 years and the total amount of the investments was increased from USD 220 million to USD 243 million
Source: Dnevnik (06.10.2003)

The third biggest metallurgic producer in Russia Severstal refuted the rumours for merger with the competitor Evrazholding. And yet, if the deal realized, they would create one of the biggest steel-extraction companies in the world. Severstal reported that it had negotiated with different companies /with Evrazholding and some foreign companies/ but the negotiations do not have to be considered as a forthcoming merger but for an eventual cooperation.
Source: Pari (06.10.2003)

The Finnish producer of stainless steel and non-ferrous metals expects a lower profit for 2003 in comparison with 2002 because of the weak market, the costs for takeovers and the investments. Outokumpu is a leading producer of stainless steel regarding the capacities.
Source: Pari (06.10.2003)

American economic data moved the prices of the non-ferrous metals in London during the last week since they defined the variation of the funds on the market. The weak consumers’ and business trust in USA respectively in September and August turned the funds into liquidation of long positions during the first three days of the week and this caused lower prices of the traded metals at LME. The falling of the production index of USA in September also influenced negatively. After the very funds reduced the prices of the non-ferrous metals, on Thursday they came on the market as buyers and started to prolong their short positions. Thus in the end of the week the metals became more expensive and exceeded the levels from the beginning of the period.
Source: Capital (06.10.2003)

The first signs that the active corporate season in USA starts will be given even during this week. Among the leading companies that will reveal the financial results for the third quarter of the year are the blue-chips Alcoa and General Electric. The metallurgic company will publish its results today. The market consensus is for yield per share of USD 0.30.
Source: Pari (07.10.2003)

There will be small zinc surplus on world markets this year, but in 2004 it will be transformed into a deficit, which will reach almost 160 000 tons. This is the latest forecast made by the world's top zinc producer - Canada's corporation Tech Cominco. Zinc's price jumped on Monday at LME up to 872 USD/t and is one of the best-traded non-ferrous metals this year. The main reasons for this are the smaller production and increased consumption by China. For 2003, Tech Cominco is forecasting market surplus of 79 000 t compared to 221 000 tons for 2002 and 225 000 tons for 2001. The surplus amounts have been impacting quotes for a number of years now, making them reach this year their lowest levels since 1985 - 35 CTS/lb. Just like in other groups of metals, China played a key role in the group of zinc as well. Zinc consumption there continues to grow mainly due to big investments in automobile industry, where this metal is used in galvanized products. Last summer zinc warehouse inventories marked their peak of 700 000 tons. On a world level, production is expected to continue growing, but much slower than lately. Between 1998 and 2001, production jumped with 900 000 tons due to expansion of mines, including of Tech Cominco's mine in Alaska, which is the biggest mine in the world. Over the period 2001-2004, production is expected to jump with 170 000 tons.
Source: Pari (07.10.2003)

Kazakhstan-based copper-extraction corporation Kazahmis, the biggest producer of copper in the country, produced 306.2 thous. tons of the metal during the nine months of this year compared to 322.9 thous. tons for the same period of 2002.
Source: Pari (07.10.2003)

On April 18 1951 six states, commonly called "the small Europe", founded the European Coal and Steel Community. This is the first step to the future European Union, equal to the European super powers. 52 years later, the strict rules of production of this strategic metal are still valid. As a result of this, over the past 20 years, around 50 million tons of steel producing capacities have been closed down in united Europe, and the working force has been reduced from 900 000 to 250 000 people. EU member states obey to one iron rule - the state has no right to subsidize the enterprises operating in this branch. Even the guarantees and extended payment of debts are considered state aid. In 1999, however, Bulgarian government remitted BGN 183 million of Kremikovtzi's tax liabilities, in relation to its privatization. Have the rules of the game been broken? According to the European commission - yes, because at that time, Bulgaria was associated member and had to comply with the existing legislation. From our point of view, however, the problem remains unsolved, Ministry of Economy commented. The problem has been brought to the Competition Protection Commission, which had to decide whether the received funds should be considered a part of the deal, or a state subsidy. But eventual closing down of Kremikovtzi is out of the question. According to the Deputy Director of the combine's Supervisory Board Mr. Alexander Tomov, Kremikovtzi's vitality plan, presented in Brussels, is identical with the management's plans for its restructuring. This means that productions of secondary importance will be closed down. The owners, however, will insist on state compensations, claiming that they have not been informed about EU requirements when the deal was concluded, Mr. Tomov said.
Source: Trud (07.10.2003)

Steel production in Bulgaria started 50 years ago in the metallurgical plant Lenin in Pernik. 10 years later, Kremikovtzi was founded, and in 1987, the construction of Promet near the village of Debelt began (the so called Third Metallurgical Base). The capacities are enormous for a country as small as Bulgaria. They, however, work mostly for export. Nowadays, the situation is the same - 90 per cent of the metals produced in Bulgaria are exported to EU member states and USA. Steel production in 2003 will amount to around 2 million tons. The biggest peak was marked in 1986 - 2.9 million tons.
Source: Trud (07.10.2003)

- Mr. Petrov, the period after 1989 was difficult for the Bulgarian metallurgy. Do you consider that the worst has already passed? - At the moment, in a world scale, there is a surplus in the steel production. This reflects also in Bulgaria, which means that the sector has to be altered considering the quality and product structure. - How much did you invest in Stomana – Pernik after the privatization? - The Greek company Viohalco became major shareholder of the company two years ago. It had to estimate the real capacities’ status and after that the new machines to be designed, ordered and mounted. All of this had to be realized in extremely short terms because Stomana is the first metallurgic plant in Bulgaria and many of the machines have dated since 1956. Our investment programme exceeds EUR 60 million. The first stage of its has just finished. The machine for permanent casting was launched in 2002 and then the electric furnaces were reconstructed. The reconstruction of the rolling manufacture has also finished. With other words the core of Stomana industry is renewed. By the end of the year will be also installed a shredding machine, after which the main capitals will be pointed to the ecology. For this purpose are envisaged EUR 13 million. Thus, at the 50th anniversary of the plant, we could say that it is in good hands and has a serious shareholder – the Greek company Viohalco. The company possesses in Greece two similar companies, which is a precondition for Stomana to take the necessary know-how. The other precondition is the markets. Relying on the structures of Viohalco, we are assured that we will find a realization of our production. - How many are the companies of Viohalco in Bulgaria? - The company has in Bulgaria 8 companies. Except Stomana industry, these are the plants Stilmet, Sofia med where are envisaged investments over EUR 88 million, Blagoevgrad-based company Lesko, the company for investment equipment Sigma, Teprometal and Steelmet. Our total investment programme is EUR 180 million by the end of 2004. This programme will be exceeded or EUR 200 million will be invested in the Bulgarian ferrous and non-ferrous metallurgy. But that’s the way it is in the metallurgy. It can’t do without big investments in the metallurgic sector. The companies need a stable investor, know-how and markets. - Will the accession of Bulgaria to EU influence on the steel extraction and how? - The sole requirement of EU is the companies, which have received state-owned aid, to stop their capacities. Stomana has not received such aid and we won’t reduce the capacities. Excluding this factor, the accession of Bulgaria to EU will affect positively the sector because will be used many accessioning funds. The export will become easier with equation of the production standards and the abolition of the customs.
Source: Trud (07.10.2003)

World copper market situation remains not highly favourable for contractors because of the metal's low prices, but demand continues to grow, especially in China. While North and South America produce over 41 per cent of world's refined copper, and Asia - another 31 per cent, around 41 per cent of copper consumption is exactly by Asian countries, and in Europe this indicator is only 30 per cent. Last year, producers agreed to reduce production in order to stabilize prices. World's biggest copper company - Codelco, shrunk production in its Chile-based mine Chuquicmta in 2002 with almost 100 000 tons. This year Codelco, shrunk copper production with another 200 000 tons, increasing its warehouse inventories. The company intents to release them on the market when London, New York and Shanghai exchange inventories go under 800 000 tons. For comparison currently the inventories at LME are a little over 600 000 tons compared to their peak of over 980 000 tons in May 2002. The company Asarco reduced its copper production in 2000-2001 in its enterprises in USA and Peru with over 150 000 tons. Because of the aggravated market situation in 2003, Asarco is currently using only 15-20 per cent of the production capacities of the copper complex Mission in USA, which resulted in shrinking of its annual copper production output to 22 000 tons, as well as to 30-per cent lay-offs. Production amounts were reduced in other Asarco enterprises as well. In the smelting enterprise Hayden copper production was reduced with 30 per cent, and the factory Amarillo reduced its production with 13 per cent, as a result of which the company shrank its overall copper production to 150 000 tons per year. The US company Phelps Dodge stopped extracting copper in its Chino mines with production of around 65 000 tons per year and Miami (45 000 tons per year). The capacities of the mines Sierrita and Bagdad were reduced by half, respectively to 45 000 tons and 64 000 tons. The enterprises Chino and Miami were temporarily closed down. One of the world's biggest copper mines - Chile's Escondida, produced 760 000 tons (equivalent to copper content), while according to forecast, its 2003 copper production was supposed to reach 1.05 million tons. Even this amount is around 200 000 less than the mine's production capacities. Even in China a lot of copper producers also said it was possible to reduce their copper production, more specifically in the companies Jangxi Copper, Daye Non-ferrous, Yunnan Copper, Tongling Non-ferrous Metal, Luoyang Copper and Baiyin Non-ferrous.
Source: Pari (07.10.2003)

A factory for processing of solid consumer wastes will be built on the territory of the metallurgical plant Kremikovtzi. The construction will start in 2004, announced Sofia's candidate Mayor Mr. Stefan Sofianski and the company's Executive Director Mr. Valentin Zahariev. The enterprise will cost around EUR 100 million. It will be located on an area of 60 decares, Mr. Zahariev added. There are five potential investors in the project. They have been selected in between 32 candidates. Three companies (Italian, Greek and Belgian) have submitted offers for waste burning, and a Swiss-based and a Belgian-based company have offered processing with separation of gas, which could be used for electricity production. If we receive 50 per cent of the necessary funds as a grant, the factory's building will not impact the waste tax, Mr. Sofianski said. The factory's construction should be completed before the capacity of the waste depot in Suhodol is finished.
Source: BTA (08.10.2003)

A plant for permanent steel casting will be constructed in Kremikovtzi. It will meet EU environment protection requirements. One of the machines is due to start operating no later than March 2004, and the second - before the summer of 2004. The two machines will be producing 1.6 million tons of steel on an annual basis. So far, USD 20 million have been invested in the project. The total amount of investments in it is expected to reach EUR 33 million.
Source: Standart (08.10.2003)

The garbage in Sofia will be burnt in the metallurgic plant Kremikovtzi, at whose territory will be built a plant for processing of solid public wastes. This agreement was reached by the Mayor of Sofia Mr. Stefan Sofianski and the Director of the company Mr. Valentine Zahariev. The project is for a modern plant like this one in Wien. It will be built on an area of 60 decares at the place of the former drying work-shop and will work with contemporary technologies, which don’t pollute the environment, explained Mr. Zahariev. The gases, which will be formed after the abolition of the garbage, will be used for production of electricity. The Municipality is expected to select an international strategic investor, which will build the plant. The team of Mr. Sofianski chose two Belgium companies and one Greek, Swiss and Italian companies.
Source: Standart (08.10.2003)

The Prime Minister Mr. Simeon Saxe-Cobourg will take part in the 50th anniversary Bulgarian steel that will be held in Stomana industry, Pernik. He will open new investments in the company. Since the middle of 2001, the company has been a part of the Greek company Viohalco, which also possesses in Bulgaria Stilmet and Sofia med. For two years in Stomana have been invested over BGN 60 million. At the ceremony will be also invited the Deputy Minister of Economy Ms. Evgenia Koldanova and the Minister of Economy and Finance of Greece Mr. Nicos Hristodulakis.
Source: Pari (08.10.2003)

Canadian Government gave up introducing new duties on the import of steel from USA, basing its decision on the fact that a similar measure would be against WTO rules. WTO stated that the duties introduced by USA in 2002 were against the organization's regulations. The decision came a year after the Canadian International Trade Tribunal ruled that imports from USA were derogating local producer prices.
Source: Pari (08.10.2003)

The consumption of nickel in 2003 and 2004 will increase with 7 per cent, according to a forecast of the management of the biggest producer of nickel in the western world – the company Inco.
Source: Pari (08.10.2003)

Six candidates have submitted the necessary documents for participation in the bidding for the sale of almost 80 per cent from Hungary's steel maker Dunaffer, Hungary's PA announced. Dunaffer is the last major state asset due to be privatized before Hungary could become EU member. The Agency explained that the potential investors should invest at least USD 250 million over the first five years, and besides should immediately inject USD 60 million in the plant. The winner will have to keep the number of employees and improve working conditions. The candidates, which have so far demonstrated interest in Dunaffer are: LNM with head office in Great Britain, US Steel, Austria's Voestalpine, the German ThyssenKrupp, Russia's Severstap, and Donbas Industrial Union of Ukraine. On December 8, the name of the winner in this tender will be publicly announced.
Source: Pari (08.10.2003)

Viohalco invested BGN 60 million in Stomana – Pernik. The investment programme in amount of EUR 60 million of the Greek company Sidenor has already been halved, said Mr. Anton Petrov who is a representative of Viohalco for Bulgaria. In 2001 the Greek industrial group Viohalco acquired through its subsidiary Sidenor the assets of Pernik-based metallurgic company Stomana and became a major shareholder. The Greek investors established a new company called Stomana invest 3, which officially opens its new production capacities today. So far BGN 60 million were invested in Stomana invest 3. The volume of the produced articles by Stomana in 2002 was 450 000 tons. The expectations for 2003 are the production to reach 700 000 tons, which is a higher result of over 50 per cent. The investment is financed through an equity capital, provided by Sidenor, International Financial Corporation and Hypovereinzbank. Viohalco is also owner of Sofia-based companies Steelmet and Sofia med.
Source: Other (08.10.2003)

The Minister of Finance Mr. Milen Velchev and the Chairman of the Parliament Mr. Ognian Gerjikov took part in the production process in the plant for steel in Pernik Stomana industry. They were among the guests, invited for the fifth anniversary of the company. The Minister of Finance of Greece Mr. Nikolaos Hristodolakis and the Minister of Environment of Bulgaria Ms. Dolores Arsenova were also among the participants in the ceremony. BGN 60 million were invested in the company for 2 years. The whole investment programme will be realized in 2006. It is realized by the Greek company Sidenor, a subsidiary of Viohalco group, which bought Pernik-based company in 2001. Greece established a new company – Stomana industry, which officially opened its new production capacities yesterday. EUR 4 billion are invested by Greek companies in the countries from Balkan peninsula. 40 per cent of these investments are invested in Bulgaria.
Source: Standart (09.10.2003)

Rua Invest, registered in Bulgaria, and the Turkish group Kurum Demir have submitted offers for the privatization of 58 per cent from the shares of the steel factory Zhelezara Nikshich in Montenegro. The deadline for submission of offers was September 30, and the finalization of the deal is expected by the end of 2003. According to Tanjug agency, the German company Max Aicher also participates in the tender. According to the publication, the Bulgarian company has actually submitted its offer under the name of Steel Group Investment Consortium. The total number of potential buyers of the factory is seven. The registration of Rua Invest has not been published in the State Official Gazette yet. According to experts from the branch, the company has not operated in the metallurgical branch so far. It is probably a Plovdiv group of young businessmen, who have interests in other branches as well.
Source: Dnevnik (09.10.2003)

Almost 40 per cent of the Greek investments on the Balkan Peninsula, which are in amount of EUR 4 billion, were invested in Bulgaria, announced the Minister of Economics and Finances of Greece Mr. Nikolaos Hristodulakis. Mr. Hristodulakis presented at the official opening of the new powers of Stomana Industry, Pernik and at the celebrations of the 50-th anniversary of the Bulgarian steel.
Source: Pari (09.10.2003)

The official proclamation of the establishment of Stomana Industry will take place in Pernik on Wednesday. Prime Minister Mr. Simeon Sax Cobourg and Greece's Minister of Economy and Finance Mr. Nikolaos Hristodulakis are expected to make welcome speeches. The Greek group Viohalco has invested over BN 60 million in the Pernik-based enterprise. A new metallurgical loom of the brand Danieli has been put into operation in the plant. By the end of the year, the first ever installation for breaking and processing of old cars in Bulgaria will start operating. The investment program which provides for additional BGN 60 million investments is due to be completed in 2006.
Source: Dnevnik (09.10.2003)

The main priority of Pernik-based Stomana Industry will be gaining back its good domestic market positions. This was stated by Mr. Rosen Popov, Director of the plant's Sales Department. Stomana's market presence in Bulgaria was worst in the end of the 90's due to the incompetent management of the enterprise. Currently, Stomana's owner - the Greek industrial group Viohalco, is realizing a large-scale investment program, which includes penetration in the Bulgarian market. For this purpose, the factory will start organizing regular campaigns every two or three months, and these campaigns will become longer with the passing of time, just as production amounts will be growing. A 4-decare closed area and 4-decare open area warehouse has been built on the territory of the plant. Stomana's production will be sold from it. It will store production of Sidenor as well, which is another one of Viohalco group's companies. This production is not manufactured in the Pernik-based plant, it includes iron, sort rolled iron, electrodes, profile tubing. Currently, Stomana has a different market share for the different groups of products. For thick-sheet iron this share is 60-70 per cent, and the company is working to make it reach 80 per cent. Thick-sheet iron is used in shipbuilding, caldron building and bridge building. The market share of construction steel rounds, used in machine building, is 30 per cent, and the aim is to make it 50 per cent. Stomana holds around 20 per cent of the market of fitting grid, where forecasts are for it to reach 50 per cent. The company is planning to apply schemes for extended payment of its production. The period may be from 15 to 90 days, depending on the client and his importance to the company. Currently, 90 per cent of Stomana's produce is exported to Western Europe, USA and Canada. Last year, Stomana Industry produced 450 000 tons of production, this year this amount is expected to reach 700 000 tons. Yesterday, Stomana Industry celebrated 50-years since the plant's establishment. In 2001, it was bought by Viohalco. Until 2005, EUR 60 million will be invested in Stomana Industry. The investments made so far are in the amount of EUR 30 million. They were provided through own financing, the International Financing Corporation and Hypovereinsbank.
Source: Dnevnik (09.10.2003)

Russia's Norilski Nickel, world's biggest nickel and palladium producer, decided to break the metal sales monopoly it had previously established. Instead of one distributor - London-based Norimet Ltd., from 2004 on foreign sales will be implemented by four companies in Europe, USA and Asia. Company officials think that their closeness to the markets of realization will increase sales amounts. Over the period January-July, Norilsk Nickel sold 175.2 000 tons of nickel, which is 49.5 per cent more than in the same period of 2002. Copper sales jumped with 27 000 tons reaching 258.1 thousand tons. Next year, the joint activity between Norimet and Almazuvelirexport (the country's authorized monopolist in the export of gems and precious metals) is expected to begin. The main goal of this activity is to sell metals from the group of platinum abroad. Analyzers approve the initiative taken up by Norilsk Nickel, since each region has its own specific sales characteristics. Meanwhile, it became clear that the company was planning new acquisitions of Western companies.
Source: Pari (09.10.2003)

The Government does not stimulate the foreign investments in Bulgaria. Recently a slight movement has appeared. But it is far from the stimulants in the European countries, said Mr. Atanasus Atanasopolus, Director of the Board of Directors of Stomana industry – Pernik by occasion of the 50th anniversary of the plant. I know very well Mr. Atanasopolus and I doubt he said such a thing, replied the Minister of Finance Mr. Milen Velchev. He was a guest at the ceremony together with his Greek colleague Mr. Nikolaos Hristodulakis, the Parliament Director Mr. Ognian Gerjikov and the Minister of Environment and Waters Mr. Dolores Arssenova. Stomana is a property of the Greek company Viohalco. For 2 years in the plant were invested BGN 60 million. Soon will be launched the first shredding installation in Bulgaria for cutting of metal scraps and old cars for scrap..
Source: Trud (09.10.2003)

The first production line in Bulgaria for cutting of old cars and white technics will be launched by the end of the year in the metallurgic plant Stomana industry – Pernik, said Mr. Anton Petrov who is a representative for Bulgaria of the Greek Viohalco group, owner of the company. The installation will be a part of the investment programme of the plant for the next 2 years, which amounts to EUR 60 million. A part of the funds have already been invested in Danielli line for permanent casting, added Mr. Petrov.
Source: Novinar (09.10.2003)

EUR 4 billion were invested through Greek companies in the countries from the Balkan peninsula, announced in Pernik the Minister of Economy and Finance of Greece Mr. Nikolaos Hristodulakis. 40 per cent of these investments are invested in Bulgaria. The funds were realized through 1 500 companies and were opened 100 000 working places, emphasized the Greek Minister. BGN 60 000 000 were invested for 2 years in Pernik-based company. The whole investment programme will be finalized in 2006. Mr. Nikolaos Hristodulakis arrived in Pernik because of the official opening of the new capacities in Stomana industry, realized with investments of the Greek group Viohalco, a major owner of the company. At the ceremony presented the Chairman of the Parliament Mr. Ognian Gerjikov, the Minister of Finance Mr. Milen Velchev and the Minister of Environment and waters Ms. Dolores Arsenova and about 200 representatives of the Greek business. The Chairman of the Parliament Mr. Ognian Gerjikov emphasized that the investments of Viohalco are a favourable evaluation of the economic conditions in Bulgaria. According to the Prime Minister Mr. Simeon Saxe-Cobourg, Stomana industry becomes a modern company, a pride for every European country. The ceremony is a part of the celebrations by occasion of the 50th anniversary since the casting of the first Bulgarian steel. They will end on November 5 when it is the holiday of the metallurgist.
Source: Dnevnik (09.10.2003)

The Chairman of the Parliament Mr. Ognyan Gerdjikov and the Minister of Finances Mr. Milen Velchev were at the 50-th anniversary of the production of the first Bulgarian steel in Pernik. The Prime Minister was also invited, but he did not come. The Minister of Economic and Finances of Greece Mr. Nikolaos Hristodulakis and the former Prime Minister Mr. Konstantinos Mitzotakis examined the new production of Stomana, in which the Greece group Viohalco has invested over EUR 609 million.
Source: Sega (09.10.2003)

New York Mercantile Exchange (NYMEX) may come ahead of LME in the selling of periodic steel products deals. More than 6 months ago, LME announced it was ready to start the business with steel within a year. Although the Americans are not yet certain whether they are going to take up steel trade, NYMEX president Mr. Robert Collins himself said he wondered why his US colleagues are taking so long in taking up the enterprise. According to him, one year is a period too long for making such a decision. There is already strong interest in the launching of periodic steel contracts on the exchanges. Actually, there is a logical reason for this, namely that world steel production exceeds in volumes the production and volumes of processed non-ferrous metals. Currently, the players on the steel and metals market are eager to see which one of the two exchanges is going to embark on this business first.
Source: Pari (10.10.2003)

The foreign investments in Bulgaria by the end of the year will exceed USD 1 billion, announced the Chairman of Foreign Investments Agency Mr. Pavel Ezakiev. From the beginning of the year until now the investments in the State were about USD 900 million. For the six months of the year the attracted foreign investments in Bulgaria – USD 600 million are a record for the last six years. Among the most considerable foreign investments during the period 2002-2003 are these of LUKoil – Russia – over USD 300 million investments in the petrol stations, Lindner-Germany – USD 12 million in construction, Sokotab – Switzerland – USD 25 million in the tobacco processing, Viohalco – Greece with USD 20 million in the metallurgy, Festo – Germany with USD 15 million and others.
Source: Monitor (11.10.2003)

The foreign investments in Bulgaria by the end of the year will exceed USD 1 billion, announced the Chairman of Foreign Investments Agency Mr. Pavel Ezakiev. From the beginning of the year until now the investments in the State were about USD 900 million. For the six months of the year the attracted foreign investments in Bulgaria – USD 600 million are a record for the last six years. The record is a result of the realized entirely new investments, because during this period there are not incomes from privatization deals, specified Mr. Ezekiev. Among the most considerable foreign investments during the period 2002-2003 are these of LUKoil – Russia – over USD 300 million investments in the petrol stations, Lindner-Germany – USD 12 million in construction, Sokotab – Switzerland – USD 25 million in the tobacco processing, Viohalco – Greece with USD 20 million in the metallurgy, Festo – Germany with USD 15 million and others.
Source: Dnevnik (11.10.2003)

The amount of foreign investments in Bulgaria in 2003 will exceed USD 1 billion. Since the beginning of the year, around USD 900 million have been invested in the country. During the first half of the year, the amount of attracted investments is USD 600 million. The biggest investors in 2002-2003 are LUKoil with USD 300 million, the Swiss Socotab with USD 25 million, the Greek Viohalco with USD 20 million, the German Festo with USD 15 million and Lindner with USD 12 million, the Italian Miroglio with USD 11 million and the Dutch Unilever with USD 2 million.
Source: Standart (13.10.2003)

Stomana Industry celebrated 50 years since the production of the first steel in the Pernik-based plant through official inauguration of its restored electrical steel-producing workshop. The restored workshop is a part of the four-year investment program for re-structuring of the enterprise coming up to a total of EUR 60 million. Its start was set in 2001 by Sidenor, a subsidiary of the Greek industrial group Viohalco. Back then, Sidenor became owner of the assets of the state-owned factory Stomana and established the company Stomana Industry to manage those assets. Machines produced by the Italian company Danielli have been installed in the new workshop. They were bought last year for EUR 18 million. According to Viohalco's representative in Bulgaria Mr. Anton Petrov, environmental protection holds an important place in the investment program. BGN 26 million will be invested in this direction and for improvement of labour conditions. BGN 600 000 will be used for improvement of the company's staff qualifications. The rest of the investment program will be implemented over the coming two years. Its financing has been provided by Sidenor's owner, by the International Financial Corporation, which is a part of World Bank's group, as well as by Hypovereinsbank. Stomana Industry exports 90 per cent of its produce, mostly to USA and Western Europe. "If we manage to sell the remaining 10 per cent of our production on the Bulgarian market, we would consider it a success", Mr. Anton Petrov said. According to forecasts, this year's production will increase with 50 per cent compared to last year and will reach 700 000 tons of steel. The Greek company Viohalco is operating in Bulgarian industry through another two companies that it owns - Steelmet and Sofia Med
Source: Banker (13.10.2003)

Last week, which saw a lot of records in non-ferrous metals prices, ended at levels near the maximums for copper and nickel, while the rest of the metals, traded at LME, stepped back from their high quotes. Three-month copper deliveries were contracted at 1883 USD/t or 9 USD/t higher than last Thursday. Earlier in the day, copper marked its almost three-year peak reaching 1891.50 USD/t. Nickel, on the other hand, attacked levels of 10 940 USD/t, which is a new 13-year record. Later at the closing of trade, however, the metal was traded at 10 900 USD/t. Aluminum slid down with 6 USD/t to 1481 USD/t, but market analyzers expect it to exceed the levels of 1500 USD/t soon. Gold maintained its relative stability and ended last week at quotes of 371.85-372.55 USD/tr.ounce compared to 368.80-369.55 USD/tr.ounce on Thursday. Silver price rose with 4 CTS to 4.86-4.88 USD/tr.ounce, and platinum - with 6 USD/tr.ounce to 728.00-733.00 USD/tr.ounce, which is very close to a 23-year record. Paladium added 2 USD/tr.ounce to its price and was sold at 206.00-211.00 USD/tr.ounce.
Source: Pari (13.10.2003)

Non-ferrous metals quotes at LME catapulted over the past week, registering two- to eight-year records. Fund buys were the specific reason for the jump in quotes. Another fundamental factor is non-ferrous metals consumption growth, which is considered as one of the signs for emerging world economy revival. The newest record-holder is zinc, which prices hit the highest levels since June 2001, jumping over the level of 900 USD/t on Thursday. "The funds' appetite is very strong, and there are not enough amounts for sale to meet this demand", Ms. Ingrid Sternby from Barclays Capital commented. "All metals are very strong."
Source: Capital (13.10.2003)

A Turkish and a Greek company are planning to make aluminum products in Bulgaria, according to publications in our southern neighbors. The Turkish aluminum profile producer Alpan Profile is planning to expand its markets in the countries from Central and Eastern Europe and North Africa, company sources announced. Alpan wants to establish its subsidiaries in Bulgaria, Romania, Egypt, Tunis and Algeria. If this strategy is successful, the company intends to build its factory in Holland as well. Earlier this year, Alpan announced that its new market strategy includes changes in the company's exports structure and penetration into the markets of more European countries. So far, 80 per cent of Alpan's produce is sold in Germany. Alpan is one of the biggest aluminum profile makers in Turkey. Its annual production capacity is over 3 000 tons. The company's product range includes PVC profiles, blinds, suspended roofs, walls, hothouse scaffolding and metal door frames. According to company sources, Alpan is planning to expand its product base, as well as its investments outside its main activity and to start the production of other types of construction goods by the end of 2003. The Greek company Alumil Milonas also announced its intention to invest in this sector in the country. Greek media wrote that the company has signed a six-year agreement with Black Sea Bank for Trade and Development to the value of EUR 20 million. The financial resource will be used for penetration into the markets in Bulgaria, Albania, Serbia and Macedonia, Alumil Milonas sources stated. The expected amount of the program is EUR 30 million, 30 per cent of which will be provided by the Greek government's plan for the Balkan's economic recovery. Currently, the main producers of aluminum profiles in Bulgaria are Shumen-based plant Alcomet (former Alumina) and Sofia-based Steelmet. The two enterprises are owned by Greek companies. The Turkish company Alumetal holds 74.6 per cent from the capital of Alcomet, and another 16.9 per cent are held by FAF Metal. The Greek company Viohalco built Steelmet as a Greenfield investment in 1999. Alcomet is the factory's rival to some extent. The Shumen-based enterprise, however, is specialized in rolling production and in production of many types of household products: ladders, shower cabins, TV aerials, mouldings, etc. The company is even planning to completely re-orient its product range to manufacture of packages, since the use and demand for aluminum in the packaging sector is constantly growing. Steelmet, on the other hand, is producing mainly profiles. According to market data, the total consumption of aluminum profiles in Bulgaria is currently between 6 and 8 thousand tons.
Source: Dnevnik (14.10.2003)

- Mr. Petrov, we found out Stomana had imported the first ever in Bulgaria installation for breaking of old cars. Will each owner be able to bring his car to you? - The installation has been delivered by the German company “Lindeman” and has a capacity of 5000 horse power, which allows it to break up to 200 t of scrap per hour. It is the biggest installation in the Balkan region. It breaks and separates metal scraps using a modern technology. The owners of old cars don’t have to drive them all the way to Pernik. They can bring them to some of the companies, which buy out old iron. There, the cars are pressed and are transported to Stomana for breaking. - When will the installation be put into exploitation? - According to plan, it will start operating in the beginning of 2004. I would like to emphasize that old cars are not the main raw material that it uses. The installation can also process home appliances and all types of consumer and industrial metal scraps. It will be effective in the long run, both from an ecological point of view and with a view to increasing production efficiency. - What are the current scrap prices? A month ago, exurb residents complained that because of the higher scrap prices, romas were going around the areas stealing everything made of iron? - The price is over 200 BGN/t. Stomana Industry, however, does not buy out metal scrap directly from the people. It uses the services of licensed companies. The prices in Bulgaria are fixed in accordance with the international scrap market quotes. - Where does Stomana export its production and will Canada’s increase in import duties have serious impact on the company’s activity? - Exports is mainly destined to Western Europe – France, Spain, Germany, Italy, etc., as well as to USA. Canadian market is not a traditional market for Stomana Industry. I find it hard to believe it could be threatened by 10 000t of steel, which we had exported 2 years ago. - Do you think that Bulgarian investment climate is good? Are you happy you started operating in the Bulgarian market? - Over the past three years, Viohalco group has invested more than BGN 230 million in Bulgaria, which is a fact that speaks for itself. There are good investment conditions here. I would like to make it clear that in our opinion, the investment climate in Bulgaria is suitable. I will use the following fact to describe my view. Some years ago, Viohalco operated here through its trade representation. Today, it has over 2400 employees working in 8 Bulgarian enterprises owned by the group. Its Bulgarian facilities give production compatible with the world’s most famous brands. Viohalco is on the way of establishing its ninth company in Bulgaria, which will produce heating systems and power electricity using sun technologies. New lines will be put into operation in Steelmet. By the end of 2003, Sofia Med will start working with its full renewed capacities. Over BGN 180 million have been invested in the company for this purpose. - We heard that Stomana may use a credit granted by the World Bank? - Within the next few days, we are going to sign a long-term credit agreement with the International Financial Corporation IFC, which is a part of the World Bank’s structure. The credit is in the amount of EUR 18.5 million and will be used for ecological projects, as well as for the modernization of Stomana – Industry.
Source: 24 chasa (14.10.2003)

During the first eight months of 2003, USD 15 billion have been invested in world mining and processing industry acquisitions and mergers, according to the Swedish consulting house Raw Materials Group. The wave, which covered almost the whole world, has not passed as yet. Currently, world experts are anticipating the merger of Boliden and Outokumpu, two of the leading non-ferrous metals and stainless steel makers. If the two companies decide to unite, the amount of resources, invested in mergers and acquisitions in 2003 until the moment, will reach USD 19.5 billion. Mergers and acquisitions have been the most commonly used expansion method in global mining and processing industry since the beginning of the new century and it seems that this tendency will maintain. For some metals, such as iron ore and especially regarding its exports, the level of corporate concentration is expected to grow. Although South America's AngloAmerican is no longer the number one gold-extracting company, in Raw Material's rating list it retains its position as the world's number one mining company. Rio Tinto and BHP Billiton are respectively number two and three in the top ten. Two Russian companies are also included in this list - the nickel giant Norilsk Nickel and the world's second largest diamond producing company ALROSA.
Source: Pari (16.10.2003)

US Steel, one of the leading steel companies in USA, which acquired the only Serbian metallurgical company Sartid in September, is already facing serious problems. Yesterday, 10 000 workers in Sartid went on strike for the second day in a row demanding higher salaries from their new employer (they wanted their hourly wage to jump to YUN 55 from YUN 22). Currently, the salaries in the plant are around USD 159, 10 per cent lower than the average for the country. US Steel bought Sartid and another 6 units of the metallurgical company for USD 23 million and obliged to invest another USD 130 million in them within the coming 3 years. For one month only, since the company's new management was appointed, production output jumped with 50 per cent to 70 000t of steel.
Source: Pari (16.10.2003)

LME: Late Tuesday, copper registered a 3-year maximum, nickel marked a 14-year peak and zinc reached 6-year record high levels. Aluminum and zinc quotes were the highest since respectively two and three years ago, and tin neared its 3-year maximum. Quarterly copper deliveries were quoted 22.50 USD/t higher than at the closing on Tuesday (at 1941 USD/t). Nickel, which jumped to 11 700 USD/t on Tuesday, was traded at 10 970 USD/t yesterday. Aluminum's price rose with 6 USD/t to 1485 USD/t, so did lead. Zinc added 15 USD/t to its price and was sold at 913 USD/t.
Source: Pari (16.10.2003)

India, where aluminum and alumina production output is constantly growing, is emerging as a key player on the world export market in the long run. Currently, it exports 160 000 tons of aluminum annually. As production capacities will be increased to 1.2 million tons next year, exports is expected to grow significantly.
Source: Pari (16.10.2003)

International Financial Corporation /IFC/ will grant a 10-year loan of USD 22 million to Stomana industry, Pernik, whose owner is Viohalco. The Vice President of IFC Mr. Assad Jaber and the Vice President of Viohalco Mr. Yanis Stasinopulos will sign the agreement tomorrow. The funds will be invested in ecological projects and modernization of the manufacture. IFC is a part of the group of the World bank, which invests funds in the development of the private sector.
Source: Pari (16.10.2003)

Member of Labour confederation Podkrepa are starting to re-subscribe in a new trade union. The trade union section of LC Podkrepa in the Pernik-based metallurgic factory Stomana Industry has dismissed itself. The former members of Podkrepa in the factory started to subscribe as members of the newly established national trade union of the metalworkers in Bulgaria, which was registered in Sofia City Court on September 25. The processes in Stomana Industry are a result of the self-dismissing of the National federation Metallurgy at LC Podkrepa, which was caused by the policy of the which was against the interest of the employees.
Source: Darik Radio (16.10.2003)

Canada Customs and Revenue Agency CCRA) announced its preliminary decision that the import of certain steel products from Bulgaria, Romania and the Czech Republic is harming the local producers, because the imported products are offered at lower prices than those on the domestic market. As a result of this, Bulgarian hot rolled carbon steel sheets imports will be imposed a provisional duty of 74.6 per cent will be. The investigation started on June 13, after a number of Canadian steel producers filed complaints against dumping imports of steel from the three countries mentioned above, which resulted in reduced market quotes of the local producers, drop in the prices and sales and insufficient use of production capacities. The investigation, which proved that Bulgarian products are derogating the market, covers the period between April 1 2000 and March 31 2003. CCRA will continue its probe and will announce its final judgement no later than December 10 2003. If the dumping marge proves insufficient, the investigation will be terminated and the provisional duty, which has already been paid, will be reimbursed to the importer. More than a year and a half ago, USA did the same thing, when they introduced their protective duties. In April 2002, the White House decided to introduce duties on some categories of steel products, in order to protect US producers for a period of 3 years from cheap steel imports, produced in countries that are bigger producers than USA. The original idea was to create a system of import quotes and to raise duties up to 30 per cent for some categories of steel products, in case the import from one state exceeds the annual quote of 5.4 million tons. Lower duties are applied to certain product categories, such as stainless steel wires, for which the import duty is in the amount of 18 per cent. Duties were classified as violation of commercial rules and a lot of large-scale exporters, including EU, Russia, Japan, Republic of Korea, China and Brazil, protested against them. EU calculated that the measure undertaken by USA has resulted in 16 million tons bigger imports in 15 member states. EU imports in the USA have shrunk with 4 million tons. Besides, EU member states have evaluated that the imposed duties would affect 26 per cent of a total of 20 million tons of steel, or 10 per cent of world trade in this sector. The introduction of duties was about to cause a commercial war between USA and the rest of the world. In the summer of last year, the countries, most heavily affected by the introduction of the tariffs – those from EU, Brazil, Republic of Korea, China, Switzerland, New Zealand and Norway, filed complaints against the increased duties in WTO. From April to August 2002, US authorities exempted from the duties 700 categories of products aiming to protect local steel companies in their restructuring stage. Despite the duties, some of the biggest companies operating in the branch, reported drop in the profit for the first half of 2003. In the middle of August, WTO announced its official decision, according to which the introduced duties are against the regulations of the institution and are practically illegal. In the middle of last month, USA filed official complaint in the Court of Appeal against WTO’s decision. After Washington’s long-awaited step, the Court of Appeal has two or three months to deliver its judgement about this complaint. Nevertheless, even if WTO confirms its decision, USA will have another 9 months before canceling the duties, and the 3-year period for which the duties were imposed actually expires in nine months. Regardless of the record amounts of steel the world produced in 2001, even then it was clear that the situation in the sector is aggravating. One by one, more than 30 US steel companies asked for state protection from opening of bankruptcy procedures. Europe’s plans for grand mergers collapsed, and steel prices fell to their almost 20-year minimum. Japanese steel companies sank into unseen crisis. As a whole, Western steel industry gave more evident signals that the upward trend era is coming to an end. Steel production in the strongest industrial states, which dominated the market for over 100 years, is going in the shadow of the new ‘”stars” rising in Asia, and mostly in China. Things went bad as early as 2001. The crisis in the sector was becoming more and more serious, especially in the group of flat steel products. At the same time, the 10-year constant growth, registered by US industry, came to a stop. It doesn’t matter that USA plays the most significant role in the current industry situation, neither does it matter that west Europe’s industry has not in been in good shape for a long time. The most important thing is that the other countries can take advantage of the situation and start operating new capacities, trying to make fast profit considering the unstable situation of the world’s big players. Over the year under review, the amount of steel produced in North America has dropped with 11.4 per cent to 119.9 million tons compared to 2000. Meanwhile, European steel industry has shrunk its production with 1.4 per cent to 331 million tons. And practically turned in the world’s biggest importer. China’s production output jumped with 12.6 per cent to 143.3 million tons and, confirming its stable positions, went ahead of its direct Asian rival – Japan, where production output dropped with 12.6 per cent to 102.9 million tons. Chinese industry is getting stronger and now that China is already a WTO member, we should expect new records. Within the coming 10 years, the state is planning to close down its old production capacities.
Source: Pari (16.10.2003)

Copper will go above the barrier of 2000 USD/t next year, but its move-up will be held back by the putting into exploitation of previously closed production capacities and stock inventories releases. Currently, copper prices are 40-per cent higher than November 2001, when they reached 15-year record high levels and are varying around their 3-year maximum. This trend is a result of shrunk production and smaller stockpiles, rather than bigger demand. Besides, speculative interests, directed mainly to the stock exchange market, favoured copper price. Reuters latest research showed that all experts unanimously think copper price will jump in 2004, but the 200 000t inventories, which Chile's Codelco, the world's biggest copper producer, intends to release on the market, will have a negative effect. Meanwhile, there was a 271 000t market deficit in the first half of 2003.
Source: Pari (17.10.2003)

At the news that Noranda is going to shrink the production output of one of its mines with 20 per cent, copper reached 3-year record-high levels of 1984.50 USD/t at LME. Aluminum did not manage to go over 1500 USD/t and dropped with 8 USD/t to 1480 USD/t.
Source: Pari (17.10.2003)

The Managers of lead-zinc complex in Sardinia Portovesme, closed on October 1 for one year, expect to meet official representatives in order to solve the problem with the high prices of the electricity. Portovesme has capacity for manufacture of 110 000 tons electrolyte zinc.
Source: Pari (17.10.2003)

USA's Alcoa - the world's number-one aluminum producer, is planning to shrink its annual production output with 90 000t as of November 1.
Source: Pari (17.10.2003)

The Executive Director of the oldest metallurgic factory in Bulgaria – Stomana Industry, Mr. Ludmil Stoikov is known as a large-scale entrepreneur in different sectors of the economy. He has been managing his private business since the beginning of the 90-s. Mr. Stoikov is also a President of Ladimex holding and of Dyuni vacation village. In the holding he also participates as a shareholder of Heavy Machine-building JSC. His interest in tourism is related to the sale of Dyuni and Elenite. Mr. Stoikov claims that so far he has invested over BGN 20 million in the resorts and he plans to invest another BGN 20 million.
Source: Cash (17.10.2003)

The International Financial Corporation invested USD 22 million for improvement of the environment. The money will be used for the modernization of Stomana JSC. International Financial Corporation, which is a part of the group of the World Bank, will invest USD 22 million in the modernization of Stomana JSC. Stomana JSC is the biggest employer in Pernik-district and the second biggest producer of steel in Bulgaria. The loan from IFC will be added to the investment, made by Sidenor – a leading producer and distributor of steel products in Greece. Sidenor is a part of Viohalco group, which processes metals and a recognized client of the International Financial Corporation. As a part of its investment programme Sidenor will renovate the equipment, it will assists for the implementation of a wider range of products and will aid the work for the protection of the environment. About USD 15 million from the investment, which is in total amount of USD 94 million, including the working capital, will be used for protection of the environment, which will be a step ahead in the implementation of higher standards in the metallurgic industry in Bulgaria. The Vice President of IFC Mr. Asaad Djabre signed the agreement for granting the finances. At the ceremony Mr. Djabre commented that the encouragement of a competitive private sector is a priority for the Group of the World Bank in its attempts to limit the poverty and to support Bulgaria in its way to accession to the European Union. By supporting this project IFC assists the efforts of Bulgaria in the area of privatization and post-privatization restructuring of this sector, which has a strategic importance. The Regional Director of IFC Mr. Sudjata Lamba added that in a long-term is expected that project for modernization of the metallurgic factory will become an example for the further development of the private sector in Bulgaria, by showing the successful implementation of modern management methods, attracting of first-class investors and the support of the best practices in the area of corporate management. It is also planned that the project will satisfy the highest requirements of the Group of the World Bank in the area of social development and protection of the environment. By this moment IFC has adopted investments for USD 340 million for 21 projects in Bulgaria, at total value of USD 1.1 billion. The mission of IFC as a part of the World Bank is to support the stable investments in the private sector as a way of lowering the poverty and improvement of the life standard. IFC finances investments in the private sector, mobilizes capitals from the international financial markets, supports its clients in their efforts to improve their social development and provides technical support of the governments and private sector.
Source: Other (17.10.2003)

Two of the biggest federations members of the Podkrepa labour confederation, disjoined from the syndicate, and a new labour confederation surprisingly appeared on Thursday, claiming to be representative. Metallurgists and workers in the light industry are listing as members of the two new syndicates in large numbers. At least 5000 people are expected to join the newly registered National Syndicate of Metal Workers in Bulgaria. It will include people working in the field of metallurgy, engineering, electronics and mining. Its founders are hoping its members will be more than any other similar organization, except for KNSB and Podkrepa. They are also hoping to put an end to the two-pole model of syndicalism. Meanwhile, yesterday surprisingly a new labour union appeared – General Central of Branch Syndicates. The formation submitted its documents in the Ministry of Labour and Social Policy for participation in the counting of employees and syndicates. This means that the union claims it has at least 50 000 members. Neither the other labour unions, nor the Ministry are able to give any more information about the new union. The reason for the separation from Podkrepa is discontent with its management, which does not protect the interests of the workers, it is corrupted and has merged with the employees’ structures, according to members of the new union. The latest reason for protest is the situation in the metallurgical plant Kremikovtzi, where the workers don’t receive their salaries regularly, while the so called syndicate leaders do not even come to visit the plant and use preferences, provided by the employees, Mr .Krassimir Mitov, former chairman of the Metallurgy federation with Podkrepa said. On September 27, at an extraordinary conference, the federation has decided to dismiss itself. This is a precedent. On this conference, the decision a new syndicate structure to be established has also been taken, which should include all workers in the field of metallurgy. This is the common practice in EU member states. Yesterday, Podkrepa’s syndicate section in Stomana Industry dismissed itself also giving the same reasons for this action. Meanwhile, the branch is developing with an upward trend – the company operating in the field of ferrous metallurgy Debelt – Burgas, is exporting to USA more than its production amount over the past three years. Alumina – Shumen also reports growth in production output; a foreign investor has demonstrated interest in Eliseyna; Stomana, Umikore Pirdop, and other enterprises are operating without any serious problems. Although the number of people employed in this branch has decreased from 50 000 to 15-16 000 since 1997, according to syndicate members there is no danger of enterprise closings over the next couple of years.
Source: Dnevnik (17.10.2003)

The International Financial Corporation (IFC), which is a part of the group of the World Bank will invest USD 22 million in Stomana. The contract for the loan was signed yesterday by the Vice President of IFC – Mr. Asaad Djabre and representatives of the Greek Viohalco Group, which is the owner of Stomana JSC – Mr. Stavros Teodoropulos and Mr. Dimitris Paraskevopulos. Mr. Assad Djabre announced that the corporation has invested over USD 200 million in 20 projects in Bulgaria. IFC intends to support the privatization of the energetics companies as well.
Source: Standart (18.10.2003)

The International Financial Corporation (IFC), which is a part of the group of the World Bank will invest USD 22 million in the modernization of Stomana – Pernik. The loan will be added to the investment in amount of USD 94 million of the Greek company Sidenor, part of Viohalco group, which is the owner of Stomana JSC. The management of Viohalco and IFC concluded an agreement for granting the finances. Since 1992 the Corporation has invested over USD 200 million in 20 projects.
Source: Novinar (18.10.2003)

The Greek company Viohalko has signed this week an agreement with the International Finance Corporation (IFC) - a structure within the World Bank - for the release of an EUR18.5MN credit. The company will get the same amount from Biochim Commercial Bank. The funds are earmarked for implementation of Viohalko's investment programme for its main enterprises in Bulgaria - Stomana Industry, Sofia Med and Steelmet. The programme projects investments of EUR88MN in Sofia Med alone. Two thirds of them have already been made. As a result a new production line will be launched in the beginning of 2004. It will increase the capacity of the metallurgy enterprise more than four times and the annual output will reach some 130,000-140,000 tons. Despite the increased production, only 5-6% of it will be sold on the domestic market. With the new line Sofia Med will launch the manufacture of copper foil, which is produced in just a few countries. Sofia Med was founded in 2000 by Viohalko's subsidiary Halkor, which purchased some of the assets of the Gara Iskar-based Non-ferrous Metals Processing Plant. According to Viohalko's representative for Bulgaria Anton Petrov, the investment has been delayed due to legal arguments about the initial date of the insolvency of the enterprise of Gara Iskar. Had the magistrates ruled that the plant went bankrupt before some of its assets were bought by the Greek company, the deal would be nullified (as its managerial bodies would had been deprived of their rights). Finally, the legal dispute was solved on January 21, 2003. This cleared the way for the Greek company, which began to fulfill its investment program, though with a one-year delay. Viohalko projects to launch a new production in Steelmet (near Sofia) as well. BGN30MN has been invested in it so far and another EUR18MN is to be invested within a year and a half. The new line will raise the annual output of shaped aluminum to 15,000 tons. The production cycle will be closed by the line for continuous molding of aluminum. Presently, the ownership of the enterprise is evenly distributed between: Euromerchant Balkan Fund (managed by Global Finance), Etem and Steelmet. The latter two companies are part of Viohalko's structures. Etem will buy out the fund's share next year when the term elapses, in which the Greek company may use that right, stipulated in the firm's articles of association. Euromerchant Balkan Fund has a fixed term of existence, expriring in 2004. Steelmet exports 70% of its output and the company's Bulgarian clients buy 30% of it. In spite of that the company's market share in Bulgaria is about 50 per cent. "Our aim is to gain 60-70% of the domestic market", Mr. Petrov noted. The Shoumen-based Alkomet is the only Bulgarian competitor of Steelmet. "We may achieve even better performance if illegal imports are limited", Viohalko's representative told the BANKER weekly. According to him, no VAT is paid for a large part of the import. Moreover, the Bulgarian market is very small and when it doesn't get the necessary protection from the State it repulses foreign investors. The entire domestic market demand is around 6,000-7,000 tons of aluminum window and door frames, while Steelmet's output alone will reach 15,000 tons. Turkish companies are its main competitors. Another source of unfair competition is non-payment of insurance contributions on the part of employers. Thus, by reducing the expenses they cut down the product's prime cost and its price, respectively. According to Mr. Petrov, this is most frequently done by trade companies. They often move their locations while producers cannot afford that, Mr. Petrov points out. Data about gray economy on the metals market are fluctuating. They vary from 20% to 50-60 per cent. Its real share according to participants in the market is around 30 per cent.
Source: Banker (20.10.2003)

LME-quoted non-ferrous metals – copper, aluminum, tin, nickel, zinc and lead, were traded at high levels last week, and some of them marked price records for the consecutive time. Experts, however, were pessimistic about the perspective of further price growth. “Metals are running ahead of fundamental factors”, Mr. Angus Macmillan, Mineral Resources strategist in Prudenta: Bache International thinks. According to Mr. John Camp from Semra Metals, current metal quotes are highly exaggerated with a view to the economic situation. He thinks they are marking great economic revival, which, however, is still due to be materialized, which will not happen before 2004. Analysts see alarming economic sign on the horizon and think that the raise in USD rates in the end of last week is still not reducing the positions of EUR and JPY. According to them, this could have negative impact on the economic revival, based on growing exports.
Source: Capital (20.10.2003)

Serbia and Monte Negro imposed a duty in amount of 15 per cent on the export of processed metals and raised the duty on the imposed steel products to 18 per cent. The purpose of these measures is to be protected the interest of the local producers and to be hindered the export from the adjoining countries like Romania and Bulgaria. The new duties became efficient as of August 13, when the new standardized tariffs between both former Yugoslavian countries became valid. The equalized customs tariffs in the sectors of metallurgy and agriculture were the main obstacles in the negotiations between Serbia and Monte Negro, which continued for several months. Under the pressure of the EU both countries had to merge their economies, which were different in structure and size. Ms. Mirian Pantelich from the metallurgic Association and the Trade Chamber of Greece stated that the purpose of the duty on the export of scrap is to be limited the sales of scrap of ferrous and non-ferrous metals on the foreign markets. During 2002 Serbia imported about 90 000 tons of metal scrap at a value of USD 10 million and exported 52 000 tons at a value of USD 4 million. The loss is obvious. Therefore the government decided to proclaim the metal scrap as a strategic commodity and to help the available quantities to be orientated to the domestic market. The decision of the government is in harmony with the initiative of the producers as of March, who complained that they have to import much more expensive metal. An official representative of the Trade Chamber of Monte Negro explained that the import duty for steel products was raised from 5 per cent to 18 per cent on the customs taxable value. The main purpose is to be assisted the recovery of the only metallurgy factory in the country – Nikshich, which the government plans to privatize. According to Ms. Pantelich this customs duty is too high and will have a negative effect on the metallurgic factories, which will be forced to import steel products because of the insufficient production of the Nikshich factory. The chronic lack of cash flows and the equipment as well as the loss of the markets in Yugoslavia are the main factors, which led to the decline in the production of the metallurgic factory to 33 800 tons for the period January-September 2003. This amount is with 37 per cent less than the production for the same period of 2002. The capacity of the factory is 600 thous.tons.
Source: Pari (20.10.2003)

The Indian producer of steel Ispat Group is in negotiations for the purchase of the majority stake of the capital of the biggest steel-processing factory in Bosnia and Herzegovina and in three other companies, related to the factory. The company BH Steel was established during 1999 as a joint company, in which Muslim – Croatian federation and Kuwait hold 50 per cent of the capital each. The company inherited the steel-processing factory in Zenitza, whose production was demolished during the war 1992-1995. According to the Minster of Industry of the Federation – Mr. Izet Zigich, Ispat is a very serious applicant-purchaser for BH Steel, because it may provide markets for its production. The Indian company plans to penetrate the markets of the former Yugoslavian countries – Slovenia, Serbia, Croatia, Macedonia and Monte Negro. At the moment BH steel produces between 100 000 and 175 000 tons of steel annually. Along with the majority stake of the steel-producing factory Ispat plans to purchase two mines in Lyubia and Duboi and a factory in the city of Lukavash. The necessary investment is very large, announced representatives of the company, but gave no details for the amount of the sum. Both sides hope that the negotiations will be finalized in the next 90 days.
Source: Dnevnik (21.10.2003)

The revival in the economies of the industrialized countries will stimulate the demand for non-ferrous metals, particularly the demand for copper, aluminum and zinc, is the prognosis of the London-based Standard Bank. As a result the prices of the metals will grow sharply, as the limited new productions will not be able to compensate the deficit, which will appear on the market. The most significant growth is expected in the prices of copper, aluminum and nickel. Standard Bank expects that their quotations will rise with 4-5 per cent. The China factor may also significantly influence the market situation. The consumption of nickel in the production of stainless steel, which will grow additionally, will support the prices of the metal. The main market factors will also be in favour of the metal. According to the prognosis of the bank the average cash prices of nickel will be 9500 USD/t during 2003 and 9925 USD/t during 2004. The prognosis for the price of copper is also for a rising trend and average cash prices of 1985 USD/t until 2005. The boom in the demand for copper in China and the stable growth of the Western countries will cause a market deficit. The revival of the economies will raise the consumption of aluminum with 5.1 per cent and the prices grow in lower extent, as there are significant surpluses on the market.
Source: Pari (21.10.2003)

The mining company Randgold Resources, registered in London, is preparing a new higher offer for the acquisition of Ashanti - Gana. It will be higher than the last offer made by the South African AngloGold, amounting to USD 1.4 billion. Ashanti's Board reccommended its shareholders to accept this offer exactly.
Source: Pari (21.10.2003)

For eight days already, the workers in Sartid, which has been ownership of North America's second biggest steel maker US Steel for six months, are outside the working premises, protesting against their low salaries. The negotiations are due to start today, and US Steel is planning to increase the enterprise's production output to 2.2 million tons per year.
Source: Pari (21.10.2003)

There is a risk that we may delay the programme to restructuring of the steel-processing sector, which has to be presented to the European commission, announced experts. The document is needed for closing of the Competition chapter. It has to contain information for the production capacities and the sale of the three metallurgic factories – Kremikovtzi – Sofia, Stomana Industry – Pernik and Promet Steel, Bourgas until 2007. The programme was prepared by Orgsystem Ltd. and was presented to the Ministry of Economy in the beginning of the month. The Ministry had several remarks, because the programme did not satisfy certain requirements of the European Commission. The experts from the Ministry have to send the document for concordance with the European Commission not later than October 24-25. The programme is being re-written in accordance with the requirements of the Commission at the moment. Orgsystem Ltd. won the public procurement auction of the Ministry of Economy. The other applicants were the European institute, Innovation centre – Institute for ferrous metallurgy SPJSC and Consultancy Centre for the Accession of Bulgaria in the European Union. The European Institute appealed the procedure.
Source: Pari (21.10.2003)

The Bulgarian company Steel Group Investment Consortium is going to buy Montenegro’s steel plant Niksic, Reuters announced, quoting Montenegro Tender Commission. The German Matz Eicher and the Turkish Kurun also took part in the competition. The Bulgarian company’s offer includes EUR 57 million investments over the next five years and keeping 1700 jobs. The price of the deal, however, has not been revealed. The commission stated they would send the name of the buyer they selected to PA. The Bulgarian company is the only candidate that meets the requirements indicated in the tender documentation.
Source: Standart (22.10.2003)

The foreign investments in Bulgaria are in amount of over USD 1 billion, announced in Varna the Director of the Foreign Investments Agency Mr. Pavel Ezekiev. By the end of the year there will be a significant growth and their amount will exceed USD 1 billion. The leading investors in Bulgaria are companies from Italy, Greece and Germany. The total amount of these investments is between USD 600 million and USD 700 million. The other large-scale investors are Belgium, the USA and the countries from the European Union. For the last 18 months the most significant investment was made by LUKoil – Bulgaria. The money were registered by Russian and Swiss companies. They will be used for the renovation of the refinery and for construction of new oil stations. Another large-scale investor is Miroglio in the textile industry and Viohalco group, which holds nine plants in Bulgaria. As a foreign investment is calculated the raising of the capital of several foreign banks in Bulgaria. Among them are Bulbank, Raiffeisenbank, Biochim. In the sum of USD 1 billion are included the money of OTP for the purchase of State Savings Bank DSK, explained Mr. Ezekiev who was a guest at the opening of the oil platform of Petreco, which was built on the territory of Terem SPJSC, Varna.
Source: Pari (22.10.2003)

The consortium Steel Group Investment was selected as buyer of the major stake in Montenegro’s steel plant in Niksic, Reuters reported. The tender commission sent its proposal to the Privatization Agency, which is due to approve the decision. According to well informed sources, the Bulgarian side is represented by Mr. Victor Demyanyuk, who has longed lived and worked in Bulgaria. He is one of the co-owners of the company Vatvas, which bought the pipe rolled iron plant in Kremikovtzi. The consortium of Steel Group includes companies from Ukraine, Bulgaria and Montenegro, according to well informed sources. According to sources from the consortium itself, a big international company is a part of it. More details will be revealed in the end of the week. The final results from the tender will be announced on Friday. Three companies took part in the international tender for sale of 57.99 per cent from the Montenegro-based plant, which started in July. The other two companies are the German Maz Aicher and Turkey’s Kurum. The offer with Bulgarian participation was the only one meeting all conditions, recommendations and requirements of the privatization authorities, the tender commission announced. It did not specify the exact amount offered by the consortium, but stated it had promised to make EUR 57 million investments over the next five years, to keep 1700 jobs and to be involved in the dismissed workers’ social programme. The consortium also engaged to assume the debts of the Montenegro enterprise to suppliers and workers which amount to EUR 5 millin. The factory in Niksic has an installation capacity of 300 000 tons non-refined steel, smelting plant for 190 000 tons and annual steel production capacities of almost 600 000 tons. The company fell in a serious crisis during the 90’s because of the sanctions and its poor management. Since the beginning of the year, it has closed its production on a number of occasions, since its 3600 employees insisted to receive their delayed remunerations. The constant defficiency of fresh money, the absence of credit rating, aged equipment and loss of markets after Yugoslavia’s breakup are the main reasons for the 31-per cent reduction of Niksic’s production output to only 36 000 tons for the period January – September 2003, comapred to the same period of 2002. As of August 15, Serbia increased its steel imports duty from 5 to 18 per cent, in order to support local metallurgical plants.
Source: Pari (22.10.2003)

The lead-zinc mine Lece, situated in Southern Serbia, is looking for a partner to invest in the closed since 2000 groove. The mine was a former branch of Kossovo complex Trepca and needs at least USD 2 million in order to restore its operations and to stabilize the manufacture of 72 000 tons per year. It has proven reserves of 3 million tons ore and a guaranteed life of 30 years. According to the Serbian media, the groove had so far attracted the interest of the world giant Rio Tinto and of the smaller Puma Resource. Lece is not an exception in the general situation in the Serbian copper-extraction sector, which is in a very bad condition and tries to attract foreign investors to restore it. The assets of Lece were separated from those of the parent company Trepca, now in order of UNN.
Source: Pari (22.10.2003)

Norilski nikel expects higher sales of nickel in 2003 with over 1/3 up to 300 000 tons. The company is a top producer of nickel and palladium in the world. The third by size producer of nickel in the world – the Canadian Falconbridge forecasted surpluses of this metal on the world market of 13 000 tons for 2003 and a deficit of 33 000 tons for 2004.
Source: Pari (22.10.2003)

The foreign investments have reached over USD 1 billion since the beginning of the year, announced the Chairman of the Foreign Investments Agency Mr. Pavel Ezekiev. At the firs places are Italy, Greece and Germany, followed by Belgium and USA. The biggest investment is of LUKoil for the renew of Burgas-based refinery, realized by Russian and Swiss companies. Mr. Ezekiev also defined as considerable the investments of the Italian company Miroglio in the textile industry and of the Greek Viohalco in the local metallurgic plants Stil med and Stomana.
Source: Dnevnik (22.10.2003)

- Mr. Mitov, why did you separate from Podkrepa? - Because of a disagreement with the policy of the confederation’s management, which is pointed against the interests of the employees. - Podkrepa reported that you are a private syndicate. - The National Syndicate of the Metal Workers in Bulgaria (NSMWB) was registered on September on public account. There is a deliberate rumor that the syndicate is on private account in order to make people hesitate. So, there is not any hesitation for the time being. The enlistment in NSMWB of supporters, of people from other syndicates and people who are not members anywhere has already began. We have now 500 requests in Kremikovtzi. We are almost assured that the members of Podkrepa in Stomana industry will join us. Last Saturday, at the meeting in Pernik 10 of the big companies in the State joined us. We expect the plants from machine-building, electronics, electrical engineering and ore extraction to join as well. - How did your syndicate appear? - The work in the Trade Union Podkrepa has not got on well since one year and a half. At first a problem in Kremikovtzi emerged. Just before the congress in February was known that there was a discontent for removing Mr. Trenchev from the leader’s position. We did not take part in this, even we did not know about that. - And before the attacks, the federation was self-dismissed? - The disagreement with the Executive Board increased with the problem in Kremikovtzi, where the workers do not receive their salaries regularly and the so called syndical leaders use extra-specials, provided by their employers. All this was tolerated by the head-office of the confederation. In May during the protest because of delay of the salaries, 28 members of KNSB and 4 from Podkrepa were fired. The Director of KNSB Mr. Zheliazko Hristov did his best the fired members of the syndicate to start work again while Mr. Trenchev did nothing. This lead to the decision for extraordinary conference of the Metallurgy federation, its self-dismissal and the creation of a new syndicate.
Source: Novinar (22.10.2003)

Indium prices rose to their 5-year maximum levels and will probably continue going up due to the limited supplies and increased demand in Europe and Japan. The metal is used in the production of the latest generation of flat-screen TV sets and mobile phones. Indium’s price rose to 210-215 USD/kg.
Source: Pari (22.10.2003)

- Mr. Ezekiev, you said that the foreign investments in the State had reached USD 1 billion. Where did the money come from? - These investments were realized in the State from January to August, 2003. In this period were realized several huge investments over USD 100 million. In fact, they are in the existing businesses but not on green or in the privatization, excluding the funds on the deal for DSK Bank. However this does not matter for the economy. For example, LUKoil Neftochim invested over USD 150 million in modernization of the production and new petrol stations. The Italian group Miroglio finished a big investment programme in the field of the textile industry. The Greek company Viohalco also invested EUR 30 million only in Stomana industry. - Is the information for the investments yours or of BNB? - These are figures, which we received from BNB and from National Statistics Institute. We also have direct contacts with the foreign investors and know about their projects in the state but we don’t have the right to comment any specifications since the information is confidential. - However it is interesting the method of calculation. Since when the investments in the already existing businesses, as you said, are considered to be foreign? - The big investment projects of companies, which are already in Bulgaria, are usually financed by the foreign parent companies. This is with Viohalco, Miroglio and with Petreko. BNB registers these transfers, which come on the companies’ accounts as foreign. This is the method of the World bank. It is unified for all countries because the results should be comparable. - In Bulgaria traditionally any figures are increased before the elections. - The data may be checked. We can not invent them. Even the figures are lowered. For example, Viohalco called in the agency to specify that their investments in Bulgaria are higher than the announced by us figures. We are not still ready with the report for the investments by the end of September, which will be announced during the next week. You will see that the investments’ figure is far bigger.
Source: Trud (23.10.2003)

The company, which is selected for a buyer of the steel-extraction plant Nikshich in Montenegro, has an office in Bulgaria but is not Bulgarian. BBC and Reuters broadcasted that the Bulgarian Stil group investment is selected for a buyer of the plant for steel in Montenegro. However, a survey showed that Stil group is a property of RUA investment, which is a off shore company. According to well-informed sources, the company is a property of Ukraine citizen who has a Bulgarian passport.
Source: 24 chasa (23.10.2003)

The world biggest diversified mine-extraction company – Australian-British BHP Billiton does not intend to increase the aluminum production within 2008. The company produces about 7 per cent of the metal in the whole world. Its current annual capacities are 1.3 million tons aluminum.
Source: Pari (24.10.2003)

According to the management of the Swedish metal company Boliden, the prices of the gold are with 20 per cent overvalued at the moment. Besides, there are preconditions for the zinc and copper to become expensive respectively to 0.40 CTS/lb and 0.80 CTS/lb. Boliden extracts mainly copper from mines in Europe.
Source: Pari (24.10.2003)

The price of copper, which is the most widely used non-ferrous metal by world industry, reached 2018 USD/t yesterday. These are the highest levels since 2000, and according to some analysts copper price may reach 2035 USD/t in the short-term. There are a number of moving forces behind this “race”, including distinct copper market defficiency, increased demand and buyings (especially by China) and shrunk production output by some of the world’s leading producers. Just like other metals from the non-ferrous complex, for a couple of months now copper has turned its back on the three hard years, in which its price was constantly going down and metal exchanges were practically remaining outside the vew of world investors. The prices grew from the minimum 1336 USD/t in November 2001 to their 29-month top of over 1800 USD/t as early as the beginning of September. Even then, however, analysts were unanimous in their view that quotes would continue moving up, and UBS forecasted that the level of 2000 USD/t will be exceeded pretty soon. Currently, copper quotes are 50 per cent higher than their 15-year maximum in November 2001, which rises hopes in company producers, because these high prices make more and more mines put back into exploitation their idle capacities. According to Reuters latest survey, all experts unanimously think that copper’s price will grow in 2004, but the release on the market of 200 000 tons of Codelco’s inventories will have some negative effect. Meanwhile, the world’s biggest copper producers – Chile’s state-owned Codelco and US’s Phelps Dodge, forecasted significant increase in copper prices next year. The main indicators show that copper quotes will be higher in 2004, but they will naturally depend on the world situation, Codelco’s Executive Director commented. If US economy consolidates, and South East Asia and China maintain their current consumption rate, copper quotes may jump to 85 CTS/lb as early as this year. The two companies provide ? of the total world copper production output.
Source: Pari (24.10.2003)

The glorious past of big metal traders will probably come to an end, since these groups of specialized businessmen are gradually reducing in number. Traders are the link between producers and consumers. They take the risk to buy and store metals in times of market surplus, and later release them on the market, when deficiency appears. Over the past 50 years, the number of big companies has reduced from 50 to 10-12. According to Mr. Anthony Lipman – Chairman of Minor Metals Trade Association (MMTA), these big companies will be ousted by traders from Russia, China and India. With the activization of the processes of merger and acquisition in the mining industry and the penetration of banks with their big potential, the future of big metal traders seems more and more unsure. Therefore Mr. Mark Rich, the trader recognized in Bulgaria as well and owner of Glencore, diversified the company’s activity alsoin spheres other than trade.
Source: Pari (24.10.2003)

Last week the copper registered a quarter maximum of USD 2000 per ton during the non-official trade at LME after the funds confirmed their interest in prolonging the positions of this metal. Over the next days the brokers acted quite hesitatingly to the red metal and this moved the prices downwards. The lowest amounts for the week were registered on Thursday when the opposite process from this from Monday started – the funds began to liquidate their long positions. The sales of copper were quickened by the news that the mine company BHP Billiton would take back in exploitation its huge Chili mine Escondida – one of the biggest copper mines in the world, where will restore the manufacture in January, 2004. In December, 2002 the company ceased several production operations because of the weak demand. The copper also was the major moving factor on the market of the other non-ferrous metals – lead, zinc, aluminum, nickel and tin, which followed the changes in the quotes of the red metal downwards or upwards.
Source: Capital (27.10.2003)

The drastic rising of the copper’s price during last week to a three year maximum /2016 USD/t/ was stopped on Friday by the news for increase of the production in the second by size mine in the world. BHP Billiton reported that would renew the full volume of its operations in Chili-based mine Escondida. It became clear that on the market would enter 200 000 tons copper, equivalent increase of about ? of the non-active world production capacities. One year ago BHP Billiton shrunk the extractions in the groove in response of the low prices. However, analyzators expect that they will increase up to 2400 USD/t during the next year. If this happens, the quotes will be far from the reached in 1995 3000 USD/t.
Source: Pari (27.10.2003)

Top metallurgic company in USA NUCOR registered a net profit of USD 16 million for the third quarter in comparison with the profit of USD 39.2 million for the same period of 2002. Another leading company - US Steel also registered a net loss of USD 349 million compared to the profit of USD 106 million for the same period of 2002.
Source: Pari (29.10.2003)

The ninth by size producer of copper in the world – Kazakhstan-based Kazakhmys opened a zinc refinery with capacity of 100 000 tons metal per year.
Source: Pari (29.10.2003)

PHELPS DODGE and Grupo Mexico, the second and third biggest producers of copper, registered new losses during the third quarter too. The American Phelps Dodge, with head-office in Arizona, the biggest public traded company from the copper-extraction sector, registered a net loss of USD 300 million at USD 53.7 million earlier. The Mexican Grupo Mexico that also has offices in USA announced that its loss for the third quarter reached USD 688 million in comparison with USD 250 million for the same period of 2002. The company, which finished its financial restructure in 2002, reported that the losses for the first nine months also increased and amounts to 1.3 billion pesos. Both companies registered these results because of the low prices of the red copper they extract. Yet, the metal managed to reach a 3-year maximum of 2016 USD/t.
Source: Pari (30.10.2003)

The enlargement of EU with another 25 members in May 2004 may re-direct EU steel industry to the east, where production costs are lower, Metal Bulletin reported. This forecast was made by Ms. Katinka Barish, Chief Economist in the Center for European Reforms during the conference organized by Metal Bulletin in Brussels under the name Metals and Steel in the Enlarged EU – Trade, Finance and Investment. Ms. Barish also said that after the enlargement, the 10 new EU member states will operate in the same investment climate and under the same politically-safe conditions as the current EU member states. A united market with 480 million consumers will be established, spreading from Helsinki to Bratislava. “Heavy industry will move to the east which means adaptation, but it will keep the industrial competitiveness of western economies compared to some new competitors, such as China”, Ms. Barish emphasized. According to her, some of the possible economic advantages from the enlargement is stronger competitiveness, more transparency, market integration. The possible risks of enlargement are related to the around EUR 100 billion costs which will be made for the implementation of EU legislation in the field of environment and infrastructure modernization. “The enlargement will change European economy’s mechanisms, it will result in more effective labour distribution directed to the countries with lower costs. This will force western countries to modernize their facilities faster and, undergoing a certain period of adaptation, a more competitive European market will be established”, Ms. Barish said.
Source: Other (30.10.2003)

The enlargement of EU with the new 25 members in May, 2004 may turn the steel industry of EU to the east and in this way will get use of the lower production costs there, according to the Metal Bulletin edition. These are the forecasts of the chief economist of the Centre for European reforms Ms. Katinka Baris during a conference in Brussels under the title of Metals and steel in the bigger EU – trade, finance and investment. Ms. Barish pointed that as a result of the enlargement, the 10 new members will operate at the same investment climate and in the same degree of political security as the current members of EU. From Helsinki to Bratislava will be created a unified market with 480 million consumers. The heavy industry will move to the east and this will mean an adoption but it will keep the western economies competitive in the industrial sector, compared to new competitors like China, for example, underlined Ms. Barish. According to her, among the potential economic benefits from the enlargement are the higher competition, the bigger transparency and the market integration. The potential risks of the enlargement are connected with the costs in amount of about EUR 100 billion for application of the European legislation in the field of Environment and for renew of the infrastructure.
Source: Other (30.10.2003)

Promet steel JSC, Sofia will invest USD 20 million in a project for creation of own steel-extraction plant, announced the Executive Director of the company Mr. Miroslav Borissov. He specified that the new production will be based on the territory of the metallurgic plant Promet near Burgas. There won’t be extracted ores but will be processed scrap. The future plant will produce about 450 000 tons wires per year and the raw-material will supply the manufacture of Stan 300. With the realization of the project will be closed the production cycle and will be solved the problems of the company with the delivery of raw-material. Besides, the profitability of Promet will increase because the production’s prime cost will fall with about USD 30 per ton. The construction of the steel-extraction plant near Burgas will start in May, 2004. In November 2002 Mr. Miroslav Borisov declared investment intentions in amount of USD 30 million and expectations for partnership with the Austrian company Foestalpine. The project was not realized. In June, 2003 the Manager Projects and engineering in the Turkish company Ismir Delir chelik Mr. Ihsan Cholak declared that Promet steel JSC would invest USD 25 million in a new plant for steel extraction. According to the Executive Director of Promet steel, in Bulgaria are offered about 35 000 - 40 000 tons scrap per month. Stomana – Pernik uses about 15 000 – 20 000 tons of this quantity. The rest 10 000 – 15 000 tons will be exported.
Source: Dnevnik (31.10.2003)

The production of the second by size producer of aluminum in the world Ruski aluminii increased with the record 5 per cent for the third quarter up to 655.1 thous. tons.
Source: Pari (31.10.2003)

Iran plans to increase the capacities for aluminum production up to 1.8 million tons in 2008. At the same time the country intends to double the steel extractions up to 20 million tons, again in 2008.
Source: Pari (31.10.2003)

Copper and lead prices were up to their 6-year maximum and conquered levels of respectively 2044 USD/t and 640 USD/t yesterday, after some active speculative buyings and expectations for world economy revival. Meanwhile, nickel marked a 14-year quote peak, while aluminum and zinc were traded around their highest levels since 2.5 years ago. Market analysts forecast copper’s next target will be 2050 USD/t, and after that 2100 USD/t. In the afternoon, copper went a little down, but was only 3 USD/t down from its 6-year record. Other experts forecast that the speculative balloon will burst soon, but not yet. Aluminum marked a 29-month peak of 1520 USD/t, and nickel reached a 14-year maximum of 11 875 USD/t. Zinc reached 2.5-year record of 964 USD/t, but later on went down to 948 USD/t.
Source: Pari (31.10.2003)

Kremikovtzi JSC will close one of its three furnaces in 2005 and will stop three cast iron looms in the end of 2007, announced the Executive Director of the plant Mr. Valentin Zahariev. The cut is made because of the closing of the negotiated Competition chapter. The duties are included in a plan for sturdiness, developed by the appointed by the European Commission consultant Åurostrategy. The document was approved by EU and Bulgaria and was required because of provided state-owned aid to the company before the privatization. According to the consultant this aid is for about BGN 320 million. From them about BGN 183 million are granted as a loan to the state-owned company but at the sale the owners were not warned for the future restrictions, said Mr. Zahariev. The other BGN 140 million are debts on ZUNK. The amount of the expected for cutting capacities is almost USD 320 million. This is two times more but it can’t be technologically closed only a half of the furnace. The consultant recommended the difference between the amount of the state aid and of the assets for cutting, which is USD 80-100 million, to be compensated by the State and to be invested in technologic and ecological renew of the plant. Negotiations will be between the Ministry of Economy and the Ministry of Finance. The problem is that the State will hardly grant any funds to a private company and maybe the dispute will be put forward in the Court, according to Mr. Zahariev. In spite of the shrunk capacities, the plant is quite profitable, according to the plan for sturdiness of the plant. Mr. Zahariev also added that the state aid was argued before the Competition Protection Commission but they cooperated completely for the successful finalization of Competition chapter. The plan will be included in the national programme for restructure of the steel-extraction within 2007. In the restructure Bulgaria also takes the duty for the volume of the production of the other two plants – Stomana Industry JSC-Pernik and Promet steel-Burgas.
Source: Pari (03.11.2003)

The witness evidence of Rosseximbank’s major shareholder – Mr. Emil Kulev was the major event during the session of Sofia City Court held on October 31 2003 in relation to the criminal case against Mr. Emil Hursev – managing partner in Hursev & Co., and Mr. George Tanned – Minister of Agriculture in the Cabinet of Mr. Luben Berov. Mr. Hursev and Mr. Tanev have been accused in service crime, for “not taking the necessary care of the management and economy of the money, gained from the sale of 157 000 tons of corn in their capacity of company officials.” The corn was imported in 1993 from USA with a loan of USD 15 million, which Bulgaria borrowed from the US Commodity Credit Corporation. The corn was sold on the Bulgarian market, but only USD 7 million were received in the accounts of the Ministry of Agriculture and Forests from its sale. This money were given for trust management to Hursev & Co. By proposal, made by the company, Ministry of Agriculture and forests used them to acquire a receivable of TSBank from Stomana – Pernik (in this period, Mr. Emil Kulev was Chairman of its Managing Board). In 1998, the company was announced in insolvency and Ministry of Agriculture lost the money. In court, Mr. Kulev emphasized that in 1993 and 1994 Stomana had the reputation of a stable company and there were no signs it would become insolvent. This statement supported the version that Mr. Emil Hursev and Mr. George Tanev had acted accurately by using the money from the sale of the American corn. The judge in this lawsuit Ms. Daniela Atanasova announced the lawsuit will continue on February 17 2004, when the last witness – the former syndic of TSBank Mr. Alexander Popov, will be heard.
Source: Banker (03.11.2003)

One of the leading Russian metallurgic companies Severstal will buy the major stake of shares in the bankrupted steel-extraction corporation Rouge Industries. Although there are not any revealed details connected with the deal, experts claim that the purchase is a part of the battle of the Russian steel-extraction companies against the cruel protection policy of USA which concerns the foreign producers of cheaper steel. Rouge Industries was established in 1923 and was held by Ford Motors 4 years ago. The company produces 2.5 million tons steel cast iron per year. Its losses for the first quarter of 2003 are USD 31.3 million. Severstal is the biggest provider of auto sheets in Russia with capacity of 850 000 tons auto sheets per year, which in 2005 have to reach 1.25 million tons. Set under a great pressure, USA and the European countries defined low import quotes for the cheap Russian steel. As a response of this, Russians started to buy bankrupted western metallurgic companies, to renew them and to sell the production from the new western companies at western prices, avoiding all kind of duties and quotes. The purchase of Rouge will be the first Russian investment in the American steel extraction. At the same time Severstal also fights for 79.48 per cent of the biggest metallurgic plant in Hungary Dunaffer.
Source: Pari (03.11.2003)

From interview with Ms. Andriana Tosheva - Executive director of Bulgarian International Business Association - BIBA : - Ms. Tosheva what will include this year edition of BIBA White book, which has been considered as a corrective of the Government for years? - The book will be ready in the end of November. We will present it in the beginning of December to the Government. Then we will assess whether anything has been done on our offerings from the former White book. Any promised projects won’t be considered for done. This is also the principle of the EU. Many things will remain non-executed. - Is the investors’ unification positive? - We have always said that it does not matter whether investments are Bulgarian or foreign, it is important to be made with strategic thinking and engagement for observation of the laws. So far the Foreign Investment Agency does not give the expected results. Yet, it is not the body, which can affect the decision of many administrations. We think that its transfer to the Ministry of Economy will give good results. The Law for investments’ promotion and the Small and medium-sized companies Law, which will be called Law for promotion of the entreprenuership, are being reviewed simultaneously and this is a quite positive trend. The restructure of the agencies is parallel., i.e. we are witnesses of a wider vision on the economy’s development. - Was this missing so far? - There are very good laws in Bulgaria. If a man reads them on his own, he would say: Everything is arranged. But when he starts to fight with them, he sees in fact that the laws are not applied. Or the administrative structures are old or the internal rules and procedures are not contemporary or just there is not control. It is good that with the new law for investments may be provided a state-owned aid for some projects. - Where will the State find the money from? - The reply of this question can not be given by me. The big multinational companies are working in many countries-members of EU. They know the procedures and rules, on which the Governments provide state aids for big projects. The same steps are expected from Bulgaria too. In many cases the lack of infrastructure stops the investment. This also explains the fact that the effect from introduction of null profit tax in the municipalities with high unemployment rate is null. - You mean that the State has to give money in order to come investments. - The State won’t invest without a purpose. There is not any highway in Bulgaria and it can’t be like that. I feel quite inconvenient when somebody asks about the state of the roads here. Why a part of this infrastructure is not given on concession! - The foreign investments will exceed USD 1 billion during this year, is that forecast real? - In this billion are also included the investments on the project for Maritza-iztok 3. But what has been done on it? The real investments are of Viohalco, Miroglio, and Nestle. I think it is not proper to be considered contracts, in which are expressed any intentions for future investments.
Source: Sega (03.11.2003)

Promet Steel JSC will celebrate the 15th anniversary from the exploitation of the metallurgic furnaces of its plant in Debelt. The celebration is by occasion of November 5th – the Day of the metallurgist. The plant is one of the major economic subjects in Burgas region. After the privatization were invested over USD 5 million. The company is the sole Bulgarian company from the branch, a member of the International association for trade with steel.
Source: Pari (04.11.2003)

By occasion of the Metallurgist’s day (November 5), the Managing Board of the Branch Association of Ferrous and Non-ferrous Metallurgy organizes in Princess hotel, Europe hall a seminar on the topic 50 years contemporary Bulgarian metallurgy seminar – experience and challenges for its European future. The Chamber is a member of Bulgarian Industrial Association.
Source: Dnevnik (04.11.2003)

Montenegro’s only aluminum processor – KAR, which is due to be privatized in 2004 and accounts for around 14 per cent of the country’s GDP, will produce 18 per cent more aluminum this year than its capacity, or 120 000 tons. The aluminum plant in Podgoritza, which was built in 1971 and operates with technologies provided by the world’s fourth largest aluminum maker – Pechiney of France, is not planning to increase its production output any further before implementing modernization. The Government emphasized that KAR’s privatization is one of its priorities in the coming year. In the first 10 months of 2003, 100 000 tons of aluminum were produced, which is a record in the whole history of the Podgoritza-based combine. Unless serious investments are made soon, however, it is not sure whether these amounts can be maintained in the future. For the first nine months of the year, KAR has registered a loss in the amount of USD 5.1 million, explained by the unfavourable USD/EUR exchange rage. Meanwhile, the NIKSIC mine will also be recapitalized. Russia’s SUAL – Russia’s second largest aluminum producer, Pechiney, Norsk Hydro, Alcan, Alcoa are interest in KAR’s privatization.
Source: Pari (04.11.2003)

China, which is a key exporter of certain types of non-ferrous metals, reduced its 2004 zinc, tin, antimony and tungsten export quotes. Zinc and zinc products quote was down to 580 000 t (compared to 600 000t), tungsten - down to 16 000t, tin - to 63.7 thousand tons, and antimony - to 65.7 thousand tons.
Source: Pari (04.11.2003)

World's second largest nickel producer - Canada's Inco, outlined the most optimistic perspectives for nickel this year, but warned its prices could jump with 40 per cent (2.05 USD/lb) compared with last year's.
Source: Pari (04.11.2003)

The Board of Directors of Stomana industry – Pernik decided to increase the capital of the company. The increase is from BGN 43 346 000 to BGN 63 318 900 through the issue of new 199 729 personal shares with face value of BGN 100. The increase of the capital is for covering of the investment programme of Stomana industry, explained Mr. Anton Petrov, a representative of the Greek group Viohalco for Bulgaria, which is owner of Pernik-based company. Another increase of the capital is forthcoming but Mr. Petrov refused to specify how many and when this would be done. Since 2001 in the metallurgic company have been invested about EUR 30 million, which is the half of the planned by 2006 investment programme of EUR 60 million. The funds are provided by own funds and credits. We consider 30-40 per cent of the invested funds to be own, also said Mr. Petrov. The company also negotiates with the World bank for granting of credit of USD 18-20 million.
Source: Dnevnik (05.11.2003)

Over USD 200 million have been invested in Bulgarian metallurgy within the past two years. This was announced by the Chairman of the Managing Board of the Chamber of Ferrous and Non-ferrous Metallurgy in Bulgaria Mr. Valentin Zachariev during the national conference "50 years of modern metallurgy in Bulgaria - experience and challenges facing its European future". He stated the share of metal and metal products exports in 2002 is 11.08 per cent of the country's total exports, where half of it is destined to EU member states. Mr. Vladimir Nakov, Director of Umikor Med said the main problem facing the branch is the inefficient transportation of the raw material and production implemented by Bulgarian State Railways (BDZ). According to him, the company is going to transport a little over7 million tons by the end of the year, which is 15 per cent less than the agreed amounts.
Source: Dnevnik (05.11.2003)

More than EUR 6 million have been invested over this year in the rolled work-shop of Shumen-based company Alkomet, was reported from the company. After the investments, the production in the work-shop, where is made house and technical foil, is entirely automated. There are four now looms and one device for cutting of the foil. The modernization started in July and continued 4 months. With the launching of the new machines, the manufacture in the rolled work-shop increased two times.
Source: BTA (06.11.2003)

Greece is the biggest investor in Bulgaria. For the period 1992 – June 2003, Greece has invested USD 692.6 million in our country. It is followed by Germany – with USD 658.8 million, and Italy – USD 605 million. Investors from these countries are demonstrating constant interest in our economy. They are also the main “competitors” for the top position in the list of foreign investors in Bulgaria, along with countries such as Switzerland and Austria. For the first half of 2003, Greece has invested in Bulgaria USD 37.8 million. The leader for the same period is Switzerland with USD 182.5 million. According to preliminary data, for the whole year 2002, Greece’s investments in our country amount to USD 86.5 million. Only Austria is ahead of it with USD 137.7 million of investments. Over the past ten years, Greece is constantly making investments in Bulgaria. Way back in 1992, Greek companies investments here amounted to only USD 200 000. Only a year later, they grew to USD 5.1 million. In 1995, USD 29.8 million were invested, and over the next four years the amount of investments varied between USD 14.6 – 16.1 million. Over this period, the only weak year is 1998 with investments amounting to USD 3.3 million due to the economic collapse in 1997. From 1995 until 1999, investments in Bulgaria were made by companies such as Delta, operating in the food industry, Goody’s – restaurant business, Chipita and Vitamina – in the food industry. Greece is seriously present in the field of telecommunications – through Intracom, as well as in the bank sector – Unionbank. Greek investments in Bulgaria marked a peak during the period 2000-001, when they amounted to respectively USD 241.1 million and USD 240.2 million. Over this period, the most serious investments were made in telecommunications, banking, metallurgy and media business. The National Bank of Greece acquired UBB in 2000, and invested in it USD 270 million. Back then, the Greek company Antena bought New Television. OTE received a GSM operator license in 2001. Commercial Bank of Greece also started operating on the Bulgarian market. Serious amounts were invested in the acquisition and renovation of a number of metallurgical enterprise, such as Pernik-based Stomana and the former Combine for Processing of Ferrous and Non-ferrous Metals near Gara Iskar.
Source: Pari (06.11.2003)

The sixth by size producer of copper in the world and the second by size of silver in the world – the Polish group KGHM registered a profit for the third quarter of USD 22.6 million, with 20 per cent lower in comparison with the profit for the same period of 2002 but higher than the expectations. During the first 9 months of the year KGHM produced 397.6 thous. tons electrolyte copper and 890 kg. silver.
Source: Pari (06.11.2003)

Indium price reached a five-year maximum of 230-250 USD/t, which is 50 USD/t more than last week. Around 70 per cent of this metal production is sued in hi-tech industry.
Source: Pari (06.11.2003)

China, the world zinc production leader, is going to increase the amount of its production output next year, though other countries are planning to reduce it. Besides, China will outstrip USA and will become the world’s top lead producer. According to forecasts made by local market observers, China will produce 2.28 million tons of zinc this year and 3.9 per cent more in 2004. Lead production over the current year will amount to 1.52 million tons, and in 2004 it will jump with 8.6 per cent to 1.65 million tons .Exports next year, according to local experts’ forecasts, will drop to 500 000 tons of zinc (for 2003 its amount is 534 000 tons). Lead exports will drop next year to 420-430 000 tons (for the current year, it is 450 000 tons). Chinese lead refineries’ annual capacity is 365 000 tons, and another 165 000 tons will be put into exploitation over the current and next year.
Source: Pari (06.11.2003)

The copper confirmed the last forecasts of Barclay Capital that will be among the good performing non-ferrous metals during this year and among the stars on the market in 2004. The copper reached a new 6-year maximum of 2115 USD/t. The new record dropped after the big purchases of Chinese traders and the expectations for deficit on the world market in 2004. The prospectives for one of the three most popular non-ferrous metals in the industry are also improving because of the expected restoration of the global economy. The analyzator from Barclay Capital Ms. Ingrid Sternby revised with 21 per cent upwards her forecasts for the prices of copper for 2004 up to 2238 USD/t.
Source: Pari (06.11.2003)

The Deputy Minister Mr. Purvanov will take part in Bulgarian-Greek forum. During the forum Mr. Valentin Purvanov will present the status of Bulgarian economy. Mr. Purvanov went to two-day visit in Greece. He is a part of the official delegation, lead by the President Mr. George Purvanov. The delegation includes the Minister of Regional Development and Construction Mr. Valentin Tzerovski, the Minister of European Affairs Ms. Meglena Kuneva, the Minister of Labour and Social Policy Ms. Hristina Hristova and other representatives of Bulgarian agencies. At the forum will be discussed problems for the further development of the Bulgarian-Greek trade and economic relations. In the agenda of Mr. Purvanov are included meetings with representatives of Trade-Industrial Chamber of Athens, unions of the businessmen, exporters and others. During the visit Mr. Purvanov will have meetings with VIOHALCO – major shareholder in Stomana – Pernik, Non-ferrous Metals Plant – Iskar station, Stilmet, EFG EUROBANK ERGASIAS A.E. – major shareholder in Post bank, ZERITIS GROUP – major shareholder in the paper factory Belovo, INTRALO, DELTA and others.
Source: Other (06.11.2003)

During the last four years Greece traditionally takes the fourth place among the trade partners of Bulgaria from all over the world, third or second place among the partners from EU, was reported from the Ministry of Economy. The enhancement of the commodity turnover between Bulgaria and Greece is due to the good bilateral relations, markets recognition, to the small transport costs and mutually completed economies, was explained from the Ministry of Economy. The Agreement for accession of Bulgaria to EU also has a positive role because according to it, during the last years dropped out a big part of the restrictions at realization of trade activity. Bulgarian export to Greece as a percentage from the total export increases with about 1 per cent every year. Thus, in 2002 this percentage is 9.2 per cent, for 2001 is 8.8 per cent and for 2000 is 7.8 per cent. In the structure of commodity turnover textile articles are leading. This trend is also kept in the export and import for the eight months of the year. To Greece are exported shirts, blouses, T-shirts, men suits, trousers. These products have the biggest share. The oil products take 3.62 per cent from the export and the electricity - 3.38 per cent. Our State also exports wastes and splinters of cast iron, iron and steel, which are with a share of 3.1 per cent. The meat products take a share of 2.9 per cent of the export.
Source: Pari (06.11.2003)

The second-sized producer of steel in the world – the group LNM, with head-office in London and property of the businessman from Indian origin Mr. Lashmi Mital, reported that Hungary was the next in the series of acquisitions. The acquisitions will put the country in a quite favourable position to deliver steel to the blooming auto industry in Central Europe. LNM Holding and its Czech unit Ispat Nova Hut are among the four companies in the short list of the candidate-buyers of minimum 80 per cent from the Hungarian Dunaferr, top producer of steel in the country. If LNM beats the rest competitors, will add Dunaferr to its Central European portfolio, which already includes the big steel-extraction companies in Poland, Romania and Czech. The long-term plans of LNM are these plants to extract and supply with steel the automobile producers in Eastern Europe. Dunaferr produces 1.5 million tons per year and the last offers for it will be accepted by December 8.
Source: Pari (07.11.2003)

The metallurgical plant Kremikovtzi will have to gradually cut around 1/3 of its capacities by the end of 2007, Mr. Valentin Zachariev – Executive Director of the company announced. The recommendation, which is compulsory, was given by the consulting company Eurostrategy and had been approved by the European Commission in Brussels on September 24. Eurostrategy was hired a year ago by the commission to prepare a plan for the combine’s restructuring, because before the privatization it had received state aid. “The commission wanted to investigate whether such a company could survive in a market environment”, Mr. Zachariev commented. The conclusion is that Kremikovtzi can work in accordance with market principles, if it significantly reduces its capacities. EC recommended the combine to close 1/3 of its furnaces by the end of 2004, and to stop 3 cast iron looms by the end of 2007. According to Mr. Zachariev, however, the furnace will be stopped from operation by the middle of 2005 and this extension has been approved by the Commission. The value of the facilities due to be closed is USD 320 million. On the other hand, according to information by the company’s management, before its privatization it had received a state aid in the amount of around BGN 320 million. According to Mr. Zachariev, Eurostrategy has recommended the state to compensate the combine for the difference. According to well informed sources, similar recommendations are not a common practice of the European commission and such a compensation is not allowable. Before Kremikovtzi’s privatization in 1999, the state remitted the combine’s debts of BGN 180 million. The thesis of the Government then was that this is a one-time measure taken with the only aim to sell the enterprise (which was included in the so called isolation list and had either to be sold or to be liquidated) and that there would be no more state aids in steel industry. The Law on State Aids allows the granting of aid to a specific enterprise, if it is one-time, the enterprise presents a restructuring program and does not use the aid to improve its capacity. This was exactly Kremikovtzi’s case four years ago. After the government was changed, however, the new Government asked EC to give it a transition period by the end of 2007 for granting steel production state aids, without being clear the planned amounts if any. “ If the Government intends to grant new state aids, the other companies from the branch – Promet and Stomana Industry, will have the absolute right to apply for such aid as well”, a source close to the problem stated. For the time being, however, the vision of the Cabinet about the problem “will there be any state subsidies in steel industry” remains unclear.
Source: Capital (08.11.2003)

Bulgarian State Railways BDZ is not ready to be restructured, announced the Executive Director of the company Mr. George Neshev. During February 2003 the former Deputy Minister of Transport Mr. Lyubomil Ivanov stated that in order to be improved the financial status of the company the national carrier has to be divided in two separate companies – one for passenger transportation and one for cargo transport. The restructuring had to start as of July 1. The idea of the Government was the State to subsidize only the passengers transportation and the cargo transport to generate their own incomes. Now, five months later the restructuring is not initiated yet. From 20 000 carriages in 1998, now BDZ has only 5200. The decline is because of the incorrect use of the carriages, mainly by Kremikovtzi and the difficult procedure, connected with their repair. The Executive Director of Kremikovtzi Mr. Valentin Zahariev said that the carrier was not able to service the plant because it did not provide the necessary 1100 carriages. Mr. Zahariev threatened BDZ with legal proceedings because Kremikovtzi lost BGN 10 million from the non-transported cargos in August, this year when was signed the contract with the carrier. At the moment Kremikovtzi owes BGN 4.1 million to BDZ.
Source: Pari (10.11.2003)

Power electricity traders, which will emerge in the market after 2007, will have to survive in a free competition market situation. There is no restriction neither for their number, nor for the prices at which they will offer it to households. Each electricity trader will be subject to license regime, Mr. Milko Kovachev said. During a working meeting in Evksinograd, he discussed the liberalization of the energy market after 2007 with NEC’s representatives and managers of the big thermal power stations in the country. 10 Bulgarian enterprises, which have no obligations to NEC and are using more than 100 gW electricity per year, will be negotiating prices and terms directly with the company, Mr. Kovachev added. Among these companies are Stomana Industry, KCM – Plovdiv, Umikore – Pirdop, Sviloza – Svishtov.
Source: Pari (10.11.2003)

The Belgium producer of metals Umicore, which is owner of the copper-extraction plant in Pirdop and is among the biggest companies for zinc and copper in Europe, expects a certain increase of the profit that will reach EUR 132 million for 2003. The company intends to issue 2.4 million shares with a price between EUR 49 and EUR 53. Recently Umicore has restructured its business from the traditional extraction of non-ferrous metals to manufacture of high tech articles /sun cells for the satellites / and recycling of precious metals.
Source: Pari (11.11.2003)

Washington finally lost the battle for the duties on some categories imported steel articles, introduced one year and a half ago. The last possible instance – the Appeal Court of World trade Organization confirmed the decision of WTO from July that the disputable duties are not in accordance with the rules of the organization and USA will have to cancel them. In accordance with the decision the American President Mr. George Bush has to annul the duties quickly if he does not want EU to impose as of the middle of December a taxation on the import of some US goods with duties for USD 2.2 billion. Among these goods are citrus fruit, rice and motorcycles. EU is one of the several countries, filed a complaint in WTO against the steel duties from 8 to 30 per cent, introduced by USA in order to protect its own steel-extraction industry from the flow of cheap foreign products. The rest countries that triumph over the decision of WTO are Japan, Brazil, Republic of Korea, Norway, China and Switzerland.
Source: Pari (11.11.2003)

Competition Protection Commission (CPC) defined the granted to Kremikovtzi JSC BGN 393 556 517 in 1999 as a state aid. The amount is granted by the Government and is for writing off the debts of the company to the State on ZUNK for BGN 200.930 million as of April 30, 1999. Kremikovtzi JSC has not still received the decision of the Commission and will comment when acquaints with it. CPC evaluated the aid as admissible with the purpose for future closing of Kremikovtzi’s capacities. The granted in 1999 aid is not a financial injection for effective working company, which may be revealed as an advantage on the market and as a damage for the rest participants, according to the motives for this decision of the commission. This aid is defined as a final measure for survival of the company, in which are working over 8 000 people. CPC also regarded the engagements, taken by Bulgaria in connection with the endorsement of the European agreement for accession of the State to EU – efficient as of February 1, 1995. The exchange of letters was initiated on July 7, this year by initiative of CPC after signals from the owner of Kremikovtzi JSC – Finmetals holding JSC and the Ministry of Economy.
Source: Pari (12.11.2003)

The export for the nine months of 2003 has increased with 32.2 per cent. USD 13,1 billion is the foreign trade activity during the period January-September. From the group of the processed articles, the export of ferrous metals increases most considerably – with over 70 per cent. The ferrous metals, together with the non-ferrous metals, at which the increase is over 30 per cent, realize over 60 per cent from the export in this group. (www.econ.bg)
Source: Other (12.11.2003)

Experts, quoted by Financial Times, forecasted increased steel demand next year. A part of this trend is due to the Chinese market, which will need more steel. Next year, world steel sales are expected to reach 936 million tons. According to the International Institute of Iron and Steel, China will account for 31 per cent of this amount. In 2001, China bought 22 per cent of the sold 780 million tons of steel. US-based consulting company World Steel Dynamics (WSD) thinks that 85 per cent of steel demand next year will be registered in the first quarter. Last year, the growth in steel prices and in the profits posted by this industry was stopped. This year, however, the gross profit of the 35 top steel producers, observed by WSD, has increased with 10 per cent compared to 2002. One of the companies, performing well on the market is Ispat. The company is registered in Holland, but is controlled by Lakshmi Mital – the metallurgical magnate of Indian origin. Its shares jumped with 128 per cent compared to January this year. The shares of Russia’s Severstal were up 94 per cent. The shares of Japan’s biggest metallurgical company JFE marked a growth of 70 per cent. A number of mergers were made in the branch, which increased the potential of the biggest companies. This trend started a year and a half ago with the establishment of the concern Arcelor, based in Luxembourg. The concern includes three smaller European metallurgical producers and is the world’s biggest steel maker. By raising steel import duties, George Bush intensified this trend, although formally the duties were introduced to protect US metallurgy.
Source: Standart (13.11.2003)

The British Guardian replies to questions connected with different aspects from the trade conflict USA - EU * How did the 30-per cent increase of the duties on the imported in USA steel influence on US metallurgy? - Since their introduction in the sector have been invested USD 3 billion – completely for its restructure. The smaller companies either bankrupted or were taken over by the bigger ones. Managers in the sector assured that its restructure would suffer if the duties were going to be canceled. They accused EU of blackmailing USA. This will for certain affect the results of the President’s vote during next year. * How did the world react on the US decision for the duties? - Except EU against the decision are protesting Japan, Brasilia, Southern Korea, Norway, Switzerland and New Zealand. They complained before WTO. On his turn, the regulatory body announced that US decision broke the rules of the international trade. The organization allowed the concerned countries to take contra measures * Does the decision of Bush have a political motivation? - Undoubtedly. The President needs the support of the "steel states" Pennsylvania, Western Virginia and Ohio. However he risks to repel them if he gives in and reduces the duties. Any Presidents’ advisors, including the Director of the political leaders Mr. Karl Rove, are frightened that the President will lose the steel consumers like Michigan and Tennessee and this loss will be crucial for the eventual election victory in Western Virginia or Pennsylvania. * What is the situation in the world sector? - There is extra production in the metallurgy at the moment. This is a problem for the companies in USA and Europe. For example, the English-Dutch consortium Corus had to dismiss thousands of workers. * Are there other trade disputes between USA and EU? - The problem is that not only the steel disorganizes the trade between the two countries. The most serious argue is that Washington favours the US exporters. WTO considers this as illegal. The organization authorized EU to impose sanctions in amount up to USD 4 billion, which will be the biggest in the history of WTO. However, for the time being, Brussels restrains to apply this measure. EU waits to see whether will pass a new tax draft bill in the Congress, which would eliminate the tax alleviations for the US exporters.
Source: Standart (13.11.2003)

Kremikvotzi JSC’s Executive Director Eng. Valentin Zachariev and the Chairman of Marcegaglia Group – Mr. Steno Marcegaglia, signed a contract for delivery of metallurgical production to the value of almost EUR 1 billion. The two companies’ managing teams are inviting media representatives to the official contract signing ceremony, which will take place on Friday – November 14 2003 at 10:00 c’clock in Kremikovtzi’s administrative building. After the signing of the document, Eng. Valentin Zachariev and Mr. Steno Marcegaglia will give a short briefing for the present journalists. Marcegaglia Sp.A. is one of Kremikovtzi’s biggest clients over the past five years. The Italian company is one of Europe’s major steel traders and tubing makers. The Marcegaglia group has companies operating in the field of construction, tourism, real estate. Its sales reached almost EUR 1.5 billion in 2002.
Source: Company information (13.11.2003)

Steel sheet prices will reach record-high levels by the middle of 2004, when the effect of China’s production boom will start to impact the global market, CRU International forecasted. By this time, he average quotes of sheet products will grow with 5 to 10 per cent and the prices of hot rolled sheets will attack levels of 350 USD/t. The gap between global steel sheet production capacities and demand will reach 46 million tons next year, while in 2003 it was 35 million tons. China alone will register a 7 million tons surplus. Over the next 5 years, China’s consumption will jump with over 25 per cent to 15 million tons and imports by this time will drop with 1/3. Meanwhile, Republican party sources commented that following pressure by a series of leading counselors, President Bush may cancel the steel import duties introduced in 2002 in order to avoid possible commercial war with Europe. On Monday WTO Court of Appeal confirmed the organization’s decision according to which these tariffs are in breach of its rules and regulations. EU threatened it would impose sanctions on USA unless it annulled the duties. These sanctions will be in the form of duties on US goods amounting to over USD 2.2 billion which will be introduced after mid-December.
Source: Pari (13.11.2003)

The biggest plant for processing of zinc in Russia – Cheliabinksi increased the metal extractions during the first 10 months with 8.1 per cent up to 148.1 thous. tons. The refinery produces about 60 per cent of the zinc in the country.
Source: Pari (13.11.2003)

The price of cobalt, used mostly in aviation industry in the form of alloys, reached its highest levels since early 2001 - 13.75 USD/lb, due to this metal's market defficiency.
Source: Pari (13.11.2003)

Alexander Bilyugin, the former Operative Director of Russia’s top and world’s number two aluminum produer RusAL, was elected as Chief Executive Director of the company in the place of Mr. Oleg Deripaska, who is already owner of 75 per cent from the giant and became Chairman of the Board of Directors.
Source: Pari (13.11.2003)

The metallurgic plant Kremikovtzi and the Italian company Marcegalia will sign today a contract for delivery of ready metallurgic production, was reported from the Bulgarian company. The contract is for 5 years and amounts to EUR 1 billion. From Italian side the document will be signed by the Chairman of the group Marcegalia Mr. Steno Marcegalia. The contract is renewal of the expired in 2003 former 5-year contract. Marcegalia is among the biggest clients of Kremikovtzi during the last 5 years. The company is one of the biggest European traders of metals and producers of pipes. Marcegalia group has companies in the field of construction, tourism, real estates and its sales for 2002 reached about EUR 1.5 billion. For a very long time the management of Kremikovtzi have been negotiating with Marcegalia for the purchase of a share from the plant. The Management of the Bulgarian plant specified that the negotiations had not finished yet. The idea is the Italian partner of Kremikovtzi to acquire the half of the shares of Finmetals holding, which holds the major stake of shares of the plant. Kremikovtzi registered a profit of BGN 53.7 million for the 9 months of the year but for the same period of 2002 was registered a loss of BGN 49 million, according to the balance sheet of the company. The sales of the plant increased up to BGN 390 million in comparison with BGN 265 million during the same period of 2002. Last year Kremikovtzi launched in exploitation the first furnace and by the end of 2003 is also expected to start working the line for permanent steel casting and the contractor of the project is the Austrian company Fiost Alpine.
Source: Company information (14.11.2003)

Codelco, the world's largest copper company, has produced 1.2 million tons of copper in the first nine months of the year, which is 1.9 per cent more than the same period of last year.
Source: Pari (14.11.2003)

The Indian steel-extraction company Ispat Group with a head-office in London signed a contract with the authorities in Bosnia for establishment of a joint-venture with the coke plant Lukavach. Ispat will invest USD 77.5 million in the company Global Ispat Koksna Industrija and the coke plant will take part with its assets. Ispat takes interest in the major share in the biggest Bosnia metallurgic company BH Steel. LNM also has interest in BH Steel. Ispat has the exclusive right to make its offer for the plant by December 1.
Source: Pari (14.11.2003)

Now I can see the extent to which US steel industry has been restructured following the introduction of steel import duties last year and in the term due I will decide whether I shall cancel the duties. This was stated by President Bush yesterday. On Monday WTO’s highest instance re-confirmed the decision of the organization itself, according to which the duties (varying between 9 and 30 per cent), introduced in April 2002, are violating its rules. Meanwhile, USA’s permanent representative Mr. Robert Zelik stated that these tariffs have already achieved their purpose – to support US local steel producers. The weak positions of USD after the duties entered into force also had positive effect on the industry’s competitiveness, Mr. Zelik added.
Source: Pari (14.11.2003)

The biggest producer of palladium and nickel in the world – the Russian Norilski nikel will invest USD 40 million per year in joint development project with the Russian Science Academy of palladium catalyst for the fuel cells for automobiles of the future, which will use hydrogen instead of petrol. If succeeds in the beginning, the giant will find a new market for the precious metal, which produces in quite big quantities. So far in the developments of these cells has been used the platinum, which is three times more expensive than palladium. Norilski nikel did not specify how many years would invest USD 40 million in the creation of this catalyst. The plant produces about 60 per cent of the palladium, 20 per cent of the nickel, 10 per cent of the copper and 3 per cent of the cobalt in the world.
Source: Pari (14.11.2003)

Kremikovtzi will sue BDZ for damages, caused because of non-transported raw-materials, declared the Director of the plant Mr. Valentine Zahariev. Every day the plant is harmed with about BGN 600 000, said Mr. Zahariev. BDZ transported 20-30 per cent less than the dealt 170 carriages of raw-materials per day, explained he. The Non-ferrous and ferrous metallurgy branch association will consider joint actions against BDZ because all companies endured damages, Mr. Zahariev also said.
Source: Standart (17.11.2003)

Kremikovtzi JSC will forward to the Italian company Marcegalia every year between 360 000 and 480 000 tons products for about EUR 200 million. This became clear from the signed contract for delivery between Mr. Valentine Zahariev and Mr. Steno Marcegalia. According to him, during the next five years the Bulgarian metallurgic plant will deliver to the Italian company from 1,800 million to 2,400 million tons ready production at total amount between EUR 850 million and EUR 1 billion. This is the second frame contract for sale of ready production, which is concluded between the two companies, was specified by the Management of Kremikovtzi. The first was signed in April 1999 but then were traded smaller quantities. So far, for the five years now Kremikovtzi has exported to Marcegalia about 1.5 million products, was reported from the Bulgarian plant.
Source: Monitor (17.11.2003)

Bulgarian State Railways (BDZ) asked the Court to block Kremikovtzi’s bank accounts. The reason is that the metallurgical plant is not implementing the contract signed with the railways in August for sinking former and covering current liabilities. On October 6, the company’s Management filed two order promissory notes in Sofia Regional Court for current dates of payment to the total value of BGN 4 million, according to Sofia Regional Court information. Since then, BDZ is waiting for the court to issue a decision to place the two documents at the disposal of an officer of the court, who shall block the combine’s accounts. The Deputy Prime Minister Mr. Nikolay Vassilev said that from Monday on he would start pressing the metallurgical plant to implement the contract with BDZ signed in August.
Source: Standart (17.11.2003)

The market of non-ferrous metals is growing so much that sometimes it has to slow down a little bit even without any reason. In the beginning of last week the traders accepted the lack of news and technical factors as a sign for reduction in the prices but on Wednesday some speculative purchases, not very big, moved the prices upwards again. The nickel has stricken the highest amount since June, 1989 and has been trading at USD 12 350 per ton. Aluminum stopped at USD 1528 per ton – just one step from the registration of a new 29-month maximum. Copper was hesitating at the high level of USD 2100 per ton. On Thursday, worried by the speculative balloon to burst, the traders realized profits from sales and this reduced the quotes but they have kept again the highest levels since the beginning of the year.
Source: Capital (17.11.2003)

There was a deficit of 256 000 tons copper on the World market during the first eight months of 2003 in comparison with the surpluses of 127 000 tons one year earlier, was reported from /ICSG/. During this period the consumption of refined red copper increased with 1.7 per cent compared to the same period of 2002 and the produced quantities reduced with 2.1 per cent. The stockpiles on the exchanges in London and Chicago fell and the total in the world too with 339 000 on annual base. The average cash price of the copper on LME for October is 1920.50 USD/t at 1789.50 USD/t for September. It also became clear that the biggest producer of copper in the world Cîdelco extracted 1.2 million tons during the first nine months, which is with 1.9 per cent more, compared to the same period of 2002. For the whole 2003 Cîdelco plans to produce 1.63 million tons. From the company forecasted average quotes of the metal for 2004 of 95 CTS/lb.
Source: Pari (17.11.2003)

Norilsk Nickel – the world’s top nickel and palladium producer, expects its 2003 consolidated net profit to jump to RUR 32.1 billion (USD 1.08 billion), or with RUR 25.7 billion. The company warned that this profit had been calculated on the basis of Russian accounting standards and might be misleading.
Source: Pari (17.11.2003)

Higher indium consumption in hi-tech industry, more specifically in the production of flat computer and TV screens made the prices of the metal reach 5-year record levels of 250-280 USD/t. Only a year ago, they marked their lowest levels since the early 90’s – 60 USD/t.
Source: Pari (17.11.2003)

If we have to count the biggest corporations in America, Japan or Germany, the only necessary thing is to look the exchange screens at Wallstreet, Tokyo and Frankfurt. In every developed economy the stock market is the background of the huge business. There are situated the industrial concerns, banks and insurance companies, big trade chains and the giants in the sector of services. There are also the new technologies – the engine of the growth of every economy. It is quite prestigious to appear at the exchange stage where the whole world sees and assess you. It is also a business question because the capital market feeds the economy and takes the temperature every minute. 345 companies in Bulgaria have a statute of public companies. Almost all of them are on the capital market with a state force and by administrative order of the new legislation. The experiment mass privatization brought shattered shareholders’ structure in many giants of the social economy and in few privatization funds, which hold 15 per cent of the Bulgarian economy. As a result on the exchange came out state monopolists and whole industries. These are the metallurgic giants Kremikovtzi, Stomana and OZK-Kurjali, almost the whole chamical and pharmaceutical industry /ahead with LUKoil-Neftochim, Chimko, Polimeri and Sopharma /, the sea and winter resorts, a big part of the food-processing industry /including the whole tobacco production /, former monopoly structures in the wholesale /Petrol and Toplivo /.
Source: Pari (17.11.2003)

By the middle of next year in the metallurgic plant Kremikovtzi will start working the complex for permanent casting of steel. The executor of the object is the Bulgarian company Enemona JSC, which has worked in the plant since the end of June, this year. The new line will reduce the costs for electricity, will optimize the technologic process and will increase the competitiveness of the Bulgarian steel. By the end of the year Kremikovtzi will invest in the complex over USD 30 million. Among the suppliers of the equipment for the complex are Voestalpine and ABB. Last year Enemona reconstructed First furnace in the metallurgic plant.
Source: BTA (18.11.2003)

The copper will be the non-ferrous metal that will become more expensive during next year, leading the rest from the complex upwards. All this will happen on the background of the expectations in the first six months of 2005 to be reached a pick in the cycle of industrial production. This is the forecast of the metal analyzator from bank Barclays Ms. Ingrid Sternby who corrected her forecasts for the quotes of the metals in 2004. For the copper she increased the average prices for 2004 with 21 per cent up to 2238 USD/t and the nickel prices with 25 per cent up to 12 250 USD/t. Both metals at the moment are traded in London about 6 and 14-year maximums. According to her, aluminum will be the sole non-ferrous metal, whose growth of the prices won’t be with two figures. She amended her forecasts to 1544 USD/t for 2004.
Source: Pari (18.11.2003)

A trend downturn took place at LME on Monday and the prices in the non-ferrous metals complex dropped. The sales realized by Far East traders exercised pressure on the prices. Around midday the quarter copper deals were negotiated 8 USD/t lower than at the closing on Friday, or at 2087 USD/t. Aluminum lost 15 USD/t, and the deals with this metal were made at a price of 1517 USD/t .Nickel was down 120 USD/t and was traded at 12 420 USD/t. On Friday the metal registered 14-year record-high levels of 12 580 USD/t. Platinum, which has been registering new records for weeks in a row, was down to 763.00 – 768.00 USD/tr.ounce compared to 768.50-773.00 USD/tr.ounce. Palladium was quoted at 193.00 – 198.00 USD/tr.ounce, which is 3.50 USD/tr.ounce higher than Friday.
Source: Pari (18.11.2003)

The American producers of steel made a compromise decision, offered by the White house, in order to be avoided the trade war with EU, was reported Wall Street Journal. According to the newspaper, sources near to the companies, which reached an agreement, announced that the compromise decision states that the duties, imposed by USA during March 2002 will be invalidated during the autumn of 2004 instead during March 2005, when their term of efficiency expires. According to the agreement the speed of lowering of the tariffs has to be accelerated. For example the present tariffs of 24 per cent, which are imposed on numerous steel products, will be reduced with about 1/3 now and with another 1/3 during the spring. According to the plan the present duties of 30 per cent have to be reduced with 18 per cent during the third year (2005). Quoting its sources Wall Street Journal reported that the initiative came from the White house and the three leading steel-producers in USA Nucor, US Steel and International Steel Group have prepared the plan. The duties were declared for illegal by the World Trade Organization and on November 10 it gave a green light for the sanctions of EU and seven other countries as an answer of the American acts. EU has the right as of the middle of December to impose duties on certain American products The total value of the sanctions is USD 2.2 billion.
Source: Pari (19.11.2003)

Today will take place a meeting of the Board of Directors of London Metal Exchange, but at meeting is not expected to be taken a final decision whether as of the next year there will be traded steel futures.
Source: Pari (19.11.2003)

China, the second by size producer of copper in the world after Chili, expects stable flows of copper concentrate by 2010, considering the fact that the extraction only in 2003 has jumped with 7 per cent up to 1.8 million tons. However, the domestic production won’t meet the demand in the country. Only during the nine months of this year were imported 2 million tons concentrate or with 37 per cent more in comparison with the same period of 2002. It is foreseen the deficit of concentrate to keep for a while. In China there are about 970 copper-extraction mines with total reserves of 19.42 million tons copper or about 5 per cent of the world reserves.
Source: Pari (19.11.2003)

At LME the three-month aluminum deals became more expensive with 9 USD/t in comparison with Tuesday and they were trade at 1519 USD/t. The copper became cheaper with 17 USD/t to 2027 USD/t but it is expected to turn the trend quickly and to move upwards. The zinc’s price did not change - 925 USD/t.
Source: Pari (20.11.2003)

According to an official employee in the US administration, who accompanied President George Bush during his official visit in Great Britain the President will not announce if USA will invalidate the duties for the import of steel. Several days ago there were speculations that President Bush will try to support his ally - the British Prime Minister Mr. Tony Blear announcing in Great Britain that export duties will be invalidated.
Source: Pari (20.11.2003)

The export incomes of the biggest producer of copper Chili during October reached record levels. During October they reached USD 699 million and are an absolute maximum since January 1999. The growth of the incomes is due mainly to the raising of the price of copper on the international markets and the raising of the capacity of the mines.
Source: Pari (20.11.2003)

An interview with the deputy Minister of Economy Ms. Evgenia Koldanova: - Ms. Koldanova, what stage has reached the preparation of the programme for restructuring of steel-processing industry, which is needed for the closing of Competition chapter? - Competition chapter is one of the most difficult chapters for all countries-candidates. First of all the European legislation in the area of competition is very dynamic and changes constantly. The programme for restructuring of steel-processing industry is one of the conditions for closing Competition chapter. We are in the final stage of the work on the programme. It is ready and at the moment is being presented to the affected companies. It will be filed at the Competition Protection Commission and the Council of Ministers. I would like to underline that we work in perfect dialogue with Kremikovtzi JSC, Stomana Industry JSC and Promet Steel JSC. We should take into consideration that the closing of Competition chapter depends on the work of the Competition Protection Commission as well. The European Commission demands the existence of practice in applying anti-trust and state aid legislation.
Source: Pari (20.11.2003)

The Government decided to break a concession contract for Delian field in Kuystendil region with the metallurgic plant Kremikovtzi JSC because of not execute clauses from the document. The contract was signed on June 28, 1999. The concessionaire did not observe the deadlines and conditions for the concession fees. By June, this year Kremikovtzi owes totally USD 13 660 for 2002 and for the first and second quarter of 2003. Practically, the company provided the exploitation of the field to Kremikovtzi-Rudodobiv JSC. The Government will authorize the Minister of Economy to gather the owed funds, interests and liquidated debts, including by court way.
Source: BTA (21.11.2003)

Taking into consideration the available data for the stocks in the deposits of Norilski nickel, Russian analyzers evaluated the stocks of platinum to about 1400 tons, which compared to the present amounts of extraction will be enough for 47 years. The stocks of palladium were estimated to about 4660 tons and will be enough for more than 70 years.
Source: Pari (21.11.2003)

One-month strike in the Serbian metallurgic plants, property of US Steel, finished when the paymaster was raised from 37 to 44 dinars per hour.
Source: Pari (21.11.2003)

Bulls moved out of the market. The liquidation of the positions of the funds and the lack of interest by the consumers will reduce the price of copper initially to 1950 USD/t. Although there is a potential for further sharp drop in the prices the funds will see the opportunity to liquidate their positions, before the market reaches lower levels, commented the economist from Sempra Metals Mr. John Camp on Thursday when the copper lost its comparatively high level of 2000 USD/t. Copper started to lose its positions since Monday when the brokers get acquainted to the lowering movement, without even having market or technical instrument. Aluminum, whose price usually follows the price of copper resisted for a long time, but on Thursday its price also slipped down. The same happened with the prices of the other metals – zinc, lead, tin and nickel. In the end despite the weekly drop in the quotations of the non-ferrous metals on LME their prices kept their high levels.
Source: Capital (24.11.2003)

As it seems Serbia will confront with EU because of the imposed export fees on the export of metal scrap. Serbia imposed fees on the export of metal scrap in amount of 15 and increased up to 18 per cent the duties for imported steel in order to protect the local producers. According to Serbian companies, the new fees prevent the exporters of scrap from conclusion of trade deals with Bulgaria and Romania. Recently the European Commission acted unprecedentedly, when in response of the efficient as of 1999 Russian export fees on the metal scrap, reduced with 12 per cent the import of Russian steel. Then Brussels commented that the costs of the metallurgic industry in the countries from the eurozone increased because of the higher export prices of the scrap in the rest world. Last month the spokesman of the Serbian Trade Association announced that the new export fees on the scrap would be introduced in order to be restricted the uncontrolled export. Serbia imported 90 000 tons metal scrap at the amount of USD 10 million and exported 52 000 tons for USD 4 million. The local producers of copper, aluminum and steel urged the Government to define the metal scrap for strategic raw-material and to introduce the new fees as of August 15.
Source: Pari (24.11.2003)

The Belgium producer of non-ferrous and precious metals Umicore, owner of the mine extraction refinery in Pirdop announced that its new issue of shares is relisted more than 4 times and from the issue will accumulate USD 175 million.
Source: Pari (24.11.2003)

Norway threatens USA with sanctions on the import if in December Washington won’t annul the steel duties. The Government decided to impose additional rates of 30 per cent on the import of any specified US goods. EU also threatens USA with duties for USD 2.2 million on some goods, which are produced in quite significant for the US President Mr. George Bush states.
Source: Pari (24.11.2003)

One of the biggest copper mines in the world – Rio Tinto confirmed the prognosis of different experts that during 2004 the demand for copper will exceed its supply.
Source: Pari (24.11.2003)

The European sanctions against the raising of the US import duties will become automatically efficient on December 6 or five days after the World Trade Organization officially adopts the sentence against USA. In the agenda of the World Trade Organization for its meeting on December 1 is included an item that it will officially adopt the report of the Arbitrage Commission for the raising of the American import duties for steel. A speaker of the EU in Geneva added that the demand is agreed among eight countries, which disputed the raising of the American import duties. The countries are EU, Brazil, China, Japan, New Zealand, South Korea, Norway and Switzerland. During June 2002 EU developed a mechanism, which includes sanctions at a value of USD 2.2 billion, which will automatically become efficient on December 6, or five days after the report of the Arbitrage commission is adopted. The sanctions will not become efficient if Washington announces that it will invalidate the higher duties, which it imposed in March 2002 in order to protect the American steel producers.
Source: BTA (25.11.2003)

The American investment bank Goldman Sachs raised the average prognoses for the price of non-ferrous metals during 2004 and 2005. The main reason for the raising was the growth in the Chinese consumption. Goldman Sachs raised the prognosis for the Chinese economic growth during 2004 from 8.5 per cent to 9 per cent, which will cause growth of the consumption and deficit in supply, most significant in the price of copper, aluminum and nickel. According to the bank the demand for aluminum and copper in China will grow as it follows with 18 and 13 per cent as compared to the previous prognoses of 13 and 9 per cent. The specialized metal department of the bank raised the average annual quotations of copper as of 2004 and 2005 from 1940 USD/t and 2072 USD/t to 2227 USD/t and 2469 USD/t. About 2/3 of the nickel, used in the country goes for production of rust-proof steel. About 50 per cent of the zinc is used for galvanization of flat carbon steel. The bank believes that the consumption of copper, aluminum, nickel and zinc may even report a two-digit growth. If we compare the consumption of China with the one of Japan during the period of industrialization during the 60s and 70s, we will find out that the prognosis of a long-term bull market of metals is completely reasonable, concluded Goldman Sachs.
Source: Pari (25.11.2003)

The drop in the price of copper, the accumulation of stocks and the revival of the stock exchange convinced the speculators in China to withdraw from the market. Yet market was balanced by the news that WMC will cut its production. The price of the three-month deliveries of copper decreased to 1973 USD/t, with 2 USD/t higher level as compared to Friday, but only a week earlier their price was 2100 USD/t. The price of aluminum fell with 2 USD/t to 1507 USD/t, and nickel was traded at a price of 11 870 USD/t while a week ago its price was 11 770 USD/t. The price of zinc grew with 10 USD/t to the level of 916 USD/t, and the price of lead with 1 USD/t to 612 USD/t.
Source: Pari (25.11.2003)

The fifth biggest American metallurgic company - Rouge Industries signed an agreement with the Russian Severstal for the sale of all its assets for USD 215 million. The deal will be finalized by the end of January 2004. During the last several years Rouge has been working at a loss and requested governmental protection against the creditors. Therefore the court has to adopt the deal for the sale of the assets of the company.
Source: Pari (25.11.2003)

The Belgian company Umicore, which is among the leading producers of copper and zinc in Europe, and owner of the copper-processing factory in Pirdop recently started to produce special materials and to recycle precious metals. The company purchased part of the assets of the German company Demet, which produces catalysts from recycled metals.
Source: Pari (25.11.2003)

The student organization Board of European Students of Technology (BEST) will develop a database for employers. In it will be included CVs of the students who took part in the second meeting Job Fair 2003 that took place in the Technical University yesterday. About 20 companies, working in the field of the information and communication technologies and metallurgic industry, presented the opportunities for work for students from technical majors. Among the companies were Siemens, Ericsson, Procter&Gamble, Viohalco consortium and others. Most of the companies are unanimous that such meetings are a quite good chance for them to find new employees. Usually the necessary time for the students to enter the business sphere is from 6 months to one year, said the HR Manager in Viohalco Mr. Toncho Tomov. He also added that the companies from the group permanently organize trainings, which are also a suitable way for selection of candidates for work. At the moment in Viohalco there are vacant positions for specialists on electronics, automation of industry, engineers and mechanics, Mr. Tomov said.
Source: Dnevnik (26.11.2003)

The Greek Industrial group Viohalco will invest EUR 2 million in the production of sunny panels, announced the Chairman of Viohalco for Bulgaria Mr. Anton Petrov. The new company has already been registered. Its name is Sunny Solutions. The panels will turn the sun energy into electricity.
Source: Dnevnik (27.11.2003)

The Greek company Viohalco will build in Pernik a new company that will produce electricity from sun energy, announced the representative of the company in Bulgaria Mr. Anton Petrov. So far the technology has been developed only in Germany and USA and Bulgaria will be the first country on the Balkans, where it will be installed. The new company will produce special panels that will turn the sun energy into electricity. 100 per cent of the market of the new production will be in Germany. Mr. Anton Petrov specified that after the accession of Bulgaria to EU, the domestic market will open for certain. The funds in the new company exceed EUR 2 million. They have to be spent by the middle of 2004 when the company must start working.
Source: Pari (27.11.2003)

The Greek company Viohalco will build a sun electricity station in Pernik. In its construction will be invested BGN 2 million.
Source: Trud (27.11.2003)

The Greek group Viohalco will build in Pernik a company for panels that turn the sun energy into electricity, announced the representative of the company for Bulgaria Mr. Anton Petrov. The investment’s amount is EUR 2 million. The purchase of machines has already started. The company is unique for Bulgaria. The technologic principle on which works is catching of the photons and their turning into electrons, specified Mr. Petrov. According to him only in USA and Germany is used sun energy for manufacture of electricity. That’s why, initially the production of the new company will be pointed to Germany. The company will be situated on the platform of Stomana Industry. In it will work mainly women. The company will start with 25 employees. The new production is planned to begin as of the middle of the next year
Source: Dnevnik (27.11.2003)

Chile, the world’s top copper producer, intends to invest USD 9.6 billion in the mining industry over the period 2003-2007. This will result in a 21.7-per cent growth in copper production. By the year 2010, Latin America, represented by Chile, Brazil and Peru, will meet 55 per cent of the world’s copper demand.
Source: Pari (27.11.2003)

Viohalco is going to build a plant for manufacture of panels, transforming light energy into electricity. This was announced by Mr. Anton Petrov, representative of the Greek group for Bulgaria. The plant will be located on the platform of Stomana Industry, where the amount of the investment is EUR 2 million. According to plan, the new facility will start operating in the middle of next year and will employ 25 people. In the beginning, the plant’s production will be exported to Germany.
Source: Capital (29.11.2003)

The program for steel industry restructuring has been sent by the Ministry of Economy to the European Commission for co-ordination. The document requests closing of the chapter Competition. It includes the amount of steel production due to be realized by the three enterprises – Kremikovtzi JSC – Sofia, Pernik-based Stomana Industry and Promet Steel – Burgas by the year 2007. Last week, representatives of the Ministry of Economy and of the European Commission discussed the document. Today, the Deputy Prime Minister Ms. Lidia Shuleva will meet Mr. Mario Monti, commissioner responsible for the Competition Directorate, and Mr. Morten Olsen, head of the European Commission's Bulgaria team. They are going to discuss the progress made so far in the field of competition. The Deputy Prime Minister will also have meetings with the commissioner responsible for Trade Mr. Pascal Lamy. Minister Shuleva will present the measures undertaken by the Ministry of Economy in the direction of improving the business environment.
Source: Pari (01.12.2003)

The five consecutive days of growth in the level of Russian shares, registered in the end of last month, were the topic of a series of corporate news. The shares of Mosenergo (MSNG) were leaders in the drop registered by the blue chips this month. They fell with 11.02 per cent, followed by the shares of Yukos – 8.49 per cent, and the common shares of the energy giant EESR – 6.48 per cent, which, despite the sharp jump in the end of the period, remained at the bottom of the scale. The only shares, which ended the month with a profit, were the common shares of GMK Norilsk nickel, which, after marking a drop of around 19 per cent, managed to recover their levels from the beginning of November.
Source: Pari (01.12.2003)

Copper prices were down to 2100 USD/t in London, only 20 USD/t away from their 6-year maximum. Considering the market deficiency and running out inventories, there is an actual possibility for them to mark a record. Last month, boosted by the factors mentioned above, copper prices jumped to 2120 USD/t. According to Mr. Angus McMillan from Prudential-Bache, production over the coming months will be lower than earlier forecasted. Traditionally, the market will be influenced by a mix of technical problems, arguments between employees and employers and God’s hand. In Chile, the world’s biggest copper producer, one of the labour unions in Codelco threatened to go on strike. The problems of India’s processor Birla and the mining giant Glasberg in Asia strengthened the fears of market deficiency. So far, there is a considerable deficiency, which will continue through next year as well, when it is expected to be 350 and 400 000 tons according to data by Macquarie Bank.
Source: Pari (02.12.2003)

Quarter aluminum deals at LME were contracted at 1541 USD/t, but still far from the levels of 1550 USD/t reached earlier same day. Nickel stabled at 12 255 USD/t, while on Friday it was traded at 12 250 USD/t. Zinc and steel jumped with 3 USD/t each, to respectively 957.50 USD/t and 643 USD/t.
Source: Pari (02.12.2003)

The plant for non-ferrous metals JSC – Plovdiv (KZM) invested additional funds of USD 10 million in 2003. In this way is finished a Japanese ecological project, announced the management of the plant in connection with the annual P/L account. In the preliminary information is added that during this year in comparison with 2002 have been produced 10 000 t zinc, 1000 t sulfurs and over 20 000 t sulphurous acid. In the conditions of the world crisis in the field of metals, the stagnation of the investment processes and the weak dollar, we consider this for quite successful fact, said the Management of KZM. The annual P/L account will be presented at the traditional press conference of the Executive Director Mr. Nikola Dobrev and the Managing Board of KZM on December 16.
Source: Dnevnik (03.12.2003)

President George Bush has not decided yet whether to cancel the controversial steel import duties, the White House announced. The consultations with consumers, producers and members of the Congress, continue.
Source: Pari (03.12.2003)

Last month Japan's refined zinc exports dropped with some 25 per cent on an annual basis, reaching 5.1 thousand tons. This decline in exports is explained by the zinc concentrate deficiency.
Source: Pari (03.12.2003)

Russia's largest and world's second biggest aluminum producer RusAL is planning to increase its production with 1 to 4 per cent over the next 2 or 3 years, and to double it within 10 years. Next year, aluminum production is expected to jump to over 2.6 million tons from 2.58 million tons for 2003. New companies acquisitions and plant building will account for the bigger production.
Source: Pari (03.12.2003)

Lakshmi Mittal, the owner of LNM Group, the world’s second largest steel company, said he expected most of West Europe’s metallurgical companies to move their production to Eastern Europe, where LNM is one of the biggest market players following a series of local companies acquisitions. “East European producers will be faced with the challenge to improve their produce and work quality, in order to meet the new markets’ demand”,the businessman of Indian origin said. In October LNM managed to negotiate a deal with Poland’s government and to acquire Polskie Huta Stali (PHS), the country’s biggest metallurgical company, accounting for 70 per cent of the total production, which is in a process of privatizaiton. The deal includes options for agreements with the trade unions regarding the social program and wages. So far, these options have not been completed and the deal is not finalized. Both LNM and its rival in this deal – US Steel, are rapidly expanding their positions in Eastern Europe. Pretty often, the two companies are bidding for the same company in the region. Mr. Mittal also warned western companies, that China was the biggest threat for them in the mid-term aspect and recommended their consolidation if they wanted to survive. Lately, US and West European metallurgical companies have been encouraged by the fast-growing consumption in China, which made up for the lower demand in their traditional markets. Mr. Mittal warned China was increasing its production capacities and raw materials imports and would become important steel exporter, especially it the economic growth did not meet the expectations. This year, the production capacities grew with 1/3, and demand is expected to increase with an average of 20 per cent per year. LNM Group has significant assets in East Europe, USA and India, and is currently looking for opportunities to enter China (the world’s biggest steel consumer already). LNM is planning to increase its exports to China.
Source: Pari (03.12.2003)

Alcan, the Canadian aluminium group, has won control of its rival Pechiney after 92.2 per cent of the French group's shareholders accepted its EUR 4bn (USD 4.84bn) cash-and-shares takeover bid. The Montreal-based group said late on Tuesday it was planning a second offer, lasting at least 10 French trading days, in an effort to lift its stake above the 95 per cent needed to launch a mandatory "squeeze out" offer to remaining minority shareholders. However, it said the preliminary results from its initial offer showed it had won 92.21 per cent of shares and 93.55 per cent of voting rights. The result takes Alcan well above the 50 per cent threshold on which its offer was conditional, giving it clear control of its smaller French rival and completing its bid to create the world's biggest aluminium group in terms of revenues. It hopes to challenge US rival Alcoa for industry leadership. The Canadian group said it would announce the "nomination of the first level of the new management of Pechiney, in other words the heads of its six divisions" before the end of this week.
Source: Other (03.12.2003)

The general interest in the complex of the non-ferrous metals and the good market factors for the copper fostered a new rally on the market. It started on Tuesday and continued yesterday. On Wednesday the three-month copper deals became more expensive with 14 USD/t compared to the same day and marked a new 6-year maximum of 2149.50 USD/t. According to the analyzator from Standard Bank Mr. Robin Bar, the production problems, market deficit and the decreasing inventories are in favour of the metal. A new factor that can move the copper prices upwards is the threat for a strike in the biggest mine of the top producer of the red metal in the world – Chili-based company Codelco. The prices of zinc and tin have become higher up to unseen for 3 years and 9 months rates or respectively 990 USD/t and 5660 USD/t. Aluminum registered 2.5-year maximum of 1562 USD/t on Tuesday and yesterday settled at the levels of 1556 USD/t. The market commentators expect the second by size consumer in the world – China to become soon a net importer and the demand to continue to increase with 20 per cent.
Source: Pari (04.12.2003)

One of the biggest international private companies in the field of health management - Netcare Healthcare Holding Ltd. plans to invest over EUR 20 million in Bulgaria. The point of the company is to become the major supplier of medical services in Central and Eastern Europe. Netcare is also interested in the privatization and management of the hospitals in Bulgaria. The company will do its best to introduce new technologies and to provide medical services.
Source: Pari (05.12.2003)

By the year 2009, Kremikovtsi JSC will have installed the Corex cast iron environment-friendly technology. The investment is estimated at EUR 240 million. The technology is one of the most modern in the world and provides economical production and insignificant environment pollution. Corex will change the plant’s current production, based on blast furnaces. The new technology is based on non-coking coal, which give off almost no harmful issues. If in 1990, a 1220 g of ash in the air was permissible in 1 tons of cast iron, in 2005, it should be 310 g/t. With Corex, this content will be 45g/t. Five metallurgical plants in the whole world have installed this technology. It has been developed by the Austria-based Alpine Industrianlagenbau.
Source: Pari (05.12.2003)

The metals – from the gold and platinum to the copper and zinc are among the most favoured by the record low USD/EUR rate. A whole group of metals, including copper, nickel, platinum, aluminum, tin and zinc registered multi-year maximums partly on account of the cheap US currency since they are traded in USD. Another factor that supported the prices is the holes in the supply. Platinum set the most impressing record among the metals yesterday. Copper, which has become more expensive with 38 per cent since the beginning of the year, registered a new 6-year record of 2161.50 USD/t and settled down at the levels of 1257 USD/t. The higher price of the red copper is based on fundamental factors and on the expected strike in Chili Codelco in connection with disputes about the payment. Nickel reached 13 000 USD/t and on Wednesday was sold at the highest prices since 1989. The quotes of the metal were influenced by doubts for breaking of the regular deliveries. The Canadian Falconbridge, the third by size company for extraction of nickel, continues negotiations with workers who want higher salaries and improvement of the labour conditions. Zinc is moving permanently to the forgotten in March 2001 levels of 1000 USD/t, although yesterday its quote was 983 USD/t at 990 USD/t for the former day. Tin rates exceed the 4-year maximum of 5660 USD/t and yesterday reached 5700 USD/t.
Source: Pari (05.12.2003)

President Bush may scrap most of the steel import duties, imposed three year ago in order to avoid possible retaliatory sanction by some European countries and Japan. According to observers, the main reason for this step is political. In order to soften the blow on US metallurgy, he is expected to continue the import monitoring regime for imported licenses, as well as financial aid for covering the social and health costs of those employed by metal industry. The long-awaited decision came a month after WTO’s final decision, namely that the 8 to 30 per cent steel import duties imposed by USA in April 2002 are against its regulations. Key Bush advisers have concluded the tariffs are causing more harm than good and that lifting them would boost Bush's standing with steel consuming industry. EU warned it was ready to hit Washington with sanctions on up to USD 2.2 billion of duties on American imports, which would be crucial for Bush’s reelection in 2004. Even before WTO issued its final judgment, advisers insisted the president to withdraw the tariffs, since they had served their goal – to provide enough time for US steel industry to recover.
Source: Pari (05.12.2003)

The second by size producer of aluminum in Russia and among the biggest in the world SUAL plans in the beginning of 2004 to solve the problems connected with the joint project for USD 2.1 billion with the world leader in the industry Alcoa. The Russian company controls reserves of 250 million tons bauxite in fields in Komi. The project includes bigger production of raw-materials /which is used for production of aluminum / from 1 to 6.5 million tons per year, construction of refinery for aluminum and another one for aluminum with annual capacity respectively of 1.4 million tons annually and 500 000 tons. The plans between SUAL and Perchiney for joint company that will take care of the plants failed.
Source: Pari (05.12.2003)

Slovenia's Ministry of Environment terminated the privatization of 85.6 per cent from the aluminum processor Talum, after the two candidate-buyers Magyar Alumiminum and Slovenia-based investment company Sinal said the electricity prices they would have to pay, were too high.
Source: Pari (05.12.2003)

On Monday (December 1) Sofia District Court enacted that Kremikovtzi owes to BDZ BGN 3.9 million, accumulated since the beginning of September and guaranteed with 12 promissory notes. One day later with permission of the Minister of Transport Mr. Nikolai Vassilev, the railways demanded to be blocked the bank accounts of the metallurgic plant. Kremikovtzi did not contest the claim and the accounts of the company were distrainted. According to well-informed sources, this is only the beginning of the court war between the two companies. Most probably in the beginning of next week the bank accounts of Kremikovtzi in Bulgaria will be blocked. If this does not give any result, the railways are ready to reach the international partners of Kremikovtzi too. The Executive Director of BDZ Mr. George Neshev confirmed the information and added that in spite of the court disputes and financial incorrectness of Kremikovtzi, the railways continue to transport the plant’s production. According to the Chairman of the Supervisory Board of Kremikovtzi Mr. Bojko Bonev, BDZ really had a court decision for BGN 3.9 million but the real owed amount was only BGN 800 000 (i.å. in the frames of the one week tranches to BDZ). It is not known how and from where comes this difference.
Source: Banker (08.12.2003)

EUR 240 million is the investment of Kremikovtzi in the technology COREX of the Austrian company Fiost-Alpine Industrie anlagen bau. For the presentation of the technical, ecological and economic aspects of the new technology are invited the Minister of Economy Ms. Lidia Shuleva and the Minister of Environment and Waters Ms. Dolores Arsenova. With the introduction of this contemporary technology in the Bulgarian metallurgic plant, Kremikovtzi will increase the production competition and the process of manufacture of cast iron will be ecologically clean without the use of coke. This will lead to closing of old and not responding to the contemporary requirements production capacities.
Source: Monitor (09.12.2003)

The quotes of nickel, used mainly for the manufacture of stainless steel, increased up to 13 020 USD/t, the highest amounts during the last 14.5 years on the biggest market-place for non-ferrous metals – the stock exchange in London. During the last 30 days nickel managed to add 1000 USD/t to its prices and their rally for the period from the middle of the year until now is far more impressive and amounts to 5000 USD/t. The crucial factor for the big prices’ raise of the metal is the boom of the steel-extraction industry because 2/3 of the all metal volumes are used for extraction of stainless steel and because of the serious and higher Chinese consumption. On other hand, the metal was supported by the continuing disputes between the workers and employers in the Canadian mine-extraction company Falconbridge – the third by size producer of nickel in the world with 5 per cent of all extractions. Since the raise of the prices is caused by a series of several major market factors, it can not be stopped even by the relatively big stockpiles on the stock exchanges, which are not far from the maximums for the last about 3 years.
Source: Pari (09.12.2003)

After the decision of USA to cancel the duties on the steel articles, EU will cease the procedure for implementation of defensive measures, declared the European Trade Commissioner Mr. Pascal Lami. Japan and Southern Korea also saluted the decision and reported that they would not take any measures. The controversial duties were introduced in March, 2002 in order to protect the American steel-extraction companies and is expected the deadline for the duty operation to be by March, 2005. In the summer they were claimed as illegal by WTO. Any US producers of steel blamed the president that "he surrendered to the European pressure ". Economic Cooperation and Development Organization saluted the decision of USA for the duties’ cancellation and declared that it favours the prospectives for achievement of global agreement connected with the taking out from exploitation of the unnecessary production capacities.
Source: Pari (09.12.2003)

By the end of the year, Bulgaria will submit the final reading of the National Steel Industry Development Strategy in Brussels. EU is expected to finish the analysis of the program a month thereafter. The second part of the program will be consulted with the Competition Protection Commission and EC. According to Ms. Evgenia Koldanova, Deputy Minister of Economy, the major requirement set by EU is for a minimum state aid for the enterprises. The investment programs of Kremikovtzi, Stomana and Promet are included in the program. Kremikovtzi’s new EUR 240 million investment in cast iron production is also included in it.
Source: Monitor (10.12.2003)

By the year 2009, Kremikovtzi will put into operation a new ecological installation for manufacture of liquid cast iron. The amount of the investment is EUR 240 million, and after the installation of the new system, Bulgaria will become the fourth country in the world, after the Republic of South Africa, India and South Korea, to operate the Corex system. A part of the investment will come from sales of carbon dioxide emissions to European companies. The sale will cover around 40 per cent of the financing, the company’s Director – Mr. Valentin Zachariev, announced.
Source: Sega (10.12.2003)

Burgas-based Promet is losing thousands of USD from non-executed orders for delivery of reinforced iron to USA, due to the ship Elena incident. This was announced by the Chairman of the company’s Supervisory Board Mr. Penyu Donev. The ship was loaded with 2000 t of steel materials. The products were supposed to be delivered to Promet for its US order. Currently, Promet is trying to buy the same steel materials from Stomana – Pernik, but the Pernik-based company refused to provide the materials, explaining its schedule was full. At present Elena is still located in Port – Varna. The crew is on duty, the ship has a new captain. His name is Mr. Georgi Kalchev, Mr. Doichin Doichev – President of Board Marine – Burgas, announced. The company is manager of the ship.
Source: Dnevnik (10.12.2003)

Ukraine, one of the leading exporters of metal scrap in Europe, announced that the export of iron scrap reduced to 1.37 million tons during the first nine months of 2003 at 3.4 million tons for the same period of 2002. The Government does not explain the fall but according to analyzators the reason is in the export fee of 30 EUR/t for export of steel scrap. According to the Ministry of Economy, Ukraine probably will increase the steel export to 26 million tons in 2004 at 25 million tons for this year.
Source: Pari (10.12.2003)

The Belgium company Umicore, owner of the copper-extraction plant in Pirdop, for a second time will increase the production of lithium batteries in its plant Cheonan in Korea because of the higher global demand.
Source: Pari (10.12.2003)

Three final offers were received for 79.48 per cent from Dunaferr, - Hungary’s biggest metallurgical company, which last year produced 1.4 million tons of flat rolled iron. This information was disseminated by the Hungarian Privatization Agency. The names of the candidates, however, were not revealed. A source, close to the deal, claimed one of the interested companies – Brazil’s Companhia Siderurgica Nacional, did not present an offer, and the other three companies are Russia’s Severstal, the world’s second largest steel producer LNM Holdings, owned by the businessman of Indian origin Lashmi Mittal, jointly with the Czech subsidiary ISPAT NOVA, and a consortium, headed by Ukraine’s Donbas. 60 per cent of Dunaferr’s production is sold on the domestic market, and the remaining part of it is exported chiefly to EU. The selected buyer should invest at least USD 280 million in the company within the next 5 years; it should also invest USD 57 million turnover funds, sink the combine’s debt of USD 62 million, as well as buy up 5 per cent of the employees’ shares. “We have assets in the Czech Republic, Poland, Romania and we are interested in buying the plant in Hungary, in order to strengthen our presence in Central and Eastern Europe” – LNM Holding’s Representative Mr. Paul Weigh said. Severstal wants to buy Dinaferr in order to gain access to European markets, which are currently limited for Russian producers. By Christmas, the name of the winner in the tender should be revealed.
Source: Pari (11.12.2003)

Ukraine will preserve the ban for the export of unprocessed iron scrap until 2010. The ban was imposed during July 1999 in order to obstruct the unlimited export of scrap from non-ferrous metals and from aluminum and copper scrap in specific.
Source: Pari (11.12.2003)

Russia may cancel the 5 per cent export fee for the aluminum and the 5 per cent duty on the import of aluminum, was reported from the Ministry of Economy.
Source: Pari (11.12.2003)

European Commission started a procedure for investigation of the extended state-owned aids to the Belgium producer of metals and high-tech materials Umicore, owner of the copper-extraction plant in Pirdop. They will be as VAT discounts in amount of EUR 20 million.
Source: Pari (11.12.2003)

Baosteel, the branch of one of the biggest metallurgic producers in the world – the Chinese company Baoshan Iron and Steel, increased its forecasts for the incomes from sold steel during this year with 8 per cent up to USD 5.1 billion, regarding the higher than the expected prices of steel. Analyzators think that they are higher in China on average with 20 per cent during this year and the economic growth in the first half of the year is 8.2 per cent. Baosteel /with market value USD 8.3 billion/ left only behind JFE Holdings, Japan Steel Corp and South Korean POSCO and has accumulated a turnover of USD 22.1 billion for the first six months.
Source: Pari (11.12.2003)

World market refined copper deficiency has grown to 389 000 tons over the first nine months of the year, compared with 83 000 tons surplus during the same period of last year and expected deficiency of 370 000 tons. This was announced by the International Copper Study Group (ICSG). The consumption over the review period has jumped with 2.3 per cent, where Asia accounts for most of it, unlike USA,where it marked a drop, and Europe, where it remained flat. Supply was down 1.2 per cent, and the total inventories of the three major exchanges – London, Chicago and Beijing, in the end of November were 850.3 thousand tons, which is 49.1 thousand tons less than the end of October. The average cash prices in November were up to 2055.4 USD/t compared to 1920.5 USD/t in October. Recently boosted chiefly by deficit, copper’s price went up to a 6-year price record and is currently varying around this level. Copper market is also influenced by the ongoing strike in the biggest mine of the world’s largest copper company Codelco, which has been continuing for the seventh day in a row. Codelco is losing USD 700 000 a day from this strike. The company is expected to produce 1.629 million tons of copper in 2004.
Source: Pari (12.12.2003)

The amount of steel imports in USA will increase slightly after the customs duties were repealed and will not near the former high levels in the short term, according to a forecast made by the American Institute of Imported Steel (AIIS). By the middle of 2004, an average of 2-2.4 million tons of steel will be imported on a monthly basis, AIIS forecasted.
Source: Pari (12.12.2003)

The metallurgic company Kremikovtzi plans as of 2009 to produce cast iron in accordance with a new technology that will replace the current furnace production. The new installation for manufacture of cast iron on COREX system will have annual capacity of 1.5 million tons cast iron – approximately as the current level of production. The installation’s building has to start in 2005, declared the management of the plant in cooperation with Fiost alpine industrianlagenbau – the company that has already built similar installations in Southern Africa, India, China and Southern Korea. The project’s finance in amount of about EUR 240 million has to be provided through bank credits, own funds and on the system of trade with gas issues. The Executive Director of Kremikovtzi Mr. Valentine Zahariev forecasts that the sale of issues can provide to 40 per cent of the necessary finance. The report from Kioto is a global agreement for restriction of the issues of harmful gases, which pollute the atmosphere and caused the so-called hothouse effect. The point is within 2012 the issues of hothouse gases to be reduced with 8 per cent in comparison with level from 1990. To each country will be defined an annual quote that can be traded. There are two ways for the countries to reduce these issues – either to invest in this, or to trade issues with other countries. However, there are many questions in EU connected with this problem. Regarding the intentions of Kremikovtzi, Mr. Valentin Zahariev said that he was interested in a big European country, without specifying its name. The new system for production of cat iron works without coke batteries, which make unnecessary the coke-chemical plant, agglomeration plant and the furnaces in Kremikovtzi. The six agglomeration machines are amortized, the three furnaces consume much electricity and the coke batteries are in the end of their exploitation period, specified the Technical Director in Kremikovtzi Mr. Stoyan Pirlov. Ir is expected the new system for manufacture of cast iron to reduce significantly the level of the gas issues in the atmosphere and the pollution of the waters to levels under the European ecological norms, was reported from Kremikovtzi. Quite different from COREX system, the furnace process requires big investments for managing with the ecological problems, regarding the level of the issues from the coke batteries and the agglomeration plant that at the moment break the accessible standards. Six plants in four countries all over the world exploit COREX technology, said the Vice President on steel-extraction of Fiost alpine industrianlagenbau Mr. Diter Suka.
Source: Capital (13.12.2003)

The final draft of the Steel industry restructuring program will be ready and consigned to the European Commission by the end of the year, the Deputy Minister of Economy Ms. Evgenia Koldanova announced. EC is expected to be ready with the analysis of the program a month later. The first part of the paper reflects the plans for development of the main enterprises operating in the sector – Kremikovtzi, Stomana Industry and Promet. It also includes the forthcoming change in Kremikovtzi operational technology, announced this week. The second part of the program deals with state subsidies. “ The program’s main idea is that no state subsidies should be granted in any form”, Ms. Koldanova said. The European Commission recommended stated subsidies to be reduced to the minimum, when the enterprises viability should be maintained.
Source: Capital (13.12.2003)

Assarel Medet received an international certificate for integrated management system. This is the first company from the mine sector, which received such a document.
Source: Banker (15.12.2003)

London Metal Exchange was overwhelmed by Christmas mood and the prices steadied after marking sharp jumps last week. The only exception was nickel, which price on Monday was up USD 200 reaching levels of 13 250 USD/t – a record since May 1989. On Wednesday it went even further up reaching 13 415 USD/t. Analysts unanimously think that this upward trend is stable and nickel prices may reach levels of 15 000 USD/t. Quotes are boosted by big metal demand by stainless steel producers, which are the world’s chief nickel consumers, as well as the negotiations over the wages of the workers in Canada’s Falconbridge, which accounts for 5 per cent of the world’s total production. Copper also made an attempt to beat its last week record, reaching 2168 USD/t. In the end of the week, the market started consolidating at lower levels.
Source: Capital (15.12.2003)

Direct foreign investments will reach the record USD 1,5 billion in 2003, said the Director of Foreign Investments Agency Mr. Pavel Ezekiev. In this way will be exceeded the level from 2000 when were attracted USD 1 billion, added Mr. Ezekiev. The bigger part of these investments is in existing business sectors. For example, LUKoil Neftochim invests over USD 150 million in renew of the manufacture and in new petrol stations. The Italian group Miroglio finalized a big investment programme in the field of the textile industry. The Greek company Viohalco invested over EUR 30 million in Stomana industry. According to preliminary data, at first place by amount of the investments in Bulgaria in 2003 is Greece with 23,5 per cent from the their total amount, followed by Switzerland and Netherlands.
Source: Trud (15.12.2003)

It will become clear this week whether the company Jelezara Niksic will be sold to the Bulgarian company Steel Group Investment Consortium. This was announced by the member of the Privatization Council with Montenegro’s government Mr. Branko Vuyovich. The Bulgarian company obliged to invest EUR 57 million in the plant over the next five years, to keep 1700 jobs and to provide a social program for the dismissed workers. It will also assume the debts of the enterprise to its suppliers and employees, amounting to EUR 5 million. According to unofficial information, the Bulgarian company Rua Invest stands behind Steel Group Investment Consortium. It should guarantee it could provide steel production during the first 45 days. The other companies, which took part in the bidding for Jelezara Niksic, are Turkey’s Kurum Demir and Germany’s Max Eicher.
Source: Pari (15.12.2003)

Bulgarian companies that export hot-rolled rolls to Canada are threatened again by high import duties on their goods in the country. A decision of the Canadian Custom Agency confirmed the opinion of the giants Algoma, Stelko, Ispat and Dofasko that there is an illegal dumping of Bulgarian, Romanian and Czech companies. The analyzator for BMO Nesbit Burns in Toronto Mr. Randy Kuzins commented that the reason for this import is the higher consumption of steel in Canada, which leads to a jump in the good’s prices. The average price of the hot-rolled rolls (frequently observed by the analyzators and experts and considered to be the most indicative for the trends in the branch) is expected to be about USD 315 per ton for the fourth quarter of the year and between USD 330 and USD 350 for the first quarter of 2004. This is an increase with about 30 per cent in comparison with the price in June, which moved about USD 260 per ton. According to sources from the Custom Agency, the price of the Romanian steel is with over 60 per cent lower in the country and of the Bulgarian and Czech – with about 20 per cent. There is not any Bulgarian producer, who has exported hot-rolled rolls in 2001 and 2002, announced the Secretary of the Branch Chamber of the producers from the ferrous and non-ferrous metallurgy Ms. Politimi Paunova. There are not data about the export in 2003 but non-officially is claimed that our companies do not export to Canada. From Kremikovtzi was also reported that there was not export to Canada neither of hot, nor of cold-rolled steel. Kremikovtzi is the sole in the State that produces cold-rolled rolls. Two months ago was marked a case of re-export of such rolls from a Greek company but it was found out that this export was realized through false documents, was specified from the Chamber.
Source: Dnevnik (16.12.2003)

Supported by the collapse on the stock exchange market after the capture of the former Iraq dictator, the prices of the non-ferrous metals moved upwards and copper registered a new multi annual record while gold crashed with 7 USD/tr. ounce to 400 USD/tr. ounce in the beginning of the trade in Asia because of the hopes that the authority transaction in Iraq will speed up. Yesterday the three-month copper deliveries were being sold at record high prices - 2185 USD/t /at 2159 USD/t on Friday /, but in the afternoon became cheaper to 2172 USD/t. If the copper closes over 2170 USD/t, it can be expected to attack the levels of 2200 and after that 2300 USD/t, according to forecasts of Triland Metal. Nickel, which marked a new 14 1/2-year maximum of 13 500 USD/t on Friday, moved back considerably to 13 335 USD/t and the forecasts are for reaching the levels of 14 000 USD/t very soon. Aluminum became more expensive with 3 USD/t up to 1567 USD/t and zinc with 1 USD/t up to 995 USD/t. The lead’s quotes are without a change - at 676 USD/t.
Source: Pari (16.12.2003)

The biggest company, which extracts iron ore – the Brazilian CVRD intends to invest USD 2.4 billion in enlargement of the production. This year CVRD has invested USD 1.8 billion. Its aim is to turn into the third by size diversified mine extraction company and makes surveys in many countries from Mongolia and Peru to Mozambique.
Source: Pari (16.12.2003)

Bulgarian companies that export hot-rolled rolls to Canada are threatened again by high import duties on their goods in the country. A decision of the Canadian Custom Agency confirmed the opinion of the giants Algoma, Stelko, Ispat and Dofasko that there is an illegal dumping of Bulgarian, Romanian and Czech companies. The analyzator for BMO Nesbit Burns in Toronto Mr. Randy Kuzins commented that the reason for this import is the higher consumption of steel in Canada, which leads to a jump in the good’s prices. The average price of the hot-rolled rolls (frequently observed by the analyzators and experts and considered to be the most indicative for the trends in the branch) is expected to be about USD 315 per ton for the fourth quarter of the year and between USD 330 and USD 350 for the first quarter of 2004. This is an increase with about 30 per cent in comparison with the price in June, which moved about USD 260 per ton. According to sources from the Custom Agency, the price of the Romanian steel is with over 60 per cent lower in the country and of the Bulgarian and Czech – with about 20 per cent. There is not any Bulgarian producer, who has exported hot-rolled rolls in 2001 and 2002, announced the Secretary of the Branch Chamber of the producers from the ferrous and non-ferrous metallurgy Ms. Politimi Paunova. There are not data about the export in 2003 but non-officially is claimed that our companies do not export to Canada. From Kremikovtzi was also reported that there was not export to Canada neither of hot, nor of cold-rolled steel. Kremikovtzi is the sole in the State that produces cold-rolled rolls. Two months ago was marked a case of re-export of such rolls from a Greek company but it was found out that this export was realized through false documents, was specified from the Chamber. When the accusation rose, it became clear that it was a procedure aiming the imposition of this final measure. The result was clear because we can’t talk about a dumping of 10 000 tons steel on a market, which trades with millions of tons, considers Mr. Anton Petrov, a representatives of Viohalco for Bulgaria, owner of Stomana industry. The measure is a violation of the free trade and we hope soon to be canceled, said he. For the last decade Canada at least 5 times has started similar surveys, which most frequently end with a sharp increase of the duties for the accused countries. Bulgaria Romania and Czech hold a small part of the consumption of steel in Canada. In the end of July (when for a first time Canadian steel companies paid attention to this problem) the share of the Bulgarian and Czech goods is respectively scarcely 3.3 per cent and 3.6 per cent and only Romania with its 13.1 per cent is a bigger threat for the local producers. Although, Canadian Regulatory Authorities can start a survey for dumping since the three countries exceed the necessary for this inspection minimum of 3 per cent market share.
Source: Dnevnik (16.12.2003)

The non-ferrous metal plant, located near Plovdiv, will continue to increase its zinc production output, despite the expected world surplus of 24 000 tons next year, Eng. Nikola Dobrev – Executive Director of the company stated. According to him, world zinc consumption in 2004 will grow with 3.1 per cent. Lead deficiency, however, will maintain. The International Lead and Zinc Study Group (ILZSG) forecasted a 334 000 ton deficiency next year. Although the prices of non-ferrous metals have reached their highest levels since three years ago, the Non-ferrous Metal Plant (NFMP) near Plovdiv is ending the year 2003 with a BGN 400 000 accounting profit. The average lead prices through the year were 428 USD/t and the average zinc prices – 741 USD/t. This year, NFMP produced 71 000 t of zinc, 61 000 tons of lead, 260 t cadmium, 117 000 t sulphur acid, 850 t bitominous alloys and 850 t accumulator alloys, almost 5000 t of zinc alloys and sullphate, and over 56 t of silver. More than 80 per cent of the company’s produce was exported. The investments made in environment protection this year amount to over BGN 8 million, Mr. Dobrev said.
Source: Monitor (17.12.2003)

Copper prices are already nearing levels of 2250 USD/t, after recently conquering 2205 USD/t, although the strike in one of the mines of Chile’s Codelco was terminated after 11 days. Thus, the red metal is already traded at new prices, marking a record since 6 years and 3 months. Nickel continued going up and marked a 14-year maximum of 14 300 USD/t last week. Aluminum was quoted between 1567-1570 USD/t yesterday, but its price remained practically unchanged on Monday. Zinc and lead were up 6 USD/t to respectively 995 USD/t and 683 USD/t.
Source: Pari (17.12.2003)

The workers from the biggest in the world complex for extraction of nickel – Falconbridge are continuing the second tour of negotiations with the employers in order to reach increase of the payment. These events increased again the price of the nickel up to unseen for a long time levels, since the metal is quite important for the manufacture of steel and mainly of airplanes and automobiles. The traders on the big world stock exchanges activated their purchases and now expect the price of the metal to reach the level 19 000 USD/t, reached for a last time in 1988. However, the workers from Falconbridge will continue their negotiation with the employers during the Christmas holidays, supported also by the trade union of the Canadian workers from the automobile branch.
Source: Pari (18.12.2003)

Nickel prices reached a new 14-year maximum at LME on Wednesday, when quarter deals were made at prices of 14 900/15 000 USD/t. In early trade, nickel price reached 15 050 USD/t. Copper was traded at 2190/94 USD/t. Aluminum’s price was also up USD 4 to 1578/81 USD/t. So was tin’s price, which jumped with USD 10 reaching 5970/6000 USD/t. Zinc was almost flat at 994/96 USD/t, as well as lead – 685/88 USD/t compared to Monday levels of 687/88 USD/t.
Source: Pari (18.12.2003)

Chile, the world’s largest copper producer, lowered its forecast for 2003 copper production amount with 1.8 per cent to 4960 million tons from 5049 million tons earlier. 2003 production output is 7.4 per cent bigger than in 2002, but in 2004 the country is planning to increase it to 5.49 million tons. Experts forecasted the average copper price next year would reach 92-96 CTS/lb compared with 88 CTS/lb this year.
Source: Pari (18.12.2003)

Norddeutsche Affinerie, Europe’s largest copper producer, expects a EUR 4 million profit after taxation for the fiscal year 2002-2003, ending September 30, compared with EUR 21 million last year.
Source: Pari (18.12.2003)

The biggest world producers of copper, among which Chili, were encouraged by the growing prices of the copper and intend to enlarge its manufacture in 2004. Chili expects to increase its extractions up to 5.49 million tons mainly through development of the mine complex Escondida with major share of the company BHP Billiton, of Codelo mine, property of Chili government and of Collahuasi, a property of Falconbridge and Anglo-American. Expecting a deficit of copper on the world market on the background of the foreseen economic growth in countries like Japan and USA and also in China where were exported the main quantities of copper from Chili in 2003, Chili-based copper-extraction mines forecast in 2004 profits of over USD 10 billion from the export of metal or with 43 per cent more than 2003. Copper forms 40 per cent of the export of Chili. In spite of the outlined deficit, China – the sixth in the world by extractions of copper, plans to increase its import in 2004 and to reduce the domestic production at rising consumption. In 2003 China has already increased with 12.2 per cent the production of copper for the fast developing construction and electronic sector in the country but increased the import of copper concentrate with 42.2 per cent.
Source: Pari (19.12.2003)

The metals in London continued to conquer new peaks at LME during the cautious stock exchange trade. At the non-ferrous metal, the hero was the tin that reached the highest quotes of 6245 USD/t after September, 1996. Brokers expect a new rising of the prices because of the growing demand and the restricted supply. After the 14-year peak of 15 150 USD/t on Wednesday the prices of the nickel retracted to 14 800/900 USD/t at support at 14 350 USD/t. The copper added 12 USD up to 2197/00 USD/t, aluminum - 8 USD up to 1576/80 USD/t and the lead - 4 USD up to 679/82 USD/t. Zinc remained at 990/93 USD/t.
Source: Pari (19.12.2003)

The market of copper will accumulate a deficit of the metal in 2004 and 2005 of 700-750 000 tons, which will shrink the stockpiles under the critical minimum, was reported from Bloomsbury Mineral Economics. According to the consulting agency, the prices will be about 2100 USD/t during the period but they can exceed this price with 150-200 USD for short periods.
Source: Pari (19.12.2003)

The prices of aluminum in currencies, different from USD and JPY, probably will reduce during 2004-2006 even though the lower US dollar will continue to support the prices of the metal in EUR, in AUD and CAD during the next 6 months.
Source: Pari (19.12.2003)

National Social Security Institute imposed distraint on the accounts of Stomana, announced the Director of Pernik-based company Mr. Spas Hristov. The institute demands for BGN 22 461 308, from which BGN 14 018 691 are the principal and the rest – interests. The funds on the deal for sale of the major capacities are also blocked. The new owner of the capacities is the Greek group Viohalco. Each quarter from the Greek holding come BGN 584 000. The funds will be used for payments of debts to former workers and employees of Stomana.
Source: Standart (22.12.2003)

Nickel has exceeded 15 000 USD/t during the last week and reached 15 150USD/t - the highest amount for 14 years at London Metal Exchange (LME). The tin registered a four-year maximum of 6110 USD/t. Among the first places with six-year maximum of 2205 USD/t is the copper as well. The red metal will become more expensive on the background of the cumulative deficit of 700 000-750 000 tons during 2004 and 2005, forecasted London consulting company Mineral Economics. The experts consider that the Chinese consumption will drop abruptly during the second half of 2004 but if still does not happen, the world stockpiles in the end of 2005 will be very small. Any jump for the production capacity is expected only in 2005-2007 and this additionally will worsen the deficit of copper. Earlier was expected the production capacities to expand even in 2004. The non-ferrous metals became considerably more expensive because of the indications of world economic boom, which supposes higher consumption of metals.
Source: Capital (22.12.2003)

The second by size metallurgic plant for production of valuable metals in Bulgaria – Lead-zinc complex (OZK) in Kurzhali plans to increase its production of zinc with about 25 per cent in 2005, declared the Executive Director of the company Mr. Nikola Pashinov. According to data of the agency, OZK intends to produce 27.2 thous. tons zinc per year after the foreseen modernization of the production capacities. The plant’s renew has to finish within 2004. At the moment OZK produces 22 000 tons and zinc products and 13.4 thous. tons lead and for the last year the company produced 19.5 thous. tons zinc and 6.8 thous. tons lead.
Source: Dnevnik (23.12.2003)

The programme Portfolio of Darik radio gave away its traditional annual awards for contribution to Bulgarian economy and finances. The Chairman of Darik radio’s Board of Directors Mr. Radosvet Radev bestowed the biggest award – “Golden Portfolio” on the Deputy Prime Minister and Minister of Economy Ms. Lidia Shuleva. Mr. Valentin Zlatev – General Director of Lukoil Neftochim, and Mr. Momchil Andreev – Chairman of the Managing Board of Raiffeisenbank, were honoured with Golden Portfolio diplomas. The Minister of Finance Mr. Milen Velchev received the special prize “19.5 per cent”. The award for bank management was granted to Bank Austria, and the award for investment of the year – to Viohalco (for their investment in Stomana – Pernik). Prista Oil is company of 2003. Razlog municipality was awarded for attracting the biggest amount of investments in 2003.
Source: Darik Radio (23.12.2003)

The Director of Foreign Investments Agency Mr. Pavel Ezekiev registers more than USD 1 billion entered the country only in the first 9 months of the year. The explanation is that for this period there were several huge investments for over USD 100 million each but in already existing business activities, not on green. Mr. Ezekiev gives an example with investments, made by LUKoil – Neftochim, Miroglio, Viohalco and others.
Source: Trud (23.12.2003)

For the fifth year in a row the Bulgarian Chamber of Commerce and Industry is making a rank list of Bulgaria’s leading 100 companies, using the world recognized assessment criteria such as Forbs and Fortune.The selection for 2002 has been made between 400 Bulgarian companies, distributed in two top lists. TOP 100 -1 includes companies, ranked on the basis of their incomes from sales, while TOP 100 – 2 has an additional criteria, excluding the companies whose debts to suppliers, employees or social funds exceed their profit. For the first time the experts from Bulgarian Commercial and Industrial Palace have prepared two more rank lists – TOP 50 of small and medium-sized enterprises and TOP 50 of the public companies. The first rank list includes companies with incomes from sales exceeding BGN 10 million in 2002, rated by their production capacity per employee working under labour contract. The second list includes winning companies, traded at the Bulgarian Stock Exchange – Sofia, rated by the return of the invested own funds in 2002 and by the change of this indicator compared to 2001. The private commercial companies are already pushing away the big state-owned enterprises from the top positions of the best developing companies in Bulgaria. Two industrial companies occupy the two top positions by profit, correlated to BGN 100 incomes from sales. The number one company is Pernik-based Stomana registering a profit of BGN 61 per BGN 100 incomes, and the number two company in the list is the cement factory Vulkan – Dimitrovgrad, which posted BGN 14 per BGN 100 incomes. Sofia-based company Telelink is number three with a result of BGN 13, followed by Hewlett Packard Bulgaria (BGN 10).
Source: Dnevnik (23.12.2003)

This year’s winner of Darik radio’s economy contribution award Golden Portfolio is the Minister of Economy Ms. Lidia Shuleva. Mr. Milen Velchev was awarded the special prize for business merits “19.5 per cent “ for reducing the amount of corporate tax. Prista Oil became company of the year, and Overgas Inc. was awarded a special diploma. Viohalco received the award for “Investment of the year”, while Razlog municipality was honoured for attracting the biggest amount of investments in 2003. Diplomas and statuettes were awarded to the Director of LUKoil Mr. Valentin Zlatev and the Director of Raiffeisenbank Mr. Momchil Andreev. The award “Bank management of the year” went to Bank Austria.
Source: Sega (24.12.2003)

The Prime Minister and Minister of Economy Ms. Lidia Shuleva received the big award of Darik radio for contribution in the economy and finance Golden portfolio. The award was handed by the Chairman of the Board of Directors of Darik radio Mr. Radosvet Radev at a ceremony in Electroimpex hall. In the category investment of the year was honoured the Greek company Viohalco – for the investment in Stomana Pernik. According to the jury, the company contributed for the boom of one branch of Bulgarian economy, recently considered to be undeveloped – metallurgy. Prista oil was selected for company of 2003. The nominations and the awarded were defined by 9-member jury, including representatives from Market Economy Institute and Economic Development Centre and among them were Mr. Luchezar Bogdanov, Mr. George Ganev and Mr. Alexander Bojkov.
Source: Dnevnik (24.12.2003)

The direct electricity supply negotiation between big enterprises and electricity producers will start in the end of February 2004, NEC’s Executive Director Mr. Vasil Anastasov announced. Although the new Energy Law entered into force on January 1 2004, the delayed electricity market liberalization is due to the elaboration of the regulations on electricity prices and license issuing of the so-called privileged consumers (the plants with 2002 annual electricity consumption of over 100 gWh and “clean balances” with NEC). The sub-legal acts should be developed by the State Energy Regulation Commission (SERC) and should be approved by the Government. Otherwise, the names of the participants in the liberalized market have been known for long. As early as June this year, SERC determined the first ten companies, which will be able to lead negotiations with electricity producers directly. They are Mines Maritza Iztok, Devnya Cement, Agropolichim, Asarel-Medet, Elatsite Med, KCM – Plovdiv, Umicore Med, Neochim, Sviloza and Stomana Industry. These companies provide 15 per cent of Bulgaria’s annual electricity consumption. The names of the electricity producers, which will be able to trade freely a part of their produce have also been specified. On the first stage, a certain quote for free negotiation will be given to TPS Maritza Iztok 2, TPS Varna, TPS Bobov Dol, the heating and plant thermal power stations, as well as to those water power stations that have already been privatized. According to NEC experts, the quotes will be large enough to create competition between electricity producers. The freely negotiated prices are expected to be at least 15 per cent lower than the current weekend prices – BGN 63.15 per mWh.
Source: Banker (27.12.2003)

The long expected growth in the world economy begins, as it seems. Except the growing quotes of the energy resources, this beginning of economic boom in the world influenced also on the trade with metals. The quotes on the non-ferrous and on the precious metals registered in the end of the year record high levels. The price of the nickel at LME at the deals for delivery by 3 months, rose on Monday afternoon up to 16 600 USD/t – the highest level since March 1989. Copper reached a new record compared to August 1997 with 2282.5 USD/t and improved its achievement of 2240.5 USD/t, set only one week earlier. Without a particular lively trade with zinc, its quotes of 1013 USD/t exceeded with USD 10 USD the peak from March, 2001 and the lead reached 720-721 USD/t and exceeded the record high price of 703 USD/t from January, 1997. Tin added USD 90 and with a price of 6420 USD/t gained a new 7 years and a half peak after 6465 USD/t in July, 1996.
Source: Pari (30.12.2003)

The total volume of the aluminum stockpiles of the western countries increased as of the end of November 2003 up to 2.932 million tons from 2.886 million tons in the end of October, 2003 and in comparison with 2.855 million tons in November 2002, was reported from /IAI/. These figures do not include the final aluminum products. The stockpiles of non-processed metal increased in comparison with October, 2003 from 1.531 million tons to 1.544 million tons. The most considerable stockpiles of aluminum are in Europe where they reached totally 1.341 million tons. The countries from Northern America increased their aluminum stockpiles up to 903 000 from 884 000 tons in October, this year but this is less than 969 000 tons in November, last year. The stockpiles of non-processed aluminum are distributed in the separate regions of the world, similarly like 2002.
Source: Pari (30.12.2003)

Trade at LME on Monday was especially active, and the prices reached new peak levels. Nickel led the exchange trend up with its quarter deals and at noon hours reached levels of 16250/16300 USD/t, which is USD 5000 more than the closing of trade before Christmas. Copper also went up to 2270/272 USD/t from 2240.50 USD/t in the end of the previous exchange session reaching new record levels. Aluminum’s price was up USD 5 to 1594/596 USD/t. Zinc added USD 7 to 1010/12 USD/t. Tin also conquered levels higher than USD 6630 last week and reached new seven-and-a-half-year peak of 6410/440 USD/t. Lead marked another record of 709/712 USD/t after USD 703 in March 1997.
Source: Pari (30.12.2003)

Chile increased its copper production output in November with 3.1 per cent to 411 429 t compared with the same period of 2002. The country’s total copper production output for the first eleven months of the year reached 4453.179 thousand tons, which is 7.3 per cent more than the same period in 2002.
Source: Pari (30.12.2003)

EU and Russia signed an agreement for import of 117 000t of Russian steel products to EU, compared to 115 000t in 2003. The original export quotas, introduced in July 2002 by the virtue of an agreement between the two parties, were 1.214 million tons for 2002 and 1.235 million tons for 2003.
Source: Pari (30.12.2003)

The extraction of chrome from Cuba in 2003 reached 33 000 tons in comparison with 25 000 tons during 2003. In 2002 the extraction of the metal reduced with about 50 per cent in comparison with 49 500 t, produced in 2001 and was the lowest for the last 7 years.
Source: Pari (30.12.2003)