Steel production in Bulgaria is the lowest among EU countries Bulgarian production of steel for the eleven months of the year was the lowest among the 27 member states of the EU, according to the World Steel Association (Worldsteel). Until last month, Bulgaria produced 45,000 tons of the commodity, which is still 5.6 % higher than the same period of 2012. Steel production in the EU grew by 5.7 percent in November year-on-year, data show. The largest volume of production was reported by Germany - 3.662 million tons steel or an increase of 5.7% yoy. In the first eleven months of this year, the largest drop in production occured in Hungary – by a third from the 117,000 tons in November 2012 to 83,000 tons in November 2013. Czech Republic reported the largest annual increase - 26.3 % to 443,000 tons.
Source: Dnevnik (06.01.2014)

ArcelorMittal reopens mothballed Tennessee finishing plant ArcelorMittal has decided to reopen a Tennessee steel finishing plant it had closed three years ago because demand had dropped so much. The world's largest steelmaker, which has an extensive presence in Northwest Indiana, plans to hire 61 new employees over the next two years at ArcelorMittal Harriman, which was mothballed in 2011 because of poor market conditions. "This is an exciting development for the ArcelorMittal family and the Harriman region, serving as another indication of the strength and resilience of American manufacturing and the United States steel industry," said PS Venkataramanan, CEO of ArcelorMittal Long Carbon North America. "We look forward to working with the United Steelworkers to safely restart the facility and to providing an enhanced product offering to our customers." The plant gets billets from ArcelorMittal LaPlace, formerly Bayou Steel of Louisiana. The metal is reheated and rolled into merchant bars and other products for the construction market. (NWI)
Source: Other (06.01.2014)

Karnataka to auction 4 to 5 million tonne of iron ore dumps The year 2014 is set to herald better days for the iron ore starved steel industry in Karnataka. The Supreme Court appointed monitoring committee to oversee e-auction of iron ore in the state is readying to put on auction an additional 4 or 5 million tonne of iron ore dumps, which contain mostly sub grade iron ore as the demand supply gap still remains wide. This follows the resumption of mining by Sesa Sterlite, the largest private sector miner in Karnataka, in Chitradurga district during the last week of December 2013. Sesa is expected to put out close to 1 million tonne in the January to March quarter of FY14. The company is permitted to produce 2.29 million tonne a year. Since only 19 mines have started producing ore, the supply is still not sufficient enough to meet the requirement of the steel industry. Taking into account the huge gap in demand and supply, the monitoring committee has decided to increase e-auction of dumps. (Business Standard)
Source: Other (06.01.2014)

Indian steel companies to benefit as China cuts exports Less than a year ago, several brokerages discontinued actively tracking industrial and cyclical stocks as demand weakened and economic growth plummeted to a 10 year low. These sectors are now seeing a revival of interest as the belief is that a combination of global and local factors will see a revival in demand. According to Credit Suisse, the cyclical defensives price to book gap in India is the biggest in the region. While not all cyclicals are showing promise in equal measure, analysts are betting big on steel stocks. Goldman Sachs initiated coverage of 3 steel stocks, TATA Steel, JSW Steel and Steel Authority of India in December as it believes that India will benefit from the improved global steel outlook. The brokerage expects global steel consumption to rise by 4.7% to 1.5 billion tonne in 2014, driven by rising demand from Europe and China. There are several domestic as well as global factors that are likely to aid the profitability of select steel players in India. For starters, global steel prices have strengthened through 2013. (Business Standard)
Source: Other (06.01.2014)

DB Schenker Rail Bulgaria increases market share to 15% Railway services company DB Schenker Rail Bulgaria said it has increased its share on the local market to 15% in terms of transported cargo volumes. DB Schenker Rail Bulgaria generates 70% of its revenues from cargo transportation services with the remainder coming from shunting services, the company said. DB Schenker Rail Bulgaria, which currently employs 230, lists copper producer Aurubis Bulgaria as its top client. Some of its other major clients in Bulgaria include mineral extracting company Kaolin, building materials maker Knauf Bulgaria and steel mill Stomana Industry, according to the company’s Facebook page.
Source: Capital (07.01.2014)

Rio Tinto's Future Depends On Iron Ore Fate Rio Tinto is bullish about iron ore demand in China, which imports around 70% of the seaborne iron ore. To meet this demand, the company is increasing its production. It will increase its production capacity to 290 million metric tons by the first half of 2014 from 260 million metric tons currently, and will add another 40 million metric tons by 2015. Other Australian miners -- BHP Billiton, and Fortescue Metals Group Limited are also increasing iron-ore production. BHP expects to produce 212 million metric tons next year and is clearing bottlenecks to raise its export capacity to 270 million metric tons. Fortescue is projecting to produce at a rate of 155 million metric tons per annum by March 2014. Along with these Australian miners, Vale SA will increase its production by 50% by 2018. Because of the increase in global supply, iron-ore prices are expected to decline in 2014, which will affect Rio's margin. Presently the company's cash cost to delivery, is about $47 per metric ton of iron ore. Since the spot price is currently about $134 per metric ton, it is earning roughly $87 per metric ton without deduction of non-cash expenses and other off-site costs. (Seeking Alpha)
Source: Other (08.01.2014)

Colombia joins US in anti dumping probe for Turkish steel exports Turkish Steel Exporters' Union chairman Mr Nam?k Ekinci said that Colombia also plans to file an anti-dumping suit against Turkish steel exporters following a US investigation and that the union will be visiting Colombia in the next few weeks to further discuss the issue. Mr Ekinci emphasized that the union is confident that the ongoing US anti-dumping investigation on Turkish steel exports into the country will work out in Turkey's favor because exporters know they have not been involved in dumping. Ekinci said steel producers in both the European Union and Egypt had also filed anti-dumping suits against Turkish exporters in the past at different times, and the subsequent court decisions which acquitted Turkish exporters proved that they are in the right in their conduct of business. (Today's Zaman)
Source: Other (09.01.2014)

Appointments begin at Kremikovrsi The three companies - Nadine Trading, Eltrade Company and Valpet Consult who bought the main production site of Kremikovtzi in 2011, prepare the start of the workshop for hot-rolled coils, known as "Mill 1700". This is the last speck of former metallurgical giant , which has a chance to work. The management team has already been appointed, and 50-60 specialists more are to be employed - engineers, metallurgists, power engineers - to begin recovery of the installations. They were stopped in 2008, when the procedure for entering into bankruptcy was launched. It is expected that new hires will start around January 15 to 20. For the relaunch of the capacity, that has not worked for 5 years, will be needed EUR 5-6 million. An integrated permit by the Ministry of Environment and Water is to be issued. The first coil is expected to enter the market in May. The idea is to roll Ukrainian and Russian steel, the management announced. In parallel, other facilities which have not yet been scrapped are to undergo an analysis – the electric-arc furnace and the continuous casting line. But they will need much larger investment. Metallurgical plant Kremikovtsi went bankrupt in 2008 with debts of BGN 2 billion, and the sale of assets began in 2011. So far most of the equipment is cut and sold for scrap.
Source: Presa (10.01.2014)

ArcelorMittal continues legal fight over high strength steel ArcelorMittal is appealing a recent court ruling that 3 rival steelmakers did not violate its patent for a special type of aluminum-coated high-strength steel that is made in Northwest Indiana for the auto industry. A Delaware judge ruled in December that AK Steel, Severstal Dearborn Inc. and Wheeling-Nisshin Inc. did not infringe upon its patent for Usibor, a thin, lightweight steel that helps automakers reduce the vehicle weight while still meeting safety standards. ArcelorMittal filed notice of appeal to the US Court of Appeals for the Federal Circuit to defend its patent, which covers aluminum pre-coated, hot-rolled or cold-rolled steel sold under the brand name Usibor. A French company that became part of the ArcelorMittal conglomerate first developed boron steel with an aluminum-based coating that is applied after rolling the sheet to its final thickness. (NWI Times)
Source: Other (10.01.2014)

Trader in metals Hus constructs a pipe factory in Lom Trader in metal goods Hus will soon open a factory for production of pipes in Lom. The investment solely in the plot and buildings is to the amount of a total of BGN 10 million. The enterprise will be located in the closed Balkancar record-Danube. Plot and buildings are bought by Hus back in 2012, after which renovation and installation of new facilities have started. Part of the project is funded under Operational programme Competitiveness, under which the company got BGN 3.98 million. Expectations are that first products of the company will be launched in February-March. Total area of the factory is 200 acres, of which 65 acres are buildings. More than EUR 4 million is allocated for equipment. So far Hus’ main business was related to trade with metals, while from now on it will include their production, too. The greatest part of new production will be exported. 90 people have been employed in the factory so far, as it is expected their number to reach 120-140 by the end of the year.
Source: Capital (13.01.2014)

Steel firms go online to reduce costs E-commerce took off in the steel sector in 2013 as the ailing industry competes to cut costs, Dong Baoqing, an official at the Chinese Ministry of Industry and Information Technology, said. Business-to-business (B2B) e-commerce has progressed fast in the steel industry, with more than 30 online steel trading platforms so far in China. Dong also noted that total e-commerce transactions topped 10 trillion yuan ($1.65 trillion) in 2013, of which 8 trillion yuan was B2B. Industry insiders said that the continuous low profit margin in the steel industry has forced traders to try online sales channels in a bid to reduce cost and improve profits. In the first 11 months of 2013, average profit margins in the sector were only 0.48 percent, which means steel mills could make about 28 yuan profit on each ton of steel, according to China Iron and Steel Association (CISA) data. The profit data for December has yet to be released. Leading steel company Baosteel launched an online trading platform in May 2013, and so far total transactions on the platform have topped 1 million tons. (Global Times)
Source: Other (13.01.2014)

Indonesia iron ore ban to have 'limited impact' Indonesia's ban on exports of unprocessed mineral ore will have limited impact on Chinese aluminium producers in the short-term because they hold bauxite stocks that could last up to a year, according to Fitch Ratings. And Fitch says these producers have also begun changing aspects of their operations to make them less reliant on Indonesian ore over the longer term. The ban, which came into effect on 12 January, has halted shipments of unprocessed raw materials, which are mainly bound for China. Indonesia's mining ministry, however, is considering giving producers the flexibility to continue exports of some metals, except nickel and bauxite, until 2017. About one-fifth of China's aluminium is produced using bauxite imports from Indonesia, but Chinese producers have built up bauxite stocks that may be sufficient for up to a year of production. In 2013, bauxite imports into China rose about 80%, while alumina production increased 18%-20%. Over the longer term, Fitch believes the ban will not have much impact on overall costs for Chinese producers as they have taken steps since the announcement of the Indonesian ban in 2009 to diversify their bauxite import sources. (StockMarketWire)
Source: Other (15.01.2014)

Alcomet launched a 600-ton press More in number and more diverse products is to produces Shoumen-based factory for aluminum goods Alcomet. In the first days of the new 2014 the company launched a new 600-tonne press, purchased via its huge investment program aimed at enhancement of its production capacity. The company’s investment comes at times when Alcomet registers growth in sale and expansion on foreign market, when it sells 91% of its products. The new press increases production capacity of the warehouse by 3 thousand tons annually. The investment in the new facility is ensured by a modernization program, which is to be implemented in the period 2013-2015. The new step under the same program is installation of one more even larger press, which weighs 5000 tons. Thus total capacity of the warehouse will go up to 23 thousand tons. This will help increase product line in the Shoumen-based company that is specialized in production of all kinds of film - household, technical, strip for aluminum screw caps and other. The company exports its products in more than 20 countries, the most important of whose is Germany that forms 305 of exports.
Source: Capital (16.01.2014)

United Steelworkers president blasts Chinese trade practices Mr Leo Gerard president of United Steelworkers International issued the following statement after the Mr Obama Administration’s announcement on Monday that it would challenge China’s refusal to comply with its WTO obligations regarding grain oriented, flat rolled electrical steel (GOES). Once again, China demonstrates that it refuses to live by the promises and commitments it made when it joined the World Trade Organization (WTO). The Obama Administration’s actions show that they recognize that enforcing international trade laws is important to jobs. We applaud their action and their willingness to pursue China’s ongoing cheating. The products covered by this action are made by USW members. Although our members make high-quality products at competitive prices, China refuses to open its market to us. Instead, it continues to pursue a one-way trade policy. China’s actions in this case alone cost America a quarter-of-a billion dollars in exports. (Strategic Research Institute)
Source: Other (16.01.2014)

Drop in coking coal prices to improve Indian steel firms profit Decline in coking coal prices and a marginal improvement in steel prices are likely to help steel companies report better margins in January to March quarter. Experts said that “Price of coking coal, one of the key input for steel manufacturing, declined by around USD 8 to USD 10 to USD 135 to USD 138 per tonne compared to previous quarter mainly on weak demand from China.” Mr Seshagiri Rao, joint MD at JSW Steel, said that “Coking coal prices have declined by around $10 per tonne which would help steel companies to improve margins in January to March quarter.” A senior official from Steel Authority of India said that internationally coking coal prices have declined by around USD 8 to USD 9 per tonne and are likely to benefit steel manufacturers. Mr CS Verma, chairman of SAIL said that “The Indian steel industry is showing a positive upswing in demand and the trend is expected to continue in 2014, helped by increased spending on infrastructure.” Internationally coking coal prices declined by USD 8 said an Essar Steel official but said that the benefit for steel companies would be marginal. (Mydigitalfc)
Source: Other (17.01.2014)

More expensive electricity to enterprises NPP Kozloduy and TPP Maritsa Iztok 2 have asked for renegotiation of the contract prices for electricity supply to the industry, which would be read as a demand for an increase. The demand was alarmed about in a joint letter the Bulgarian Federation of Industrial Energy Consumers , Bulgarian Association of Metallurgical Industry and the Bulgarian Chamber of Chemical Industry to the Economy Minister Stoinev Dragomir, President of the SEWRC Boyan Boev, the Chairman of BEH George Hristosov and executives of both power plants - Ivan Genov and Zivko Dinchev. According to members of the three associations, NPP Kozloduy and TPP Maritsa Iztok 2 have grounded the request with the significant reduction of the fee for transfer. The head of NPP Kozloduy - Ivan Genov, said that since August 2013 transmission charge has dropped by BGN 13 and all reduction has gone in favor of consumers as the NPP is left with nothing. Therefore, the plant has asked its customers on the open market to find a common solution to the situation.
Source: Standart (20.01.2014)

500 sites illegally buy metals 500 are the sites, which illegally buy metals, and those who operate according to the rules - about 900. The information came from the chairman of the Bulgarian Association of Recycling - Borislav Malinov. Illegal sites are usually disguised as sites for purchase of plastics, paper and auto-morgues. All enterprises experience shortage of scrap, including Steel Industry, the plant of Aurubis in Pirdop and Sofia Med, he explained. 50% of the scrap in the country comes from individuals, the expert added.
Source: Standart (20.01.2014)

Miners Chopping $10 Billion Search Bodes Next Price Boom Mining companies are extending massive cuts in exploration budgets for a second year, setting up the next price boom as China continues its relentless pursuit of metals and energy. Exploration spending plunged by 30 percent or $10 billion last year, squeezing budgets to search for minerals and sustain supplies, according to MinEx Consulting Pty, whose clients include BHP Billiton Ltd. (BHP), the world’s biggest miner. Payments may drop another 10 percent this year for geologists, drilling exploratory holes and analyzing mineral specks to unearth the next copper, iron ore or gold El Dorado, MinEx said. Rio Tinto Group yesterday said it more than halved exploration and evaluation spending to $948 million last year from $1.97 billion in 2012. OZ Minerals Ltd., an Australian copper producer, this week cut its 2014 exploration budget by 62 percent. Companies were pressured to retrench as metals prices tumbled about 12 percent from last year’s high in February, according to the London Metals Exchange Index, a measure of six primary metals. Iron ore has declined about 16 percent from a year ago. BHP, the world’s third biggest producer of nickel, iron ore and copper, almost halved its exploration spending last financial year from a peak of $2.45 billion in the 2012 fiscal year, according to its annual report. (Bloomberg)
Source: Other (20.01.2014)

US Steel Market Diverging, Baosteel Raising Prices The US market is leading GDP growth among developed nations and, in the process, diverging from the global steel market to the benefit of steelmakers – but to the detriment of consumers. First, what’s happening overseas? In Asia, both iron ore and coking coal prices have been falling – indeed, the forward curve for iron ore on Singapore’s SGX dipped under US$130/dry metric ton for the January contract and currently trends downwards along the curve to under US$120/dmt by May this year, the Steel Index reports. Iron ore, as measured by TSI’s 62% Fe benchmark price for Chinese imports, has traded in a remarkably stable band of $130-140/dry metric ton since Aug. 16, 2013. An almost unprecedented period of stability for recent years, but a combination of issues has impacted demand, leading to a fall in prices even as bad weather has hampered supply, an issue that would normally have supported prices. (MetalMiner)
Source: Other (22.01.2014)

Nordic steel firms SSAB and Rautaruukki to merge The Swedish steel company SSAB AB made an offer to buy Finnish company Rautaruukki Oyj for 10.2 billion Swedish kronor ($1.6 billion) to create a combined Nordic producer of high-strength steel. SSAB said the boards of the two companies have agreed on the merger and the two largest shareholders in SSAB and Rautaruukki support the deal. The offer represents a premium of 20 percent to the average Rautaruukki share price in the last three months. The new company, based in Stockholm, will have around 17,500 employees and annual steel production of 8.8 million tons from facilities in Sweden, Finland and the U.S. Shares in SSAB surged by 15.2 percent to 55.85 kronor ($8.6) on the Stockholm stock exchange after the announcement. SSAB said the merger would create annual cost synergies of up to 1.4 billion kronor ($216 million) and that it plans to cut staff by about 5 percent, representing 875 employees, over a period of three years. SSAB's chief executive, Martin Lindqvist, will lead the new company, while the head of Rautaruukki, Sakari Tamminen, will retire. (AP)
Source: Other (23.01.2014)

Denirvel will open a plant for zinc in Montana New plant for zinc will start soon in Montana, said manager Kamen Hristov. The investor is Denirvel, in which Hristov is the sole owner. The technology is Germany and will use waste zinc powder, which after processing will be turned into usable metal. The total investment is planned to be EUR 350 thousand. For the time being Denirvel uses own funds, but will probably have to use a bank loan, Hristov said. The company itself is located in a renovated industrial building and does not require construction of new hall. Until now Hristov has not engaged in metallurgy or metal trading, but he said he has contacts in the industry and after analyzes he had considered that it is a good idea to make such a production in Montana. As raw material the plant will use waste that remains after hot dip galvanizing. It will be processed and as a result will produce zinc and a little zinc oxide from the residual ash. For businesses dealing with galvanizing, the residual ash is waste that cannot be processed without a special line. For Denirvel it will be resource. Plans are for a monthly production of 80-100 tons in Montana.
Source: Capital (24.01.2014)

Global steel output hits record as confidence improves Global steel production reached a record high in 2013, with growth speeding up as Asia put a foot in the accelerator and offset a contraction in Europe and the United States, boding well for a recovery in company earnings this year. Steelmakers have been battling low steel prices and weaker demand in the past three years, but confidence in the sector, a major industrial indicator, has recently improved slightly, even while large overcapacity persists. Global output of crude steel rose by 3.5 percent to more than 1.6 billion tonnes in 2013, data from the World Steel Association showed on Thursday. In 2012 by comparison, output grew 1.2 percent. Most of the boost came from top producer China and other Asian steelmakers, while the West cut production, especially in the first part of the year, in response to low prices. Overcapacity of about 200 million tonnes of steel a year globally remains a serious issue for the industry and is likely to contain price increases for the near future. (Reuters)
Source: Reuters (24.01.2014)

Canadians to extract zinc in Kurdzhali In June 2014 Canadian company SNC Lavalin starts construction of its new zinc plant in Kurdzhali, at the place of the bankrupt Lead and Zinc Complex. Hopes are that the new production starts in the end of the year or at least in the beginning of 2015. Workshops Electrolyte and Frying will be constructed again and equipped with new and modern technology. New equipment has been already purchased, as well. Canadian company SNC Lavalin that won the competition for construction of the new zinc production represents Bloomberg holding. It is the largest company for engineering and construction in Canada. The latter is specialized in metallurgy and extraction industry. Local companies for construction of the plant are expected to be opted for. Forecasts are that the new production capacity will creates about 250 new jobs.
Source: Standart (27.01.2014)

Karnataka to request SC to raise cap on iron ore mining to 40 million tonnes The Karnataka government would file an affidavit in the Supreme Court, requesting that the cap on permissible production of iron ore be raised to 40 million tonne from 30 million tonne currently. Mr Siddaramaiah CM of Karnataka said that “Supreme Court has put a cap of 30 million tonne iron ore production, we are filing an affidavit in the Supreme Court to increase it from 30 million tonne to 40 million tonne.” He said that “If Supreme Court raises the cap we will be able to meet the current shortfall of industry’s requirement.” On the misconception that mining is banned in Karnataka, Mr Siddaramaiah said that only those 51 mining leases categorised under ‘C’ category as per recommendations of CEC had been cancelled. He said that “Those holding ‘A’ category, ‘B’ category licences are continuing mining, cabinet has decided to re-auction these mines again.” (Economic Times)
Source: Other (27.01.2014)

Over BGN 6 million investments In Goroubso Madan in 2013 Over BGN 6 million are the investments in Goroubso Madan in 2013. Funds were invested in equipment, new machinery and restoration of mine Varba, said the CEO of the company Sergey Atanasov. "The enterprise started in 2013 in normal rhythm, as it reported output growth of 7-8%, while average wages have increased by 10-15%," Sergey Atanasov said. He predicted that the mine will finally be ready for the recovery of the production cycle within 2 months. Part of the investments in Goroubso Madan are related to the recovery of the production in the mine Varba after it has been closed for years and galleries are flooded due to the shutdown of the power drainage technology.
Source: econ.bg (28.01.2014)

Full back ... to metallurgy Metallurgical, just like chemistry, has its two legends. First, that the former giant of steelmaking Kremikovtzi will rise from the grave. Second, that the lead-zinc plant in Kardzhali will be co-owned by former New York City mayor, billionaire Michael Bloomberg, who will begin to write a new history. Neither the first, nor the second will happen. But one thing is certain - the new industrialization of Bulgaria is unthinkable without metallurgy. It is the basis for the development of everything else - mechanical engineering, electronics and transportation. Even tourism depends on it. The sector is related to the development of construction, which cannot function without metal. It is everywhere - in buildings, in bridges, even in gardens and kitchens. Indeed, it can be imported, but then you are a step back from your competitors because you have additional transport costs, and the negative balance of the country is growing. This base industry creates many jobs. A metallurgical enterprise has at least 200-300 contracts with smaller companies that have different orders. Thus, if the industry works well it will employ hundreds of small businesses, which, in turn, create new jobs. Exports will increase. This is the meaning of the great industry. So now all of Europe turns to mining and metallurgy. Why this reversal? Only 15 years ago these were the so-called dirty industries, which Europeans denied in the name of hi-tech and financial services. But the crisis has shown that countries such as Germany, where the base has been maintained and developed, managed easily in the years of severe recession. Europe learned another lesson. As it de-industrialized, China armed itself with modern technology and now their factories enter the market with much more competitive products. Currently, for example the EU is dependent on the supply of a number of strategic metals - copper, zinc, selenium, tellurium, tungsten, which are used in high technology. China has a monopoly on them and sends small quantities to the international market from time to time. This dependence is not liked by the EU and it wants to make up for the lost. Estimates are that the demand for lead, zinc, copper, silver and steel will increase in coming years. Bulgaria should not remain outside this process. This year for example, are expected to be produced about 1 million tons of steel - about 700,000 tons by Stomana Industry and 300,000 tons by Promet near Debelt. For comparison, in 2007 before Kremikovtzi stopped, quantities were much higher - 2.1 million tons. Thanks to the new technologies, performance compared to 2007 has risen more than twice - about 2000-3000 tons against 1000 tons output per employee before. Currently, almost everything in the field of technology has already been made by companies in the ferrous and non-ferrous metallurgy. There is no more where to go from here, says the head of Stomana Industry - Anton Petrov. What we need are stable prices of energy resources and more predictability. And here exactly should be the role of the state. According to the industry, the solution is more extraction of gas from domestic reserves, which will reduce the price, as well as gas connections with neighboring countries, which will allow cheaper import. Attempted resuscitation of Kremikovtzi Bulgaria needs more steel plants, experts say. The new (old) player can be Kremikovtzi. The three companies - Nadine Trading, Eltrade Company and Valpet Consult, which bought the main production area of the plant in 2011, prepare the launch of one of the workshops - Mill 1700. The idea is it to roll Ukrainian and Russian steel. A similar scheme applies in Promet, where are processed finished metal blocks and reinforcing steel. It is said that the investment required for starting the line is EUR 5-6 million. It was stopped in 2008, when was started the procedure for declaring Kremikovtzi bankrupt. KCM makes new factory for lead The crisis took away Kremikovtzi and OCK Kardzhali, but the rest of metallurgy companies are no longer giants with feet of clay. Industry is alive thanks to large investments in new machinery and technology, said the head of the branch association Politimi Paunova. The biggest investment of about EUR 95 million is of KCM Plovdiv. In 2014, the plant will open a new factory for lead, which uses top technologies. A similar one can be found at only one place else in the world - Brazil. Capacity is expected to be operational in late April, said the CEO of the company Rumen Tsonev. The plant is extremely energy efficient. Consumption of energy resources - gas, coal, coke, electricity, has been halved and this affects the cost of production. No less important is that these modern technologies protect the environment, said Tsonev. The new plant will produce about 80 tons of lead per year, or 20 tons more than in 1989, the strategy is to process a large part of the ore mined in the Rhodope mines. In 2012, KCM 2000 and Minstroy Holding acquired troubled mine Gorubso Madan and this year will begin production in the neighbouring mine Varba Batantsi. The next step will be to develop the deposits Shahonitsa, Pechinsko and others. So after 3-4 years in case of a smart investment policy, 50-60 percent of the raw materials needed for the production of lead, zinc and silver in KCM will be Bulgarian, managers predict. Now the plant uses only 5% native concentrates. This year ends the investment program of another large company of ferrous metallurgy, familiar to generations of Bulgarians as MDK-Pirdop. Today the plant is owned by the second largest producer of pure copper in the world - the German company Aurubis. Annual production of the Bulgarian plant is 1.1 million tons of pure copper. Over the last 10 years it invested more than EUR 500 million, this year it is expected to complete the next investment program worth EUR 44.2 million. Besides the increase in capacity, there will be a significant environmental effect. Investors have made good calculations – they predict that the world will have increasing needs of this strategic metal that is everywhere - in electronics, automobiles, energy, wind parks. Sofia Med has ambitious plans as well - a week ago EBRD announced its decision that will lend EUR 40 million for higher energy efficiency and new products with high added value. Alcomet supplies Europe with aluminum foil Former state factory Alumina in Shumen, now Alcomet, is the biggest factory for processing of aluminum on the Balkan Peninsula. The plant was opened in 1981 as its construction consumed BGN 120 million. From the former 2000 workers in foundries, rolling and pressing shops, currently remain 800, but their wages are growing even in amid the crisis. Aids are being granted for newborns and first grade pupils. Set aside money for pension insurance. Paid scholarships to students. "I hope nomebody thinks that we work as under communism," jokes the majority owner of the business Fikret Ince. "We know the market, we plan at least three years ahead. Our strength is household foil," said Ince. He is in Bulgaria for 14 years. In 1995 with his partner Fikret Kuzudzhu he created company FAF Metal, which privatized Alumina. Until now, the factory invested nearly EUR 70 million. The company's turnover is EUR 140 million per year and holds 20% of the European market for household foil. 90% of production is shipped abroad. According to Fikret Ince, the secret of success is in investment. Two years ago, Alcomet invested EUR 13 million in the construction of a new Italian mill that raised productivity by 35%. Earlier this year, the factory is praised with another expensive acquisition - a new 600 -ton press, which will raise the production capacity of the press department with 3000 tons per year. 2015 will be mounted with another press of 5000 tons, bringing the total capacity of the plant to 23,000 tons. 120 firms invest near Plovdiv KCM is not a solitary island of high technologies in metallurgy. It is the largest company in the Thrace Economic Zone, which unites six industrial center near Plovdiv - Kuklen, Maritza, Rakovski, park Education and High Technology, Thrace and Kaloianovo. They span a total area of 10,700 decares and have over 120 investors, who have invested over EUR 1 billion. Some of them already have several businesses. Liebherr will make third plant for refrigerators and giant ABB, which produces equipment for energy, already has two production facilities, said Mr. Pantchev, Chairman of the Board of Directors of Sienit Holding. The Company is one of the founders of the industrial structure. According to Pantchev over the next 10 years Thrace Economic Zone will attract further EUR 750 million investment, which will lead to the creation of 30 000 new jobs. Our plans are to grant rail transport to all areas, to increasingly use the capacity of Plovdiv airport. We help any investor to quickly move the administrative procedures. The area provides ready premises or carries out construction works at the request of investors. Enterprise of 10,000 square meters with 300 jobs may be ready for six months, said Pantchev.
Source: Presa (28.01.2014)

Germany seeks BGN 33.8 million from OZK Germany is looking for BGN 33.8 million from bankrupt Lead and Zinc Complex (OZK). The Federal Republic has issued a state guarantee on a loan agreement between the French bank BNP Paribas and the plant. This is clear from the list of creditors of OZK, adopted by the trustee Alexander Georgiev. The biggest creditor of the plant is BNP Paribas - a total BGN 106.5 million. The Swiss branch of the institution has allocated BGN 93.7 million. Further BGN 12.82 million was credit agreement with the French parent bank. First Investment Bank is looking for BGN 28 million. Upon sale of the property of the plant, banks will get their money first, because have secured claims with pledges. According to a report from October 31, 2013 OZK’s assets amount to BGN 166.5 million, but any sale proceeds could be lower. Among other major creditors of the plant are Seychelles' Walldrop (BGN 72 million), state-owned companies Electricity System Operator (BGN 513 thousand) and NEK (BGN 493 thousand). National Revenue Agency has to take nearly BGN 3 million from OZK for unpaid taxes, insurance, fines and taxes. The trustee has accepted the claims of 123 employees of the complex. Curiously, the majority owner and chairman of the supervisory board of OZK Valentin Zahariev has been awarded BGN 11,642 of unpaid wages. His sons are also in the queue - Peter Zachariev has to receive BGN 7,851 and Kiril Zahariev – BGN 6,133. Before OZK was declared insolvent at the end of last year, part of the company's property was sold at public auction. In 2012, zinc production plant was acquired by Harmony 2012, part of the assets were bought by First Investment Bank. In November last year Harmony 2012 acquired another 44 acres of land. At another public auction FIB bought the hut Akatsia, near the lake Kardzhali.
Source: Presa (29.01.2014)

India imposes 5 percent export duty on iron ore pellets India imposed a 5 percent duty on exports of iron ore pellets, taking yet another step in conserving the raw material for domestic steelmakers that has slashed its shipments to top market China. India already levies a 30 percent tax on exports of iron ore fines and lumps since December 2011. Along with mining and export curbs in key producing states Karnataka and Goa aimed at addressing illegal mining, the tariffs have helped cut India's iron ore exports by around 85 percent, or 100 million tonnes, over the past two years. Iron ore pellets had been exempted from any duty previously given negligible exports out of India. "However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country," the Ministry of Finance said in a statement on Monday. India's steel producers last month sought a tariff on exports of iron ore pellets to safeguard domestic supplies. India's iron ore exports to China, most of them in the form of fines, dropped 65 percent to 11.7 million tonnes last year, Chinese customs data showed. (Reuters)
Source: Reuters (29.01.2014)

India seeks coking coal supply from Australia for steel sector India has urged Australia to consider supplying coking coal to the domestic steel industry on priority basis. Mr Beni Prasad Verma steel minister of India during a discussion with Mr Ian Macfarlane Minister of Industry and Resources, Australia said that "There is a huge potential for consumption of coking coal in India. Our country is looking for reliable raw material suppliers. I think Australia can consider supply of coking coal to Indian steel Industry on priority basis." Mr Verma said that India planned to increase steel production to 300 million tonne from the present level of about 80 million tonne. Our coal requirement is also set to rise in a decade's time and stressed the need for exploring the possibility of a long term agreement between Australian miners and Indian steel producers for coking coal.” Talking about cooperation between India and Australia in the field of mineral exploration and its trade, Mr Ian Macfarlane, Australia‘ñ Minister of Industry and Resources, said that Australia has been supplying coking coal to India and understands the potential of Indian steel industry. (Business Standard)
Source: Other (30.01.2014)

GORUBSO Madan’s workers want BGN 100 wage increase Miners at GORUBSO Madan demand salary increase of BGN 100 and the employer promises increase in wages from April. This became clear after a meeting between the management of the mining company, the two unions - CITUB and Podkrepa, and the Commission on the working conditions. Average wage in the mining company is between BGN 800 and BGN 1100 and the minimum is much less, said the leader of CITUB Rumen Karov: support staff is paid up to BGN 350. Miners work on norms, it is relative. We want the minimum wage at the company for support staff to increase and catch up with the level of normal living in the range of BGN 350-450. GORUBSO Madan’s CEO Sergey Atanasov said that the salary increase is envisaged in the business plan for this year and is linked to output growth: increased production will come with involvement in the production of mine Varba, with the utilisation of the new equipment, which has been purchased at the mines. Probably this year the company would see an increase of about 7-10 percent increase of the salary. Initially in January the company increases the minimum wage and increase in production will already be regulated in April possibly, which will increase the wages of all workers.
Source: money.bg (31.01.2014)

Japan's Top Steelmaker Back to Profit Nippon Steel & Sumitomo Metal Corp. said it swung to a profit for nine months to December on the back of strong demand in line with the nation's economic recovery. The world's second-biggest steelmaker said net profit was 192.8 billion yen (US$1.9 billion) for the period, on sales of 4.0 trillion yen. The steelmaker, created through the merger of Nippon Steel and Sumitomo Metal, reported a 151.9 billion yen net loss on sales of 3.1 trillion yen for the same period last year when the two firms were in the middle of the merger transition. Rising domestic demand for steel has been boosted by government rebuilding programs following Japan's quake-tsunami disaster in 2011. "Domestic steel demand remained strong in the term under review," the company said. "Reconstruction demand also stayed firm and economic policies began to show their full effects in the civil engineering and construction fields, while demand from the manufacturing industry increased on the back of a recovery in capital investment." However, Nippon Steel said it faced headwinds as heavy production by Chinese mills pushed down global steel prices. (AFP)
Source: Other (31.01.2014)

Nigeria Begins Backward Integration in Steel Production The Federal Government has said that it has concluded plans to develop and implement a comprehensive backward integration policy for the iron and steel sub-sectors of the Nigerian economy. Minister of Industry, Trade and Investment, Mr. Olusegun Aganga noted that the initiative was in line with the Nigeria Industrial Revolution Plan (NIRP). Aganga said: “When you look at the current situation in the iron and steel sector, Nigeria spends about $3.3billion annually in the importation of steel and yet we have iron ore in the country. Currently, we have some cold rolling mills in the country. We want to implement the backward integration programme in iron ore so that we can become a net exporter of iron ore just as we have done with cement.” Minister of Mines and Steel Development, Arc. Musa Sada said: “Steel is expected to remain the world’s most engineering material for some time to come due to its versatility. The annual steel production in Nigeria is estimated at about 2.5 million tonnes while the country imports about 17 million tonnes of steel and allied products annually." (This Day Live)
Source: Other (03.02.2014)

Bulgarian aluminum co Alcomet 2013 net profit falls 45% Bulgarian aluminum producer Alcomet reported on Friday a preliminary net profit of BGN 2.1 million in 2013, down by some 45% from a year earlier. The company’s sales revenue last year increased 11% to nearly BGN 280 million, its latest financial report filed with the stock exchange indicated. Alcomet’s production last year increased by 13% to nearly 61 tonnes. Earnings per share went down to BGN 0.12 in 2013 from BGN 0.22 the previous year. In the last quarter of 2013, Alcomet turned to a loss of BGN 539,000 from a profit of BGN 966,000 for the same period a year earlier. Its sales revenue went up to BGN 64.5 million, an increase of nearly 6.2% on the year.
Source: investor.bg (04.02.2014)

EU parliament backs steel industry revival plan The European Parliament on Tuesday passed a resolution backing a plan to revive the bloc's steel industry, calling on the European Commission and member states to adopt "economically feasible" climate and energy targets. The resolution comes just two weeks after the Commission scaled down its 2030 climate and energy targets and underlines a new sense of pragmatism in Brussels at a when European growth is slow. In a move unlikely to be popular with the green lobby, the resolution said the most energy efficient steel plants in Europe should not have to bear any additional costs resulting from EU climate policies. It was not immediately clear how the resolution will tally with attempts by the Commission to prop up the EU carbon prices by delaying the sale of, or backloading, carbon permits - a major additional cost for industries like steel. The Commission launched the so-called "steel action plan" in June last year in a bid to stem a decline in Europe's steel industry, hit by a roughly 30 percent drop in demand since 2008 that has led to plant closures. (Reuters)
Source: Reuters (05.02.2014)

Bulgaria's Gorubso-Madan gets permit to prospect for metal ores The Bulgarian government said on Wednesday it has granted a three-year permit to local lead and zinc miner Gorubso-Madan to prospect for metal ores. The permit covers the Petrovitsa Sever area in the municipality of Madan, the government said in a statement following a regular weekly meeting. The company plans to invest BGN 412,000 in the exploration activities.
Source: econ.bg (06.02.2014)

Indian steel majors to discuss impact of IT on industry The research and development center of SAIL, along with Computer Society of India and Indian Institute of Metals, will organize a 3 day event that will focus on the role of information technology in the steel industry. At a time when the industry is looking to augmenting capacity, automation and IT will help achieve the target. At the 'Automation and Information Technology in Iron & Steel Making' conference, experts, technologists, consultants, academicians and equipment manufacturers associated with the industry globally will address the gathering. Mr R K Rathi executive director in charge RDCIS said that “Experts from India and countries, like Germany, Italy, the US, Finland, the Netherlands and China, will participate in the conference. More than 71 technical papers will be presented during 12 technical sessions, whereas there would be 3 sessions on manufacturers' presentations, where 15 companies of international repute will be highlighting their products and services.” (Times of India)
Source: Other (06.02.2014)

Fibank acquired former Kremikovtzi hotel in Vitosha Natural Park First Investment Bank (Fibank) bought a hotel in the Vitosha Natural Park which used to be a holiday house for Kremikovtzi steel mill employees. The bank acquired the real estate against BGN 1.374 million. Private enforcement agent Stoyan Yakimov sold the property on a public tender due to debts of its former owner Aqua Tour 21. The sale took place by request of Fibank, which was the hotel’s creditor. Mortgage on the building is for EUR 1.12 million principal and interest. The hotel, which works under the name Eden, has an area of 702 square meters. It has three floors and disposes with 10 double rooms, 11 apartments and a luxurious one. It floor area is nearly 2 thousand square meters. The building is renovates few years ago and has a conference room, too.
Source: Capital (07.02.2014)

ThyssenKrupp Steel USA merger gets US antitrust clearance The acquisition of ThyssenKrupp Steel USA by ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation has been given US antitrust clearance. According to a press announcement by ArcelorMittal, ‘the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) terminated on January 29 with respect to its acquisition’. The HSR Act requires that companies engaged in certain mergers or acquisitions or the transfers of securities or assets, including grants of executive compensation, cannot be completed until a detailed filing has been made to the US Federal Trade Commission and Department of Justice. Once these two bodies have determined that the transaction in question will not adversely affect US commerce under the antitrust laws, the merger/acquistion can go ahead. According to ArcelorMittal, “the termination of the HSR waiting period satisfies one of the conditions to the closing of the acquisition. Subject to the satisfaction of other customary conditions (including the receipt of additional regulatory approvals), the acquisition is expected to close later in the first quarter of 2014 or in the second quarter of 2014.” (Steel Times International)
Source: Other (07.02.2014)

Steel giant ArcelorMittal pins hopes on Europe and the US after Chinese slowdown Steel giant ArcelorMittal said it expects a recovery in Western economies to offset a slowdown in China this year, after its 2013 losses halved. The firm, 41 per cent owned by Britain’s fourth richest man Lakshmi Mittal, reported a pre-tax loss of ?1.4billion, compared to ?3.3billion in 2013. Stripping out the effect of accounting quirks such as the declining value of its assets, the group reported an underlying profit of ?4.2billion and said it expects that to increase to ?4.9billion in 2014. The forecast improvement will come on the back of an expected uplift of up to 4 per cent in global steel demand, said the firm. Steel production is heavily tied to construction activity, which rises and falls in tandem with economic growth. And while ArcelorMittal warned of a slowdown in China, it expects European steel consumption to grow by up to 4 per cent, compared to a decline of 0.6 per cent last year. The United States, its largest market, is expected to do even better, up by as much as 4.5pc compared to a contraction of 0.5pc during last year. (Daily Mail)
Source: Other (10.02.2014)

Profit of Alcomet JSC as to 31 December 2013 amounted to BGN 2.129 million Alcomet JSC made a profit of BGN 2.129 million in the fourth quarter of 2013. Total revenue is BGN 286.92 million, which is 9.59% more than the previous period. Total costs reported growth of 10.51% over the previous period to BGN 284.56 million. Net sales in the fourth quarter of 2013 amounted to BGN 286.58 million and represent 99.88% of the total revenue. In the corresponding period of 2012 they increased by 9.98%. As to December 31, 2013 the company reported earnings per share of BGN 0.12. The equity of the company is BGN 96.11 million, compared to the same period of 2012 it decreased by 0.04%.
Source: money.bg (11.02.2014)

United States Department of Commerce to maintain fines on imported steel from China Federal regulators will maintain fines against companies importing Chinese steel that undercuts the prices of American steelmakers, according to information from Ohio senators Sherrod Brown and Rob Portman. On Tuesday, the lawmakers announced the U.S. Department of Commerce ruled it would maintain antidumping duties and countervailing duties on Chinese steel pipe imports. The move protects steelmakers, including U.S. Steel, which has the Lorain Tubular Operations, and Vallourec Star, according to Brown and Portman. The senators previously urged the Department of Commerce to rule in favor of domestic steel manufacturers on a petition regarding product coverage for duties ordered on Oil Country Tubular Goods, or OCTG, from China. Brown called the ruling “excellent news” for companies that have facilities in Ohio. Brown, a Democrat, and Portman, a Republican, set aside partisan differences in their joint support for Ohio’s steel companies. (The Morning Journal)
Source: Other (13.02.2014)

European steel recovery fragile - German industry body An expected recovery in the European steel sector could be derailed by fierce competition and rising raw material and energy prices. The German steel association warned that efforts to cut government budget deficits across the European Union in the past two years have squeezed companies and consumers, hurting the steel industry by curbing demand for cars, appliances and new buildings. Though steel producers' lobby group Eurofer said last month that carmakers and construction should help revive growth this year, the president of Germany's steel association said the European sector is still in crisis mode. Hans Juergen Kerkhoff said that we currently see slight recovery, albeit in a still difficult market environment. This is a recovery from a very low level. European steelmakers have been squeezed by 200 million tonnes of global overcapacity and rising energy and environmental costs. (Reuters)
Source: Reuters (13.02.2014)

European steel body plans anti-dumping cases against China, Russia European steel lobby Eurofer plans to file anti-dumping cases this year with the European Commission against exports of cold rolled stainless sheet from China and Taiwan and of electrical steel sheet from Russia. If the Commission, the European Union's executive, takes up the cases, they will join a series of damaging trade disputes over recent years between the 28-nation EU and China, as well as some with Russia. "We have two cases in an advanced stage where we suspect dumping and subsidies. One concerns Russia, the other concerns China and Taiwan. They will be filed this year," Eurofer director general Gordon Moffat said. The China Iron and Steel Association was not available to comment when contacted by Reuters, while the European Commission declined to comment. China Steel Corp. , Taiwan's biggest steelmaker, said it was unaware of the planned action and had no comment. Russia's vice minister of industry and trade, Viktor Yevtukhov, said Moscow would stand behind its steel producers. (Reuters)
Source: Reuters (14.02.2014)

Tata Steel's fears if UK leaves the EU A steel firm which employs about 1,500 people on Teesside says there’s a danger the UK could become “isolated” if it leaves the European Union. In a submission to the Government’s review of Britain’s relationship with the EU, Tata Steel warned that an EU exit would leave the UK isolated and weakened. The submission states: “In revenue terms, approximately 50% of the steel Tata Steel produces in the UK is sold into continental Europe. As the largest single market in the world, the EU has a strong bargaining position in trade negotiations. Conversely, on its own, as a relatively small market, the UK would not be as attractive for third countries to negotiate with and would not have the same bargaining power. Outside Europe other countries are becoming more integrated and forming other trading blocs, and there would be a danger that the UK would find itself isolated and without the necessary power to successfully negotiate trade deals.“ Tata has Teesside sites at Redcar, Hartlepool and Skinningrove. (Gazette Live)
Source: Other (17.02.2014)

Canada’s DPM mine in Bulgaria gross profit down 33% Canada's Dundee Precious Metals (DPM) said the gross profit of its Bulgarian mine in Chelopech went down almost 33% to USD 111.4 million in 2013 due primarily to lower metal prices, higher depreciation and higher treatment charges. Net revenues from the Chelopech mine were USD 232 million in 2013, down by USD 31.7 million from a year earlier, DPM said in its latest annual report posted on its website. “[Decrease in revenues was] due primarily to lower metal prices and higher treatment charges, partially offset by higher volumes of payable gold and copper in concentrate sold,” the press release read. DPM mined up to 2.05 million tonnes of ore in Chelopech last year, which is 12% more than a year earlier while concentrate production rose an annual 6.0% to 126,600 tonnes, the company added. The gold output from the mine in Chelopech rose 9.0% to up to 132,000 ounces in 2013 while silver output went up 1.0% to 219,000 ounces. Copper contained in concentrate produced increased by 7.0% to GBP 45.6 million in Chelopech last year, DPM said in its latest annual report posted on its website. The Chelopech mine produces gold, copper and silver concentrate. It is located east of the capital Sofia. DPM is currently preparing a detailed development plan for its other mine in Bulgaria in Krumovgrad. As of the end of December 2013, the net book value of the Krumovgrad Gold Project was USD 85.1 million, according to the financial report. DMP also operates mines in Sebia, Armenia and Namibia.
Source: Capital (19.02.2014)

BHP Billiton backs iron ore surplus forecast BHP Billiton, the world’s biggest resources company by market value, has joined rival Rio Tinto in forecasting a surplus for the seaborne iron ore market in 2014. BHP’s head of marketing, Mike Henry, said the company expected seaborne supply to rise by more than 100m tonnes this year, while global demand for the key steelmaking ingredient would go up by 60m tonnes. Iron ore is closely followed by the financial community because it is seen as a proxy for industrial activity and construction in China, which imports almost two-thirds of the world’s seaborne trade. The commodity is also critical for the profitability of many large mining companies, including BHP and Rio, and leading steelmakers such as ArcelorMittal and Baosteel. It was among the few commodities to register a year-on-year increase in average prices in 2013. However, benchmark prices for delivery into China have fallen by more than 7 per cent to $124.40 a tonne this year. (FT)
Source: Other (19.02.2014)

Bulgaria Govt Extends Copper Mining Concession of Asarel Medet Bulgaria's government has extended the concession contract with copper mining company Asarel Medet by 15 years. The contract was signed in end-1998, according to the government's press office. The terms of the contract remain unchanged and the company is expected to invest a total of BGN 85 M during the 15-year extension of the concession agreement. The concessionaire is to spend BGN 63 M on environmental conservation activities and the annual concession payment stands at BGN 3.6 M. Half of that sum will be transferred to the budget of the Panagyurishte municipality, where the mine is located. The company was given permission to examine mining waste at the Iztochno nasipishte site near Panagyurishte for a period of two years. The company is to invest a total of BGN 240 000 and to spend BGN 10 000 on environmental conservation activities. During Wednesday's sitting, the government also terminated the tender for the selection of a permit holder for oil and gas exploration at the 'Block 1-23 Sveta Marina' located in Bulgaria's Black Sea continental shelf and exclusive economic zone. The tender was announced in January 2013 and the decision was promulgated in the State Gazette and the Official Journal of the EU. The tender was terminated because it failed to attract any candidates. The government also approved the proposal to grant a concession for the extraction of rock lining materials at the Buniloto site. The quarry is located in the village of Hrabrino, Rodopi municipality. For a period of 35 years, the concessionaire, Eolit, plans to invest BGN a total of 176 000, while the receipts for the state budget are to amount to BGN 972 000, of which 50% will go to the Rodopi municipality. The government also allowed the transfer of all rights and obligations under the concession contract for the extraction of building materials from the Idrinizitsa site in the Samokov municipality to the Bekastroi company. The terms of the concession contract remain unchanged. The government also issued six permits for the prospecting and/or exploration of underground natural resources. Three of the permits are for building materials and are be granted to the companies Zlatna Panega Tsiment, Yaguar 02, and Inertni materiali –Yambol. Zlatna Panega Tsiment and Yaguar 02 were issued one-year permits for the Dobrevtsi site in the Yablanitsa municipality and the Kamaka site in the Ihtiman municipality, while Inertni materiali –Yambol was granted a permit for six months for the Pitovo site in the Nova Zagora municipality. The minimum amount of investments in the development of the quarries amounts to over BGN 205 000 and the environmental conservation activities have been estimated at around BGN 17 000. Balkan Minerals Development was awarded a permit for the exploration and prospecting of mineral resources. For three years, the company will operate on the Iglika site on the territory of the Bolyarovo and Elhovo municipalities. The exploration activities are to absorb investments of BGN 666 000 and the environmental conservation activities are worth BGN 12 000. The Gugalanovi company was awarded a two-year permit for the exploration of rock lining materials on the territory of the village of Chinka in the Krumovgrad municipality. On the site Chinka-2, exploration activities will absorb investments of at least BGN 24 000 and the value of environmental conservation activities have been estimated at BGN 247
Source: Capital (20.02.2014)

Greece to cut industrial energy cost as defying lenders Greece will reduce industrial companies' energy costs to save two struggling steelmakers shrugging off objections from international lenders that the move might blow a hole in Athens' finances. It was further evidence of the debt laden country adopting a more assertive stance towards its creditors as it tries to soften the impact of bailout imposed austerity policies on its depressed economy and mitigate record unemployment. Halyvourgiki and Hellenic Halyvourgia, two of Greece's biggest steelmakers, said that last week they would dismiss or suspend about 320 workers at their Athens factories because they could not compete due to high electricity costs. Development Minister of Greece Kostis Hatzidakis said that the government would override objections by the so called troika of international lenders and introduce flexible power prices to lower the firms' costs. Mr Hatzidakis said that Athens will push through so called interruptibility agreements, under which big power consumers can briefly take their factories off the grid and get refunds from Greece's state run power network operator. (Reuters)
Source: Reuters (20.02.2014)

Our investments turned the direction of mining Nikola Dobrev, Chairman of the Board of Directors of KCM 2000 and the supervisory board of KCM How do you assess the past year for mining in KCM 2000? - For us as a leading company in the production of lead, zinc and precious metals the status of Bulgarian mining is crucial. After the great change of ownership of mining for lead and zinc in Bulgaria in 2012, when jointly with Minstroy we took a controlling interest on the Bulgarian mines, we began to rapidly invest in the sector. Our goal is to reach the level of mining of the best years since 1989 - as quantity and much higher as efficiency and quality. From 2012 until today we invested between 25 and 30 million BGN. With some of the money we covered some old debts of the acquired mining companies, the rest were focused on production. We upgraded a lot of machines in the enrichment cycle, accelerated mining penetrations to richer ores. All this happened in a very short time and give results directly to our businesses in Madan and Lucky. Furthermore, it impacted the security of supply of raw material for the production of metals. We acquired a total of 654 tons of ore in 2013 in Bulgaria, which is 12% more than the previous year. Results from the processing of the ore to concentrate are much better - 21% have more lead concentrate and 20% more zinc concentrate. How did you arrange the investment priorities of the company? - At first we planned to give priority to investment in mine Varba - Batantsi where mining has been stopped. It turned out that accelerated investment in existing mines is more efficient and more profitable. Yet, in February, we gained the first ore from the Varba - Batantsi after resuming production. Investments led to reverse in the development of mining in Bulgaria – for 15-20 years it had been going down, now we achieve progress and acceleration in yield. In a word – we turned the trend upwards. We increased the yield by 12% over last year. Is a technical approach in all mines of the company possible? Lucky has gone way ahead in terms of changing technology, what is the situation in other mines? - Yes, we have developed the same spiral approach to reach the ore in varba - Batantsi and have inserted suitable mining equipment with dimensions to work underground. Concept of extracting the ore in the Rhodope Mountains, which is from the 50s, does not stand up to current market conditions. By 2016, new technology and new equipment for mining will be standard in all our mines. For some time and under the circumstances we will combine both technologies, but our direction is clear. If we had started the mine "green", then our approach would be different, from the very beginning we would have installed the new equipment. But now we look for technically efficient and cost effective solution for already existing mines. What investments do you plan for the enrichment of the ore? - About 25-30% of the investments made from 2012 onwards, are exactly in that direction. Now we consider that in case of optimal development of our mines Goroubso – Madan, we would get at least 0.5-0.6 million tons of ore for processing and enrichment. Our enrichment facilities are designed to take 1.5 to 3 million tons of ore. This means that we waste a lot of energy without using the equipment efficiently. Therefore, we work in the direction of energy efficiency. The second direction of our development is to find the best process parameters for enrichment. The current way of operation is now aged 30-40 years, and we decided that it was no longer the most appropriate. There are more advanced reagents for the extraction of metal from the ore, there is a modern way of its grinding. We develop in this direction our own program, we provide consultation with Russian specialists from St. Petersburg. By the end of 2014 they will receive new technological regulations stipulated to enrich our ores. Are you able to retrieve them efficiently and from the more rare elements of the ore? - As members of the EU, we are aware that Europe struggles with a shortage of several metals that are critical for its industry and high technology. Of these critical materials are 10 in Bulgaria from a total of 14. Another issue is how we extract them, but we have them. KCM for example is a European leader in the production of tellurium and if the global leader China produces 70 tons, we produce 6 tons. To the critical materials found in Bulgaria I would add antimony, indium, tungsten, selenium, bismuth, germanium. These elements are present in both Bulgarian ores and ore concentrates. We have taken seriously the exploration and production of these items. Some we may start extracting, others - as residue from lead and zinc production - to bring as an end product. We have developed a proprietary program, which appeared extremely successful for tellurium. We have a serious progress in the development of antimony and we plan to bring it to final product - antimony salt or metal, depending on market demand. Concentrations of indium and germanium in our ores are very low, but the world has a practice of extraction of both metals from such ores. So another important dimension of KCM Group is to spend and produce rare metals from ores or from our separate fields for these critical materials. We had a meeting with Commissioners of the European Commission, who invites us to support and participate in relevant EU programs for critical materials worth EUR 70 million. Our investment judgment is that if we start mining - it will cost more than EUR 50 million. If we only talk about by-extraction from semiproducts or scrap, then it will be in the range of EUR 10-15 million. More types of metals means more or less risks for KCM? - Regarding risks – let me give you an example with a partner company that is much bigger than us. When the crisis hit in 2008, our partners brought to the market 100 tons of germanium oxide. In price it equaled to tens of thousands of tons of zinc. Germanium oxide was their strategic reserve, which took the first blow of the crisis. Would the investment of tens of millions of euros in technologies for critical metals lead to the creation of new jobs? - The relation between the investment and the creation of new jobs is relatively weak because it comes to high technology. We are in a situation of general reconstruction of classical procedures that increase productivity and lay-off people. Our internal company policy is retirement of people who have finished their career without the appointment of their replacements. As well as to retrain others for the new technologies. We will need people who can deal with removing the vacated buildings of the old factory for lead and zinc and site clearing around them. In the end, the goal of any investment is more output with fewer people. What are your expectations about the price of lead and zinc in 2014? - We hope that there will be significant differences with the prices in 2013. Currently we do not see any changes on the metal, leading to a sharp rise or decline in consumption. The main users remain China, India and generally countries of the East. For us this means that we would more easily satisfy the needs of our European region, Eastern markets are too far for us. Our forecasts for price fluctuations are a maximum deviation of USD 100-200 per ton of ferrous metal. Will you predict the development of mining in Bulgaria? - Yes, and it is with great certainty because ore mining in Bulgaria is connected to our company, and we know what we want to achieve. The extraction of ores in Bulgaria will rise at a healthy pace over the next 10-15 years, as we offer a secure market. The bottom line is that you need to change the concepts of recall and processing of ore, in order for the ore mining to be competitive. We invest exactly in that. From a social perspective, these investments bring security in the Rhodope region and make the mining profession attractive.
Source: Capital (21.02.2014)

U.S. rules against subsidy complaint on Turkish steel rebar imports The U.S. Commerce Department rejected part of a complaint about imports of steel concrete reinforcing bars from Turkey but is still considering whether the bars were sold at unfairly low prices. The department said the bars, used to strengthen concrete structures, had not been made using subsidies which unfairly benefited foreign companies. A separate ruling is due in April on whether the bars were sold in the United States at below-market prices, after a complaint from companies including Nucor Corporation, Gerdau Ameristeel US, Commercial Metals Company, Cascade Steel Rolling Mills, and Byer Steel Group. A majority of the commissioners at the U.S. International Trade Commission voted in November that there was a "reasonable indication" that U.S. manufacturers were injured by imports from Turkey and Mexico. In 2013, imports of steel concrete reinforcing bars from Turkey were valued at approximately $381.3 million, the Commerce department said. (Reuters)
Source: Reuters (21.02.2014)

EU Steel Mills are struggling with low profit margins EPS International Limited has noted a degree of price stability in the European flat products market over the last month. Steelmakers continue to push for higher prices, proposing between EUR 30 per tonne and EUR 40 per tonne in order to boost their low profit margins. However, the announcements and the reality are somewhat different. Buyers believe the target figures are unrealistic, given the present state of end-user demand. Consequently, they continue to try to resist the mills’ aspirations. Prices for some quarterly contracts have already been rolled over from period one to the second trimester. With the exception of a small pickup in activity during January, as companies concluded business for February and March, German demand has remained flat. Consumption in the second half of 2014 is expected to be better. Despite the mills’ announcements of increases, French basis numbers have been largely stable over the last month. Delivery lead times remain short, at around three weeks maximum for new production. There is limited third country import penetration. (Balkans.com)
Source: Other (24.02.2014)

Progress foundry will work with new furnaces Progress foundry in Stara Zagora will soon operate with new smelters, in which the company invested EUR 1.5 million, said CEO Mr. Slavin Yanakiev. The project was launched in 2012, and the new furnaces should be put into operation by the end of March. Financing of investment is under the European operational program Competitiveness, as it provided half the money. The rest are from own funds of the enterprise. Besides that, Progress has invested another EUR 1 million, own funds as well, in machinery and equipment. Estimates are that all investments will reduce energy costs by about 20% for unit of output, said Yanakiev. He commented that the lack of predictability of the value of electricity makes long-term cost planning impossible. "I do not know what will happen to the electricity in a few months. Problem is not so much in the price, the problem is the unknown," said Yanakiev. Electricity is the only "resource" used to manufacture cast iron castings in Progress. Metals, from which the blanks are made, are imported from Ukraine and Russia. The company's customers are from Europe, Asia, Africa and North America. Among the biggest companies are from Germany and Italy. Last year, the foundry increased its staff by 15% (80 people) due to a hike in orders and now it employs 450 people.
Source: Capital (25.02.2014)

Storm clouds gather for seaborne iron ore Thunderclouds are on the horizon for iron ore producers as the strain of too much capacity and too little money finally hits China’s steel mills. China now accounts for almost half of world steel production. Its mills’ hunger for iron ore, a key steelmaking ingredient, determines the strength of the Australian dollar, the cost of ocean freight, and the profitability of mining in the faraway jungles of South America. Any hint that the Chinese steel boom has peaked sends iron ore prices skittering. Liquidity problems have started to bite Chinese mills after years of breakneck expansion. Some private mills in Tangshan, home to about a quarter of China’s steel capacity, are empty and silent after owners ran out of cash to pay their workers. Xu Zhongbo, head of Beijing Metal Consulting Ltd, estimates that 40-50m tonnes of long steel capacity have been idled as production costs exceed prices by Rmb100 ($16) per tonne. Already, the prospect of slower Chinese steel growth amid the arrival of new supplies from mines in Australia is weighing on prices. On Tuesday, the benchmark 62 per cent iron ore price, as assessed by The Steel Index, fell to a seven-month low of $119 a tonne, taking losses since the start of the year to 13 per cent. (FT)
Source: Other (26.02.2014)

Bottoming steel scrap and billet levels might kick start buying activity After severe mauling over the past 3 weeks during with scrap and billet levels plummeted by USD 30 per tonne and USD 15-20 per tonne respectively bottom seems in vicinity. Some recent transactions of rebar and billet UAE and Turkish mills albeit at low levels indicates increasing interest in buying lest the price goes up with warming weather. It is learnt that scrap levels have bottomed out USD 345-350 per tonne level whereas billet from Black Sea has already touched nadir at USD 485 -490 per tonne. Undoubtedly buyers in UAE have been able to squeeze rock bottom levels for rebar owing to low scrap levels. Recent deal has been reported at USD 565 per tonne CFR, (Theoretical wt) about USD 5 per tonne lower than the last deal prices. Like-wise in billet Turkish mills have opened buying having concluded deal at USD 485-490 per tonne FOB Black Sea. Coming days are expected to throw up better levels with buying activity picks up owing to low price levels and improved construction activity during summer. (Steel Guru)
Source: Other (27.02.2014)

Steel Industry Feeling Stress as Automakers Turn to Aluminum For nearly a century, Ford’s River Rouge factory and its neighboring steel mill have worked in close harmony to produce some of America’s most popular vehicles, from the Model A to the F-150 pickup truck. But ever since Ford announced last month that it would make the body of its new F-150 mostly out of aluminum, that steel maker, which was spun off by Ford in 1989, has faced the unsettling prospect that its longtime partner is drifting away. Carmakers’ shift to aluminum has raised apprehension among steel makers, which have been fighting an increasingly uphill battle simply to maintain their business. Now, they are trying to respond, making lighter, stronger steel in a bid to retain one of their most important customers, the automakers. “The traditional view has been steel or nothing else,” said Saikat Dey, chief executive of Severstal North America, the United States subsidiary of Russia’s Severstal Group, which now owns the Rouge steel operations. (New York Times)
Source: Other (28.02.2014)

voestalpine continues its expansion with new plant in South Africa The voestalpine Group is continuing its internationalization strategy and opens its new Metal Forming Division site in East London, South Africa. The plant for high quality automotive components is the latest step in the Group's comprehensive globalization strategy in the automotive sector. voestalpine is currently investing significantly more than EUR 100 million in the facilities in South Africa as well as additional plants in China, the USA, Romania and Germany. The Group has also recently set a record research budget of EUR 140 million in order to further extend its global technological leadership. The new voestalpine Stamptec South Africa plant marks the opening of another international Metal Forming Division site located close to the production sites of renowned automotive manufacturers. During its starting phase, 30 employees at the new site will generate around EUR 10 million in revenue each year. The product portfolio includes highly complex body in white parts such as press hardened cross members and aluminum components for vehicle doors. (Steel Guru)
Source: Other (05.03.2014)

Idea of resumption of operations at Kremikovtsi is part of big idea of reindustrialisation Resumption of operations at the factory connected with continuous steel casting would have a positive impact on Bulgaria’s economy yet it is no longer a part of the property of Kremikovtsi AD but is a property of a private legal entity. The idea [of resumption of operations at Kremikovtsi] is a part of the big idea of reindustrialisation of Bulgaria," Deputy Chairperson of the National Assembly Aliosman Imamov said during the debated on a draft decision for the resumption of operations at Kremikovtsi, which was introduced by the parliamentary group of Ataka party, FOCUS News Agency reported. The legal entity was declared insolvent by Sofia City Court on May 31, 2010. In Mr Imamov’s words, on April 12, 2011 the main so-called separate part of the facilities was sold along with the assets on its territory. The factory for continuous steel casting is a part of the so-called separate part and was sold to a legal entity. MP with the Colalition for Bulgaria Rumen Gechev reiterated the several deals concerning the privatisation of Kremikovtsi had incurred significant losses [on Bulgaria’s economy]. In his words, the government could not be made to resume production on a private property.
Source: Agency Focus (06.03.2014)

Korean Steelmakers to Cut Prices of Steel Plates for Cars POSCO and Hyundai Steel Co., South Korea’s leading steelmakers, will cut the prices of their steel plates for cars starting next month, company officials said Tuesday, a move feared to hit their business performance this year. “In accordance with a request by our parent company Hyundai Motor, we have decided to cut steel plate prices by 80,000 won (US$74.77) per ton in March and April, and by 90,000 won per ton from May to July,” a Hyundai Steel official said, requesting anonymity. The price for August and after will be decided through negotiations with Hyundai Motor Co. set for June, the official said. Hyundai Motor reportedly asked its steel making affiliate to cut prices last week in order to cut auto production costs. The move by Hyundai prodded the country’s biggest steelmaker POSCO to start talks with carmakers, including Hyundai Motor, to also mark down prices. The price cuts are likely to hurt the steelmakers’ earnings this year, deepening their troubles when the steel industry as a whole is in the midst of a prolonged slump, market watchers say. (Yonhap)
Source: Other (06.03.2014)

Resource 1 offers new project for extraction of tungsten ore The company Resource 1, which back in 2009 got concession for extraction of tungsten ores near Velingrad has presented a new investment proposition which makes need for processing of raw materials on site unnecessary. Building of tailings storage is also uncalled for. Area of the facility will be cut significantly, too. In parallel the company envisages modernization of the very ore extraction process, which is to be made in cooperation with one of the leading companies in extraction and processing of tungsten ores- Austrian Wolfram. Resource 1’s initial plan was to construct the entire extraction and processing complex in the region of the concession. Grancharitsa center deposit has an area of 3 square kilometers and is located at 18 kilometer-distance to the south of Velingrad in the village Krastava. Total concession area is bigger as it consists of places for processing, waste, etc. The new investment proposal provides for separation of on-site ore only and then its transportation to the existing flotation concentration plant of Mining Invest near the village Elshitsa based on a contract.
Source: Capital (07.03.2014)

TATA Motors in talks with Chinese auto giant Chery Automobile TATA Motors and Chinese carmaker Chery Automobile are holding talks to explore possible tie-ups, which may include sharing of vehicle platforms, getting access to the market in China for TATA Motors and even helping Chery to enter India. People close to TATA Motors said that talks with Chery have been going on for the past couple of years. They said that when the Indian automaker was working on its 2020 strategy about 12 to 18 months back, it had considered buying some of Chery's platforms. The report said that Chery was in talks to sell the platforms of its QQ, A1 and M1 micro sedans and the A3 compact car to TATA Motors to raise capital and ease its debt burden. A person close to TATA Motors said that "It is a very broad-ranging talk right now, with nothing specifically defined as yet." Chery did not immediately respond to an e-mail seeking comment, "Teams have been visiting, but there is no direction yet as synergistic benefits are minimal." (Economic Times)
Source: Other (07.03.2014)

Municipal Council Krumovgrad stopped mining project of gold Municipal Council Krumovgrad again halted the controversial gold mining project in the region of Ada Tepe. Counselors opposed the issuance of a detailed and plot plan for sites in the future auriferous area. Plans are required to enable the concessionaire of the deposit to begin construction of the facilities of the open pit and concentrator plant. This is another negative decision of the municipal council in this case. According to lawyers, it violates the Law on Spatial Planning and may be revoked by the Governor of Kardzhali. Several days ago, the Supreme Administrative Court finally confirmed the ministerial decision of 2011, endorsing the draft of Dundee Precious Metals. Over the last few years the project of Balkan Mineral and Mining, a subsidiary of the Canada-based Dundee Precious Metals, was challenged several times by environmental organizations.
Source: econ.bg (10.03.2014)

Vedanta selects former Rio boss Albanese as CEO Tom Albanese has been unveiled as the next chief executive of Vedanta Resources Plc, restored to the helm of a global mining giant more than a year after being ousted as head of Rio Tinto Plc. The appointment of Albanese, an American, is the latest step by London-listed Vedanta to stretch beyond its Indian roots and match the long-held ambitions of its owner to compete with the likes of Rio and BHP Billiton. Vedanta's stock rose as much as 6% to become one of the top percentage gainers on the FTSE-250 Midcap Index. "Vedanta has been perceived by the market as an Indian-centric company," Citi Research analyst Jatinder Goel wrote in a note. "The appointment of Albanese, in our view, should help to globalise the business and remove this perception." Vedanta, controlled by one-time scrap metal dealer Anil Agarwal, was one of three miners to drop out of the FTSE-100 index last year. Its stock has lost more than a quarter of its value in the last 12 months. Albanese, who is 56, said on Thursday he would focus on ensuring that those businesses acquired by Vedanta over the past 15 years were operating at "maximum potential".
Source: Reuters (10.03.2014)

China's Baosteel says iron ore slide "inevitable", more mills to shut The recent slide in iron ore prices was "inevitable", with a price above $100 a tonne still too high, the head of China's biggest-listed steel maker Baoshan Iron & Steel (Baosteel) said on Tuesday. China's steel sector, buyer of around two thirds of global seaborne iron ore supplies, faces huge challenges this year, with demand weak and the government desperate to close outdated and polluting mills. With many mills now unable to keep producing due to falling prices, mounting losses and credit restrictions, He Wenbo, chairman of Baosteel, said iron ore prices that have lost more than a fifth of their value this year had further to fall. The strength of prices in the last few years had caused "injury" to the steel sector and to China, He of Baosteel said. "Prices have been irrational and the current decline is inevitable," he said. "What will be the low point? I think that current prices of approaching $100 are still on the high side." Big iron ore suppliers such as Rio Tinto , BHP Billiton and Vale have been counting on sustained increases in Chinese demand to justify their big capacity expansion plans. (Reuters)
Source: Reuters (12.03.2014)

Steel industry heads for shake-out The steel industry is ripe for a shake-out. Nearly three-fourths of the listed steel makers are trading at a big discount to their enterprise value and debt on their books, putting them in debt trap. Most stressed are medium and small size firms that expanded aggressively during pre-2008 boom funded through debt. For example, Chhattisgarh-based Monnet Ispat's market capitalization of Rs 480 crore is just 5% of its total debt at the end of FY13. Odisha-based Adhunik Metaliks' market value is now down to Rs 364 crore against its total debt of around Rs 5,000 crore. It's even worse for Varun Industries that came out with its initial public offer in 2007. At its current stock price, the company's market capitalisation is now less than one percent of its total debt, making it financially insolvent. At operating level too, most of these companies are grappling to make two ends meet. Poor steel demand and fall in realisations has led to a sharp decline in operating profits while interest payment continue to mount. In the first nine months of FY14, interest outgo ate-up near two-third of Adhunik Metaliks operating profit. (Business Standard)
Source: Other (13.03.2014)

ArcelorMittal, Tata Steel Petition EU on Climate Change The chief executive officers of 64 European steel companies, including the European units of Luxembourg-based ArcelorMittal and Tata Steel Ltd., signed an open letter to EU heads of state and governments, according to a statement today from steel lobby group Eurofer. “We, the undersigned CEOs, urge the heads of state and governments to restore balance between industrial, energy and climate policies in order to preserve the competitiveness of the industries which are at the core of the European economy,” the letter said. EU leaders will meet in Brussels on March 20-21 to set an end-of-year deadline for a decision on climate and energy strategy for 2030. The 28-nation bloc is trying to balance Europe’s ambition to lead the global fight against climate change with pledges to revive the region’s industry and cut the reliance on fossil fuels. (MetalMiner)
Source: Other (14.03.2014)

POSCO to revamp non-steel ops, shun major steel investment -new CEO POSCO's new chief executive said the South Korean steelmaker will restructure non-steel businesses and not make any major investment in increasing steelmaking capacity, in a marked break from the strategy of his predecessor. Incoming CEO Kwon Oh-joon, a former POSCO chief technology officer, will sell non-core assets and list affiliates after a wave of investment and acquisitions left the world's fifth-biggest steelmaker with high debt and credit-rating downgrades. POSCO, once one of the industry's star performers, posted its third straight year of profit decline last year as it continued to grapple with steel oversupply and reduced customer demand brought about by recent global economic downturn. "POSCO's biggest task is to improve its financial structure," Kwon said at a news briefing after starting a three-year term as chief executive and chairman. "First of all, we have to improve our core competitiveness in steel and generate profit." To that end, POSCO will restructure its materials and energy businesses, and focus on lithium, nickel, fuel cells and clean coal, Kwon said. (Reuters)
Source: Reuters (17.03.2014)

China’s debt crisis to hit industrial metals Investors in vital industrial metals such as copper and iron ore will have their nerves tested again this week after China’s unfolding debt crisis caused volatility on commodity markets. All the warning signals are now pointing to a continuing slide in prices as the full extent of China’s economic problems emerges and bearish sentiment grips the large commodity trading houses. Fears over a possible credit crunch in China have blown away previous assumptions that 2014 would be a year of steadily rising prices for industrial commodities as the global economy continued to recover. Copper prices have fallen 14pc so far this year to about $3 a pound on futures markets. Iron ore has tumbled to an 18-month low and closed the week at around $104 per tonne. After years of turning a blind eye, China’s government is finally getting serious about reining in the country’s poorly regulated shadow banking system, which has grown so big that it could derail the world’s second-largest economy. (The Telegraph)
Source: Other (19.03.2014)

Steel scrap prices improve on Turkish buying and supply shortage Improved Turkish buying along with supply shortage after bulk of the suppliers had withdrawn owing to price collapse in February. Turkish mills returned to the market to strike cheap deals and stock replenishment kindling the market levels. Bulk of the bookings has been cornered by CIS suppliers in the absence of US and European who were late entrants. However the new offer levels at USD 360 per tonne and USD 367-370 per tonne, CFR, Turkey for HMS 1&2 from EU and USA respectively are way above the USD 345 per tonne reached a month back. Billet offers have increased by USD 5 per tonne touching USD 510-525 per tonne CFR Turkey (USD 495-505 per tonne Fob, Black Sea) owing to increase in scrap levels. However transactions are few as the mills want to be sure about the acceptability of hike in finished price level before booking.(Steel Guru)
Source: Other (20.03.2014)

Wuhan Steel to spend USD 5 billion on steel mill in Indonesia Wuhan Iron and Steel Corporation of China plans to invest up to USD 5 billion this year to build an integrated mill in Indonesia. The firm has carried out a feasibility study for the project and is now assessing the location to set up the mill. Mr MS Hidayat industry minister of China said that “They are seeking a location that is close to a seaport with a specific depth, sufficient electricity supply and supporting infrastructure. The development of the integrated iron and steel mill by Wuhan will run along with the establishment of a 1,500 hectare industrial park. Mr Hidayat said that he recommended East Java as a potential site for the mill due to its availability of necessary infrastructure and relatively easy access to raw material in Kalimantan, north of East Java. In 2011, Wuhan had planned to set up steel mills in Medan, North Sumatra, and in Kotabaru, South Kalimantan, in collaboration with domestic steelmaker PT Gunung Garuda with a total investment of up to USD 3 billion over five years. The mills were designed to annually produce up to 1 million tonnes of steel. However, the plan collapsed for unknown reasons. (The Jakarta Post)
Source: Other (21.03.2014)

Canadian gold diggers threaten with drought a whole town in Bulgaria The drama of the Ada Tepe goldmine has been ongoing for 12 years and it threatens with an ecological catastrophe the whole Krumovgrad region. In 2007 local people once rejected the project, which provides for the treatment of the ore with cyanide. The current version plans water flotation with xanthates, copper sulfate and dithiophosphate and is very risky according to experts. If implemented, the Canadian gold digger company's plan may leave without water tens of thousands in Kroumovgrad and neighboring villages. The company Dundee Precious Metals Krumovgrad EAD has started construction work on the gold mine on Mt Ada Tepe hiding from the local authorities. On the questions of Standart, Dundee commented that they have a work permit from the relevant authority in Plovdiv. " So far only the underground part of the intake structure was built, which is part of the study of groundwater and does not constitute work under the Law on Spatial Planning (LSP), the company said .
Source: Standart (24.03.2014)

China seeks more influence in setting iron ore prices China is making headway on a decade long program to create giant mining groups so it can play a bigger role in negotiating iron ore prices with more established rivals in the world. The country plans to establish a large mining conglomerate focusing on iron ore extraction and smelting operations led by Liaoning based Ansteel Group, a large State owned iron and steel manufacturer. Mr Shao Anlin deputy GM of Ansteel Group said that "Ansteel Group will acquire a number of mining enterprises to complete the integration work over the coming years and eventually possess an annual iron ore production capacity of 200 million metric tons in 2025." In the meantime, up to eight large mining groups will also be integrated and established throughout China. Each individual group's production capacity of iron ore will exceed 30 million tonnes a year after a decade. China is the world's fourth largest iron ore producer with more than 70 billion tonnes of resources. But the nation's dependence on foreign iron ore rose to 70% last year. The country's domestic steel industry has spent more than CNY 2 trillion on paying high prices for iron ore from the global market over the past 10 years. (China Daily)
Source: Other (24.03.2014)

Nation drops steel industry consolidation target China has dropped a long-standing target to bring 60 percent of its steel sector under the control of its 10 biggest enterprises by 2015, a goal that has been criticized by companies such as Baosteel for causing a build-up of unprofitable capacity. The world's biggest steelmaking nation has in the past been accused of strong-arming State firms into pursuing unprofitable mergers, including the protracted takeover of Benxi Iron and Steel by its bigger local rival, Anshan Iron and Steel. Facing flak for its failure to heed market signals, China has been trying to change the way it regulates its economy, and aims to stop interfering directly in the approval and construction of industrial projects and focus instead on macroeconomic regulation. A new industry consolidation plan published on the website of the Ministry of Industry and Information Technology said China would continue to simplify approval procedures and also make it easier for firms in bloated sectors like steel, cement and aluminum to finance acquisitions. (Global Times)
Source: Other (26.03.2014)

Canadian-Spanish and German cooperation builds new zinc factory in Kardzhali The construction of the new zinc plant in Kardzhali is set to begin in a Canadian-Spanish and German cooperation. The involved companies will be Canadian SNC-Lavalin, German Outotek and Spanish Asturiana, announced Harmony 2012 , the new owner of the metallurgical plant. John Elkin , the director of Harmony 2012 explained that the principal activities of the manufacturing plant will begin within two months, which will make room for new facilities. The project includes the construction of an entirely new roasting plant, a new plant for the production of sulfuric acid and a new electrolyte facility. The new factory is to be built according to world standards and will meet all environmental standards and requirements, the management says. The construction of new plants is necessary due to the full amortization of the existing industrial buildings, installations and equipment.
Source: Standart (27.03.2014)

Glencore suspends Australia coal mine as market worsens Glencore Xstrata will suspend operations at its Ravensworth underground coal mine in Australia following a plunge in coal prices due to a supply glut. The move underscores the plight of coal miners operating in Australia, including AngloAmerican, BHP Billiton and Rio Tinto, which have closed mines and cut staff in recent months to combat worsening conditions. A Glencore spokesman said it was no longer financially viable to operate the Ravensworth mine owing to a combination of lower prices, high production costs, a strong Australian dollar and geological constraints in future mining areas. The mine produced 2.1 million tonnes of semi-soft coking coal in 2013 and will be placed on care and maintenance once work on a longwall section is completed in September. The price of coking coal used in steelmaking has tumbled by some $200 per tonne from its 2012 high above $300. (Reuters)
Source: Reuters (27.03.2014)

Indian steel mills may reduce flat prices in April to counter import threat After 3 breath-taking months of price hike by the Indian mills it seems tide is turning against them. Some core factors working behind have been 5% appreciation of INR and 3% depreciation Chinese Yuan. The imminent danger of imports from China has accentuated recently with HRC offers coming around unheard of USD 540-550 per tonne, CFR levels. All these months strong INR has been major shield for Indian mills who have relentlessly hiked price of HRC to the tune of INR 4000 per tonne since January. At the same time it gave them export muscle. However with the currency tide turning other way mills are not only coerced to think price correction but it will certainly help them in keeping the bottom line intact with reduction in input cost on account of iron ore and coking coal import. Project and construction demand has been sluggish in India owing to credit crunch and elections wherein announcement of new projects is banned. However post elections the market is widely expected to take a turn for good. (Strategic Research Institute, Steel Guru)
Source: Other (28.03.2014)

Taiwan's rebar mills to temporary stop offering Although most of Taiwan’s downstream rebar buyers still refused to accept mills' new rebar selling price, the raising scrap price has pushed Taiwan's rebar mills to stop publicly tabling offer prices for the time being. It is said one of southern Taiwan's rebar mill has currently closed their offer after received an order by about 10,000 tonnes to 12,000 tonnes at base price of TWD 16,600 per tonne. One mill's manager said current scrap import price is about USD 350 per tonne CFR, the rebar cost will be at least higher than TWD 17,000 per tonne. However, rebar market price is now only about TWD 16,600 per tonne to TWD 16,800 per tonne which is TWD 500 per tonne lower. (Steel Guru)
Source: Other (31.03.2014)

The U.S. Steel Industry Wants a Helping Hand from Uncle Sam The U.S. steel industry wants more protection from foreign imports, continued access to cheap energy, and increasing infrastructure spending. That's a nice wish list that industry executives from ArcelorMittal and U.S. Steel recently brought to Capitol Hill. They can support their points, but will they get what they want? According to ArcelorMittal USA CEO Mike Rippey, "U.S. steelmaking facilities are running at only 77 percent capacity." In his company's last two quarterly conference calls, Nucor CEO John Ferriola has basically blamed imports. He has said that overcapacity is the, "...greatest threat..." to the steel industry and has made specific calls for policymakers to, "address the huge issue of global steel overcapacity." So far, that's taken the shape of trade cases. On that front, there have been a few wins recently. For example, AK Steel CEO James Wainscott noted in the fourth quarter that, "...the International Trade Commission has made a preliminary finding in favor of the domestic [electrical steel] industry..."(Motley Fool?)
Source: Other (02.04.2014)

Canada’s Dundee extends life, updates estimates of Chelopech mine in Bulgaria Canada's Dundee Precious Metals (DPM) said it has extended the life of its Bulgarian mine in Chelopech by two years to 2025 from 2023. The updated mineral resources estimated for the Chelopech mine, for combined measured and indicated material, have increased 13%, or 2.2 million tonnes, according to the latest estimates, DPM said in a notice on Monday, The previous estimate was made in September 2011, the Canadian company said, adding that mineral reserves, which consist of some 1,000 tonnes of broken stocks and stockpiles, have been estimated as at December 31, 2013. "The addition of a further two years to the LOM [life of mine] of our flagship asset is an encouraging outcome from our reserve and resource update, which now incorporates pyrite recovery as a result of our newly constructed capability to treat all pyrite feeds rather than discard pyrites to tailings," Rick Howes , DPM’s president and CEO, said in the press release. The pyrite recovery circuit started operations in March this year. It has an annual gold capacity in pyrite production of up to 80,000 ounces (oz) of gold. The amount of inferred material has dropped by 15% in tonnes, according to the updated estimates. Copper resources have increased by 12%, while there is a 7.0% increase in gold and 11% increase in silver, The primary reason for these changes are tonnage losses due to production of 2.5 Mt of ore treated during the period October 1, 2012 to December 31, 2013, offset by increases in resources from development drilling success, the press release read. Dundee Precious Metals Inc. is a gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. DPM operates another plant in Bulgaria in Krumovgrad, in the south of Bulgaria, which. The company also has mines in Sebia, Canada, Armenia and Namibia.
Source: Capital (03.04.2014)

China steelmakers are in toughest situation: experts China's steel industry is in its toughest year in two decades, with falling prices, weak demand and overcapacity leading to mergers and acquisitions, industry experts said. In the first two months of 2014, large and medium-scale Chinese steel companies ran a total loss of 2.8 billion yuan ($454 million), Li Xinchuang, head of the China Metallurgical Industry Planning and Research Institute, said at Saturday's 5th China Steel Planning Forum, held by the institute. The loss worsened in March, he said. "Solving overcapacity is key to various problems of China's steel industry," Li said. "Many Chinese steel companies face operational difficulties and obstacles to upgrading while many problems in the industry are closely related to overcapacity." According to the China Iron and Steel Association, major domestic steel companies had total profit of 22.8 billion yuan in 2013, mostly generated by their non-steel business sectors. The steel units contributed only 5 billion yuan to total profit last year, little for such a huge industry. Association data show the industry's total profit was 169.95 billion yuan in 2006. (China Daily)
Source: Other (03.04.2014)

Nippon Steel & Sumitomo Metal integrates two pipe companies in Thailand Nippon Steel & Sumitomo Metal Corporation and its subsidiary Nippon Steel & Sumikin Pipe Company Limited hereby announced that Siam Nippon Steel Pipe Company Limited and Thai Steel Pipe Industry Company Limited both NSSMC Group’s companies producing electric resistance welded pipe and tube in Thailand for years decided to integrate them in July this year and that these two companies have signed an amalgamation agreement on March 17th 2014. The new company’s name is Nippon Steel & Sumikin Pipe (THAILAND) Company Limited. SNP, a former Nippon Steel Corporation’s subsidiary established in 1995 and TSP, a former Sumitomo Metal Industries Limited’s subsidiary established in 1963, have successfully developed electric resistance-welded pipe and tube business, respectively in Thailand, providing its automotive industry with their quality products. (Strategic Research Institute, Steel Guru)
Source: Other (04.04.2014)

Troubled mining giant faces state takeover One of Europe’s largest coal mining companies could be nationalised if impending debt talks fail. New World Resources, the London-listed group whose pits in the Czech Republic employ more than 15,000 people, is losing about ˆ1m a day thanks to rock-bottom coal prices and big interest payments. Last month it warned in its annual report that there was, “significant risk of the group ceasing to operate as a going concern”. When it listed in 2008, just months before the recession sent commodity prices plummeting, it was worth ?3.5bn. Its shares closed on Friday at 38.13p, valuing it at ?101m. It is the latest example of a foreign resources giant that came to the London market amid great fanfare only to become a train wreck for investors. It has also proved a disaster for its billionaire founder. (The Sunday Times)
Source: Other (07.04.2014)

Construction of mine near Panagurishte stopped for environmental assessment Ministry of Environment and Water stopped the construction of a new mine of Assarel Medet near Panagurishte. The reason is gaps in the environmental report. According to the statements made to the Ministry by environmentalists, it is superficial, without analysis and environmental reasons for the assessments. The project is returned to the sponsor for further studies and analyzes in the protected area Sredna Gora that will last a year. At the end of last year, in Panagurishte was held a public discussion of the report on the extraction and primary processing of metallic minerals in the section Lisa Mogila, located near the main pit of Assarel Medet. The biggest concern of the environmentalists is associated with pollution by oxide blades. Furthermore, according to them, the realization of the new section Lisa Mogila is quite possible to seriously affect the historical place Oborishte. However, the mayors of the nearest villages Oborishte, Bata, Banya and Popintsi as well as the Mayor of Panagurishte - Nikola Belishki, gave their approvals for the upcoming expansion of Assarel Medet. The reason is that the project will bring nearly BGN 15 million of investments and is expected to open 40 new jobs.
Source: Maritsa (08.04.2014)

Tata Steel to sell New Zealand unit for Rs 143 crore Tata Steel is selling a unit of its international operations, specifically the business in New Zealand and Pacific Island for NZ$ 27.5 million or Rs 143 crore, to a Kiwi company, Steel and Tube, as part of its restructuring strategy. The unit, which is into distribution of stainless steel, engineering steels and composite floor decks, is housed under Tata International (Australasia) and came into the fold of India's biggest alloy producer following its acquisition of UK's Corus Group in 2007. The transaction is expected to be completed on April 14, Tata Steel said in a notification to the bourses. The development comes close on the heels of Tata Steel's 25-acre land sale deal with Oberoi Realty for Rs 1,155 crore last month. The Cyrus Mistry-chaired steel major has been selling its portfolio in bits and parts to improve financial flexibility and to pare debt, which has swelled to over Rs 70,000 crore. The debt has been mainly a result of its ambitious $13 billion Corus purchase. (The Times Of India)
Source: Other (09.04.2014)

Evraz widens 2013 loss, revises dividend policy Evraz reported a fall in earnings in what the company described as a “challenging year for the global steel and mining industry”. Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 10% to $1,82bn in the year ended December 31st 2013, due to falling prices. Net loss widened 34.6% to $572m as revenue declined 2.1% to $14.4bn. "2013 was another challenging year for the global steel and coal mining industries, characterised by strong cyclical headwinds, which Evraz was not immune to,” said Chief Executive Alexander Frolov. Nevertheless, the group increased external steel sales by 1% to 15.5m tonnes and substantially grew the output of coking coal by 22% to 18.9m tonnes. The firm disposed of structurally high cost assets in iron ore and coal mining Evraz Vgok, Abakan and Teya mines of Evrazruda and the Gramoteinskaya steam coal mine $20m. Evraz Vitkovice Steel was sold for an enterprise value of $287m. (Share Cast)
Source: Other (10.04.2014)

Yield of over 100 thousand tons of non-ferrous metals expected near Momchilgrad Gorubso Kardzhali plans extraction of over 100 thousand tons of semi-metal ores annually from Sedefche deposit near Momchilgrad. The investment proposal was handed out to the mayor of the town by the company’s CEO engineer Jivka Kovacheva. The ore will be processed in the flotation plant, located at the center of Kardzhali. The enterprise has a facility for processing of gold-bearing ore under cyanide leaching technology and is located on the left bank of the Water Mirror. Kovacheva promised that the new investment will create 50 new jobs for miners and experts, as locals will have priority in hiring.
Source: money.bg (11.04.2014)

Bulgaria Posts 7% Increase in Exports of Metallurgical Sector Bulgaria registered a 7% increase in exports of metallurgical sector products in 2013, according to Ivan Ayolov, Deputy Minister of Economy and Energy. Speaking Thursday at the opening of the XXI International Scientific and Technical Conference Metalcasting 2014 in Pleven, he explained that the creation of favorable conditions for a recovery of Bulgarian industry was a major task for the government as a stable industry was a precondition for economic prosperity. Ayolov, as cited by the press office of the Ministry of Economy and Energy, emphasized that the introduction of new technology in metallurgic and cast metal enterprises would boost their competitiveness on international markets. He said that the government had provided funding under the National Innovations Fund, as well as funding under the new operational program Innovations and Competitiveness, in a bid to fast-track the process. Responding to journalists' questions about the support of the state for the metallurgic sector, he explained that the Ministry of Economy and Energy was forming a working group consisting of experts from the energy sector and representatives of big industrial companies from the metallurgic sector. Ayolov noted that the working group would discuss tariff plan options which would be proposed to the State Commission for Energy and Water Regulation (DKEVR), the aim being to achieve competitiveness and to balance the electricity system. He also drew attention to the efforts of the government to restore the severed connection between education and the business sector, adding that the dual education system would enable a smooth transition from education to career development, thereby boosting the fight against youth unemployment. The conference was attended by representatives of local foundry associations, representatives of the Bulgarian Academy of Sciences (BAS) and of technical universities, as well as leading international and Bulgarian companies specialized in machinery, equipment and technologies.
Source: econ.bg (11.04.2014)

BHP, Rio to be hit by lower steel demand Global steel demand is forecast to decline this year as the Chinese economy slows from its breakneck speed, raising concerns about the impact it will have on Australia as one of the world's top iron ore producers. The World Steel Association, the industry's main international body, expects global demand to rise 3.1 per cent in 2014 to 1.52 billion tonnes, compared to growth of 3.6 per cent last year, the Financial Times reported. Demand growth is then expected to increase slightly in 2015, rising 3.3 per cent. The expected drop off in demand is expected to affect the profit margins of Australia's biggest and richest iron ore miners BHP Billiton and Rio Tinto, and smaller players, as the raw material is used in steel making. The price of iron ore is down 11 per cent this year and is trading at $US119 a tonne on Thursday morning AEST. Australian shares in BHP and Rio are up 1.37 to $30.4 and 0.99 per cent to $65.14, respectively, since Wednesday. (Fairfax Media)
Source: Other (11.04.2014)

India becomes net steel exporter after 6 years in FY14 India became net steel exporter in 2013-14 after a gap of six years and is likely to maintain the momentum in 2014-15 as producers are looking to dock more overseas shipment to tide over subdued domestic consumption. Total steel exports by India during the last fiscal stood at 5.59 million tonnes (MT), as against imports of 5.44 MT, according to a report by Joint Plant Committee (JPC), which is a unit of the Steel Ministry. India, now the world's fourth largest steel maker, had been a net steel importer since 2007-08 and the trend continued till 2012-13 with 7.9 MT of imports and 5.2 MT of exports. Before 2007-08, India's exports were more than its imports. About 4.1 per cent higher exports and 31.3 per cent decline in imports helped India become net exporter of steel. While higher exports were driven by volatility of rupee and mismatched demand-supply situation in the country; imports were lower mainly due to slowdown in the domestic economy. (NDTV)
Source: Other (14.04.2014)

BlueScope Steel gets antitrust clearance to buy PacSteel Australia’s largest steelmaker BlueScope Steel and owner of the New Zealand Steel mill, has gained antitrust approval to acquire the assets of Fletcher Buildings Pacific Steel in a $120 million deal. The Commerce Commission said while the acquisition will leave BlueScope as the only New Zealand producer of flat steel products such as steel slab and sheeting, and long steel products such as billet, reinforcing bar and wire there wasn’t an overlap between the two businesses and prices would continue to be influence by imported product. Commission chairman Mark Berry said in a statement “The products supplied by BlueScope and Pacific Steel can be sourced through imports and the import price strongly influences the prices that BlueScope and Pacific Steel are able to charge. Post merger, imports will continue to provide pricing pressure on the merged business.” The companies are aiming to complete the transaction by the middle of the year. As a result, Fletcher plans to close its steel mill at Otahuhu at the end of 2015. (Steel Guru)
Source: Other (16.04.2014)

Chile’s main iron-ore producer to invest $650 million this year Chile's Compania de Acero del Pacifico (CAP) will spend over US$650 million this year to develop iron ore projects in the country, with most of the investment going to its Cerro Negro Norte project in the northern Atacama region. The firm, which forecasts iron ore sales of 15-million tonnes by the end of 2014 and 18-million tonnes next year, also said it planning to launch a new project by December. CAP is currently negotiating water supply contracts with four mining companies. The steel manufacturer wants to finish the third stage of construction at its desalination plant in Atacama before year-end, which will have a total capacity of 600 liters per second. The idea is to have enough water supply to move forward with its four untapped iron-ore deposits in northern Chile, including El Tofo, which CAP has previously said has the potential to produce 13.5-million tonnes of iron-ore per year and will require a $3 billion investment. (mining.com)
Source: Other (17.04.2014)

Mine Varba - Batantsi will start in June Mine Varba - Batantsi near Madan will start in June, chief executive Sergei Atanasov said. In the two wells, which are under intensive repairs for one year already, have been employed 120 people. The mine operated until 1998, but then stopped. Now the investment approaches BGN 15 million. The deposit was given a concession for 35 years to Minstroy Holding and KCM. "According to the concession contract, we should run up Varba - Batantsi by the end of this year, but it will surely happen earlier. Drainage continues, what remains is to rebuild the bottom horizon. By the end of the year I expect to gain 35-40 thousand tonnes of ore from the rich in lead, zinc and silver deposit," Atanasov said. Mining company built six-kilometer underground railway that links the mine Varba - Batantsi with the process plant in Rudozem. The investment is BGN 2 million and one kilometer remains to the completion of the site. Thus ore will go directly to the processing plant in neighboring Rudozewm from the mines in Madan.
Source: Presa (24.04.2014)

Japanese firm to assist Azerbaijan in establishing steel production complex The Japanese Marubeni Corporation will provide consulting services to Azerbaijan for establishing a steel production complex. The relevant agreement was signed by Azerbaijan's Economy and Industry Ministry and the Japanese Marubeni Corporation. Under the agreement, the Japanese company will primarily study the raw material base in the country, in particular, in the Ganja and Dashkasan mining fields, and also submit its proposals to Azerbaijan on how to apply advanced technologies in steel production. Marubeni Corporation will analyze the local and regional market as well. The diplomatic relations between Azerbaijan and Japan were established in 1992. Relations between the two countries continue developing. Japan was one of the first countries to support Azerbaijan's forward-looking oil strategy. Today two major Japanese companies Itochu and Impex are involved in the Contract of the Century. Leaders of Japanese business, Mitsubishi, Mitsui, Marubeni, and Sojits are involved in the energy and infrastructure projects in the country. (AzerNews)
Source: Other (25.04.2014)

voestalpine breaks ground for 2 million tonnes HBI/DRI plant at Texas in US After about a year of preparation, Mr Wolfgang Eder CEO of voestalpine, broke ground for the construction of a direct reduction plant in Texas in US. This EUR 550 million investment is the largest foreign investment in the history of the Austrian Group. The voestalpine Texas LLC plant is being constructed at the La Quinta Trade Gateway Terminal in close proximity to the City of Corpus Christi. Starting in 2016, the plant will produce 2 million tonnes of Hot Briquetted Iron and Direct Reduced Iron annually and will supply Austrian locations, such as Linz and Donawitz, with sponge iron as a premium raw material. With the new facility, voestalpine can significantly reduce production costs in Europe. The highly automated plant will create 150 jobs. Mr Eder said that “The property is superbly located right on Corpus Christi Bay, covers an area of about two square kilometres, and provides direct sea access for large ships. (Strategic Research Institute, Steel Guru)
Source: Other (25.04.2014)

Trade in shares of OZK and Moststroy suspended due to unpaid bills The Bulgarian Stocks Exchange (BSE) temporarily suspended trade with the stocks of 23 companies over unpaid annual fees as of Monday. Among them are Moststroy, Lead & Zinc Complex, Asenîvgrad Tabac, Expat Properties, Isperih BT, Nikotiana BT Holding, Inter Standards, and Electrometal.
Source: Standart (28.04.2014)

Chinese steel industry to cut 27 million tonne capacity in 2014 - MIIT China's steel industry is confronted with serious overcapacity, sluggish demand, declining profits and stricter environment standards. An official said that to tackle the problems, the Ministry of Industry and Information Technology has rolled out a batch of measures including curbing newly added capacity and pushing industrial consolidation. Mr Feng Fei a director with the MIIT said that the country aims to cut outdated steel production capacity by a total of 27 million tonnes this year. (Ecns)
Source: Other (28.04.2014)

Euromax Resources sells Bulgarian operations, sets up new unit Canadian exploration and development company Euromax Resources said on Monday it has completed the sale of its Bulgarian operations through the sale of its subsidiary Euromax Services EOOD, for consideration of USD 3.5 million. Euromax Services owns 100% of the Trun project and the Babjak and Zlataritza exploration assets in Bulgaria. The company did not disclose the other party in the sale agreement. Euromax Resources has set up a stand-alone unit in Bulgaria called Euromax Exploration Services, where key personnel from the Euromax family has been transferred, it said in a press release. The changes aim to ensure the most efficient use of the company's personnel and resources, it added. "The cash proceeds from the sale of Euromax Services will allow us to continue on track with development work at Ilovitza [in Macedonia], which is where we believe the tangible and deliverable value of the company lies,” Euromax Resources president and CEO, Steve Sharpe, said in the press release. As part of the sale agreement, the company has also cancelled the 1.5% net smelter return it held over the Breznik property. Elsewhere in Southeast Europe, Euromax Resources has gold and base metal assets in Macedonia and Serbia.
Source: Capital (29.04.2014)

Regional minister Desislava Terzieva formerly opened a new factory for galvanized steel in Kaspichan. The plant in Kaspichan that employs 70 people is the third one in the country of the Plovdiv-based company Jupiter Holding. The investment in Kaspichan is assessed to BGN 6.1 million. Next year another body of the plant will be constructed with European funding. With the expansion of the production, employees will become 90.
Source: Presa (30.04.2014)

Asarel Investment Granted Metallic Mineral Exploration Permit Asarel Investment, the investment arm of leading copper ore mining and processing company Asarel-Medet, has been awarded a metallic minerals prospecting and exploration permit. On Wednesday, Bulgaria's government approved the issuance of a permit for prospecting and exploration of metallic minerals in the "Varshilo" area on the territory of the municipalities of Sozopol and Sredets, Burgas district. The permit awarded to Asarel Investment EAD is for a period of three years. The minimum work program of the company envisages investments of BGN 917 300, part of which is the sum of BGN 40 000 earmarked for environmental protection and rehabilitation.
Source: Capital (07.05.2014)

Bulgarian arms trader Kintex net profit soars in Q1 Bulgarian state-owned arms trader Kintex reported an annual increase of 238% in its net profit to BGN 2.0 million in the first quarter of 2014, a quarterly report indicated. Kintex’s total revenues jumped over 224% to 19.2 million levs in the period January-March, according to the report posted on the website of the Bulgarian finance ministry. Exports amounted to BGN 13.2 million in the first quarter of the year. Kintex exported its products to India, Egypt, Thailand, Algeria, Bangladesh, etc. Kintex has a capital of 2,018,631 levs. Earlier this year, the Bulgarian economy ministry said Kintex's exports are expected to double in 2014. Kintex was founded in 1966 and in 1992 became a joint stock company fully owned by the state. It is licensed to engage in the import, export and re-export of goods and equipment for the armed and police forces.
Source: Trud (09.05.2014)

Nordic Ovako joins French bid for steel maker Ascometal Nordic specialty steelmaker Ovako has joined a group of French industrialists and investors to bid for the assets of bankrupt French engineering steel maker Ascometal, the companies said in a statement on Thursday. The French group around privately held Asco Industrie includes Ascometal founder and former Airbus CEO Noel Forgeard, former Arcelor chief executive Guy Dolle, and Frank Supplisson, who was deputy-chief of staff of former economy, finance and industry minister Christine Lagarde. "An independent Ascometal, with the right financial and industrial backing, is the best way to successfully manage the transition from a company with a problematic history to a profitable company," Supplisson and Ovako chief executive Tom Erixon said in a joint statement. The French group said on Monday it plans to bid at least 40 million euros for the Ascometal assets, will hire its industrial staff, invest 135 million euros over the next four years and leave current CEO Jacques Schaffnit in place. It also plans to cut 62 administrative jobs. (Reuters)
Source: Other (09.05.2014)

ArcelorMittal Hails Europe Steel Demand as Ukraine Crisis Weighs ArcelorMittal (MT), the world’s biggest steelmaker, said European demand is growing faster than it expected, countering a slump in Russia and Ukraine. Demand in its biggest market may expand as much as 3 percent this year, ArcelorMittal said today after giving first-quarter results, up from 2.5 percent predicted in February. Forecast for the Commonwealth of Independent States was reversed to a 2 percent contraction from growth of 2.5 percent, because of the crisis over Ukraine. “The changes overall to our business are positive because our core markets are the U.S. and Europe,” Chief Financial Officer Aditya Mittal said today in a reporters call. “We’re not directly exposed to the Chinese market. We are exposed to the CIS markets, but not to the same level as Europe.” ArcelorMittal, which shut plants and fired workers after waning demand and excess capacity eroded margins, forecast in February profit would rise 16 percent this year as demand rebounds in the U.S. and Europe. The Luxembourg-based company lowered its estimate for global steel use growth to 3 percent to 3.5 percent from a February forecast of 3.5 percent to 4 percent, saying demand in China will expand at a slower pace than expected as the real estate market cools. (Bloomberg)
Source: Other (09.05.2014)

Alcomet proposes to allocate 25% of the profit for 2013 as dividend General meeting of Alcomet, scheduled for June 20, is to vote on the allocation of 25% of the profit for 2013 amounted to BGN 2.239 million as dividend, it is clear from the meeting notice published by BSE. The amount of dividends is BGN 560 thousand, or BGN 0.031 per share gross. The remainder of the profit for last year – BGN 1.679 million, is proposed to be attributed to retained earnings. Alcomet profit fell 32% in the first quarter, as company's expenses for depreciation, fees and interest increase. Profit last year fell by 45% to BGN 2.13 million after a loss of BGN 486 thousand last quarter. Sales in the last quarter of 2013 increased by 6% yoy to BGN 66 million, but in the whole of 2013 the growth was 10% to BGN 287 million. Alcomet increased its production capacity by about 5% compared to production in 2013, after this year it put into operation a new 600-ton press. Alcomet shares rose 16% this year and by 28% for the last 12 months to BGN 6.02 per share and a market capitalization of BGN 108.1 million.
Source: investor.bg (10.05.2014)

India's steel consumption rises 3.4% to 5.8 mt in April India’s steel consumption grew 3.4 per cent to 5.8 million tonnes in April 2014 over the same month a year ago. It, however, witnessed a sharp 12.9 per cent decline over the preceding month. “India’s consumption of total finished steel saw a growth of 3.4 per cent in April 2014 over April 2013 and declined by 12.9 per cent over March 2014,” Joint Plant Committee, a unit of the Steel Ministry, today said. Production of crude steel grew 2.7 per cent to 6.8 mt during the month. India is the world’s fourth largest steel producer. Independent steel producers such as SAIL, RINL, Tata Steel, Essar Steel, JSW and JSPL together produced 3.7 mt in April, while the remaining came from minor producers. “Compared to March 2014, overall crude steel production declined by 5.6 per cent in April 2014, led by a steep decline of 8.9 per cent in the case of ISP producers and 1.3 per cent decline in the case of mini and other producers,” the committee said. (PTI)
Source: Other (10.05.2014)

Supplies of 166 kinds of mineral resources studied In Bulgaria were examined, approved and filed the reserves and resources of 166 kinds of mineral resources - 7 energy resources (fossil fuels, oil, gas and condensate) , 12 kinds of metal (ore), 79 kinds of non-metallic (industrial) minerals and 68 types of tiling and building materials. The information comes from the balance of reserves and resources of deposits of mineral resources in the Republic of Bulgaria as to 1 January 2014. The document prepared by the Ministry of Economy and Energy, includes a comparative analysis of the state of the quantity and quality of reserves and resources at the beginning of last year and this year, marks the changes, the operating losses, increase or decrease in reserves and resources. The analysis shows that in 2013, absolute changes in the quantity and quality of available reserves and resources of the deposits are generally in the range of the envisaged values in the agreed and approved work projects. Sufficiency of reserves and resources, estimated on the basis of progress in mining made during the year (except oil and gas) is sufficient for present needs of different types of mineral resources.
Source: investor.bg (12.05.2014)

Vale receives largest iron ore carrier in the world Vale's operations in Oman has received its 50th Valemax vessel, the world's largest iron ore carrier, at its deep water jetty in the Port of Sohar, recording a total shipment of 25 million metric tonnes of iron ore since commencing its operations in Oman in 2011. Created to integrate the global logistics strategy of the company to generate customised solutions for its clients in Asia and raise the competitiveness of its products, the Valemax is a new concept category ore carrier with a capacity to transport 400,000 metric tonnes and has alone been responsible for the delivery of 80 per cent of the iron ore shipments to Oman from Brazil. "There is a popular belief that a large port can sustain a city. Today we can assume that this is happening here in North Al Batinah. At Vale, we are proud to see how only the operations related to our vessels are economically contributing to the region." For every Valemax that calls at the Port, approximately $3.3 million is invested in unloading the shipment and preparing the vessel for departure", said Sergio Espeschit, Vale's Chief Executive Officer in Oman. (Times of Oman)
Source: Other (12.05.2014)

Daily checks for Asarel Medet Waters near Panagurishte are checked daily, the Ministry of Environment and Water (MEW) explained as response to an inquiry about the panic among the population of Panagiurishte because of the poisoned water and fish in the river Luda Yana. There is no danger to life and health of the population along the Luda Yana River. This was announced by the Ministry after checks done immediately and taken water samples after the signal from 8 May indicating the presence of dead fish in the river. Checks were made by experts from the Regional Inspectorate Pazardzhik jointly with experts of the regional laboratory of the Executive Environment Agency, MEW explained. Inspections were carried along the whole river bank, as well as at the hydro facilities of Asarel Medet, according to the Ministry. Samples were taken from rivers Banska Luda Yana, Panova, Svinarski Dol, Asarelska and the outcome of the treatment plant Asarel Medet. There are no deviations in the technological regime of the station, but because of forecasts for upcoming rainfall the station was prescribed to daily present the results of the monitoring of surface waters. Results of testing the waters by the EEA will also be sent by the end of the week for an expert analysis to the Basin Department, Plovdiv.
Source: Standart (13.05.2014)

Swiss company builds a plant for metal pallets in Montana Swiss Andre Ureh bought a plot of 30 acres in Montana to build a plant for metal pallets. The value of the field, which so far has been municipal property, was BGN 508 000. The plant will be built in 38 months and will create 100 new jobs. Andre Ureh said he has already secured market for manufactured pallets in Switzerland. He intends to expand production in 4-5 years so that the plant will employ 150 people. Currently Ureh produces pallets in rented old workshops in Montana.
Source: money.bg (14.05.2014)

Australian iron ore trade faces labour unrest as boom fades Tugboat workers at Australia's main iron ore port threaten to hold a strike that could halt a quarter of the world's iron ore exports and cost miners $100 million a day, just as the industry battles to slash costs and get more out of its workers. The dispute comes as resource firms say Australia has become far more expensive than other locations as a now maturing project construction boom, driven by Chinese demand, led to fat pay packets and lavish conditions. In some outback mines, for example, workers are flown back and forth from resort-like housing, while cooks and laundry hands at some gas projects can earn as much as A$350,000 ($327,200) year. Tugboat deckhands at Port Hedland, used by Australia's second- and third-largest iron ore producers, on Monday approved a plan to go on strike for one, two or seven days if they are unable to resolve a dispute over vacation and pay. (Reuters)
Source: Other (14.05.2014)

Nine Nickel Smelters Seen in Indonesia This Yr After Ban Indonesia forecasts that nine nickel-processing plants may be completed this year after the largest mined producer banned raw ore exports in January, spurring a rally in refined prices to the highest level since 2012. The plants comprise two ferronickel and seven nickel-pig-iron smelters, according to data from the Energy and Mineral Resources Ministry. One chemical-grade alumina plant is also scheduled to be completed this year, the data showed. Southeast Asia’s largest economy is seeking to force a move toward processed commodities, betting that repercussions from the ban such as job losses will be offset by investment in new plants and output of higher-value products. The metal used in stainless steel is the biggest gainer this year among the six main metals traded on the London Metal Exchange amid concern that the ban will raise costs and spur a global deficit. As many as 63 smelters may be built by 2017, including 40 nickel plants, 10 iron ore smelters and four copper-cathode smelters, according to the ministry’s data, which was presented at a seminar in Jakarta on April 30. (Bloomberg)
Source: Other (16.05.2014)

Vale to shut money-losing Integra coal mine in Australia Brazilian mining giant Vale said it plans to close its Integra coal mine in Australia because it is losing money, the latest in company efforts to row back from non-core overseas assets. The decision comes as Vale and rivals BHP Billiton and Rio Tinto come under pressure from investors to cut costs and streamline businesses to better weather a period of lower commodity prices. Vale Chief Executive Officer Murilo Ferreira had previously said it was looking to sell a 15 to 25 percent stake in its coal operations. He added, though, that he did not expect that any mines would be closed. Vale's plans will end output from the Integra mine but keep the project under "care and maintenance," a status that allows the mine to be reopened quickly if economic conditions make operations viable again. The closure underlines the difficult environment for coal miners. The price of thermal coal fell 40 percent in the last three years as coal supply remained robust and demand fell in Europe and China. (Reuters)
Source: Reuters (19.05.2014)

POSCO chairman pledges drastic restructuring Mr Kwon Oh joon chairman of POSCO said that the steelmaker will revamp its business portfolio to bolster its fiscal soundness and global competitiveness. Mr Kwon Oh joon said that the world’s fourth biggest steelmaker will concentrate on three core areas steel making, renewable energy (fuel cells and clean coal) and materials (lithium and nickel). The company will leave or scale back its non core segments. His remarks indicate that many of POSCO’s 46 affiliates, including money losing ones in non core areas, will be subject to disposal or radical reorganization. In addition, this marks an end to the company’s expansion oriented policy, implemented by Mr Kwon’s predecessor mr Chung Joon yang who retired two months ago. Mr Kwon said that “POSCO will change its growth strategy to ensure the company grows stably and efficiently. We will pay back the love and support we have received our shareholders, investors, business partners and other people who love POSCO with drastic restructuring that will help bolster the firm’s internal efficiency. (Korea Times)
Source: Other (21.05.2014)

Goldman Widens Iron Ore Surplus Forecast on Steel Output The global seaborne iron ore glut will probably be 21 percent bigger than forecast next year as steel production slows in China, the world’s largest consumer, according to Goldman Sachs Group Inc. The surplus will reach 175 million metric tons in 2015, compared with a prior prediction of 145 million tons, Goldman Sachs said in a report dated yesterday. The bank estimates that output will exceed demand by 72 million tons and prices will average $109 a ton in 2014, before dropping to $80 next year. Iron ore has slumped 27 percent this year as economic growth in China slowed and mining companies from BHP Billiton Ltd. to Rio Tinto Group in Australia boosted output, shifting the global seaborne market into a glut. Banks from Standard Chartered Plc to Credit Suisse Group AG say more Chinese steel mills will go bankrupt and hurt consumption. “The market is no longer in balance but in the early stage of a structural surplus,” analysts including Christian Lelong wrote in the report. “China will not act as the safety valve in an oversupplied market for much longer.” Ore with 62 percent iron content delivered to the Chinese port of Tianjin fell 1 percent to $97.50 a dry ton yesterday, the lowest level since September 2012, according to data from The Steel Index Ltd. The decline in iron ore, Australia’s biggest export earner, pulled the country’s dollar today to the weakest level since May 2. While the last decline below $100 in 2012 spurred buyers to rebuild inventories, boosting prices to about $159 in four months, this time around expectations of ample supply will encourage users to keep reserves at a minimum, said Goldman. “We believe the current downturn could trigger another destocking cycle of similar scale,” Lelong, Daniel Quigley and Amber Cai wrote. “But the eventual rebound will be far less robust than previously.” Reduced Chinese imports will also offset any impact of expected supply disruptions in India and a possible strike at Australia’s Port Hedland, the world’s largest bulk-export terminal, the bank said. Maritime Union of Australia, which represents tugboat deckhands at the port, approved unlimited work stoppages of 24 hours, 48 hours and 7 days on May 12. BHP, the third-largest exporter, won’t be able to make up shipments lost during a strike, the company’s iron ore president Jimmy Wilson said in a statement today. The union said May 12 it hadn’t decided whether to take action. Port Strike “Disruption in Port Hedland would be costly for the producers affected and would drive a temporary price rally, but it would ultimately be washed out by global market fundamentals,” Goldman said. China’s inventory at ports rose 1.8 percent to a record 112.55 million tons in the week to May 16 from a week earlier, according to Shanghai Steelhome Information Technology Co. As much as 40 percent of inventory at ports may be tied up in financing purposes, according to Daiwa Securities Group Inc. “A meaningful amount of iron ore stockpiles in China is tied to financing, which means an unwinding can be excessive,” said Doug King, the London-based chief investment officer of the Merchant Commodity Fund, which returned 15.4 percent from January to April partly from iron ore. “Real demand will be dampened when those stockpiles are sold into the market.” China’s economy that creates demand for 69 percent of the world’s seaborne ore will grow by 7.3 percent this year, the lowest since 1990, according to a Bloomberg survey. The Australian dollar touched 92.16 U.S. cents today. It dropped 0.9 percent yesterday, the biggest loss since March 19. “Changes in spot iron ore prices affect the currency far more quickly these days,” Gareth Berry, a foreign-exchange strategist at UBS AG, wrote in a client note dated yesterday. “That’s largely due to the demise of annual fixed price iron ore contracts, and the subsequent shift to quarterly, then to monthly, then to spot pricing.” Shares of BHP fell 0.8 percent to A$37.17 ($34.32) at the close in Sydney today and Rio, the second-biggest exporter, declined 1.1 percent to A$59.40.
Source: Reuters (22.05.2014)

EU and China drive global steel output rise in April Global crude steel output rose at its second-fastest level this year in April, responding to an uptick in demand in Europe and the Middle East, though higher output in China added to oversupply and kept prices depressed. Output of the alloy rose by an annual 1.7 percent globally in the month to 137 million tonnes, with production in China rising 2.1 percent to 68.8 million tonnes, data from steel producers association Worldsteel showed. China is the world's top producer and consumer of steel. "Steel prices are near the lowest they've been in recent times," said Jeremy Platts, analyst at steel consultancy MEPS. "There are some encouraging signs that demand is increasing and output growth isn't just coming from China, as in recent years, but at the same time the price would benefit from some production cuts in Europe," Platts added. In percentage terms, the biggest growth in output came from the Middle East - up an annual 9.6 percent - and from Europe, where it rose an annual 4 percent to 14.61 million tonnes as economic growth in the region takes hold. (Reuters)
Source: Other (23.05.2014)

Metal production shakes off crisis Bulgarian metallurgical industry bounced off the bottom, but the levels of production and sales from 2008 are still far. This is the situation of the industry in Bulgaria’s national economy in one sentence. The data of the Bulgarian Association of Metallurgical Industry (BAMI) show that in the first quarter of 2014, steel production (149.1 thousand tons) exceeded that for the same period last year by 17.5%. Exports grew by 16.5%, and the internal market – by 33.2%. Produced rolled ferrous metals are 260.8 thousand tons, which is 28.7% more than in March 2012. A drop of 0.4% was reported in the articles of rolled ferrous metals. According to Politimi Paunova, executive director of the association, steel in 2013 actually reduced in both production and prices of all ferrous metals. But the reason for this are the global trends in the sector and the market situation. The impact of the crisis on basic industries is stronger and deeper than in other industries. In both value and in-kind steel production declined for the past year, said Ms. Paunova, pointing out that this is a trend throughout the European Union. The European steel industry has not yet recovered and in Bulgaria this applies even more strongly. Pressure on prices upward also comes from the hike in electricity and gas especially in recent times because of the events in Ukraine. Non-ferrous metals did not decrease either in prices or quantities, but they are traded on the commodity exchange, while exchange trading has a speculative element. However, their increase in production also reported price growth, said Paunova. Particularly copper prices traditionally fall at the beginning and end of each calendar year. The latest update of the development of the sector in 2012 show that non-ferrous metallurgy is successful in Bulgaria. "The quantities of basic non-ferrous metals relative to per capita of Bulgaria, compared to the EU average, are much higher. In steelmaking the trend is reversed - almost twice less steel is produced per capita compared to the average European level. Despite recent years of economic crisis, companies in the ferrous and non-ferrous metals sectors continue to invest to improve the competitiveness of products. In many technological and qualitative indicators achievements of Bulgarian companies are at the level of the best European and international practices," reads the annual report of the association.
Source: Standart (26.05.2014)

US Senator Grassley urges action against steel imports US Senator Charles Grassley is urging officials to take a closer look at steel imports that has caused reduced operating hours at a Camanche facility. IPSCO announced in April that it would reduce operating hours used to produce welded pipe at multiple factories, including its facility in Camanche. The number of operating hours was reduced by 30% at the three affected manufacturers. Mr Grassley urged President Mr Barack Obama to give full consideration to the domestic steel industry’s concerns about unfairly priced imports. He said that “We write to express our concerns with the Commerce Department’s preliminary determination in the antidumping investigation of Oil Country Tubular Goods imports from Korea. This case has nationwide economic implications, and any final determination must be based on accurate data and objective methodologies. As the department continues the investigation, we ask that you fully consider the domestic industry’s allegations and take action against any unfair dumping to the fullest extent of the law.“ (Aamestrib)
Source: Other (26.05.2014)

Assarel Medet did not poison the fish Assarel Medet did not poison the fish in the Banska Luda Yana River, according to the analysis of water samples taken from the treatment plant of Assarel Medet. It showed no excess of individual emission standards as to the integrated license of the site, RIEW Pazardzhik said in a statement. Tests of water samples from the output of the plant’s mine waters processing station show the following indicators: copper - 0,002 mg at a rate of 0,1 mg; manganese - 0,03 mg at a rate of 0,3 mg; iron - 0,167 mg at a rate of 1,5 mg per liter, and pH - 6.2 at a rate of 6 to 8.5. Since according to the Water Act, the authority to analyze and summarize data on the performance of water samples from local rivers is the head of the Basin Directorate, Plovdiv, RIEW Pazardzhik was sent records of the tests of water taken on May 8 for a ruling.
Source: Standart (27.05.2014)

Prep work for restarting Kremikovtzi underway Preparatory work for restarting part of the production process at Sofia’s steel mill Kremikovtzi has been underway for a couple of weeks now. The project has nothing to do with the government plans for reindustrialization – the initiative comes from the private companies which bought the assets of bankrupted Kremikovtzi three years ago with the help of a Fibank loan. According to unofficial information, Eltrade Company, Vapet Consult and Nadin Metals Trade are trying to resume part of the production process with the idea to sell the company to a new investor. Capital Daily reminds that the maturity on the Fibank loan expires in late July and this could also be one of the reasons for the hurry.
Source: Capital (27.05.2014)

EUR 200,000 for three innovative business projects in the industrial sector Total EUR 200,000 will be invested in innovative projects in the industrial sector, show the terms of the competition announced by Assarel Investment and Innimmo Advisors. They are looking for ideas with high potential for commercialization in the field of mining and processing industry, chemical industry, the development of components and systems for energy efficiency and renewable energy, recycling and environmental protection, electronics and electrical motors. Under an innovative idea, the organizers mean given product, process, service, or business model, representing technological innovation. It must bear the beneficial effect and satisfy the real needs of the Bulgarian market. To win the investment, besides that the candidates must show that their idea has practical application, they are expected to commit to the development of the project.
Source: 3e-news (28.05.2014)

Rio Tinto Guinea Deal Ends One of Mining's Greatest Sagas A deal to develop Africa's largest mine has finally been struck after years of confusion and scandal. The Simandou iron ore mine in Guinea is expected to cost $20bn. Mining giant Rio Tinto has entered into a framework agreement with its two joint venture partners, the International Finance Corporation (an arm of the World Bank) and Chinalco, the Chinese state-owned metals company. The state of Guinea will retain 15% of any proceeds from the mine. In exchange, the joint venture will enjoy eight years' tax free operations in the country. It's hoped that the project will create tens of thousands of jobs in both the mine itself and in the transport infrastructure that will have to be built in order to bring it online. 650km in railway lines will be required in order to transport iron ore to a new port to be built to export the mineral. It represents some level of closure in what has been one of the longest and most baffling sagas in mining history. (IBTimes)
Source: Other (28.05.2014)

Varba-Batantsi Lead, Zinc Mine in Southern Bulgaria to Open in July The investments in the Varba-Batantsi mine near Madan, which is to open in July, amount to around BGN 15 M. Sergey Atanasov, CEO of Bulgaria's Gorubso Madan metal mines, announced that a total of 120 people were working at the Varba-Batantsi mine, with 150 people to be involved in the production process, according to reports of the Bulgarian National Radio. Atanasov explained that the company was seeking to launch the mine as soon as possible because it was generating costs without producing anything. "In order to start, we need to secure a production of at least 3000 – 4000 tonnes. We need at least 4-5 units to be launched for this purpose. Preparations are underway. 3 units are ready but we cannot start with them because they cannot yield more than 1000 – 1500 tonnes," Atanasov stated. In end-March 2012, Varba Batantsi, an association of KCM 2000 and Minstroy Holding, acquired over 90% of the shares of lead and zinc mine Gorubso-Madan, thereby putting an end to miners' protests over unpaid wages totaling BGN 1.2 M. A 35-year lead and zinc mining concession was signed in end-May 2012.
Source: Capital (29.05.2014)

Nippon Steel puts iron ore, coal on $1 bln fund's investment radar Japan's Nippon Steel & Sumitomo Metal Corp may consider investing in iron ore or coking coal mines from its nearly $1 billion warchest for overseas investments but won't bid for the U.S. plants of Russia's Severstal, an executive said. The world's second-biggest steelmaker by crude steel output will be eyeing the mining investments while prices of the commodities are low although it is not negotiating any deals in the segment currently, Executive Vice President Katsuhiko Ota said in an interview earlier this week. "We'll seriously consider investing if there is a good deal. There is no specific deal on the table now, but we'll use some of the 100 billion yen fund if any good target arises," Ota said. Nippon Steel currently gets about a quarter of its required iron ore and 20 percent of coking coal from mines in which it has invested. Benchmark iron ore prices are down more than 40 percent since mid-2011, while coking coal prices have plunged by two-thirds over the same period. Nippon Steel, Japan's biggest steelmaker by crude steel output, has set aside 100 billion yen ($979.72 million) for expansion, mostly overseas, in the year through March 2015. (Reuters)
Source: Reuters (29.05.2014)

China trims long-term iron ore contracts as glut hits market Chinese steel mills are cutting back on long-term iron ore contracts in favour of cheaper spot cargoes, confident that beaten-down prices are unlikely to rebound amid the first global ore surplus in 10 years. Miners in Australia and Brazil, who for years have earned massive profits from China's insatiable demand for iron ore, are ramping up production at a time when steel demand growth is slowing, pushing prices down 28 percent so far this year. Market talk is swirling that some Chinese mills have cancelled iron ore cargoes, with several traders saying up to four million tonnes have been rejected, although this could not be verified by Reuters. Iron ore demand in China is still near record levels - April imports of 83 million tonnes were the second-highest ever - but miners such as Vale, Rio Tinto and BHP Billiton are boosting production even faster. Shipments from dominant producers Australia and Brazil are expected to grow by 40 percent over the four years to 2017, when annual exports will reach 1.27 billion tonnes, according to Australia's Bureau of Resources and Energy Economics. (Reuters)
Source: Reuters (30.05.2014)

The Iron Ore Market Is Set For Further Pain The iron ore industry had a great 2013. Record levels of output and the rising price of the commodity sent industry profits surging and shareholders were richly rewarded. However, 2014 is shaping up to be a very different year. For Rio Tinto and BHP Billiton this is bad news. Both Rio and BHP have been banking on the fact that the demand for iron ore, which was at an all-time high last year, will continue to expand in line with production. Unfortunately, this has not happened. The supply of iron ore now hitting the market is far exceeding supply. Indeed, it is estimated that iron ore supply will jump 11% this year to 1.3bn tonnes. In other words, around 108m tonnes of additional supply will hit the iron ore market this year and a similar amount of additional supply is set to hit the market next year, too. Further, between now and 2017, shipments from producers in Australia and Brazil are expected to grow by 40%. With all this supply being dumped on the market, the iron ore market is now oversupplied for the first time in ten years. (Fool.co.uk)
Source: Other (02.06.2014)

Management Changes in Aurubis There will be a change in the management of Aurubis Bulgaria from the beginning of August - Tim Kurt (46) will take over from Nicolas Trean the position of CEO of the company. "Aurubis Bulgaria", which employs about 800 employees, is the second largest plant in the group and is very important to us. I’m extremely satisfied that we've found a competent successor within our group in the face of Tim Kurt", said Peter Willbrandt, Chairman of the Board of "Aurubis Group". Tim Kurt works for "Aurubis Group" since 2006 and is currently responsible for the logistics group as vice president "Corporate logistics". Previously, the logistics specialist acquired international experience in companies such as "Unilever" and "Numiko", including a two-year residence in Poland.
Source: Standart (04.06.2014)

U.S. Steel to idle facilities in Pennsylvania, Texas United States Steel Corp said it is idling two facilities in Pennsylvania and Texas that make tubular steel, saying the plants are losing money partly because of unfair trade from low-cost rivals in other countries. The steelmaker said the move will affect about 260 employees at the loss-making plants in McKeesport, Pennsylvania and Bellville, Texas, which will be idled in early August. The shutdowns come in the midst of one of the biggest steel trade cases in years, over imports of specialty steel pipe used to drill for oil and gas, known in the industry as oil country tubular goods. "While these are difficult decisions, they are necessary in order to return our company to sustainable profitability and position us for future growth," said U.S. Steel Chief Executive Mario Longhi in a release. In February the Commerce Department opted, in a preliminary decision, not to impose duties on oil country tubular goods from South Korea, although it did find that several other countries were selling the goods below cost. (Reuters)
Source: Reuters (04.06.2014)

NDRC: China’s crude steel output up 2.7% in January-April In the January-April period of the current year, China's crude steel output amounted to 271.86 million mt, up 2.7 percent year on year, as announced by China's National Development and Reform Commission (NDRC) on May 29. The growth rate in question was 5.7 percentage points lower than that recorded in the same period of last year. In the first four months of the current year, China's overall outputs of metallurgical coke and ferroalloys amounted to 152.55 million mt and 12.24 million mt, down 1.1 percent and up 9.2 percent respectively, both on year-on-year basis. The growth rates of coke and ferroalloy production in the given period were 9.0 and 10.5 percentage points lower than in the same period of 2013. Meanwhile, in January-April this year, China's exports of finished steel amounted to 25.87 million mt, up 29.5 percent on year-on-year basis. (Steel Orbis)
Source: Other (05.06.2014)

Pakistan steel industry proposes 15pct rise in import duty The Pakistanian steel industry has suggested at least 15% increase in import duty on all mild steel products to offset higher cost of production followed by expected 75% increase in sales tax. While rejecting the Federal Board of Revenue's proposal to increase sales tax by 75% to PKR 7 per unit for steel sector, the domestic steel industry particularly Sindh based units said that huge increase in sales tax will make the imports from China, Ukraine and Russia very feasible and will lead to massive dumping of steel bars and MS products into the country. As per reports, FBR is likely to increase sales tax for steel industry by 75% against suggestion of 25% by the local steel sector. Sales tax on steel industry may surge by 75% or PKR 3 per unit to PKR 7 per unit, up from PKR 4 per unit and the cumulative increases in taxes may be over 100%. (Business Recorder)
Source: Other (06.06.2014)

European coal approaches 4 year low as oversupply persists European coal prices approached their lowest in more than 4 years amid a persistent global surplus that Societe Generale SA said shows no sign of easing until at least next year. Year ahead coal fell for a ninth day in the longest losing streak since Bloomberg began collecting broker data in 2007. The contract dropped 0.8% to USD 79.65 a metric tonne at 12:40 pm in London. Broker data said that it fell to USD 79.60 in February, the lowest since September 2009. According to Paris-based Societe Generale, global coal prices have declined for three years as increasing production worldwide has outstripped declining Asian demand. The European contract has fallen 41% since peaking at USD 135 a ton in April 2011. (Bloomberg)
Source: Other (09.06.2014)

Indian steelmakers lobbying for removal of 2.5pct import duty on iron ore Indian steelmakers have begun lobbying with the government for an effective raw material policy including removal of 2.5% import duty on iron ore in the face of an ongoing mining crisis. Mr Jayant Acharya director JSW Steel said that "The industry is operating at 80% capacity utilisation due to constraints in mining. This is also leading to higher domestic prices of iron ore. We should take adequate steps to ensure availability of iron ore. In this context, we should restrict exports of iron ore. The latter only leads to creation more jobs in foreign countries, at the expense of jobs and our manufacturing sector. This is a call we need to take as a nation.” An official of another private steel major said that "In the present situation of iron ore shortage, government should mull the decision of abolishing the import duty on iron ore. Mining companies are taking undue advantage of scarce supply owing to temporary closure of mines in Odisha due to non-renewal of years old leases. (Economic Times)
Source: Other (11.06.2014)

BHP Billiton may cut coal output at big Australian mine BHP Billiton may cut production at one of its biggest metallurgical coal mines in Australia, after the Anglo-Australian miner said on Wednesday it had terminated a mining service contract to cut costs amid a sharp drop in coal prices. BHP and its partner Mitsubishi Development Pty Ltd, a unit of Japan's Mitsubishi Corp, said they had scrapped a contract with mining services provider Downer EDI Ltd for pre-strip work at the Goonyella Riverside mine in Queensland. Downer EDI said the remaining two years on the contract were worth about A$360 million ($338 million). The termination, effective September 9, would result in 427 contractors leaving the site. The Goonyella Riverside mine produced 12.4 million tonnes of metallurgical coal in the year to June 2013. Output in the current financial year would be unaffected by the contract termination, BHP said. "Any potential production impact for 2015 will be reported in quarterly production reports at the time," BHP spokeswoman Emily Perry said. (Reuters)
Source: Reuters (12.06.2014)

EU steelmakers restart some of the closed blast furnaces EU steelmakers have restarted nearly half the blast furnaces that were idled in the financial crisis holding back recovery in a sector already hobbled by over capacity and high energy costs. This year alone, ArcelorMittal, the world's biggest steel producer, restarted a blast furnace in Spain with annual capacity of 2.4 million tonnes and its furnace in France with annual capacity of 7 million tonnes. A leading industry player said that demand for EU steel, a sector that indirectly employs millions of Europeans and was decimated by the 2008 financial crisis, is expected to grow by 2% or 3% this year, after two straight years of decline. Mr Wolfgang Eder CEO of Austrian steelmaker voestalpine and former president of steel association Eurofer said that "Of the fourteen blast furnaces that were idled since 2008, nearly half of those are back on stream. As long as this is the basic approach in the industry, it is impossible to see a structural improvement in prices." (Reuters)
Source: Reuters (13.06.2014)

New workshop for metals to be built near Teteven New workshop for metal-processing is to be opened in the village Glojene. Investment in the company is by private entrepreneur Nikolay Nikolov, and its construction was begun on the green. Currently the building, which will host the workshop, is under construction. Planned workshop will handle various ferrous metals, it will produce components and structures according to client requests. Nikolov was an employee and owner of a share in the now closed company Glokom, which was also located in the village of Glojene. "We're still in the beginning and it's hard to say exactly how much it will cost. So far I've put BGN 20 thousand to begin construction," said Nikolov. Financing of construction is provided with own funds, and he will further seek other options if it becomes necessary, the developer said. According to him, he would be able to attract customers, many of them probably of the former Glokom.
Source: Capital (16.06.2014)

Kazakhstan to add 12 million tonnes in complex ore deposits by 2019 It is expected that state run geological exploration project will yield 12 million tonnes of complex ore in Kazakhstan in 5 years. Complex ore is an ore in which the principal valuable components are lead and zinc and the secondary components are copper, gold, silver, cadmium, bismuth, tin, indium, and gallium. In some complex ores, barite, fluorite, and sulfur associated with sulfide ores are of industrial value. Mr Bazarbay Nurbayev chairman of the Geology and Subsoil Use Committee, spoke at the Astana Mining & Metallurgy Congress about Kazakhstan's geological exploration program for 2015 to 2019. Through this program we are expecting an increase in the predicted resources of gold, copper and complex ore. Mr Nurbayev said that the predicted resources of complex ore are expected to increase by 12 million tonnes, copper by 4 million tonnes and gold by 400 thousand tonnes. According to Nurbayev, In 2010 to 2013, gold reserves increment made 314 tonnes thanks to the privately funded exploration and by another 11 tonnes via state funded exploration. (Tengri News)
Source: Other (16.06.2014)

Progress JSC commissioned modern furnaces for melting iron Progress JSC Stara Zagora purposefully invests in increasing productivity and quality of their products and reducing energy consumption. Two new modern furnaces for melting iron were put into operation20 days ago. Each of them has a capacity of 8 tons per hour. They are the most advanced equipment and the first implemented in Bulgaria, said CEO Slavin Yanakiev. The investment amounts to over EUR 1.5 million. Co-financing under OP Competitiveness amounted to EUR 667,000. With the introduction of new furnace company will reduce energy costs by over 30%, which is a pretty good, said Slavin Yanakiev. With this investment we do not seek quick returns and can guarantee a lower price per unit because of unstable energy market in the country, said the CEO of the company. Another approach, which Progress JSC applies to reduce energy costs is the purchase of electricity from an alternative supplier, not from EDCs in Bulgaria. The price is much better than that offered by the EDC, but requires precise planning of the amount of electricity that will be necessary for the production, said Slavin Yanakiev. Investment in modern machinery makes cost of production more profitable and competitive on the international market. Progress JSC continues to prepare and work on new projects. An installation for the recycling of foundry molding sands has been introduced. This will reduce the quantities that must be landfilled. The company invited bids for the development of automatic molding line. The project should be completed by mid-2015.
Source: Company information (18.06.2014)

TO MR BOYAN BOEV CHAIRMAN STATE ENERGY AND WATER REGULATION COMMISSION OPEN LETTER As representatives of the big Bulgarian industrial enterprises - the main users of electricity, with a protest statement to the regulator, Prime Minister and President of the National Assembly, we strongly object the proposal of the energy regulator to increase network electricity prices for the new pricing period (starting 01.07.2014). Meanwhile, initial auction prices on the open market increase, they are held at the last moment and an artificial deficit is created. Such actions will cost Bulgaria job losses not only in the large industry, but also in medium and small businesses. This policy in the Energy sector undoubtedly leads to deterioration of the competitiveness of energy-intensive industries, loss of markets, reduction of production and economic contraction. In contrast to Europe's energy practice, for a year Bulgaria exports cheaper electricity than for the domestic market. Instead of applying measures to increase exports of our products through export of electricity at preferential prices, we stimulate the economies of neighboring countries and the export of jobs. Exports of raw materials, such as electricity, does not add value in the economy of Bulgaria. Imports of electricity also meets obstacles and in certain time periods neighboring markets have cheaper electricity. We have repeatedly demanded urgent solutions to provide opportunities for the supply of electricity at reasonable rates for businesses. Instead, Bulgarian producers are being squeezed by imbalances in energy, including the growth of network costs for clients of high voltage, lack of predictability and stability, worsening competitive environment as a result of preferential export of electricity, slow market liberalization and strengthening of cross subsidization. Responsible state institutions did not react on a protest statement. This forces us to look for other forms of intervention, including to address the CPC in Bulgaria and the EC to protect Bulgarian production. In order not to obscure businesses, to preserve jobs and the Bulgarian industry, with this open letter we warn that we would not accept an increase in electricity prices and the accompanying fees and we will refuse payments of the new prices. BULGARIAN INDUSTRIAL ASSOCIATION BULGARIAN ASSOCIATION OF METALLURGICAL INDUSTRY BULGARIAN FEDERATION OF INDUSTRIAL ENERGY CONSUMERS BULGARIAN MINING CHAMBER
Source: BIA (19.06.2014)

Italian government asks ArcelorMittal to look at Ilva The Italian government has asked ArcelorMittal , the world's largest steelmaker, to consider investing in or buying troubled Italian steel producer Ilva, Chief Executive Officer Lakshmi Mittal said on Tuesday. "We have been invited by the Italian government to look at it. That does not mean that we are going to acquire it," he said at the Steel Success Strategies conference. Assessing the company's interest will be a long, drawn-out process, with social, political and economic problems making the situation very complex, Mittal said. The Ilva complex, in the city of Taranto, is Europe's biggest steel plant by capacity and one of the largest employers in southern Italy. Its existence is now under threat since it is losing cash at a rate of 60 million (47.90 million pounds) to 80 million euros a month, according to Italian steel industry body Federacciai. (Reuters)
Source: Reuters (19.06.2014)

Problems compounding in Chinese Steel Sector While the Chinese demand for iron ore remains strong as mills are still producing at full throttle with a record high 2.2 million tonnes of crude steel on average a day in the first 5 months of 2014, the outlook for iron ore remains sluggish and USD 90 may not be the bottom although buyers interest is up. The first problem in the short term is the huge (About 113 million tonnes) low priced stocks at Chinese ports. Many of the owners are under severe liquidity pressure as banks have come down heavily upon financing amid irregularity probes. It is learnt that the price of iron ore lying at the ports is much cheaper than fresh seaborne cargoes. As per latest reports mining giant Rio Tinto is lowering its low grade iron ore prices following fellow iron ore miner Fortescue Metals Group by increasing discounts. Rio Tinto told customers on Tuesday the discount for its low grade product would be lifted from 6% to 13% from July 1, leaving it to receive roughly USD 73 a tonne reflecting greater supply of lower grade ore required for blending. (Strategic Research Institute, Steel Guru)
Source: Other (20.06.2014)

ArcelorMittal welcomes possible end to Chinese ban on overseas takeovers ArcelorMittal, the world’s largest steelmaker, welcomed the potential removal of a near 10-year block on overseas takeovers in China’s steel industry. ArcelorMittal is one of the few foreign steel mills with investments in China since the ban on overseas control was imposed in 2005. The world’s top producer and consumer is considering scrapping the ban which may be a catalyst for global mills to revive a push into China’s $423 billion steel sector where demand is seven times greater than in the US, the next biggest market. “It’s good news that the government is moving forward on reforms and liberalisation on foreign investment,” Lakshmi Mittal, the billionaire chief executive officer of ArcelorMittal, said in an interview. “Whether we will like to invest more in this country or we will not, will depend on the future development of our various projects.” China’s steel output may reach 1.1 billion metric tonnes in the next 10 years, driven by urbanisation, BHP Billiton Ltd, the world’s biggest miner, said this month. (Bloomberg)
Source: Other (23.06.2014)

Alcomet allocate 25% of its profit for 2013 as dividend General Shareholders meeting of Alcomet held on June 20, decided to allocate 25% of the profit for 2013 amounted to BGN 2.239 million as dividends. The amount of dividends amounted to BGN 560 thousand or BGN 0.031 per share gross. The remainder of the profit for last year – BGN 1.679 million, is charged to retained earnings. Alcomet profit fell 32% in the first quarter, after the increasing company's expenses for depreciation, fees and interest. Profit for last year fell by 45% to BGN 2.13 million after losing BGN 486 thousand last quarter. Sales in the last quarter of 2013 increased by 6% yoy to BGN 66 million, but in the whole of 2013 the growth was 10% to BGN 287 million. Alcomet increased its production capacity by about 5% compared to production in 2013, after this year it put into operation a new 600-ton press.
Source: investor.bg (23.06.2014)

China's crude steel production hits new record Global crude steel production rose at an annual 2.2% rate in May as output in China hit new record levels and North American and European mills cranked up production, industry data showed, pressuring prices the world over. Data from the World Steel Association showed that global crude steel output hit 141 million tonnes in May, nearing the record seen in March. The increase was driven by an annual 2.6% growth in China's output to 70.4 million tonne. Global steel prices are at their lowest levels since August and not far off the lowest in three and a half years reached last June. The price falls have come despite an increase in demand in Western economies. Mr Jeremy Platts analyst of MEPS said that "Growth in steel output is exceeding growth in demand and is adding to the global surplus. Steel prices are going to fall on a YoY basis. Raw material costs like iron ore are coming down, but that's not the whole story; the excess supply is a pressure. China's exports are soaring." (Reuters)
Source: Reuters (25.06.2014)

TATA Steel plans to increase capacity by 60pct to 16 MT in five years His 8 months at TATA Steel have been a rollercoaster ride, said MD Mr TV Narendran, who's betting on a turnaround in the Indian economy to drive demand, with the company on the verge of dramatically expanding its steelmaking capacity. Mr Narendran is currently overseeing the final stages of the long awaited INR 40,000 crore Kalinganagar project. Having built up 10 million tonne local capacity over the 107 years of its existence, TATA Steel plans to boost this by 60% to 16 million tonnes in the next 5 years. He said that "If India grows, then TATA Steel certainly has to grow. The 6 million tonne Kalinganagar project has been beset by high capital costs, labour unrest and delays in land acquisition.” Mr Narendran had foreseen an exciting start to his stint at the steel maker: "One doesn't expect otherwise." He said that “The first phase of Tata Steel's Odisha project is expected to be completed by the end of this financial year, adding 3 million tonnes of steel capacity." (Economic Times)
Source: Other (26.06.2014)

Production of local metallurgical companies is primarily for export Production of local metallurgical companies is primarily for export, reported Executive Director of the Bulgarian Association of Metallurgical Industry - Politimi Paunova at the presentation of the analysis for the manufacture of basic metals in the country. Export of ferrous metals is significantly higher (79%) than the domestic sales (21%), the analysis shows. Major market for Bulgarian producers of iron and steel is the European Union, which takes over 60% of the production. Non-ferrous metallurgy is also aimed at this market and its exports far exceeds domestic sales. Import and export of metallurgical products in 2013 retained their values at the level of the previous year. There is a decline in the value of exports for the steel industry at the expense of a growth in non-ferrous metallurgy. "The contribution of metallurgy in total value added of the Bulgarian manufacturing industry in recent years is a share of between 5 and 9 percent," said Paunova. The analysis also shows that the total number of metallurgical enterprises in the country in 2008 was 221 and in 2012 it fell to 166, a drop of over 30%. By approximately 50% has decreased the number of employees in the sector. In 2008 the number was over 21 thousand, and in 2012 - just over 12 thousand. The reason for reducing the number of workers in the sector is the investments made in it, which led to increased requirements in terms of knowledge, skills and abilities, said Renetta Petrova, deputy chairman of Metalicy federation at CITUB. The share of highly skilled workers in this sector is 58%, she said. She said the industry remains unattractive for young people, so steps need to be taken in order to attract them. She said it was necessary to increase the wages of workers in this sector. The analysis for the production of basic metals has been prepared under the project "Revival of the industry in Bulgaria", initiated by CITUB and realized in cooperation with employers' organizations and academics.
Source: investor.bg (26.06.2014)

Brazil's Vale joins rivals with China iron ore discounts Brazil's Vale, the world's biggest iron ore miner, is starting to offer discounts on shipments of the steelmaking raw material to top consumer China, joining Australian rivals in cutting prices following a global surge in production. The move follows deeper price cuts by Rio Tinto and Australia's Fortescue Metals Group for lower-grade iron ore, and indicates China is winning more say over pricing after years of complaining that costs were too high. Vale is offering some Chinese customers a discount of $2.50 a tonne, including cost and freight, for 62-63 percent grade standard sinter feed Guaiba (SSFG) for third-quarter contracts, three mill sources with direct knowledge of the matter said. "We've been told by Vale that we would get a price cut of $2.50 a tonne for SSFG for third-quarter contracts. The market is now changing quickly to a buyer's market and competition among miners is intensifying," said an iron ore buying official with a state-owned steel mill. (Reuters)
Source: Reuters (27.06.2014)

SAIL to post volume growth after 10 years The steel major is likely to add 1 mt this fiscal and 2 mt in the next two fiscals as demand improves and new capacity comes onstream. After staying stagnant for years, Steel Authority of India's is likely to witness strong volume growth from the current year. Beginning with 1 million tonne (mt) higher volume this fiscal, the public sector steel maker is likely to add 2 mt each over the next two years, analysts with brokerage Nirmal Bang Securities said in a report after meeting officials of the company. "We had a meeting with the management of SAIL recently. After witnessing stagnant volume growth for the past 10 years, SAIL is likely to witness strong volume growth from this fiscal. The company is eyeing 1 mt higher volume in fiscal 2015, while it expects incremental volume of 2 mt each in fiscals 2016 and 2017, driven by completion of its expansion programme," the report authored by analysts Giriraj Daga and Aditya Joshi said. (DNA)
Source: Other (30.06.2014)

Alcoa Buys Jet Engine Parts Maker Firth Rixson for $2.85 Billion Alcoa, seeking to build out its aerospace division, agreed on Thursday to buy Firth Rixson, a maker of jet engine parts, for at least $2.85 billion in cash and stock. Under the terms of the deal, Alcoa will pay $2.35 billion in cash and $500 million in stock to Firth Rixson’s owner, the investment firm Oak Hill Capital Partners. It could pay up to an additional $150 million if Firth Rixson hits certain performance targets. The deal is expected to bolster annual sales at Alcoa’s aerospace unit by 20 percent. The unit is Alcoa’s biggest so-called value-added business, supplementing its traditional metals operations. Firth Rixson makes products like seamless rolled jet engine rings and specialized superalloys for industrial turbines and oil and natural gas equipment. Alcoa said it expected its latest acquisition’s revenue to increase by 60 percent over the next three years, to $1.6 billion, and add $350 million in earnings before interest, taxes, depreciation and amortization in 2016.
Source: Reuters (02.07.2014)

EU utilities will suffer from low power prices until 2020 - Moody's Europe's utilities will continue to suffer from low wholesale power prices eroding their revenues until the end of the decade as rising renewable output and low demand combine, rating agency Moody's said. Europe's power generators have been squeezed by the expansion of renewable energy, which is creating overcapacity and eroding prices, while profitable coal-fired power stations are forced to close under European climate protection policies. Benchmark German wholesale power prices have fallen over 40 percent since spring 2011, when Japan's Fukushima nuclear reactor meltdown pushed up global energy prices. At the same time, demand has been contracting during the euro zone crisis and because of improving energy efficiency. Rating agency Moody's said that it expected this trend to continue to negatively affect Europe's utilities. "In our view, there will be further policies and reforms, which will negatively affect the European utility sector," the agency said. (Reuters)
Source: Reuters (03.07.2014)

BHP ramps up iron ore supplies to shut out Chinese competition BHP Billiton’s efforts to push high-cost Chinese iron ore producers out of the market by increasing its own supply are showing first signs of success, with a number of domestic Chinese producers closing in the last few weeks. Mike Henry, BHP’s president of marketing, says high-cost suppliers have been slow to react to the ramp-up by the lower-cost majors, including BHP, Rio Tinto, Fortescue Metals and Brazil’s Vale. It was important they shut in a “reasonably efficient manner” to avoid a “compounding of supply," he said. “As a lot of low-cost supply came to market over six to 12 months, (the) response from high-cost suppliers was slower than it has been historically,” Mr Henry said, speaking after a site tour in Port Hedland. “But over the past few weeks, you’re starting to see some of that high-cost supply shut in. That’s one of the things that has helped buoy iron ore prices over the past week or so.” The iron ore majors are increasing capacity despite iron ore prices having dropped 30 per cent to about $US94 a tonne since the start of the year. (The Sydney Morning Herald)
Source: Other (04.07.2014)

Bulgaria is 48th in gold reserves in the world Countries with biggest gold reserves in the world are the United States, Germany, Italy, France and China, whereas from the countries in the region, Greece ranks highest, according to the list published by the World Gold Council. Greece ranks 33rd in the world and has the best position from the countries in the region, owning some 112.2 tons of gold, Tanjug reads. Bulgaria is 48th with 40 tons, Serbia owns 16.6 tons, Macedonia has some 6.8 tons ranking 77th, while Slovenia is 90th and has 3.2 tons of gold. Bosnia and Herzegovina is 93rd with 3 tons and Albania ranks 99th with 1.6 tons. Croatia and Montenegro are not included in the list of countries with highest piles of gold, published by the World Gold Council.
Source: econ.bg (07.07.2014)

Nearly half of India's coal power plants have one week of stocks Nearly half of India's coal-fired power stations only have enough stocks to last a week, the power minister said, as the country struggles to connect millions to the grid and wrestles with a growing coal import bill. Coal imports equate to about one percent of India's economy as state behemoth Coal India, the world's largest coal miner, has failed to raise output fast enough to meet demand. This leads to frequent blackouts, something new Prime Minister Narendra Modi is keen to fix soon but which will raise coal shipments from countries such as Indonesia, Australia and South Africa. Coal fires more than half of India's electricity. Power Minister Piyush Goyal said 26 out of 100 coal-based power plants in India had "super critical coal stock" - enough to meet requirements for less than four days. A total of 44 plants, including the super critical ones, have "critical coal stocks" sufficient for less than a week, with the majority in the state of Maharashtra, the home of India's financial capital Mumbai. (Reuters)
Source: Other (09.07.2014)

Kobe Steel establishes company in Brazil Kobe Steel Limited has announced that its subsidiary company, Kobelco Machinery do Brasil Servicos Empresariais Ltda, has begun full scale marketing of nonstandard compressors. Kobelco Machinery do Brasil based in Sao Paulo, is Kobe Steel’s first location established in Brazil. Brazil has been actively pursuing marine resource development in recent years. High demand for gasoline, diesel, and other fuels has led to the active construction of oil refining and petrochemical plants. As a result, demand for non-standard compressors, which are used to compress and transport gases in oil and gas processing facilities, has been increasing. Kobe Steel is one of the few comprehensive compressor manufacturers in the world that can supply centrifugal, reciprocating, and screw compressors. Kobe Steel has a 50% share of the world market for nonstandard screw compressors and has supplied non-standard compressors throughout the world for use in oil refining, petrochemical, natural gas, and other large scale facilities. Kobe Steel’s Machinery Business also supplies a wide range of products such as small and medium-size standard compressors for plant utilities and will consider adding these and other machinery products to the portfolio of the new marketing company in the future. (Strategic Research Institute, Steel Guru)
Source: Other (10.07.2014)

Alcomet is again Contributor of the Year in Shumen Alcomet Shumen is one of the leading manufacturers of aluminum rolled and extruded products in the Balkan peninsula and the only company of its kind in the Republic of Bulgaria, combining both types of products. With nearly 35 years of experience in non-ferrous metallurgy, it is now ranked among the 100 best Bulgarian companies by operating revenue and profit growth, and among the 20 largest Bulgarian exporters. Over 90% of its sales are directed to EU countries, mainly Germany, Poland, Italy, Austria and Denmark. Despite its export orientation Alcomet remains closely linked to the development of the Bulgarian economy. Part of the company's goals related to social responsibility to society are increasing employment among the local population, effective support of educational, medical, cultural, social and other institutions, supporting charity and donor organizations. Alcomet grants supports to a number of community initiatives in the areas of child care, assistance to people with disabilities, health, arts and culture, environmental protection, etc.
Source: investor.bg (11.07.2014)

Lobbyist changes will cause a boom of the grey sector in metal trade A boom in the grey sector in trading with ferrous and non-ferrous metals is coming, warned the industry after a scandal in parliament during the meeting of the Committee on Environment and Water. The meeting failed because lawmakers did not accept the agenda and GERB MPs abstained, arguing that the bill is not included in the list of approved bills between the parties consultation. Deputies had to consider amendments to the Law on Waste Management, according to which the construction of municipal sites for transmission of waste including metals is extended. The failure of the meeting caused the resentment of the sector. "Get your act together, we have chosen each one of you," said Ivo Georgiev from the Bulgarian Association of the Recycling Industry. So instead of a meeting, a heated discussion the problems took place. On 13 July a ban comes into force for the sale of non-ferrous metals by individuals. Metal waste should be submitted free at the municipal sites. Such, however, have not been built in any of the 260 municipalities where they had to. So practically, there are no places for people to return metal waste. Changes actually have no way to work and create a legal vacuum, said Chakarov, a member of DPS and former Minister of Environment and Water. So the new proposal submitted by BSP provides for the deferment of the construction sites or January 1, 2016, which because of the failed meeting is unlikely to happen. According to the business, the entry into force of amendments to the Law on Waste Management two years ago, but with effect from next week, will mobilize the informal sector as metal waste should go somewhere, companies will start buying undocumented waste. From Monday Stomana Industry S.A. will have only 50% of the required waste, but other companies are at risk of closing, said Borislav Malinov, Chairman of the Bulgarian Association of Recycling. Moreover, 600,000 people will lose their livelihood, they will not be able to return scrap metal to earn BGN 20-30 and will focus on other means of livelihood and will intensify other crimes. The higher requirements from the amendments of 2012 drastically reduced the sites for the purchase of scrap metal, which led to thefts decreasing by 60%, Malinov said. The industry has made investments of more than BGN 2.5 billion, which would easily be ruined, from the 15,000 people employed in the industry, 6000 will most likely be laid-off. Ministry of Environment and Water will be not be able to fulfill the law and will have to perform sanctioning mechanisms, said Chavdar Georgiev, Deputy Minister of Environment and Water. By law, disposal fee to municipalities that do not have built sites will jump by 15%. Last year the Ministry agreed that the changes adopted in 2012 are broken and began to remodel the Law on Waste Management, which was ready in April, but because of the European elections and the upcoming extraordinary elections cannot be voted. Because of the shortened work of the current Parliament, only an extension of the municipal building sites is planned, Strahil Angelov from Coalition for Bulgaria explained the proposal. The matter has a social effect, we should not allow the Gypsies to steal is not an argument because selling scrap is their way of living. There should be severe control measures, but to prohibit an activity because there is stealing is illogical, it is like banning hospitals because there is stealing and siphoning the Health Insurance Fund, the industry pointed out. Moreover, another important question is what to do with municipal waste that is collected. Now scrap sites deliver ferrous and nonferrous metals as resource to companies. And now will we compete with the municipalities, the industry asked rhetorically. We should not lie ourselves; the changes were introduced by lobbying from the organizations for utilization that have contracts with municipalities. So they will collect waste and report performance of their obligations for separate collection, because minority groups who collect scrap disturb them. In the next programming period 2014-2020 are provided over BGN 200 million for municipal waste sites, which will be used to build the sites in all municipalities. The aim is to absorb some European funds, specialists commented. The goal is to kill an entire industry that has made investments worth millions and borrowed for machinery. An extraordinary meeting of the committee to discuss emergency rapid change and extension of the municipal building sites is expected. This, however, is questionable because of the GERB MPs who were adamant that they would not vote for a bill that was not foreseen in the program of the parliament after consultations among parliamentary parties. Furthermore, even to be accepted is questionable whether it can be voted in plenary until the dissolution of parliament on August 6. One thing is certain, the industry threatened with protests if the ban for individuals to return scrap comes into force on July 13.
Source: 3e-news (11.07.2014)

Why steel investors should keep a close eye on central bank policy Monetary policy and the resultant interest rates are a key driver for the steel industry. Monetary policy affects the steel industry in several ways. Demand for interest rate–sensitive goods: As we’ve seen, most steel globally goes to real estate and automobiles. Both these sectors are interest rate–sensitive, with high-value purchases and funding from financial institutions. An increase in interest rates rises the cost of owning these assets for consumers and reduces their demand. Lower demand from key industries ultimately affects the steel industry. Interest burden for steel companies: The steel industry is capital-intensive. So changes in interest rates affect steel companies’ profit margins. Steel prices: Steel, like all other commodities, trades on commodity exchanges worldwide. The recent stimulus and loose monetary policies have led to speculative trading in commodities. The prices of all commodities, including steel, normally go up as this hot money chases assets in expectation of earning higher returns. (Market Realist)
Source: Other (11.07.2014)

U.S. steel producers seek to scrap Russian trade deal U.S. steel producers accused Russia of flooding the market with cheap flat-rolled steel, challenging a 15-year trade deal and potentially reigniting a decades-old dispute over imports amid heightened tensions between Washington and Moscow. In a submission to the Commerce Department, Nucor Corp , U.S. Steel Corp, ArcelorMittal USA LLC and others said the agreement had not stopped Russian producers from undercutting local prices or flooding the U.S. market with a 1,400 percent shipment increase in the first half of 2014 compared with the year-ago period. "The agreement has failed in achieving its statutory purpose and thus should be promptly terminated," said the submission, released by steel industry lawyers. Scrapping the 1999 agreement would be in line with the U.S. administration's tougher stance towards Russia following a flare-up in tensions over Ukraine, including dropping the country from a trade benefits program. Russian steelmakers played down the impact of scrapping the deal, suggesting there would be little risk to their revenues as the north American market took only a small part of their overall exports. Russia's Severstal said it had met the terms of the agreement. (Reuters)
Source: Reuters (14.07.2014)

Scrap companies block Turkish border Around 100 businessmen threatened to block the Turkish border in protest following the scandalous new law on metal scrap. Individuals will no longer be allowed to provide scrap metal to companies in exchange for payment. There will be municipal sites designated for this purpose. Scrap metal will only be purchased by companies, and payment will be made via bank transfer. The companies’ representatives claim that these sites are few and far between, rendering the law senseless. Over 70% of the scrap metal is bought from individuals. Almost half a million people are active in this branch, who will now lose their income. At least 6000 will be laid off. The protesters claim the law serves the interests of large packaging companies. They threatened to block the border to Turkey if their demands are not met by 2 pm today.
Source: Standart (15.07.2014)

The first lead in KCM new facilities has flown First lead of the new facilities in KCM (Non-ferrous Metals Smelter) near Plovdiv ran on Tuesday, the company reported. Currently the metal which is being produced is part of the mandatory samples which show that all the new lead production is fine. Technological innovation is the throttle from the furnace to the plant for purification and production of sulfuric acid, thereby ensuring full compliance with environmental standards. The modern production of lead is part of the measures of KCM 2000, aimed at increasing the level of compliance with the standards for safe and healthy working conditions, improving energy efficiency and improving financial performance. The company invested over BGN 200 million in the project "Technological innovation and expansion of production". This is the largest investment in the history of the brand. Guarantee quality indicators and the design production capacity of lead are expected to be achieved at the end of September.
Source: Standart (17.07.2014)

BHP CEO Expects China’s Domestic Iron Ore Output Cuts to Deepen BHP Billiton Ltd. (BHP), the world’s largest mining company, expects China to cut more higher-cost domestic iron ore output as the biggest global producers flood the market with low-cost supply. “As Australia expands its ability to export more and more high-quality iron ore, the Chinese are producing less and less domestically,” BHP Chief Executive Officer Andrew Mackenzie told reporters today in Sydney at the B-20 forum of business leaders. He also predicts a similar process in India as steel mills buy more low-cost coking coal from Australia. As prices dropped on increased supply, between 20 percent and 30 percent of the iron ore mines in China have closed down, according to the China Metallurgical Mining Enterprise Association. The Chinese market is becoming saturated with lower-cost imports from Australia and Brazil, Morgan Stanley said last month in a report, forecasting lower prices even as Chinese mines shut down. (Bloomberg)
Source: Other (17.07.2014)

BIA and associations want a meeting with Borisov on the amendments to the Law on Waste Bulgarian Industrial Association and three associations of metallurgical and recycling industry formally requested a meeting with GERB leader Boyko Borisov. According to them, the parliamentary group of the party did not live up to the promise to support the amendment of the Law on Waste Management, which was tabled in Parliament on Tuesday and adopted on first reading by the Committee on Environment and Water on Wednesday. Îí July 13 came into force a ban on the sale of scrap metal, paper, plastic, etc. by individuals at all waste sites, except the municipal ones. Again July 13 was the period within which the municipalities were required to build sites that citizens could deliver their waste to. This deadline was not met by any municipality, for which the amendments to the law see it postponed until the end of 2015. According to BIA and the recycling organizations if changes in the law are not accepted, it will lead to economic, health and environmental problems, and to an increase in the unemployment rate. They fear that buying scrap will go entirely in the informal sector because the sites will operate illegally. According to the recycling organizations they will lose investment within EUR 2 billion and thousands of people who make a living with scrap will lose livelihood. Sanctioned by Brussels are possible for failure of the Waste Framework Directive to introduce effective sorting of scrap.
Source: Sega (18.07.2014)

Price of precious metals in Bulgaria goes up The price of gold increased for a second consecutive day, while the price of palladium reached its highest levels since 2001 on Tuesday. One of the reasons for the higher demand of precious metals was the fact that the USA imposed new sanctions on Russia, which is one of the biggest producers and exporters of precious metals. “There is a combination of various positive factors for palladium, mainly the increase of car sales in Europe and the USA and dwindling supplies for RSA. The market is not much worried regarding Russia, but traders are monitoring the situation just in case,” Robin Bhar, analyst in Societe Generale, stated.
Source: Capital (18.07.2014)

Mesco Steel in talks with Posco on Finex furnace Mesco Steel is in talks with South Korean steelmaker Posco to acquire a 0.6 mtpa Finex furnace from the latter. As part of its restructuring programme, the steelmaker is also looking at selling a stake in some of its assets. Posco's Finex technology doesn't require coking coal, which India is forced to import, making it an attractive option being considered by several steelmakers in the country. The hitch is that the South Korean firm insists on retaining control over any partnership to safeguard the patented technology developed with government support. Confirming the talks, Mesco's Rita Singh told ET that negotiations were yet to be completed. Mesco Steel is looking to invest in further downstream capacity. The company, which turned itself around, now not only produces pig iron but also has iron ore mines in the state. (Economic Times)
Source: Other (18.07.2014)

Managers in refineries with the highest salaries Managers in the manufacture of coke and refining of petroleum products are provided the highest salaries. About 200 heads in the industry pay social and health insurance contributions on average of BGN 2,308, which is the highest average insurance income for all economic activities and professions. This shows statistics for January-April 2014. Second highest salaries are received by the managers in the mining of metal ores, who are paid on average BGN 2,124 wage. Similar wage were declared by the managers in the beer industry, energy and metal production.
Source: Trud (21.07.2014)

Plant idle for a decade to be sold Monday (July 21) the idle for 10 years mining and metallurgical combine Eliseina Jsc. will be up for sale. After multiple failed auctions over the years now the value of its assets fell to BGN 1,432,381. The plant whose purpose was mining and processing of black copper, was declared bankrupt in 2004 because of debts over BGN 5 million. There were candidates from Bulgaria and abroad to buy it once, but the deal was not reached. After strong protests from environmentalists a project to build a big site for a waste failed, including a processing plants for the Sofia garbage. The idea to convert the departmental 3-story hotel and football field into a sports training base failed as well. Today, the former pride of the socialist industry has become a ghostly sight in Iskar Gorge. At the auction on Monday the plant will be sold in parts. The candidate which acquires the basic site, buildings and equipment on it (valued BGN 1.09 million) will receive also 10 thousand tons of clinker, 150 tons of white and 100 tons of black lead slag and a large amount of copper slag sand. The rest up for sale are pieces of equipment and aggregates from closed mines Izdremets, Osinov-lag and Hristo Botev.
Source: Presa (21.07.2014)

Severstal to sell North American steel plants for $2.3bn Severstal has agreed to sell its North American assets to US groups Steel Dynamics and AK Steel for $2.3bn, as the Russian steelmaker continues to shed its international assets to cut costs. Severstal will sell its Severstal Columbus plant to Steel Dynamics, the Indiana-based flat roll steel producer, and its Severstal Deaborn Plant to Ohio-based peer AK Steel. The Russian company agreed to sell its Pennsylvania coal units PBS Coals to Canada’s Corsa Coal Corp for $140m last week. The deal closes amid turbulence on Russian markets following a new round of US sanctions against Moscow and the downing of Malaysian Airliners flight MH17 in Ukraine on Thursday. In Europe, some EU ambassadors have begun to talk about bringing a tougher-than-expected round of sanctions against Russia. Bankers worry that the new sanctions from the US will cut Russian companies out of western capital markets again after a few eurobond issues this spring. As news from the MH17 crash sinks in, some Moscow investors said a few Russian companies had already started to consider putting new projects and investments on hold, given the change in the geopolitical climate. (Financial Times)
Source: Other (21.07.2014)

Brazilian steel maker Gerdau upbeat on India steel market Brazilian steelmaker Gerdau, which has invested around INR 2,400 crore in its India plant, is targeting the domestic automotive sector to drive up sales. It also plans to export to the US and South Asian nations in the near future. The company entered India in 2007, through a joint venture with Pune based Kalyani Group to acquire SJK Steel Plant at Tadipatri. Gerdau Steel has now taken near total control of the venture. Mr Sridhar Krishnamoorthy MD of Gerdau Steel India said that “The 300,000 tonne a year integrated steel plant, located in Tadipatri in Anantapur district of Andhra Pradesh, is set to be fully operational by October end.” Mr Sridhar said that “In addition to auto, the company is also targeting transportation infrastructure, defence, energy (oil and gas pipelines), with its globally established special long steel. The domestic demand is around 4 million tonnes at present and is expected to grow at a healthy rate.” Gerdau, founded in 1901, is the 14th largest steel producer in the world with a revenue of USD 18.5 billion and 45,000 employees across five continents. It also owns iron ore mines in Brazil. (Hindu Business Line)
Source: Other (24.07.2014)

Rio Tinto wants biggest mine in Pilbara Rio Tinto is working on plans to build the biggest single pit iron ore mine in the Pilbara, filing environmental applications for a 70 million tonne a year monster at its Yandicoogina operation. In environmental approval documents released for comment this week, Rio says it is conducting pre feasibility studies on a new pit at Yandicoogina to replace tonnes from other mining areas at the project as they are depleted. The documents suggest the Pocket and Billiard South pit would be about 7.5 kilometers long and nearly a kilometre wide. Its output would eclipse that of the Pilbara's current title holder, BHP Billiton's Mt Whaleback mine. At 5.5 kilometers long and 2 kilometers wide, Mt Whaleback produces about 55 million tonnes a year. Rio Tinto told the Environmental Protection Authority it wanted to begin production at the new pit in 2017, at an initial rate of 28 million tonne per annum. That would take total production at Yandicoogina to 70 million tonne per annum, with expansion of the pit likely as other areas of the mining hub wind down. (West Australian)
Source: Other (24.07.2014)

Brazil's Vale hits iron ore record, base metals output lags Brazil's Vale SA produced record amounts of iron ore in its latest second quarter, rising to the task of battling Australian rivals for market share, but weaker performance at other divisions fanned some concern ahead of results next week. Iron ore production rose 12.6 percent to 79.45 million tonnes from a year earlier, Vale said on Thursday, as better weather conditions combined with ramp ups at its two main mine sites in Brazil. The Brazilian company is the world's largest producer of the mineral. Vale is expected to post an annual decline in second-quarter net income of more than 40 percent when it reports on July 31, according to an average of analyst forecasts compiled by Reuters. Giants Vale, Rio Tinto Plc and BHP Billiton Plc are all increasing iron ore capacity in a move expected to squeeze higher-cost producers out of the market. But with iron ore prices languishing near 22-month lows during the period, analysts had been looking to Vale's nickel division to pick up some of the slack. (Reuters)
Source: Reuters (25.07.2014)

Layoffs in metallurgy and scrap companies Mass layoffs threaten employees in the metallurgy industry and recycling companies. The reason is the sharp decline in the quantities of scrap collected after July 13. On that date came into force the text of the Waste Management Act (WMA), according to which citizens cannot return ferrous metals for a fee. Scrap can only be traded by companies, and payments can be made only by bank transfer. After the companies for scrap block the border with Turkey and Serbia on 14 and 15 July, Ministry Of Environment and Waters demanded adjournment of the texts by the end of 2015, but the National Assembly has not yet voted on the changes in the WMA, despite the commitment of the three main political groups. There were even voices of MPs, that there is no law that is necessary to be changed. ‘I do not accept the claims of MPs that the changes in the WMA are not important,’ said Anton Petrov, representative of Viohalco for Bulgaria. The company is the owner of Stomana Pernik and other metallurgical companies in the country. ‘Before making statements, one needs to at least have a little understanding of economics, market and recycling industry,’ he said. ‘This is not just about Stomana, Alcomet, Aurubis Bulgaria, Sofia Med and metallurgy in general, which is facing collapse because of sharply reduced quantities of scrap, which is the main part of their raw resource,’ said Petrov. ‘This indicates a total lack of interest in the metallurgical industry, in which 30 thousand people are directly involved and provides over 20% of Bulgarian industrial exports,’ he said.
Source: Standart (28.07.2014)

Thefts increased According to the bulletin of Ministry of Interior, theft of scrap increased, suggesting that the mess in the business is complete and that the metal trade returns in the informal sector, said Ivo Georgiev, chairman of the Association of the Recycling Industry (ARI). Many illegal sites for purchase of scrap metal appeared, said Georgiev and gave as an example Parvomai, Stara Zagora, Razgrad and other settlements. Recycling companies started to massively withdraw their bank guarantees, Georgiev said, noting that each of them paid the local RIEWs bank guarantee of BGN 25,000 plus BGN 5000 for each site. At least half of their employees of nearly 14,000 people will be laid off. 600 thousand people who earn their living by collecting scrap and do the actual separation of waste will remain with no livelihood at home, Georgiev said. We held a general meeting of ARI on July 22, which decided to start negotiations with all political forces with the idea, if not this, then the next Parliament to change the law, said Georgiev. If no agreement is reached, we will come again in defense of our interests, Ivo Georgiev added.
Source: Standart (28.07.2014)

EUROFER update on production of steel tubes in EU Q1 2014 output of the EU steel tube industry rose by 3.2% compared with the depressed level of activity in the same quarter of last year; this implies a slight upward revision compared with the first estimate in April. At the national level large divergences in output growth can be observed. Production in Germany fell sharply, reflecting the dominant weight of the large welded tubes sector in total production. Demand in this specific market remained subdued in the Q1. In the other large EU countries, steel tube producers have a product mix which is more geared towards serving market segments that are consuming small welded and seamless steel tubes, such as the construction sector, the automotive and the metal goods industry. Activity in these market segments registered a recovery and as a consequence somewhat better demand for tubular steel. Limited stock replenishment at the start of this year probably also supported demand. Q2 2014 output is estimated to have at the year earlier level, with market fundamentals remaining rather similar to those in the Q1. (Strategic research Institute, Steel Guru)
Source: Other (28.07.2014)

Loss of Lead and Zinc Complex in the second quarter of 2014 amounted to BGN 2.68 mln Kardzhali-based Lead and Zinc Complex Jsc. reported a loss for the second quarter to the amount of BGN 2.68 mln. Total revenues of the company are BGN 160 thousand, which is 97.13% less than in the previous period. Total expenditures reported a decline of 93.48% from the previous period to BGN 2.84 mln. Data is from the Balance Sheet/Income Statement for the second quarter of 2014. The equity of the company in the first half of 2014 is BGN -5.984 mln.
Source: money.bg (30.07.2014)

Profit of Alcomet continues to fall Profit of Alcomet JSC decreased by 39% YoY to BGN 1.27 million in the first half of 2014, the company report shows. Only in the second quarter there ia a decline of 53% yoy to BGN 294 thousand and in the first quarter the drop was 32% to BGN 971 thousand. Sales were unchanged in the first half of the year on an annual basis at the level of BGN 148 million, despite the increased volume of sold production by 10.68% to 33.7 thousand tons. The domestic market decreased by 3.1% to 2373 tons, and exports up by 11.89% to 31,327 tons. Typical of the company's sales for the period is again the overwhelming importance of foreign markets, representing 92.96% of the total volume as exports is realized in 26 countries.
Source: investor.bg (30.07.2014)

Gerdau's Q2 iron ore output surges 89% Brazilian steel group Gerdau's iron ore production jumped 89% year-on-year to 1.99Mt in the second quarter of 2014. The production increase was mostly due to the startup of a new ore treatment unit in September 2013, the company reported in its quarterly earnings release. Quarterly iron ore shipments increased 94.1% to 1.74Mt in the period, with 1.02Mt directed towards Gerdau's steel production units and 715,000t to third parties, representing expansions of 24.8% and 829% respectively. "Compared to Q1‘14, iron ore shipments to third parties decreased, due to the decline in international prices and logistic constraints occurred in Q2‘14. The reduction was partially offset by higher shipments of iron ore to Gerdau's units due to the resumption of production in the blast furnace at the Ouro Branco unit," Gerdau said in the release. The group's iron ore sales revenue reached 216mn reais (US$96.5mn) in Q2, up 74.2% year-on-year. Gross profit from iron ore was up 2% to 51mn reais, while Ebitda rose 15.2% to 53mn reais. (BNamericas)
Source: Other (31.07.2014)

Mr Gadhari says major ports to double capacity in next 5 years Mr Nitin Gadkari, India’s Union Shipping Minister, said that India's 12 major ports will double their cargo handling capacity to 1,600 million tonnes per annum in the next 5 years. Mr Gadkari said that "India plans to double the ports' capacity from the current 800 million tonne to 1,600 over the next 5 years." He said that the major ports have already drawn up action plan for a capacity addition of 500 million tonnes per annum, of which projects to the tune of 350 MTPA are slated to commence during this financial year itself. The private sector Mundra Port in Gujarat, promoted by Adanis Group, has become the largest port in India, pipping the major ones which have held the distinctions for decades. He added that "Ports and roads play a key role in development. The country's GDP can be boosted by 2% if these key infrastructure sectors are developed to their potential." He further added that the Government will give a greater push to water transport. Required policy measures, including review of the tariff regulator TAMP, will be taken to remove bottlenecks and facilitate growth. (PTI)
Source: Other (31.07.2014)

AK Steel Ashland blast furnace shut down again AK Steel’s blast furnace in Ashland, Ky., which already unexpectedly shut down once this year due to some kind of malfunction in February, has shut down again. Spokesman Mr Mike Wallner in an email said “AK Steel recently experienced an unplanned stoppage at its Ashland Works (KY) blast furnace. The company is working to remedy the situation and minimize any potential impact on its customers.” This means production has been halted a third time since June 2013 because of problems at the Ashland and Middletown blast furnaces. (Dayton Daily News)
Source: Other (31.07.2014)

US Steel announces result for Q2‘2014 United States Steel Corporation announced Q2 2014 net loss of USD 18 million, or USD 0.12 per diluted share, compared to a second quarter 2013 net loss of USD 78 million, or USD 0.54 per diluted share and Q1 2014 net income of USD 52 million, or USD 0.34 per diluted share. Adjusted net income for the Q2 of 2014 was USD 25 million, or USD 0.17 per diluted share, excluding a charge of USD 46 million, or USD 0.31 per diluted share, for litigation reserves; a loss on assets held for sale of USD 9 million or USD 0.06 per diluted share and a curtailment gain of USD 12 million or USD 0.08 per diluted share. The USD 132 million, or USD 26 per tonne of reportable segment and Other Businesses income from operations for the Q2 of 2014 compares to income from operations of USD 154 million, or USD 30 per ton, in the Q1 of 2014 and income from operations of USD 47 million, or USD 9 per tonne in the Q2 of 2013. (Strategic Research institute, Steel Guru)
Source: Other (31.07.2014)

Jindal family close to buying Italy's Lucchini A company run by India's billionaire Jindal family is close to finalising a deal to buy insolvent Italian steelmaker Lucchini, Italy's prime minister Matteo Renzi said. Lucchini, formerly owned by Russia's Severstal, was declared insolvent in 2012 and placed under special administration after falling victim to plunging European demand for steel during the 2008 recession. "Jindal should finalise. It's a matter of days," Renzi said after being asked about Piombino, Lucchini's main production site, during a visit to a Catholic scout group in Tuscany. Renzi did not specify whether he was referring to Jindal Steel and Power or JSW Steel, respectively owned by brothers Naveen and Sajjan Jindal. In April sources with direct knowledge of the matter said Jindal Steel and Power and JSW Steel were in competing talks to buy parts of Lucchini. Italian media have said Lucchini could be sold for a symbolic one euro. Indian newspaper Mint said in July JSW Steel had offered to buy parts of Lucchini. (Reuters)
Source: Other (11.08.2014)

Tata Steel's struggling Europe margin may rise Tata Steel's struggling Europe business is expected to report a slight increase in profit margins in the first quarter, mainly helped by stable global steel prices and lower input costs. Tata Steel Europe, which makes up for more than half of Tata Steel's consolidated revenue, is going through a tough time since recession struck the continent five years ago. Since then, the company has been closing units and cutting down on workforce to save costs and reduce losses. Raw material prices of iron ore and coking coal have fallen steeply in the past few quarters while steel prices have remained stable, leading to better profit margins. Tata Steel Europe's operating margins are in lower single-digits at present. Larger rival ArcelorMittal reported strong results for its Europe business early this month. "ArcelorMittal reported strong jump in the profitability for its European operations driven by the expansion in steel spreads. (Economic Times)
Source: Other (11.08.2014)

Australia Port Hedland iron ore exports to China up 4.8 pct in July Australian exports of iron ore to China from Port Hedland, which handles a quarter of the world's seaborne steelmaking material, rebounded in July to hit a record high in a sign of still robust demand, figures showed. Shipments to China over July rose 4.8 percent month-on-month to 30.57 million tonnes, from 29.18 million tonnes in June, according to the Port Hedland Port Authority. That was up no less than 50 percent on July last year. Rising output and shipments to China, the main destination for sea-traded iron ore comes amid a market correction that has seen the price of the ingredient drop by nearly a third so far this year. Benchmark iron ore for immediate delivery to China stands at $95.90 a tonne, according to Steel Index. World No.3 producer BHP Billiton, with the ability to mine more than 220 million tonnes of iron ore a year, is Port Hedland's main user. (Reuters)
Source: Reuters (11.08.2014)

India's Sunflag arm to invest in Mozambique coal mine The Mozambique subsidiary of India's Sunflag group, Sol Mineracao Mocambique, is poised to invest $222 million in a coal mine in the Mutarara district, a senior government source said on Friday. The source said Mozambique's government awarded the firm the Tete province coal mine, which has reserves of 115.46 million tonnes of coal, according the feasibility studies. The Indian subsidiary will explore the mine, which has an estimated life span of 25 years, starting in 2017. Mozambique's government on Thursday signed the concession contract with the company, which is expected to produce 5 million tonnes of raw coal a year, both coking and thermal coal. It is expected that upon starting the exploration of the coal mines the company will pay $300 million a year in taxes to the Mozambican authorities. (Reuters)
Source: Reuters (11.08.2014)

Indian steel market faces a shortage in domestic iron ore There are concerns about the potential loss of competiveness of the Indian steel industry due to shortages in supply of domestic iron ore. Last month, the Federation of Indian Mineral Industries warned that India could face a shortage in domestic iron ore. Historically, India has been reliant on domestic iron ore. However, despite having sufficient iron ore resources in the country, companies are faced with the need to import much of their ore requirements, as pending mining leases means domestic production of the ore is declining. Iron ore production in India fell significantly in the past few years, from 218 million tonne in 2009-10 to only 144 million tonnes in 2013-14. The Steel Authority of India remains one of the few companies currently producing steel in the country that has been given a captive mining source. The Indian authorities have announced their plan to divest 5% of the state-run steelmaker Steel Authority of India. (Yahoo!)
Source: Other (13.08.2014)

Mine Varba – Batantsi to be inaugurated The official opening of the mine Varba - Batantsi in Madan will be on 23 August, when locals will celebrate the Miner's Day and the Feast of the city. Ceremony will be attended by three ministers from the cabinet, as well as by Boyko Borisov, as during his government was signed the concession contract for mining. Cutting the ribbon will be before the first wagon of ore, said the executive director of GORUBSO Madan Sergey Atanasov. The two shafts, where were made overhaul for more than a year, operate since July with a capacity of 30%. In the first month the miners extracted 2500 tons of ore, and by the end of the year, management expectations are the amount to reach 7000 tons per month. About 150 people have already been recruited, but the mining enterprise finds it difficult to find suitable staff to work in the mine. Mine Varba - Batantsi functioned until 1998, and the investment to revive it was BGN 15 million. The deposit was given at a concession for 35 years to Minstroy Holding and KCM.
Source: Presa (15.08.2014)

Global scenario of steel and coal is affecting shipping industry With the global demand and consumption of commodities like steel and coal, the movement of the dry bulk shipping industry and its companies, like Diana Shipping, DryShips, Navios Maritime Holdings, Safe Bulkers, and Diana Containerships Inc, are affected. With higher demand and consumption of commodities, the demand of ships increases. The demand across global economies would negatively impact the shipping industry. With U.S. steel consumption rising and coal demand from India rising, demand for the dry bulk shipping industry is estimated to be positive. According to the World Steel Association estimates, global steel use will increase by 3.1% to 1.53 billion metric tons in 2014. It will increase by another 3.3% in 2015 to reach 1.58 billion metric tons. Reversing its growth trend of 6.1% in 2013, apparent steel consumption in China is expected to slow to 3% in 2014 and 2.7% in 2015. There’s a continuous slowdown as the government gains control of overcapacity and pollution in the steel industry. (Market Realist)
Source: Other (15.08.2014)

Wuhan Iron to spend USD 5 billion in 2014 in Indonesia Wuhan Iron and Steel Corporation of China plans to invest up to USD 5 billion this year to build an integrated mill in Indonesia. Mr MS Hidayat industry minister of Indonesia said that “The firm has carried out a feasibility study for the project and is now assessing the location to set up the mill. They are seeking a location that is close to a seaport with a specific depth, sufficient electricity supply and supporting infrastructure.” Mr Hidayat said that “The development of the integrated iron and steel mill by Wuhan will run along with the establishment of a 1,500 hectare industrial park.” He recommended East Java as a potential site for the mill due to its availability of necessary infrastructure and relatively easy access to raw material in Kalimantan, north of East Java. Mr Hidayat said that Wuhan would likely team up this time with Indonesian conglomerate Sinar Mas Group to build the steel mill. He said that “It would take a few years to gradually construct the mill, which would produce up to 5 million tonnes of iron and steel products for various applications, including for the automotive and shipbuilding industries. (Jakarta Post)
Source: Other (18.08.2014)

Indian government to persuade companies to return de-allocated coal blocks An official said that to restart coal block auction, the government will coax companies to return the de-allocated coal mines. Of the 61 coal blocks, which were de-allocated by the government, only 8 to 9 blocks have been returned, and in a number of cases, the companies which were allotted coal mines have filed court cases against these orders. At present, 94 such cases have been registered. According to a Power Ministry official, the government will persuade the companies to return those blocks so that the government can commence the auction process. The blocks, which have been given back by the firms, were not sufficient for tendering and would not attract bids. The official said that “The auction process is stuck due to non-unavailability of worthwhile coal blocks,” adding that the 8-9 blocks might be retained by Coal India. So far, the government has de-allocated 80 coal blocks. These mines were taken back after the recommendations made in this regard earlier by the review committee. (PTI)
Source: Other (18.08.2014)

Bulgaria tops list as copper and gold extractor in Europe Bulgaria ranks first in Europe in the extraction of copper and gold, data from the Bulgarian Chamber of Mining and Geology shows. The sector currently employs 24 000 people, with salaries rising, states the chamber in a report. The union has published the statistics to commemorate the day of the Bulgarian miners celebrated on Monday.August 18, the assumption of St Ivan Rilski, was established as the miners' professional day 110 years ago with a decree of Tsar Ferdinand, issued on the proposal of miners from the western mining city of Pernik. Some 600 mining depots have so fat been located in Bulgaria, and coal as the main resource extracted from them.
Source: money.bg (19.08.2014)

BHP Billiton to create new metals and mining company BHP Billiton plans to spin-off some of its assets into a new $14bn (?8.4bn) metals and mining company in order to simplify its operations. The world's biggest mining firm also posted a rise in annual profits of 23% to $14bn, missing analysts' forecasts. BHP chief financial officer Graham Kerr will head the new company, which will contain the aluminium, coal, manganese, nickel and silver operations. The new entity, called NewCo for now, will list on Australia's stock market. It will also have a secondary listing in South Africa. However, the proposal still needs to go through a shareholder vote and be approved by regulators. BHP's London-listed shares fell nearly 4% following the announcements. BHP said the demerger will allow it to focus on core businesses in iron ore, copper, coal, petroleum and potash production. "By concentrating on what we do best, the development and operation of major basins, we can improve our productivity further, faster and with greater certainty," BHP chief executive Andrew Mackenzie said in a statement. (BBC)
Source: 3e-news (20.08.2014)

Global steel production up 1.7% year-on-year Global steel production rose 1.7 percent in July year-on-year, driven mainly by growth in Chinese output, the World Steel Association (WSA) said. Steel is used in most industrial processes and is an important indicator of economic activity. The latest data showed that steel production reached 136.8 million tonnes last month. Production rose by 1.5 percent in China, which accounts for half of all steel made worldwide. Ukraine, which has seen several months of intense fighting between pro-Russian rebels and government troops in its restive eastern region, posted a net loss in production, down 11.7 percent to 2.5 million tonnes. Most of the steel produced in Ukraine is made in the east of the country. Output by Russia rose by 8.1 percent to 6.2 million tonnes. Production was stable in Japan at 9.3 million tonnes but grew 1.5 percent in South Korea to 68.3 million tonnes and India's output grew 1.7 percent to 7 million tonnes. (AFP)
Source: Other (21.08.2014)

Vale secures key licence for flagship iron ore mine expansion Brazil’s Vale, the world's largest producer of iron ore, has secured a key environmental licence for a 90 million tonnes a year expansion of its flagship iron ore mine in the Carajas complex, in the northern state of Para. The nearly $20 billion plan is expected to start production in 2016 and reach full capacity of 90-million tonnes a year of iron-ore in 2018, or nearly a third of Vale's existing annual output. In a statement Wednesday evening, the company said Brazil's environmental regulator Ibama had granted it a preliminary license for its plans to expand its N4WS, N5S, Morro I and Morro II projects at the Carajas complex, which combined would give Vale an additional 1.8 billion tonnes in reserves. The expansions are considered vital for Vale as the miner has been losing market share to Rio Tinto and BHP. Carajas, located in a remote corner of the Amazon rainforest, currently holds the world’s largest iron ore deposits with 7.2 billion tonnes combined in proven and provable reserves. It accounts for 35% of Vale's annual ore output of more than 300 million tonnes. (mining.com)
Source: Other (22.08.2014)

Owner of Kremikovtsi metalurgical plant drowns mysteriously Christian Mladenov, an infamous businessman and the owner of Bulgaria's largest metalurgical plant Kremikovtsi, mysteriously drowned in the shallow waters of the Bulgarian Black Sea at Sunny Beach. According to eyewitnesses he suddenly collapsed in the water and then passed away in the ambulance. It is not yet clear what led to his death. The versions range from diabetic shock to stroke. There is also a chnce that Mladenov was somehow murdered. Mladenov became famous after he was jailed for the "Opitsvet" drug scandal which exploded 17 years ago. Last summer, however, the 47-year-old businessman suddenly put his hand on Bulgaria's bankrupt metallurgical giant Kremikovtsi. The bankrupt Kremikovtzi AD (4KW) steel mill was placed in receivership in 2008 after failing to pay investors holding EUR 325 million of bonds. Attempts to sell it to ArcelorMittal and Ukrainian billionaire Konstantin Zhevago three years ago failed, prompting the Sofia City Court to declare it bankrupt, Bloomberg reported. The plant, built in the 1960s, shut coke and metals output in May 2009. Kremikovtzi was Bulgaria's largest metalworking company. The construction of its facilities began in 1960 and the first production capacities were put into operation in 1963 to produce cast iron and coke, with production extending to cover other areas in the 1960s and 1970s. The company was privatised in 1999.
Source: Standart (25.08.2014)

U.S. steel producers win anti-dumping case against cheap imports The U.S. International Trade Commission on Friday voted to impose anti-dumping duties against steel pipe imports from six countries, exempting two, handing a victory to domestic producers who had complained that the cheap imports were undercutting their prices. Countries whose steel will be subject to duties will be India, South Korea, Taiwan, Turkey, Ukraine and Vietnam. The Philippines and Thailand will be exempt. Saudi Arabia was dropped from the earlier complaint. The decision gives the U.S. Department of Commerce the green light to impose tariffs as high as 118 percent on tubular goods, and is expected to boost the domestic business. U.S. steel companies lodged a complaint in 2013 after imports of the pipes used in the oil and gas industry surged, as foreign manufacturers sought to cash in on booming U.S. shale gas drilling. Imports of "oil country tubular goods" (OCTG) doubled last year and accounted for nearly two-thirds of the U.S. market, according to the American Iron and Steel Institute, an industry group. (Reuters)
Source: Reuters (25.08.2014)

Bolivian firm told to pay JSPL $22.5 million Jindal Steel Bolivia, an arm of Jindal Steel and Power, has won in excess of $22.5 million arbitration judgment against state-run mining company Empresa Siderurgica del Mutun (ESM). “Jindal Steel Bolivia has been vindicated in connection with its investment in the El Mutun project in Bolivia by an international tribunal ordering payment to Jindal of more than $22.5 million by ESM,” JSPL said in a statement . Jindal commenced arbitration before International Chamber of Commerce (ICC) of Paris and sought recovery of $18 million principal, plus interest, related to illegal encashment of the bank guarantees. In an award dated August 6, 2014, the ICC Tribunal agreed to grant principal plus interest in excess of $22.5 million. JSPL had in 2007 entered into a joint venture pact with Bolivian state, ESM and another state-run firm to develop and exploit El Mutun iron ore mine, having reserves of around 40 billion tonnes of iron ore in eastern Bolivia. The company also planned to set up a 1.7 million tonne per annum capacity steel plant along with other facilities for backward integration with an investment of $2.1 billion. (Deccan Herald)
Source: Other (27.08.2014)

Asarel Investment Gets Metallic Mineral Prospecting Permit for Borimechkovo Bulgaria's caretaker government has approved the issuance of a metallic mineral prospecting permit at the Borimechkovo terrain. The permit will be granted to Asarel-Exploration Jsc, the investment arm of leading copper ore mining and processing company Asarel-Medet, for a period of three years. The company is to invest nearly BGN 1.9 mln in exploration activities at the site, which is near the municipalities of Panagyurishte, Pazardzhik and Lesichovo. The company is also to spend BGN 120 000 on environmental protection measures. The issuance of the permit is to result in job creation, as well as to boost Bulgaria's potential to produce raw materials.
Source: econ.bg (28.08.2014)

Heterogeneous alloy Continuing decline in the steel industry and relatively stable production of non-ferrous metals. This is the general picture of the sector in 2013, which once again shows how the ability of non-ferrous metals to reach more distant markets helps manufacturers to remain unaffected by the crisis rather than the steelworks. Moreover – non-ferrous metallurgy, which last year reached levels from relatively strong 2011, was able to partially offset the decline in the ferrous, so that the whole sector is performing better than the previous year. Positive is the data on exports of non-ferrous metals, including rolling products, which has a higher added value. Steel remains weak, reflecting tight markets in Europe and a signal that the industry still has not recovered. Negative effect on local producers last year proved depreciation of metals on the global markets, and the high electricity prices in the country that make products uncompetitive. Small bright spot is the cessation of the unauthorized import of ferrous metals and the scheme for VAT fraud in 2012, which somewhat enlarged internal market for manufacturers last year, said the chairman of the Bulgarian Association of the Metallurgical Industry (BAMI) - Politimi Paunova. Financial effect The largest metallurgical enterprise in the country - Aurubis Bulgaria (former copper plant in Pirdop, which is part of the German group Aurubis), reported over 10% lower revenue last year. However, the decline is not due to lower operating results, as operating income increased by 3% to BGN 4.4 billion, but to the threefold reduction in financial income for optimizing hedging transactions, which leads to lower financial costs, the company said. However, the profit reduced five times. The first signal came when parent company Aurubis published its report for the financial year 2012-2013, which ended in late October, where the group indicated a fall in sales and profits. "As we reported back then, the decline is due to the difficult macroeconomic environment, the sharp decline in metals, a significant drop in the price of sulfuric acid and refining charges for copper scrap and the planned closure of the plant in Hamburg for a major modernization. Not least, the energy costs which are a great item for the company definitely affected the profit," said the already former CEO of Aurubis Bulgaria - Nikola Treand in June. In late July, he was replaced by Tim Kurt. Projections of Aurubis for this year are that the global economy is likely to continue to recover, which will positively affect mostly industrialized countries. This should have a positive effect on the Bulgarian company as it works mainly for the German plant. It is largely due to this that led to the increase in Bulgarian exports to Germany in 2013, which for the first time exceeded imports. As a whole, the company expects the copper market to remains balanced and the supply of concentrate from the mines to be large enough, which means more business and better prices for metallurgical refineries, including Aurubis Bulgaria. This year should be completed the investment program for EUR 44.2 million, which the company launched in 2009 and will increase the capacity for processing concentrates by over 20%. Modernization and installation of additional equipment is already complete, but to use 100% of the capacity, Aurubis should complete the environmental part of the program, for which is provided 60% of the amount. Added value Despite the slight decline in revenue, reported by Sofia Med (part of Greek metallurgical group Viohalco) climbs one position for the first time coming in second place in the rankings for 2013. Last year there was another company from the Viohalco group - Stomana Industry SA. "The main reason for the growth of sales is the diversification of product portfolio," said Anton Petrov, Viohalco representative for Bulgaria. The company manufactures products of copper, zinc and alloys, and among the innovation are sheets and zinc-titanium coils. The products of the company are high value-added production and almost all (96%) is exported. Sofia Med’s loss, however, more than doubled, mainly because of the decline in commodity prices on the London Metal Exchange. "This has a positive effect on the working capital and cash flow, but on the other hand, and according to international accounting standards leads to impairment of inventories and thus report a loss for the period," said Chief Financial Officer Sergei Vlaykov. Foreign markets also stand behind the 8-percent revenue growth of Shumen-based factory Alcomet, which is seventh in the sectoral ranking. Last year, the producer of rolled and extruded aluminum products expanded sales in Europe starting exports to Portugal and Ireland. "Sales in Germany were robust and grew in Poland, France and other countries," said the Director of Investor Relations Ivan Dinev. In 2012 the company introduced a new mill in the production of rolled products, which together with the modernization of the foundry led to increased production of the rolling mill and consequently sales. "It is expected to also gradually increase forging production after the start of modernization there," Dinev said. The project also includes improvements in the matrix production. Two-fold profit Against the backdrop of falling metal prices, revenue growth of KCM is impressive. The reason for this is the large modernization project, which the company began in 2012 and is estimated at about BGN 200 million. This is the largest investment made in KCM over the past 50 years, and includes a complete renewal of the zinc production and construction of a new lead plant. The effect of the project is reflected in the profits of the company, which last year grew more than twice. As a result, the company reported the highest profitability among metallurgical enterprises in the top 25. Electric shock The revenues of the sole producer of liquid steel in the country, Stomana Industry (part of Viohalco) continue to decline because of expensive electricity. "This leads to drop competitiveness and limits the countries, to which the products can reach," said the representative of Viohalco Anton Petrov. This adds to the subdued steel production in Europe, which is a signal that the industry still has not recovered, according to Paunova. At the same time, Stomana Industry has managed to reduce its loss by BGN 7.5 million, which according to Petrov is due to the better organization. In a much stronger position is the other enterprise in the steel industry - Promet Steel, which ranks fifth in the sectoral ranking. Its revenues increased sharply and it managed to shrink its loss more than three-fold last year. The plant near Burgas works with billets from Ukraine and according to Paunova currently there is no supply problem despite the situation in the former Soviet republic. One reason for the better performance of the company is that unlike Stomana Industry, it operates entirely on gas, not electricity, which makes it non-reliant on the appreciation of electricity. Mining exception The only ore undertaking to provide financial results and participate in the ranking is Dundee Precious Metals Chelopech (formerly Chelopech Mining). Last year it increased yield by 12% to a record 2 million tons of ore due to the completed in 2012 modernization. However, its revenue fell by almost a fifth, while profit fell by over 40%. According to Executive Director Nikolay Hristov, the reason for this is the decline in metal prices. Company extracts mainly gold and copper, as well as silver in a small amount. From the report of the Canadian parent company Dundee Precious Metals is clear that the negative effect of the depreciation of metals is estimated at over USD 60 million. At the same time production costs at Chelopech decreased by 12% per ton of product, mainly because of lower transport costs, after the installation of underground band for transporting ore, as well as due to the smaller maintenance costs. Group of traders The most dynamic company in the ranking – Hus, works mainly in trade in metals and scrap, although also deals with processing of ferrous metals. However, it is an exception, as mass merchants’ results deteriorate. Almost all companies after Hus in the chart report predominantly downward revenues. Nevertheless, Hus reports about 45 percent revenue growth. "The increase was primarily due to our revenue from sales abroad and that we developed the foreign markets," said finance director Tanya Kraleva. In 2013, the company attracted new customers in Romania, Greece, FYR Macedonia, Serbia, Croatia and Hungary. The results last year were slightly impacted by sales revenue that the company made to supply the enterprise Metalsnab, which it purchased (in 23rd place in the ranking and also with growing revenue). According to Kraleva, the trend is to bet on foreign trade as the domestic market is limited. However, there are also deals in the country. Last year, Hus increased availability of goods, so that it can quickly respond to orders. "These are usually large customers and in fact about a third of the product is realized almost immediately," Kraleva explained. This year the company expects an increase in revenue from the sale of production after the new installation in Lom works at full capacity. Two years ago, Hus bought land and the buildings of the insolvent Balcancar Record-Dunav and began construction of a factory for the production of pipes, as part of a project financed with European funds. With the release of the production, the company forecast its sales in the foreign market would grow by 70-80%, and would attract new customers in Europe. A major factor is the proximity of the Danube, through which the company will export its products. "Overall, revenue from sales of products will increase about 20%, while we do not expect a significant change in the sales of goods," said Kraleva. Serious decline, however, was reported in the next company in the rankings - scrap dealer Metalvalius, which in 2012 was the best performer of the sector by revenue growth. The company is owned by a Greek company for metal recycling Anamet and is associated with the group Viohalco. Also lower are the revenues and profits of ThyssenKrupp Jupiter Stomana, which is part of the business group ThyssenKrupp Materials International. Outside the top ten this year remains Nord Ferroindustry. The most striking decline among retailers for 2013 came from Metal Trade Bulgaria (over 99%), which until recently was owned by Hus and Intercom Group. A check to the Commercial Register shows that a month ago Hus sold its stake in the company. Intercom itself also reported lower results, but remains among the largest traders of metals. Matter of policy Future of metallurgy this year largely depends on the energy policy of the government. "We have been holding talks with the executive power for a long time, but so far there are no results," said Petrov, who is also chairman of BAMI. Among the ideas discussed was the introduction of new tariff plans that reduce the cost of electricity to large industrial customers as expensive electricity affects all energy intensive industries. Another option is to introduce a package of energy services and measures to benefit both parties. For example, business that can operate at night, to do so in order to save costs for switching the power against which would receive preferential terms. Meanwhile, however, rather than to alleviate industry, government decisions led to further increases in electricity for the business. Stimulating the export of electricity by eliminating the so-called obligations to society (allowance for green energy) and the cost of access to high voltage network led to artificially inflated prices in the country, despite the low power consumption. According to BAMI, price auctions for electricity rose by over 10%. Sector complains from artificially restricting imports of electricity through the capacity of transmission facilities. At European level, in April the European Commission published guidelines for the support that countries can make for the industry to reduce its costs for green energy, while at the same time guaranteeing the climate targets by 2020. Many European countries are currently apply similar models. In Bulgaria, however, they still remain at the level of discussion.
Source: Capital (28.08.2014)

China, U.S. Lifts Global Crude Steel Production in July Global crude steel output rose for a sixth consecutive month in July as gains across China and the U.S. offset a decline in the European Union – according to a recent World Steel Association (“WSA”) report. Healthy gains across the Middle East and Africa also supported the growth. However, the pace of growth slowed on a monthly basis in the reported month. According to the international trade body for the iron and steel industry, crude steel production for 65 reporting nations nudged up 1.7% year over year in July to 137 million tons (Mt). This follows a 3.1% gain last month. By regions, production data paints a generally positive picture with gains registered across all areas barring the European Union. Growth was seen across major Asian producers except Japan – the second largest producer – which saw a flat production at 9.3 Mt. Higher sales tax is affecting steel demand in that country. Output from China – the world's biggest steel maker – went up 1.5% year over year to 68.3 Mt in July. (Zacks Equity Research)
Source: Other (28.08.2014)

Indian acquisition is losing money and Mozambique wants it taxed The financial director of the Steel Authority of India Limited (SAIL) has revealed the losses currently being borne by the Benga coal operation in Mozambique’s Tete province. Anil Chaudhary reported that Benga’s production costs were $165/t while the current market price was around $130/t, meaning that Benga was losing about $35 on every ton it produced. The Mozambique operation has reserves of 2.6- billion tons, 70% of which is metallurgical coal, used in making steel. SAIL is one of the State-owned companies that is a partner in International Coal Ventures Limited (ICVL), which is a special-purpose vehicle created at the initiative of the Indian Ministry of Steel, with the purpose of obtaining metallurgical and thermal coal assets in foreign countries in order to assure the supply of coal to India. The other companies that are partners in ICVL are Coal of India Limited, Rashtriya Ispat Nigam Limited (RINL – a steel company), the National Mineral Development Corporation (NMDC) and NTPC (India’s largest power producer), all of them wholly or predominantly State-owned. (Mining Weekly)
Source: Other (29.08.2014)

U.S. drops planned duties on specialized steel from Japan, Germany The United States will not go ahead with planned import duties on specialized steel from Japan, Germany and Poland after the U.S. International Trade Commission found the imports were not harming local industry. The Department of Commerce had set anti-dumping duties on imports of grain-oriented electrical steel, mainly used in large and medium-sized electrical power transformers, but a ITC vote ends the case. The decision affects companies including Nippon Steel & Sumitomo Metal Corp, JFE Steel Corp and Germany's ThyssenKrupp Electrical Steel, a division of ThyssenKrupp AG, all of which had been named in the dispute. The Japan Steel Information Center, the U.S.-based public affairs lobby of the Japanese steel industry, welcomed the decision, which came after a complaint lodged by AK Steel Corp, Allegheny Ludlum Corp and the United Steelworkers union. In 2013, imports from Germany were valued at an estimated $ 4.1 million, from Japan $ 41.1 million and from Poland $ 1.9 million, according to U.S. Commerce Department data. (Reuters)
Source: Reuters (29.08.2014)

Aurubis Bulgaria with a slight output growth Production in the copper plant Aurubis Bulgaria in Pirdop (part of Aurubis) increased in volume during the nine months to the end of June. This shows the interim report of the German financial group for 2013/2014. The document does not include data on the financial performance of individual plants, but generally Aurubis reported decrease in profit before tax (EBT). For the third quarter, however, the results improve. The amount of concentrate that have been processed at the plant in Pirdop, increased by 1% and reached 884 thousand tons in the first nine months of the financial year. Besides processing the produced in the country concentrate, it imports a significant share of the necessary raw material. The company reported an increase in the production of sulfuric acid, which is obtained as a byproduct after processing of waste gases. There is an increase by 1.6% to 902 thousand tons. By 2.4% increased the production of cathode (refined) copper, reaching 173 thousand tons for the first nine months. During this period there was a brief interruption of the metallurgy operations due to repairs required by law. The report indicates that the repair was conducted according to the schedule.
Source: Capital (31.08.2014)

Seven Bulgarian companies make it to the Deloitte 500 list of top CEE firms Seven Bulgarian companies made it to this year's Deloitte ranking of the 500 largest companies in the 18 countries of Central and Eastern Europe. At the forefront of Bulgarian firms is Lukoil with a revenue of EUR 3.862 billion, which earned the oil giant the 30th place. Holding company Chimimport is the second Bulgarian company in the Deloitte ranking. It occupies the 41st position with revenues of EUR 3.098 billion. Copper giant Aurubis (65 th) also made it to the top 100 in the ranking with revenue of EUR 2.272 billion. The four other Bulgarian companies in the Deloitte Top 500 are: OMV Bulgaria (222nd with revenues of EUR 917), Bulgargaz (282nd with revenues of EUR 769 million), CEZ Electro Bulgaria (303rd with revenues of EUR 26 million) and Naftex Petrol (438th with revenues of EUR 540 million). The first four places in the overall ranking remained unchanged. Like last year, the list is led by Polish company PKN Orlen, despite a 5.8% decrease in its revenue to EUR 27 billion. The silver medalist is Hungary's oil giant MOL, followed by the Czech Republic's Skoda Auto. Fourth is the Ukrainian Metinvest. Another Ukrainian company - energy firm DTEK advanced from the seventh to the fifth position. The sixth place is occupied by the Czech CEZ, followed by Ukrainian Energorynok. The eighth, ninth and tenth places went to three Polish companies - Jeronimo Martins Polska, PGNiG and PGE. The greatest progress in the rankings - by 259 positions - was achieved by Ford Romania, which jumped to the 170th place. The company's revenues increased from EUR 557 million in 2012 to EUR 1.097 billion in 2013 due to growth in the production of a new car model.
Source: Darik Radio (08.09.2014)

Nippon Steel to restart plant Japan’s top steel maker Nippon Steel & Sumitomo Metal Corp said on Friday it plans to restart its Nagoya steel plant as early as late Friday after it was shutdown due to a fire on Wednesday, its fifth accident this year. The Nagoya plant in central Japan, which was built in 1958 and produces about 15 percent of the country’s total steel output, has suffered power failures and smoke releases four times from January to July, raising concerns about the safety of the old facilities. Nippon Steel has received permission from local police and the prefectural government to resume operations at the plant, except for a coke oven and its related facilities where the fire started, on condition it ensured safety and soundness of the facilities, a company spokesman said. “We plan to restart two other coke ovens as early as tonight after ensuring safety and soundness of the facilities and gradually restart other units,” he said, adding that the timing of the restart of all facilities is not clear. (The News International)
Source: Other (08.09.2014)

India to be third largest steel maker by next year India would become the third largest steel maker, with an installed capacity exceeding 110 million tonnes per annum (mtpa) by next year when the ongoing expansion projects of SAIL and some private steel makers come on stream. This is in line with the Narendra Modi-led NDA government's target of achieving steel-making capacity of 300 mtpa to make India the second largest producer of steel in the world by 2025, overtaking US, Japan and European Union. With the economy coming out of its worst slowdown in years, all major steel makers such as Tata Steel, JSW and SAIL have made detailed presentations to the government to add an additional 100 mtpa of steel-making capacity with an investment of over Rs 6 lakh crore ($100 billion) in just over 10 years. India's current steel production capacity stands at 96 mtpa and produces 81 mtpa of finished steel and 72 mtpa of finished products. A CEO of a private sector steel firm said, "The government invited us for discussions on capacity expansions to reach 300 mtpa by 2025. We have shared our expansion plans with them. The ministry promised to remove the bottlenecks." (TNN)
Source: Other (08.09.2014)

JSW Steel, ArcelorMittal in talks to acquire Italy’s largest steelmaker Ilva steel plant Race to buy troubled steel plants in Italy has pitted Indian business tycoon Sajjan Jindal against global steel magnate Lakshmi Mittal. Jindal's JSW Steel and world's largest steelmaker ArcelorMittal are both in talks to buy Italy's largest steelmaker Ilva steel plant and second-largest Lucchini SpA. JSW Steel has written a letter to Ilva's special commissioner Piero Gnudi expressing interest in the company. The Indian company has also been in talks to buy parts of insolvent Lucchini for the past few months. ArcelorMittal, too, has been vying to get a hold of these problematic but low-priced assets. While the heavily-indebted Lucchini went bust in 2012 amid falling steel prices and economic recession, Riva family's Ilva steel plant was hit by a massive scandal for allegedly causing serious health concerns in the region by flouting environment laws. Both the targets have been placed under 'special administration' by the Italian government to avoid their closure and job cuts. (Economic Times)
Source: Other (08.09.2014)

BHP Billiton plc And Rio Tinto plc Are Losing Billions The price of iron ore is in free-fall, which is bad news for BHP Billiton and Rio Tinto, two of the world's largest iron ore miners. The price of the steelmaking ingredient hit a five-year low earlier this week and has continued to decline, settling at $84.30 per tonne. All in all, the price of ore has dropped 37.2% in the year to date. For Rio and BHP, the falling price of iron ore is concerning in the short-term, but is actually good news over the longer term. You see, a $1 drop in the average iron ore price wipes out $135m of annual net profit after tax at BHP Billiton and $122m at Rio. Since the beginning of this year the price of iron ore has dropped by around $30 per tonne. So, these figures suggest that the falling price has cost BHP around $4bn in annual profit, while Rio has lost out on $3.7bn of annual profit. Unfortunately, these miners have no one but themselves to blame for falling profits. It's expected that due to production increases the big four iron ore producers, which include BHP and Rio, 108m tonnes of additional seaborne iron ore supply will hit the market during 2014. Another 108m tonnes will hit the market during 2015. (Yahoo! Finance)
Source: Other (08.09.2014)

ABB to install automation systems at Vale’s iron ore mine in Brazil Brazilian mining company Vale has awarded a $103m contract to ABB to install electrical and automation systems at its iron ore mine in the Carajas mountains of northern Brazil. The contract comes after a $140m contract for the first phase of the S11D project to install automation and electrical equipment for the process plant and commission the primary transmission substation. Under the latest deal, ABB will supply a 230,000v in-feed substation, to connect the mine to the electricity grid and 42 secondary substations. The company will also provide motors driving the mine's conveyor belts. It will extend the electrification system at the mine to the excavators, stackers, reclaimers and conveyor-belt system. ABB Process Automation division head Veli-Matti Reinikkala said: "Cross-divisional collaboration on this project is enabling tight power and automation integration, a key differentiator for ABB." The S11D Carajas deposit is expected to produce 90 million tons a year at its peak production capacity. (EBR)
Source: Other (10.09.2014)

World Bank Continues Partnership with Bulgaria, Introduces New Country Manager 13 Bulgarian companies made it to this year's ranking of the top 500 companies in Central and Eastern Europe (CEE), prepared by international credit insurer Coface. As compared to the relatively stable speed of most of the 500 companies in the ranking, the Bulgarian ones seem to be less dynamic, which affected their ranking. This year they only number 13, whereas two years ago they were 16. "Also, all of them except the newcommers fell back compared to 2013, "said Milena Videnova, CEO of Coface Bulgaria. On the highest place among the Bulgarian companies remains Lukoil Burgas with its 22nd position. Aurubis Bulgaria is also almost preserving the status quo despite an increase in turnover. Only OMV Bulgaria AD retains its position unchanged, despite its 3.1% increase in turnover and 410% net profit groth. The top 500 companies in CEE in 2013 increased their turnover by 0.2% to more than EUR 644 billion. It is the oil and gas sector that has the most representatives in the rankings. 77 oil giants generated a total turnover of EUR 162 billion. The decline here is 3.4%. Yet it is the construction sector that leads the list of losers industries. Only six companies in the sector made it to the Top 500, with a turnover of EUR 4.6 billion.
Source: Standart (11.09.2014)

Rio Tinto sees 125 mln tonnes of iron ore capacity being cut in 2014 World no.2 iron ore miner Rio Tinto expects other miners worldwide to cut 125 million tonnes of iron ore capacity in 2014, roughly equal to the amount of new supply expected to come on stream from Australia and Brazil. Iron ore prices have plunged 38 percent to five-year lows this year, largely due to a glut of low-cost ore from top producers, Brazil's Vale, Rio Tinto, BHP Billiton and Fortescue Metals Group. The price plunge has been deeper and quicker than expected, and miners large and small have been predicting that high cost producers, mostly in China, would be forced to cut output in response to weaker prices. "I think there's already some evidence, certainly in China, Indonesia, Iran, South Africa and Australia, we are seeing some more marginal players make decisions to take capacity off," Chief Executive Sam Walsh said on the sidelines of an event in Washington showcasing the company's pink diamonds. (Reuters)
Source: Reuters (11.09.2014)

Jharkhand orders closure of some iron ore mines Jharkhand has ordered the closure of 12 out of its 17 iron ore mines because their leases have expired, dealing a fresh blow to local steelmakers, some of which have been forced to import the raw material due to short supplies at home. Mining curbs in India in states such as Goa and Karnataka along with mine closures in top producing Odisha have limited iron ore availability in the country, opening the door to more imports this year, which could help absorb some of the surplus in global supply. Jharkhand was India's third-biggest iron ore producer in the fiscal year to March, with output of around 21 million tonnes. The shut mines, including those of steel majors Tata Steel and Steel Authority of India Limited (SAIL), accounted for around 19 million tonnes. "They have sent notice to close 12 mines. These include mines of Tata Steel and Steel Authority of India Limited," an official of the Jharkhand state government said by phone from the capital Ranchi. (Reuters)
Source: Other (12.09.2014)

South Africa agrees steel plant study project with China South Africa’s Industrial Development Corporation (IDC) has signed an agreement with China’s Hebei Iron & Steel Group (HISG) aimed at building a steel manufacturing plant in South Africa with a total production capacity of five million tonnes. The IDC said it signed a memorandum of understanding in Beijing on 11 September to conduct a joint detailed feasibility study “for a greenfield steel plant”. The IDC, the South African government-owned national development finance institution set up to promote economic growth and industrial development, said the agreement follows its completion of a pre-feasibility study for “a new low-cost iron and steel facility, based on available low-cost resources in South Africa”. If construction goes ahead the first phase of the project, with a three million tonnes capacity, is estimated to cost $2.7 billion, the IDC said. The second phase, providing for an additional two million tonnes capacity, would cost around $1.8bn. South Africa’s economic development minister Ebrahim Patel said: “We need to increase the level of competition among local producers of steel, to help lower the prices of this critical input into industrialisation and avoid monopoly pricing. This agreement is a first step to look at the feasibility of a steel project that the IDC is working on.” (Out-law)
Source: Other (15.09.2014)

Eurocoal: Bulgaria's Coal Production Decreases over Past Few Years Bulgaria's coal production has decreased over the past three years, according to statistics of Eurocoal. The European Association for Coal and Lignite (Eurocoal), the umbrella organisation of the European coal industry, consists of 35 Members from 20 countries amongst which national producers and importers associations, companies and research institutes from Belgium, Bosnia-Herzegovina, Bulgaria, the Czech Republic, Finnland, France, Germany, Greece, Hungary, Italy, Poland, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Turkey, the Ukraine and the United Kingdom. According to Eurocoal, as cited by investor.bg, Bulgaria produced 26.4 million tonnes of lignite and 2.1 million tones of anthracite in 2013.In 2012, Bulgaria produced 31 million tonnes of lignite and 2.3 tonnes of anthracite. In 2011, Bulgaria's lignite output stood at 34.5 million tonnes and its anthracite production stood at 2.4 million tonnes. Bulgaria's coal imports decreased from a rate of 3.3 million tonnes in 2011 to 1.7 million tonnes in 2013. According to Eurocoal data, the EU27 (excluding Croatia) produced 407 million tonnes of lignite in 2013, compared to 433 million tonnes of lignite in 2012. Anthracite output in the EU also fell from a rate of 128 million tonnes in 2012 to 114 million tonnes in 2013. However, imports registered a slight increase from 211 million tonnes to 216 million tonnes.
Source: investor.bg (16.09.2014)

Severstal completes sale of US assets for $2.3 billion Russian steel company Severstal announced that it has completed the sale of its US assets: Severstal Columbus, LLC and Severstal Dearborn, LLC subsidiaries, collectively known as Severstal North America, to Steel Dynamics, Inc. and AK Steel Corporation, respectively. The deals are worth overall $2.325 billion. Severstal, a leading vertically integrated steel and steel-related mining company, said the sale of Columbus and Dearborn “unlocks substantial value to Severstal’s shareholders”. “I would like to express gratitude to the whole team and to every employee of Severstal North America for achieving a lot together. I wish you the best of luck in all your future endeavors,” Severstal CEO Alexey Mordashov said as quoted on Severstal's website. (ITAR-TASS)
Source: Other (17.09.2014)

Why China’s slowdown in real estate affects US steel investors Until now, we’ve seen China’s dominant role in the global steel market. China consumes half of the global steel, with its construction industry being the largest consumer. The Chinese construction industry consumes a quarter of global steel. A slowdown in this key industry spelled doom for steelmakers globally. This has led to excess capacities in China and elsewhere. The excess capacity has led to fierce competition among steel companies and is a key reason behind the fall in steel prices. Up to May of this year, the residential floor space sold had declined 9%. But the floor space for sale increased 25%. A decline in sales with an increase in supply isn’t positive for the real estate sector. The Chinese real estate climate index has been falling. This—along with Chinese PMI, interest rates, and industrial activity—is an indicator investors in companies like ArcelorMittal, United States Steel, AK Steel, Nucor, and Steel Dynamics and ETFs like the SPDR S&P Metals and Mining ETF should look at. (Market Realist)
Source: Other (18.09.2014)

Tata Steel opens new automotive finishing line Tata Steel has opened a new finishing line at its IJmuiden steelworks in the Netherlands to strengthen the supply of high-value steels to the automotive sector and other markets. Tata Steel invested 12 million euros in Finishing Line 32, which will process up to 400,000 tonnes of galvanised (corrosion resistant) steel coil a year. Henrik Adam, Tata Steel's Chief Commercial Officer, said: "This investment will enable us to improve the supply of high-quality steels to customers while also improving delivery times. "The new finishing line enables us to meet the most stringent quality standards for advanced steels, some of which are used by automotive manufacturers for vehicle body panels and safety-critical components. These steels are often stronger and thinner, enabling our automotive customers to produce more fuel-efficient and lighter-weight vehicles." The finishing line's location at the end of the company's three hot-dip galvanising lines in IJmuiden will increase processing speed and delivery reliability for customers, while also reducing on-site steel movements.“ (4-traders)
Source: Other (19.09.2014)

Aurubis invests new EUR 75 million in Pirdop Aurubis Bulgaria will invest nearly EUR 75 million next year at its plant in Pirdop, said new CEO Tim Kurt. Currently investments planned for 2015 are EUR 25 million. Besides that, Aurubis prepares a project for renovation of the plant, which would be worth almost EUR 50 million, Kurt added. This year investment program was worth EUR 44.2 million. It is in three main directions and goes according to plan, as the recent activities related to the construction of a treatment plant for rainwater will be completed in November. Currently the plant in Pirdop is one of the best in the group of Aurubis, and in many respects is a leader. For example, the Bulgarian company and the one in Hamburg are first in production of copper. Both plants occupy top positions in ecology and emit tens to hundreds of times less sulfur dioxide than their competitors in Europe and the world. Based on these and other indicators, Tim Kurt sees strong potential for the development of Aurubis Bulgaria. Currently the company sells 90% of its production abroad. At the same time, projections indicate that in 2020 demand for copper in the world will reach 26.1 million tons per year compared to 20.6 million tons in 2013. Part of the new increased demand can be covered by the Pirdop-based plant. "These forecasts have long been known and we invest to be able to meet demand. For example, annual production at the refinery in Pirdop is increased from 55 thousand ton at the start to 230 thousand tons now," said Kurt. To develop sustainable enterprise, however, it is very important to have predictability in electricity prices as power occupies 20% of the cost of production, he added.
Source: Standart (24.09.2014)

Iron Ore Falls Below $80 to Lowest Since 2009 on China Iron ore slumped below $80 a metric ton for the first time in five years on speculation that China’s slowing economic growth will curb demand in the world’s biggest user, exacerbating a global surplus. Ore with 62 percent content delivered to Qingdao, China, fell 0.5 percent to $79.69 a dry ton, the lowest level since Sept. 16, 2009, according to data from Metal Bulletin Ltd. The drop followed seven weeks of declines as the steelmaking raw material had the longest run of losses since May. The commodity plunged 41 percent this year as BHP Billiton Ltd. (BHP) and Rio Tinto Group (RIO) expanded output in a bet that the increase in volumes would more than offset falling prices as higher-cost mines are forced to shut. China’s Finance Minister Lou Jiwei said this week growth in Asia’s largest economy faces downward pressure. China’s economy remained stuck in “low gear” this quarter, with retail and residential real-estate industries struggling, according to the China Beige Book. (Bloomberg)
Source: Other (24.09.2014)

Mining sees BGN 300 million investments annually Between BGN 200 million and BGN 300 million per year are invested in mining, said Prof. DSc. Nikolai Vulkanov, major shareholder and Chairman of Minstroy Holding JSC. Together with the Scientific and Technical Union of Mining, Geology and Metallurgy, Minstroy Holding organized the Fourth national scientific conference with international participation "Technologies and Practices in underground construction and mining". We alone invest between BGN 25 million and BGN 30 million each year in the Rhodopes, said Professor Vulkanov, adding that there is no tension in mining and yields go up. In the Rhodopes yield reached 700 meters underground, which is why the vast majority of investments are focused on the introduction of new techniques and technologies that increase productivity and reduce prerequisites for accidents, said Prof. Vulkanov. Conference gathered 200 experts from Bulgaria, Romania, Serbia and Macedonia, who share their experiences in underground mining.
Source: Standart (25.09.2014)

Mexican steel sector growth higher than Brazil Mexico is emerging as the preferred choice for investors in Latin American steel making as a landmark energy reform and exposure to a US recovery help outshine regional rival Brazil, where the gloom of recession has taken hold. While steel executives in Brazil call ever more forcefully for market reforms, Mexico has pushed through a major energy overhaul and other reforms which are expected to lure billions of dollars in new investment. According to industry group Instituto Aco Brasil, Mexico's steel chamber CANACERO forecasts 2014 steel output will grow nearly 7% to reach 19.4 million tonnes. Brazilian steel output, in contrast, is set to decline 2.5% this year. CANACERO estimates steel output will rise another 1.5% in 2015. Industry experts in Mexico say 2014's output boost reflects the sector's recovery to pre-financial crisis levels, while major new oil projects courtesy of the reform are not expected to come online until after 2015. (Reuters)
Source: Reuters (25.09.2014)

Japanese steel mills urge Thailand for steel quota hike Japanese businessmen have asked Thailand to raise the quota of steel it imported from their country by at least 67% to meet an anticipated demand increase in Thailand's automotive industry. The Japanese Chamber of Commerce in Bangkok said automobile production here would rise to a record 2.5 million units in the next two years. Mr Daishiro Yamagiwa, Japan's state minister for economy, trade and industry, made the same request during his meeting with Thailand's economic ministers on Monday. Mr Chakramon Phasukvanich Industry Minister of Japan said that after the discussion with Mr Hisamichi Koga, vice president of the JCC and Mr Masayasu Hosumi, president of the Japan External Trade Organisation (Jetro), that Thai vehicle output would rise to 2.5 million units over the next two years, surpassing the historic high of 2.3 million in 2013. That could translate into higher demand for imported high grade steel from Japan, which is now allowed a free import duty quota at 1.2 million tonnes per year under the Japan-Thai Economic Partnership Agreement (JTEPA). (Bangkok Post)
Source: Other (26.09.2014)

Goroubso provided new modern equipment for rescuers in the mine Chala Goroubso - Kardzhali Jsc. provided new modern equipment for mining rescue group in mine Chala. The equipment consists of two oxygen apparatus and 180 personal escape apparatus for emergency actions, emerged at the final press conference on the European project "Safe work in Goroubso - Kardzhali Jsc”. Value of the project is BGN 162,158, of which nearly BGN 130,000 are grant, the rest of the funds amounting to over BGN 32,000 are financed by the company. The project is funded under OP Human Resources Development. Its head Vesko Mariinsky said precise analysis of working conditions in the mines had been prepared and efforts of the management of the company are aimed at ensuring the safety and health of miners. The mine already has a gas analyzer that indicates in real time the occurrence of dangerous gases in the mine .
Source: Presa (29.09.2014)

Mining Forum and helpful discussions in the program The program of the International Technical Fair during the "Fall 2014" includes over 30 business accompanying events. OF interest is the first edition of the mining business forum, which will be held today and tomorrow under the patronage of the Minister of Economy and Energy. The main topics relate to the European partnership, corporate responsibility, social investments and the overall development of the mining industry. The program includes a roundtable on raw materials in Europe and presentations from leading companies. Initiator and organizer is the Bulgarian Mining Chamber and partners are the European Association of Mining Industries Euromin, Ministry of Economy and International Fair Plovdiv. Bulgarian Chamber of Commerce includes a wide range of events.
Source: Standart (29.09.2014)

Chinese invested overseas iron ore projects run into trouble Many Chinese companies have gone abroad to invest in iron ore projects over the past decade, hoping to get more negotiating leverage in prices by taking stakes in projects. But now the price of iron ore has fallen about 35% from a peak of USD 134.5 per tonne at the beginning of the year. Meanwhile, the world's four largest iron ore producers, Vale SA, Rio Tinto Group, BHP Billiton Limited and Fortescue Metals Group, are ramping up production of cheap iron ore. Mr Li Xinchuang, deputy secretary general of the China Iron and Steel Association, a trade organization said that "Their increasing output will drag down prices. Large miners will make a little profit, but this possibly means death for Chinese companies' overseas projects." Mr Li said that "Chinese companies' overseas projects are always highly costly, which means their ore prices cannot compete with others. And some projects carry operational risks." A survey by the China Metallurgical Industry Planning and Research Institute found that only a few projects could cut the cost to mine one ton of iron ore to under USD 100 and some could reach as high as USD 300. (Caixin)
Source: Other (29.09.2014)

Asarel Medet received the first certification standard for sustainable development of raw materials industry Asarel Medet successfully certified according to voluntary standards for sustainable development of mineral-raw materials industry and got the first certificate. The award was given to the Executive Director Eng. Delcho Nikolov by Dr. Corina Hebestreit, CEO of EUROMINES. The other certificate was received by Dundee Precious Metals - Chelopech. These are the first two mining companies in the country that meet the requirements of the standard level "silver" and went through the verification of results and external independent assessment. Standard for sustainable development of raw materials industry was presented publicly for the first time in 2012 during the second edition of the Mining Forum. Its purpose is to evaluate companies in 10 areas: growth and efficiency, quality and innovation, safety and health at work, caring for employees, partnership and community development, transparency and accountability, environmental management, emissions and waste, protection of biodiversity, energy and climate protection.
Source: Company information (01.10.2014)

JSW Steel cuts steel prices of long and flat products for October JSW Steel Limited has announced reduction of INR 500-700 per tonne for flat products and INR 1000 per tonne for long products. Mr Jayant Acharya Director Commercial and Marketing of JSW Steel said that "We have been witnessing increase in the cheap import of steel products, especially the TMT bars are imported in the guise of alloy bars from China. The imported products are cheaper by at least INR 5,000 per tonne to 6,000 per tonne compared to the domestic prices.” The pricing policy of other domestic steel mills is yet to be announced, but JSW’s move is in line with market expectations as outlined in our article Overpriced HR likely to correct under import offer pressure in India on September 23rd which said “It is noteworthy that HR price level have remained unchanged WoW and MoM signalling that the domestic mills have been holding the forte against aggressive offers from China which unlikely to hold on with offers becoming more competitive.” (Business Standard)
Source: Other (01.10.2014)

World crude steel production up by 1.4% World crude steel production for August 2014 was 135Mt, an increase of 1.4% when compared with the same period last year, according to figures supplied by 65 countries reporting to the World Steel Association. China’s crude steel production for the period was 68.9Mt, up by 1% compared to August 2013. Japan produced 9.3Mt of crude steel in August 2014, an increase of 2.2% compared to the previous year. India produced 7Mt, an increase of 5.2% and South Korea’s figure of 5.3Mt was up by 8% on last year’s figure. In the EU, Germany produced 3.1Mt of crude steel in August 2014, down by 1% compared to August 2013. Spain produced 1.1Mt, down 0.4% compared to the previous year and France’s crude steel production was 1.1Mt, down 9.1% on August 2013. Italy produced 1Mt of crude steel, down by 0.8% on last year. In Turkey, crude steel production for August 2014 was up by 13.9% to 2.9Mt while in Russia 6.2 Mt of crude steel was produced, up by 5.8% over August 2013. Ukraine produced 1.8Mt, a decrease of 37% compared to the same month last year. The USA produced 7.7Mt of crude steel in August 2014, an increase of 2.9% compared to August 2013. (Steel Times International)
Source: Other (02.10.2014)

Nucor Acquisition Of Gallatin Steel Receives Regulatory Approval Nucor Corporation announced that the Federal Trade Commission has approved its $770 million acquisition of Gallatin Steel Company and the closing is expected in approximately ten days. "We are excited to be able to begin the process of integrating Gallatin Steel and our new teammates into the Nucor family," said John Ferriola, Chairman, CEO and President of Nucor. "This acquisition is an important step in the execution of our company's strategy for profitable growth by enhancing Nucor's current position serving flat-rolled customers in the growing pipe and tube segment. It also further strengthens one of our competitive advantages – reliability for our customers." Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; and wire and wire mesh. (PRNewswire)
Source: Other (03.10.2014)

Giants Aurubis and KCM investigated for cartel Some of the largest companies in the non-ferrous metallurgy in Bulgaria will be inspected by the Commission for Protection of Competition (CPC). They are coppermaker Aurubis and producer of lead and zinc - KCM. The reason for the inspections is complaint initiated by manufacturer of chemical fertilizers Agropolychim. The company complained that the two companies are abusing their position in the market and are in a cartel by imposing "unduly high" price of sulfuric acid. It is a major resource for the production of fertilizers. Initial inspection of the anti-monopoly authority has established that in addition to both Bulgarian companies, it has to investigate the parent company of Aurubis based in Germany as well. Bulgarian subsidiary of the company is one of the largest copper producers in Europe.
Source: Maritsa (06.10.2014)

Iran boosts steel output and exports in bid to buffer impact of sanctions Iran is increasing steel exports and courting foreign investors in an ambitious bid to quadruple steel output in a decade and replace at least a small part of the massive revenue it loses due to sanctions on its oil sales. According to a presentation by Iran's top steelmaker, Mobarakeh Steel, a developing economy heavily reliant on construction, the Islamic Republic exported an average of 1.35 million tonnes of steel in 2011 and 2012. Data from the Iran Steel Producers Association showed that by contrast it exported 1.26 million tonnes of steel during the first seven months of this year. Mr Bahador Ahramian, a member of the ISPA's board said that "Due to the fast expansion of the local production in recent years, Iran has a surplus of rebars, billets, IPE (I-beams) and other similar sections." The bulk of Iran's steel exports go to the Middle East and North Africa, and can involve barter deals or funds deposited in non-Western banks to circumvent sanctions. Iran was never barred from selling steel under sanctions imposed by the United States and the European Union over its disputed nuclear programme. (Reuters)
Source: Other (06.10.2014)

Rio Tinto board rejects Glencore proposal for mega mining merger Mining giant Rio Tinto has poured cold water on speculation of a merger with Glencore, saying no discussions are taking place with the Swiss firm after media reports suggested Glencore may soon be ready to test the waters on a USD 160 billion merger with Rio Tinto to create the world’s largest mining company. In response to these media reports, Rio Tinto said “The board of Rio Tinto notes the recent press speculation regarding a possible combination of Rio Tinto and Glencore. The Rio Tinto board confirms that no discussions are taking place with Glencore.” It said “In July 2014, Glencore contacted Rio Tinto regarding a potential merger of Rio Tinto and Glencore. The Rio Tinto board, after consultation with its financial and legal advisers, concluded unanimously that a combination was not in the best interests of Rio Tinto's shareholders. The board's rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter.” (Strategic Research Institute, Steel Guru)
Source: Other (08.10.2014)

TimkenSteel Selects Northeast Ohio Site to Build $40 Million Facility TimkenSteel, a leader in customized alloy steel products and services, announced the decision to locate an advanced quench-and-temper facility in Northeast Ohio to produce more value-added steel for demanding applications. "Our investment in additional value-added operations feeds growing sales of our most sophisticated product lines, which meet the needs of demanding applications in energy and other markets," said Shawn J. Seanor, executive vice president of Energy and Distribution. "Our decision to locate the new operation near our Canton facilities offers us operational benefits and comes after strong state and local support." The $40 million facility, which will be fully operational within two years, will perform heat-treat operations and have capacity for 50,000 process-tons annually of 4-inch to 13-inch bars and tubes. (PRNewswire)
Source: Other (09.10.2014)

ArcelorMittal, Gerdau sell US steel mill for $770 million World’s biggest steel producer ArcelorMittal along with Brazil’s Gerdau has completed sale of their 50 per cent stakes in US-based Gallatin to Nucor Corp for $770 million as part of its strategy to divest non-core assets. “ArcelorMittal and Gerdau have completed the sale of their respective 50 per cent interests in Gallatin Steel Company (Gallatin) to Nucor Corporation. The sale was completed for a total cash consideration of $770 million," the steel giant said in a statement. Gallatin Steel is a joint venture between ArcelorMittal and Gerdau. Gallatin is a flat rolled mini-mill located in Gallatin County, Kentucky, USA that melts scrap, pig iron and hot briquetted iron from various sources and processes the material to produce flat rolled steel. It produces a wide range of steels from low to high carbon grades with an annual capacity of around 1.8 million tonnes. "The sale of Gallatin unlocks substantial value for ArcelorMittal's shareholders and is consistent with ArcelorMittal's stated strategy of selective divestment of non-core assets," Aditya Mittal, CFO of ArcelorMittal had said earlier. (Business Standard)
Source: Other (10.10.2014)

JSW Steel may drop bid for European co Ilva High environmental and pension liabilities may force JSW Steel, India’s third-largest steel-maker, to drop its plan to bid for Europe’s Ilva Steel, which was widely seen as an ambitious overseas expansion move by the Mumbai-based group as it scouts for steel-making and mining assets outside India. This would leave the field open for ArcelorMittal to snap up the 8.5-million-tonne-a-year Ilva, valued at around $600 million according to investment bankers. The troubled Ilva Steel, which is under special administration, has environmental liabilities of about ˆ11.5 billion, according to people with knowledge of the matter. This is in addition to ˆ4.5 billion in pension liabilities, people familiar with JSW’s recent due-diligence exercise said. Ilva, based in Taranto, Italy, is Europe’s largest steel plant by output and employs about 16,000 people. It has over ˆ1 billion in cash, which is being used to run the company. Sajjan Jindal-led JSW and a joint venture between ArcelorMittal and Marcegaglia are the two firms that showed interest in Ilva, which makes products for the auto sector. (Hindustan Times)
Source: Other (13.10.2014)

Rio Tinto to exceed iron ore target, says UBS UBS is tipping Rio could exceed its targeted iron ore production record of 295 million tonnes this year, and says the mining giant "will continue to be the most competitive player in the iron ore space", amid mounting criticism of its expansion strategy. Rio has found itself under fire this month over the price impact of its iron ore expansion from competitors and politicians alike but UBS mining analyst Glyn Lawcock says Rio is well placed to take advantage of growing demand in emerging markets, lead by China, through its expandable long life operations. "Increasing iron ore supply globally is expected to weigh on the long run iron ore price," he says. "However, Rio is the lowest cost producer and in our view will continue to be the most competitive player in the iron ore space." Mr Lawcock is tipping Rio's full year iron ore output for calendar 2015 could surprise on the upside, with another record result expected when Rio releases its September quarter production figures on Wednesday morning. Rio is racing to increase annual production by about 25 per cent to 360 million tonnes a year, through low-cost expansions of its existing Pilbara infrastructure. (Sydney Morning Herald)
Source: Other (15.10.2014)

Europe could save up to $80 billion in energy imports as prices plunge The European Union could save up to $80 billion in energy imports if oil prices remain low, providing some relief to households and companies in a region that has been laid low for the last five years. The price of oil has dropped over a quarter since the summer to below $85 per barrel, a level last seen in June 2010. Energy imports for oil, natural gas and thermal coal cost the European Union around $500 billion in 2013, with three quarters of that being spent to buy oil. This year's figure could fall by almost $25 billion to around $485 billion, and if oil prices average below $90 a barrel next year, the overall import bill could fall as low as $425 billion, over $80 billion less than paid by the EU for imports in 2013. Falling energy prices reflect a darkening world economic outlook but they could temper any new downturn. While headline inflation rates could be pushed lower, households and energy-intensive industries in countries that rely on oil imports will find their costs reduced, raising at the margin their ability to spend and invest. (Reuters)
Source: Reuters (16.10.2014)

OCK still owes BGN 170 million to creditors, suppliers, employees and other Lead and Zinc Complex JSC (in bankruptcy) reported BGN 169.6 million obligations to creditors, suppliers, employees, tax and other, shows the company's report to BSE. Equity is minus BGN 5.3 million, after losing BGN 2 million from January to September 2014. Assets totaled BGN 164.4 million, of which more substantial are materials for BGN 51.6 million and 'costs of acquisition and disposal of fixed assets’ – BGN 64.2 million. OCK has no income for the first nine months of 2014, last traded shares of OCK were at a price of BGN 0.145 per share and that determines the capitalization of BGN 1.22 million.
Source: money.bg (17.10.2014)

Tata Steel Europe boss says Europe industry 'through the worst' Europe's steel industry is "through the worst", Tata Steel Europe Chief Executive Karl Koehler said on Wednesday, after announcing the company's planned sale of its European long products division. "I believe that we are through the worst here in Europe," he said on a call with reporters. "The demand expectation is that the apparent steel use in Europe will grow 3 to 4 percent, so yes, demand is growing. In our case, the turn has been taken and the signs going forward is that this picks up." He added the Tata Steel operations being put up for sale were "close" to breaking even. Earlier, Europe's number two steel producer said it was in talks to sell European operations including mills in northern England and Scotland to Geneva-based Klesch Group. The World Steel Association earlier this month forecast growth of 4 percent for the European Union in 2014. (Reuters)
Source: Other (17.10.2014)

Tata Steel continues to invest in south Wales Tata Steel will continue to invest in its main south Wales site, the UK's business minister has insisted. Matthew Hancock's comments follow Tata's announcement on plans to sell its 'Long Products' division to the Klesch Group. The steel division employs about 6,500 at several sites in England and Scotland. Mr Hancock said: "They [Tata] have committed to invest further in their Port Talbot strip products business." The Long Products division manufactures transport rails and steel sections for use in construction, heavy industry and excavation, and accounts for about a third of Tata Steel's UK employees. But Tata Steel has insisted that its strip steel and speciality operations in south Wales and in south Yorkshire are not up for discussion, including its Port Talbot facility. The plant there has seen large investments in recent years, including ?185m to completely rebuild No 4 furnace. The Klesch Group, which is based in Geneva, is best known in Wales for its recent deal to take over the Murco oil refinery at Milford Haven in Pembrokeshire. (BBC)
Source: Other (20.10.2014)

BHP Billiton puts pressure on smaller rivals with strong production numbers BHP Billiton continues to squeeze weaker rivals in the bulk commodities space, with production numbers for the September quarter showing the iron ore and coking coal divisions performed as good, if not better than hoped. The 62 million tonnes produced by BHP's Pilbara iron ore division means the business is ahead of schedule on its promise to produce 245 million tonnes in the 2015 financial year, even if the tally was slightly behind the 63 million tonnes predicted by Deutsche Bank. BHP believes its expansion strategy can make it the lowest cost producer of iron ore in the world, and the benchmark price for the bulk commodity was slightly higher overnight at $81.83 per tonne. A 25 per cent rise in coking coal production was surprisingly strong, with the 13 million tonnes produced beating all analyst forecasts. Like in iron ore, BHP's coking coal exports are squeezing other players out of the market, particularly those in North America. (Brisbane Times)
Source: Other (22.10.2014)

Korean Steelmakers in Deep Trouble Korean steel manufacturers are struggling in both the domestic and overseas markets. Cheap Chinese products are increasing their share in the Korean market while various trade regulations are strangling them abroad. According to the Korea iron and Steel Association, a total of 11,051,210 tons of steel products were imported from China to Korea between January and September this year to show a year-on-year growth of 31.4 percent. The sum increased by 20.7 percent from the previous year to US$8.88756 billion. The 10.7 percentage point difference is because Chinese exporters supplied their products at lower prices than in 2013. The average unit cost of the products was US$804 per ton for the first nine months of this year, US$72 lower than during the same period of 2013. At present, the steel product inventory in China is increasing rapidly due to low demand. This means more and more companies are looking to deal with the situation by increasing their exports. This, in turn, is chipping away at Korean steelmakers’ domestic sales. (Business Korea)
Source: Other (23.10.2014)

Steel Industry Outlook: US Shows Resilience, China Lags Per the latest data available from the World Steel Association, global steel production increased 2.1% to 1,231 metric tons (Mt) in the first 9 months of 2014. China churned out 50% of the total at 550 Mt, an increase of 2.3% year over year (yoy). Production in the European Union rose 2.9% to 128 Mt. United States shared the podium holding the third position, with production climbing 2.3% to 91 Mt. Japan nudged up 0.8% to 83 Mt. Given the weaker-than-expected performance in the emerging and developing economies in the first half of 2014, the World Steel Association has trimmed its short-range outlook for global steel usage, which is now expected to increase 2% in 2014, down from its prior forecast of 3.1%. For 2015, world steel demand is projected to grow at the same pace and reach 1,562 Mt. A slowdown in China, due to the structural transformation of the country’s economy, was mainly instrumental in bringing down the outlook. (Zacks)
Source: Other (24.10.2014)

Ukraine's exports of steel products up in first 8 months According to data released by the metal trading enterprise Ukrainian Mining and Metallurgical Company, Ukraine’s exports of steel products totaled 17.9 million tonnes in the first eight months, up by 2.3% from the same period a year ago. In the eight months of this year, the country’s exports of pig iron totaled 1.6 million tonnes increasing by 22% from the same time of last year. Meanwhile, Ukraine’s imports of steel products amounted to 883,000 tonnes, plunging by 39.5% YoY. The country’s import revenues generated by steel products totaled USD 877 million, down by 44.8% YoY. (YIEH)
Source: Other (27.10.2014)

Anglo American ships first iron ore cargo from Brazil project Anglo American shipped the first iron ore cargo from its long-delayed Minas Rio project in Brazil, it said on Monday, injecting more material into an already over supplied market. The cargo of more than 80,000 tonnes of iron ore is en route to customers in China from the port of Acu in Rio de Janeiro state, the company said. Minas Rio - the biggest-ever foreign investment in Brazil - had been plagued by delays and cost overruns since Anglo bought it in 2007-2008 from former Brazilian billionaire Eike Batista for about $5.5 billion. The project will end up costing almost $9 billion. The China delivery is in line with a vow made by Anglo Chief Executive Mark Cutifani after a review last year. While it reflects well on his ability to honour promises, the timing of the delivery is not ideal. Iron ore prices have shed about 40 percent this year due to more supply from miners Rio Tinto, BHP Billiton and Vale and weak demand growth. (Reuters)
Source: Reuters (29.10.2014)

Bulgarian aluminium producer Alcomet's 9-mo net profit falls 14% Bulgarian aluminum producer Alcomet said on Wednesday its net profit fell by 14% to BGN 2.2 million in the first nine months of 2014 compared to the same period a year earlier. Sales revenues rose 1.8% year-on-year to BGN 219.1 million in the nine months through September, Alcomet said in a financial report. The company's sales expenditures rose to BGN 8.3 million in the period under review from BGN 7.2 million a year earlier while its administrative expenditures increased to BGN 7.4 million from BGN 6.2 million in the same period of 2013. Alcomet, based in the northeastern town of Shumen, is majority-owned by Sofia-based Alumetal and minority-owned by Turkey's FAF Metal Sanayj Ve Ticaret.
Source: investor.bg (30.10.2014)

Bulgarian competition watchdog conducting check at Aurubis offices Bulgaria's competition regulator said on Wednesday it is conducting a check at the offices of the local unit of Hamburg-based copper producer Aurubis. More details about the purpose of the inspection will be provided upon its completion, most likely on Thursday, the regulator said in a press release. Aurubis Bulgaria operates a copper processing plant in Pirdop, some 80 kilometres east of the Bulgarian capital. Aurubis Bulgaria employed 824 in Bulgaria at the end of June.
Source: investor.bg (30.10.2014)

World Steel Association Releases National Production Totals for First 3/4 of 2014 The World Steel Association (WSA) has released steel production data for the first 9 months of the year. At 62.41 million tons (mt), the top 3 were China, Japan and the US. India was number 4. In terms of production growth rate, though, India was in a slightly better position than the other top producers. The WSA data revealed that India’s steel production had grown by 1.8% over the first 3 quarters of 2014, which was the second-highest among the top 4 steel-producing nations. Last year, in the same period, India produced 61.27 mt of steel. Still, India was no match for the world`s top producer, China, which produced 618 mt of steel, slightly more than half of the world’s total production of 1,231 mt. China also logged a 2.3% steel production growth. Japan, the second-largest producer with 83.1 mt, did not have good growth figures, achieving a mere 0.8 % growth rate. Last year, in the same period, it had achieved a production rate of 82.4 mt. The US stood at number 3 with production figures of 66.33 mt compared to 65.3 mt in the same period last year. Its steel producing capacity grew by 1.6%. (Metal Miner)
Source: Other (30.10.2014)

Bulgaria's competition watchdog probing Aurubis for possible pricing abuse Bulgaria's competition regulator said on Thursday the check it conducted in the offices of the local unit of Hamburg-based copper producer Aurubis a day earlier aimed to establish a possible abuse related to sulfuric acid pricing. The Commission for Protection of Commission has also launched a probe to determine if Aurubis and Bulgarian lead and zinc smelter KCM have entered into a disallowed pact how to share out sulfuric acid markets, it said in a press release. The check was conducted at the request of local nitrate fertilizers producer Agropolychim, the commission also said. In case the collected evidence confirms that the companies have committed violations, the commission will file claims against the them, it added. Aurubis Bulgaria operates a copper processing plant in Pirdop, some 80 kilometres east of the Bulgarian capital.
Source: investor.bg (31.10.2014)

Japan's top steelmaker says half-year profit down 2.9% Nippon Steel & Sumitomo Metal, one of the world’s biggest steelmakers, said on Thursday that its half-year profit slipped 2.9%, as it pointed to still-high production by Chinese mills. The firm’s net profit in the April-September period fell to 112.2 billion yen, saying its net profit a year earlier was lifted by a one-time investment gain. Sales rose 3.9% to 2.78 trillion yen, while its operating profit fell 2.7% to 135.5 billion yen, it added. “Steel exports were generally solid on the back of a gradual recovery in the global economy, but international steel market conditions continued to require caution because of such factors as the continued high level of production output at Chinese steelmakers,” Nippon Steel said in a statement. The company said it was on track for a net profit of 250 billion yen on sales of 5.65 trillion yen for the full year through March. It also kept unchanged an earlier pre-tax profit forecast of 400 billion yen, despite the impact of recent explosions at a domestic plant. (Japan Today)
Source: Other (31.10.2014)

Fuhai Group invests US$1.2b in Jambi steel ops Chinese conglomerate Fuhai Group is investing US$1.2 billion in an industrial estate in Sumatra’s Jambi province to fill the steel supply gap in Indonesia. The estate in Ujung Jabung district will include a steel mill, power plant, port and offices. Construction began last week and is expected to finish by the end of 2016, said Fuhai Group chairman Lizhi Zhao. “Indonesia is good,” Zhao said after a meeting with R. Sukhyar, the director general for minerals and coal at the Energy and Mineral Resources Ministry. “There is development spirit supported by the government,” Zhao said. “The market in Indonesia is pretty big and Indonesia still lacks steel supplies.” Sukhyar said the national steel production of four million tonnes a year was outstripped by demand of 12 million tonnes. All the steel produced at Fuhai’s estate will be allocated for the domestic market. The steel mill will be fed by raw products, including pig iron and nickel, mined in both Java and Sulawesi. Once up and running, it will have a production capacity of 1.75 million tonnes of steel a year, Zhao said. (Business Times)
Source: Other (03.11.2014)

Companies open new capacities for EUR 260 million After the standstill in the industry over the past year and a half, several Bulgarian companies switch to high speed with EUR 260 million investments in new facilities, which will be ready by the end of the year. In early 2015 the amount will swell to EUR 1.5 billion. On the Day of Metallurgy - November 5, will be cut the ribbon on one of the most modern productions of lead in Europe. The project of KCM Plovdiv is for EUR 95 million. "This is a "hammer" in metallurgy. Production has brought together several processes. No agglomeration, no melting shaft," explained the head of the Bulgarian Association of Metallurgical Industry (BAMI) Politimi Paunova. Use of energy resources - gas, coal, coke, will be reduced by 30%. It will produce about 80,000 tons of lead per year, 20,000 tons more than in 1989. Another big installation that is already and is in testing regime is Devnya Cement. The investment of Italcementi Group amounted to EUR 160 mln. It is a new production line that will allow the plant to attack neighboring markets with competitive prices. On November 18 will be opened treatment plant for rain waters in the copper plant Aurubis Bulgaria worth EUR 6.2 mln. Hard work goes in the largest investment project in Bulgaria - Lukoil Bourgas. It is the new hydrocracking plant, which will process heavy crude oil residues. Investment is a record – EUR 1.2 billion.
Source: Presa (04.11.2014)

Bulgaria produces more ferrous metals than steel Bulgaria produced more copper, zinc and lead than steel. Currently, non-ferrous metallurgy gives 80% of the production in the sector. This data of the Bulgarian Association of Metallurgical Industry (BAMI) was given on the occasion of today's industry holiday. By 1989 Kremikovtzi, Stomana and Promet produced around 3 million tons of steel, in 2001 production fell to 2 million tons per year, then after the halt of Kremikovtzi in 2008 output shrank to 500 thousand tons. Meanwhile Bulgaria sells more copper, lead and zinc, which is a result of large investments in the sector. Only in 2013, for example, were invested BGN 200 million in new facilities and technology. Bulgaria currently holds 13.8% of the production of anode copper in the EU, 5.2% of lead and 3.7% of zinc. "The good thing is that they are expensive metals for which demand is growing worldwide, said CEO of BAMI Politimi Paunova. Ton of copper on the London Metal Exchange cost USD 7-8 thousand, while a ton of rebar is about USD 200. Despite the difficult economic environment and the expensive electricity, Bulgarian metallurgical industry has a significant share in the total industrial output. In 2013 sector output is about BGN 7 billion. It forms about 15% of exports and labor productivity is three times higher than the national average. Bulgarian companies work primarily with imported concentrates and still manage to be competitive, said Paunova. It shows they are well technologically developed.
Source: Presa (05.11.2014)

Brazil imposes AD duty on Chinese seamless steel tube imports The Commerce Chamber under the Brazilian Industry and Foreign Trade Ministry has announced imposition of definitive anti-dumping duty on seamless steel tubes imported from China. The anti-dumping duty will be applicable for all chrome alloy seamless steel tubes with an outside diameter exceeding 3 mm but not exceeding 141.3 mm, irrespective of other dimensions such as wall thickness and internal diameter. The duty of USD 908.59 per ton will be in place for five years. The products that fall within Customs Tariff Statistics Position Numbers 7304.51.19, 7304.59.11 and 7304.59.19 will be subject to anti-dumping duty, the authorities stated. The Brazilian government had initiated AD investigation against dumping of steel tubes from China based on the complaint lodged by Brazilian steel tube manufacturer, Vallourec in November 2013. (Scrap Monster)
Source: Other (05.11.2014)

Bulgaria’s KCM successfully wraps up the 1st stage of a BGN 260mln investment project Bulgaria's largest lead and zinc smelter KCM-Plovdiv has successfully completed the first stage of a BGN 262-million technological update and capacity expansion project at the company’s two plants near Plovdiv, CEO Rumen Tsonev said Wednesday. Courtesy of the green investment, KCM now uses 35% less energy, its greenhouse gas emissions are down 50% and the overall emission of gases from lead production will be ten times lower. Funding for the project was arranged four years ago. The company borrowed EUR 95 million from the European Bank for Reconstruction and Development (EBRD) and UniCredit Bulbank. The loan should be repaid in 11 years and there is a 2.5-year grace period. Other funding sources included BGN 1.5 million under OP Competitiveness and own funds. 24 Chasa Daily quotes UniCredit Bulbank CEO Levon Hampartzoumian saying what KCM did has been the best project in Bulgaria’s industrial sector over the past 15 years and a fine example of true industrialization.
Source: Other (06.11.2014)

Three-member panel of SAC allowed gold mining near Breznik, said Trace Resources, part of the Assarel Medet group. By its decision SAC upheld the decision of the Administrative Court in Pernik, rejecting all claims against the investment plan for gold mining. The decision is final and not subject to appeal. Investment plan of Trace Resources for gold mining will be carried out in the area near the Milin Kamak Municipality. According to studies the deposit has 13.5 tons of gold and 40 tons of silver. They are expected to provide a lifetime of the mine of 11 to 23 years. Mined ore will be enriched and precious metals will be extracted in ore mining and processing complex will be built. Within two years after the mining ends the affected areas will be re-cultivated. The case against the investment plan was filed by the Sofia Association of Agricultural environmental Projects Geo and Breznik-based ASRO - EM-Asenovi & Co. The motives of the applicants were that the yield of gold will harm the environment.
Source: Standart (06.11.2014)

Iron ore drops to lowest since 2009 as APEC curbs dents demand Iron ore declined to the lowest level in more than five years as China ordered some steel mills to reduce production, curbing demand in the world's biggest user just as increased supplies exacerbate a global surplus. Ore with 62 per cent content delivered to Qingdao fell 2 per cent to $US76.46 a dry metric ton today, the lowest price since September 2009, according to data from Metal Bulletin. The drop extends two weeks of losses at the end of October. The raw material lost 43 per cent this year, underperforming all 22 members of the Bloomberg Commodity Index, as producers including BHP Billiton Ltd. expanded supplies and spurred the glut. Some mills in the largest buyer were ordered to suspend output before a summit of world leaders at the Asia Pacific Economic Cooperation forum in Beijing. A recovery in prices may take as long as 18 months, according to Anglo American Plc. Asia's biggest economy will host the APEC gathering in the capital from November 7-12, prompting authorities to order factory shutdowns to try to ensure clean air during the event. (Brisbane Times)
Source: Other (06.11.2014)

EUROFER update steel imports in EU EU steel imports rose sharply in Q2‘2014. While total imports including semis rose 25.5% YoY, finished steel imports grew 33%, with flat product imports rising 28% and long products by a staggering 53%. The latest customs data for EU 28 third country imports confirm that this trend continued into the Q3‘2014. Finished steel imports rose 28% YoY in Q3 2014. Total steel imports are estimated to have risen by 19% YoY. This means that the year to date increase in finished steel imports amounts to 21%, with flat product imports growing 16% and long product imports rising 43% YoY. With semis imports also rising, total imports accounted for 19.5% of the EU steel market in Q2 2014. The most affected flat product is quarto plate: imports were up 35% YoY over the first nine months of the year. While total long product imports rose 43% over this period, imports of rebar grew 83% and merchant bars 35% YoY. (Steel Guru)
Source: Other (10.11.2014)

Goa mining industry welcomes renewal of iron ore leases The mining industry and its dependents have welcomed Goa government's move to renew the leases for resumption of iron ore tapping, suspended for last two years following a Supreme Court order. Official sources said that the state government recently approved renewal of 13 mining leases. It is likely to renew 8 to 10 more leases in the next few days. Mr Ambar Timblo MD of Fomento Resources, whose four mining leases have been renewed said that "The news with regard to the renewal of certain lease areas is a positive step towards commencement of the sector, which has been in suspended animation for over 2 years. There is still a long way to go, but this is the first step in that direction." Mr Christopher Fonseca, Goa Mining People's Front (GMPF) leader, said that "The government has started sanctioning the leases, it is a happy situation. But, we feel that the Supreme Court judgement had come in April (2014) and hence, it is too little too late. The process of renewal has to be accelerated in the interest of the people of Goa and the country. (Outlook India)
Source: Other (10.11.2014)

Sesa expects to restart Karnataka iron ore mine soon Sesa Sterlite Ltd, India's top private iron ore miner, expects to "soon" resume mining in Karnataka and produce at its court-set limit of 2.29 million tonnes in the year ending March, a company official said. The company in August stopped producing from its lone operational mine in the southern state pending the renewal of its licence, exacerbating a shortage of the raw material for users such as JSW Steel Ltd and Kalyani Steels. JSW is already importing heavily and Kalyani Steels is now considering buying overseas. India was once the third-largest iron ore exporter before curbs on illegal mining choked the industry. Aniruddha Joshi, a Sesa vice president, said the company's request for forest clearance from the Environment and Forest Ministry was at an "advanced stage" and that the mine's licence was expected to be renewed soon after. Chaitanya Prasad, a spokesman for the Environment and Forest Ministry, could not be reached immediately for comment. (Reuters)
Source: Reuters (12.11.2014)

African Minerals seeks alternate funding for Sierra Leone mine African Minerals Ltd said there were "reasonable prospects" to secure alternate funding for its iron ore project in Sierra Leone after saying there was no certainty when it would get funds from its partner in the mine. African Minerals, struggling to shore up its battered finances, said it had so far drawn about $182 million of the $284 million earmarked for the expansion of its sole project, Tonkolili. The company said it was in talks with Shandong Iron & Steel Group, its partner on Tonkolili, over the timing of the release of the remaining $102 million, $61 million of which was previously approved for release in October. African Minerals said it was looking at alternate funds as the uncertainty over when it would get funds from Shandong added to its operating losses and looming debt repayments. The miner said it was looking for enough funds to run the Tonkolili project till it became cash flow positive, for which it had previously set a target of the end of this year. (Reuters)
Source: Other (13.11.2014)

ArcelorMittal update on crude steel production in Europe Europe segment crude steel production decreased by 0.9% to 10.8 million tonnes in Q3 2014, as compared to Q2 2014. Steel shipments in Q3 2014 were 9.8 million tonnes, a decrease of 3.6% compared to Q2 2014. Flat and long product steel shipment volumes decreased by 2.2% and 5.9%, respectively, following seasonally lower demand. Sales decreased by 7.9% to USD 9.7 billion in Q3 2014, as compared to USD 10.5 billion in Q2 2014, primarily due to lower steel shipment volumes discussed above, and lower average steel selling prices primarily due to euro weakness. Average steel selling prices for flat products declined 5.4% while prices for long products declined by 4%. EBITDA in Q3 2014 decreased by 24.2% to USD 523 million as compared to USD 689 million in Q2 2014, mainly driven by lower steel shipments and the translation impact following a weaker euro. EBITDA in Q3 2014 was 72.6% higher than Q3 2013, reflecting improved market conditions, lower costs and the realized benefits of cost optimization efforts. (Strategic Research Institute, Steel Guru)
Source: Other (14.11.2014)

U.S. confirms duties on Chinese steel wire rod imports The U.S. Department of Commerce confirmed steep duties on imports of carbon and alloy steel wire rod from China after ruling the products were being sold below cost in the U.S. market and received unfair levels of government subsidies. Importers of goods from companies including Benxi Steel, Rizhao Steel Wire Co, Hunan Valin Xiangtan Iron & Steel Co and Jiangsu Shagang International Trade Co, a subsidiary of Jiangsu Shagang Group, face anti-dumping duties of up to 110.25 percent and anti-subsidy duties of up to 193.31 percent, according to a decision dated Thursday. The complaint about imports of carbon steel and alloy steel rod from China, which totaled $313 million in 2013, was made by ArcelorMittal USA, Charter Steel, Evraz Pueblo, Gerdau Ameristeel, Keystone Consolidated Industries and Nucor Corporation. The U.S. International Trade Commission is to make its final decision in the case, which will determine whether duties go ahead, by Dec. 26. (Reuters)
Source: Reuters (17.11.2014)

Aurubis Bulgaria with a EUR 44 mln program Aurubis Bulgaria, the Bulgarian unit of Hamburg-based copper producer Aurubis, is currently finalizing its Aurubis Bulgaria 2014 investment programme for productivity enhancement and environmental protection at the Pirdop plant, estimated at EUR 44.2 million. The international company acquired the plant in Pirdop from the state in 1997. Since then, the company has invested more than EUR 500 million in its modernisation and improvement. On Tuesday it opened a rainwater treatment plant (RWTP) in Pirdop, near the capital Sofia, worth EUR 6.3 million. The investment covers the construction of a RWTP, which has a capacity of 230 cubic metres/hour, buffer pools and incoming sewage, Aurubis Bulgaria said in a press release after the opening ceremony. “With the construction of the new RWTP, our plant located between Pirdop and Zlatitsa has become one of the few in the country with three treatment facilities (for industrial, domestic and rainwater), which shows commitment to the environment and our neighbours, along with the efforts to protect the air and soil,” Tim Kurth, executive director of Aurubis Bulgaria, was quoted as saying. Aurubis Bulgaria has financed investment in the plant with its own funds. The company In 2013 Aurubis Bulgaria's output was 354,000 tons (t) of anode copper, 230,000 t of cathode copper and 1,200,000 t of sulfuric acid.
Source: Standart (19.11.2014)

India’s Steel Industry Braces For Chinese Construction Investment A senior officer of India’s Tata Steel said that for Chinese steel companies facing overcapacity problems, it might be a good idea to invest in India, which is now allowing 100% foreign direct investment in construction projects for the first time. Such is the hysteria being whipped up around Chinese steel imports by this news, that the domestic India media is full of reports that speak of the Indian Government seriously contemplating increasing import duties on steel in the coming days from present levels of between 5 and 7.5%. This may mollify the Indian steel companies but will such a protectionist regime help India’s economy? That’s is the question that needs to be discussed, according to some economists. The foreign direct investment announcement may also necessitate an upward correction in most of the previous steel growth predictions. (Hellenic Shipping News)
Source: Other (19.11.2014)

Surging Demand from the Energy Sector Drives the Global Seamless Pipes and Tubes Market Demand for seamless pipes and tubes is primarily linked to the dynamics of the energy sector and closely follows the trend in oil and gas rigs count. Given the high strength and corrosion resistant features of seamless pipes, these products also find use in chemical and other types of processing industries, steam boilers, pipelines, and applications requiring high pressure and steam conditions. Over the years, explosive growth in oil exploration and production operations has ensured strong demand for oil country tubular goods (OCTG) pipes. Use of industrial seamless pipes is directly linked to the health of the economy, as a result of which prevailing economic conditions play a significant role in determining the pace and extent of demand for such pipes. With reviving global economic conditions and resurgent activity across several industries including automotive, mechanical engineering, petrochemical, chemical and construction, demand for seamless pipes and tubes market is expected to witness an improvement in demand conditions. (PRWEB)
Source: Other (20.11.2014)

Chinese steel giant takes 51% holding in Swiss trader Hebei Iron and Steel Group Co Ltd has taken a controlling stake in Switzerland-based Duferco International Trading Holding, a move that will help China's largest steel producer expand its presence in the global markets. The two companies signed an agreement to the effect on Tuesday whereby HBIS will acquire a 51 per cent stake in DITH, the biggest steel trader in the world. The two companies, however, did not disclose the total value of the deal. As part of the agreement, HBIS will use DITH's global marketing and distribution presence to further enhance its position as a global steel supplier, said Hebei Steel sources. Yu Yong, president of HBIS, said that the "going global" strategy is an inevitable and important step for the company's future development. In March 2013, HBIS's subsidiary Tangshan Iron and Steel Group Co, or Tangsteel, acquired a 10 per cent stake in Duferco. (China Daily)
Source: Other (20.11.2014)

Quebec's ambitious Plan Nord mineral project goes south A plan by the Canadian province of Quebec to spend billions to develop the mineral riches of its northern region has been dealt a crippling blow by the pending closure of a major mine as iron ore prices sink and China's interest wanes. The Plan Nord project hopes to attract $71 billion of investment to the vast northern region, of which the iron ore-rich Labrador Trough is a major component. The French-speaking province is trying to sell the plan globally and is hoping miners will flock to northern Quebec after the government invests in the infrastructure necessary to open it up. But Plan Nord took a big hit on Wednesday, when Cliffs Natural Resources said it is closing its Bloom Lake iron ore mine after struggling to secure funds to expand the mine and make it viable. Chinese steelmaker Wuhan Iron & Steel owns a minority stake in Bloom Lake. Bloom Lake, one of three producing iron ore mines in Quebec, would have become a major customer for a railway line being considered under Plan Nord. (Reuters)
Source: Reuters (24.11.2014)

Australia's scrap exports drop in Sep According to data, Australia exported 199,000 tonnes of scraps in this September, decreasing by 19.9% year on year but rising by 22% from a month ago. Among them, 51,000 tons were exported to Indonesia, falling by 21.8%; 47,000 tonnes were to Vietnam, slumping by 41.5% and 28,000 tonnes were made to Korea, soaring by 1984.1%, all compared to the figures in a month ago. In January to September period, Australia’s scrap exports amounted to 1.656 million tonnes, increasing by 6.7% YoY. Among them, 403,000 tonnes were to Vietnam, jumping by 27.5%; 303,000 tonnes were to Thailand, rising by 63.4% and 258,000 tonnes were to Indonesia, falling by 24.5%, all compared to the figures in the same period of 2013. (Yieh)
Source: Other (24.11.2014)

ArcelorMittal, Marcegaglia submit offer for Italy's Ilva plant ArcelorMittal, the world's biggest steelmaker, has submitted a non-binding offer with Italian steel processor Marcegaglia for Italy's Ilva steel plant, handing a lifeline to the loss-making plant mired in an environmental scandal. "We (have) submitted a non-binding offer to acquire all of Ilva's operations. ?We look forward to continuing discussions with Commissioner Gnudi concerning our offer," an ArcelorMittal spokeswoman said. A Marcegaglia spokesman said the non-binding offer was submitted last Monday with a deadline of 30 days. Privately owned Ilva, Europe's biggest steel plant by output capacity, was placed under special administration last year after being accused of failing to contain toxic emissions, threatening the jobs of its more than 16,000 employees. The company is losing tens of millions of euros a month, and neither ArcelorMittal nor Marcegaglia disclosed the monetary value of their offer, or details of their industrial and environmental plan. Rival companies interested in Ilva include Italian steel producer Arvedi, which filed a non-binding expression of interest in the plant last month. (Reuters)
Source: Reuters (27.11.2014)

Rhodopes face a "mining renaissance" Rhodopes are on the eve of "mining renaissance" because of high stock prices of metals, according to a report on the social economy of mining in the region presented by journalists Dimitar Sabev and Ruslan Yordanov with the support of the Friedrich Ebert foundation. Only in two of the largest projects for mining – of gold in Krumovgrad and of tungsten in Velingrad – are planned investment of BGN 400 million. There is expressed interest for the opening of dozens of new mines and more than BGN 1 bln of investments, said Dimitar Sabev. Currently, 10 mines and 4 concentrating factories are operating in the Rhodopes. Final processing of the metal concentrate is carried out in KCM Plovdiv. According to Subev, today the mines and factories employ 2,700 people, which is equal to about 20 percent of the level of the big socialist enterprise GORUBSO in 1989. The study of Subev and Yordanov shows that by 2012 the cost of wages in the Rhodope mining amounted to BGN 23.46 million, which corresponds to BGN 808 monthly salary.
Source: mediapool.bg (27.11.2014)

Europe’s crude steel output rises marginally in October According to the recent data published by the World Steel Association (World steel), the crude steel production by EU-28 countries rose marginally by 1.5% during the month of October year-on-year. The highest output during October was achieved by Germany. Germany produced 3.544 Million tonnes during the month, which is lower by 5.9% when compared with the country’s output of 3.765 Million tonnes during October 2013. The lowest output was by Croatia. However, the total crude steel output by Croatia soared higher by 348.4% from 6,000 tonnes in October 2013 to 25,000 tonnes in October this year. On a year-on-year basis, Croatia recorded the biggest increase in production. Belgium, Bulgaria, Czech Republic, Finland, France, Hungary, Netherlands, Poland, Slovakia, Slovenia, UK and other EU-28 region recorded increased year-on-year crude steel production. Germany recorded biggest drop in production during October this year. The following table provides cumulative crude steel output for the first ten months in 2014 in comparison with those during same period in 2013. (Scrap Monster)
Source: Other (28.11.2014)

Codelco output rises, boosted by new mine production Copper output at world No. 1 copper producer Codelco rose 4 percent year-on-year in the nine months to end-September, boosted by new mine Ministro Hales, but a continued slide in the price of the base metal ate into profits. The Chilean state-run miner produced 1.23 million tonnes of copper in January to September, a 4 percent rise from a year ago, it said on Friday. However, pre-tax profit fell 14 percent to $2.3 bln, which Codelco said was largely due to a slide in the price of copper, down around 14 percent year-to-date. Ministro Hales, which has been in its ramp-up period in 2014, is emblematic in many ways both of Codelco's hopes and its challenges. The mine produced 109,000 tonnes of copper in the January to September period, the chief contribution to Codelco's rise in production.
Source: Reuters (28.11.2014)

BHP Sees No Slowdown in Iron-Ore Supply Increase as Prices Slump BHP Billiton Ltd. (BHP), the world’s biggest mining company, signaled there will be no slowdown in the drive by global iron-ore producers to boost production even as prices slump. “Even the iron-ore price where it is today can induce more volume,” Jimmy Wilson, BHP’s president of iron ore, said. “If that volume doesn’t come from our business, it’s going to come from other businesses around the world and other countries around the world.” Iron ore has plummeted 47 percent this year to near the lowest since 2009 as investment in new mines deepens a global glut. BHP, Rio Tinto Group (RIO) and Vale SA have expanded output in Australia and Brazil, betting the increase will offset falling prices and force high-cost mines worldwide to close. “Organizations have to be competitive and those that can’t be competitive will end up going out of business,” said Wilson. BHP operates in the iron-rich Pilbara region of Western Australia, the largest production hub for the material in the world. (Bloomberg)
Source: Other (01.12.2014)

Rio Tinto says rival BHP will not dethrone it as cheapest iron ore supplier Rio Tinto expects to remain the lowest-cost iron ore supplier to China and therefore to be least affected by a slump in prices of the material, a senior executive said, dismissing rival BHP Billiton's threat to displace it in the ranking. Iron ore has lost about half of its value this year, hit by sluggish demand and additional supply, mostly from the world's largest global mining firms: Brazil's Vale as well as Anglo-Australian Rio Tinto and BHP. This is pushing miners to cut costs and BHP in October vowed to overtake Rio as the world's cheapest supplier to China, slashing production costs to less than $20 a tonne in the medium term from $27.50 for the financial year 2014. That compares with Rio's cash cost of $20.40 in the first half of 2014. But Rio iron ore boss Andrew Harding said on Tuesday the group would keep its low-cost ranking. "We already are doing better (than BHP). We’ll continue to stay at the bottom-end of the cost curve. It’s the best place to be," Harding said. (Reuters)
Source: Reuters (03.12.2014)

Japan's Nippon Steel, Kobe Steel to cut stakes in each other Nippon Steel & Sumitomo Metal Corp and Kobe Steel Ltd said on Wednesday they will reduce stakes in each other to raise funds for expansion overseas and for improving competitiveness. The companies built up equity stakes in each other as part of alliances to share resources for production, a common arrangement even among competitors in Japan. Nippon Steel and Kobe Steel's respective stakes in each other had increased after Nippon Steel merged with Sumitomo Metal Industries in 2012. Nippon Steel, Japan's top steelmaker, said in a statement it will sell Kobe Steel shares valued at about 22 billion yen ($184 million) at Wednesday's closing price. The sale will halve its stake in Kobe Steel, the No.3 steelmaker, to a little below 3 percent. Kobe Steel said in a statement it will sell shares in Nippon Steel valued at about 21.5 billion yen, halving its stake to around 0.7 percent. (Reuters)
Source: Reuters (04.12.2014)

China orders smog-hit Hebei to draw up restructuring plans The Chinese government has ordered its most polluted province, Hebei, to draw up fresh plans to "upgrade" its economy in a bid to ease its dependence on heavy industries like steel and cement. The local government is now drawing up new economic restructuring plans which will eventually be passed on to Beijing. Hebei, which surrounds the capital Beijing, is China's biggest steel producer and home to seven of the country's 10 smoggiest cities. It has borne the brunt of a war on pollution, with large numbers of industrial plants set to be shut. It promised to cut 60 million tonnes of steel capacity and 40 million tonnes of coal consumption over the 2013-2017 period, but it has so far struggled to find alternative sources of growth. The province's economy grew 6.2 percent in the first three quarters, behind a 2014 target of 8 percent, and in a speech last week, Hebei vice governor Yang Chongyong called for more incentives for the province. (Reuters)
Source: Reuters (05.12.2014)

Over 260 million tonnes of iron ore discovered in Uganda A recent airborne geophysical survey has revealed that Uganda possesses more than 260 million tons of iron ore, a mineral needed for the development of the steel industry. Francis Natukunda, a senior geologist at the Department of Geological Survey and Mines said the survey discovered bigger deposits of iron ore than had previously been found during the colonial mappings. "The sustainable management of mineral resources project also revealed potentially huge diamond deposits around areas of Lake Kyoga,” he said. These revelations were made at a two-day South African trade and investment seminar at the Sheraton hotel in Kampala. It was not known that Uganda had so much iron ore until the survey was carried out between 2007 and 2008. Natukunda said: "Currently, we have over 200 million tonnes reserves of hematite iron ore in southwestern Uganda and 60 million tonnes of magnetite iron ore in the south eastern part of the country and still have huge potential for exploration." Bodies similar to kimberlite – which normally harbors diamonds – were discovered and studies are ongoing to find out whether these are the precious diamonds found in South Africa, he added. (newvision.co.ug)
Source: Other (08.12.2014)

Hebei to move steel mills to coast in sector consolidation plan The northern province of Hebei, the country's dominant steel producing region, is set to move 16 million tonnes of output capacity to the coast in a step aimed at "upgrading" the sector. According to a document posted on the official local government website, steel enterprises signed an agreement with banks and local governments at the weekend aimed at shifting operations to new port zones. Moving facilities to the coast has been a major part of a strategy aimed at consolidating China's bloated and fragmented sector. The Shougang Group - China's fifth biggest steel mill formerly based in Beijing - has already shifted all its production facilities to Hebei's Caofeidian port. The central government approved a steel industry restructuring plan submitted by Hebei in June, with Hebei vowing to shut, consolidate, upgrade and relocate a sector that had 286 million tonnes of capacity by the end of last year, more than the entire European Union. (South China Morning Post)
Source: Other (10.12.2014)

US steel industry criticises WTO ruling favouring India The American steel industry today criticised a WTO ruling against the US imposing high duty on imports of certain Indian steel products, an order India hailed as a "significant victory" that will help its domestic manufacturers and exporters. "The WTO decision today significantly weakens the effectiveness of US trade laws," said Thomas J Gibson, CEO and president of American Iron and Steel Institute (AISI). AISI said the WTO Appellate Body ruled against the US government appeal of a challenge by India earlier this year regarding the International Trade Commission (ITC)'s practice of "cross-cumulating." Under this process, as mandated by US statute, the impact of dumped and subsidised imports are both taken into consideration when assessing injury in ITC determinations, it said. "US law expressly requires the ITC to cumulate dumped and subsidised imports when they are under simultaneous investigations," Gibson said. (Zee News)
Source: Other (11.12.2014)

German competition watchdog closes cartel case against steel makers The German competition watchdog has found no evidence that ThyssenKrupp, Voestalpine and ArcelorMittal participated in anti-competitive agreements in the market for steel strip and semi-finished products. The case, which was initiated in February 2013, has been closed, the German Cartel Authority said in a statement. It searched the offices of ThyssenKrupp's Steel Europe unit in Duisburg in February 2013, as well as those of Austrian steelmaker Voestalpine's German subsidiary. ArcelorMittal, the world's largest steel producer, had also confirmed that it was subject to the investigation. ThyssenKrupp declined to comment. Arcelor said it had taken note of the decision. Voestalpine was not immediately available for comment. (Reuters)
Source: Other (12.12.2014)

Australia Sees Iron-Ore at $60 as Commodities Hit Budget Australia estimates iron ore will trade at about $60 a metric ton as the biggest slump in the nation’s terms of trade since records began more than 50 years ago deepens the budget deficit. The price of the material used to make steel has almost halved this year and slumped to a five-year low of $68.49 a ton last month, according to data compiled by Metal Bulletin Ltd. That compares with a $92 projection in the budget, Treasurer Joe Hockey told reporters yesterday. “We are forecasting that it’ll remain around $60 a ton for the foreseeable future,” Hockey said in Sydney. The decline in the price of iron ore “has had a big impact on the budget, as had a 15 percent fall in thermal coal and 20 percent fall in wheat prices,” he said. Australia will deepen cuts to the civil service and axe agencies in search of savings as the mid-year economic and fiscal outlook today will show a wider budget deficit than initially projected. The deficit for the 12 months through June 2015 will widen to A$37 billion, according to the median estimate of 13 economists surveyed by Bloomberg News, from the A$29.8 billion gap forecast at the time of the May budget. (Bloomberg)
Source: Other (15.12.2014)

Tata Steel close to reopening its top iron ore mine Tata Steel may be allowed to resume production from its biggest iron ore mine this month, a government official said, ending a stoppage of over three months that has forced the firm to import the raw material for the first time ever. India was earlier the third-largest supplier of iron ore in the world, but court restrictions over the past three years to curb illegal mining have prompted companies such as Tata Steel and JSW Steel to turn to imports. A restart of production at Tata Steel's Noamundi mine should help India's top steel company lower its reliance on overseas purchases of the steelmaking raw material. The eastern state of Jharkhand, where Tata Steel started mining from the Noamundi mine in 1922, asked the company to stop operations in September pending a renewal of its lease. But last week a local court asked the state to issue "express orders" by Thursday to allow the firm to resume output from the mine, which has a capacity of 10 million tonnes a year. (Economic Times)
Source: Other (17.12.2014)

Judge refuses Vale request to dismiss Rio Tinto lawsuit in U.S. A U.S. federal judge on Wednesday refused to dismiss mining giant Rio Tinto's (RIO.AX) (RIO.L) lawsuit against rival Vale, alleging it conspired with Israeli billionaire Beny Steinmetz and BSG Resources to steal the company's valuable mining rights in Guinea. U.S. District Judge Richard Berman of Manhattan rejected Brazil-based Vale's argument that a 2008 agreement it struck with Rio Tinto related to the mining rights required that the dispute be litigated in England. The agreement makes England an optional, not a mandatory, choice, the judge said. The judge also cited other reasons to keep the lawsuit in New York, including Vale's meetings in the city related to the alleged conspiracy, and an ongoing federal investigation related to Guinea rights. Anglo-Australian miner Rio Tinto filed the lawsuit last April against Vale, Steinmetz and BSGR. Steinmetz and BSGR have denied wrongdoing. (Reuters)
Source: Reuters (18.12.2014)

China's top lead smelter to slash output amid price slump China's top refined lead producer Henan Yuguang Lead and Gold Ltd has cut its output by up to 30 percent due to low prices, a senior company executive said. Yuguang, which has an annual capacity of 400,000 tonnes, will cut its production for about two months starting Thursday by as much as 20,000 tonnes, Li Xiaodong, the firm's sales director, told Reuters in an interview. "We are going to cut production immediately, by 15 to 30 percent. Current prices are too low and are far below production costs," he said, adding that the firm has halted spot sales and will review its production plans again in mid-February. Hit by weak demand and oversupply, lead on the Shanghai Futures Exchange has fallen by nearly a fifth this year and on Thursday struck its lowest since the contract began in 2011. Lead on the London Metal Exchange is down 6.4 percent so far this week and hit its lowest since August 2012 on Thursday. Li said that two other lead smelters in Henan province with a combined capacity of 500,000 tonnes a year, Jinli Gold and Lead Ltd and Wanyang Smelter Group, have also started cutting production by up to 30 percent during the same period. (Reuters)
Source: Reuters (19.12.2014)

India to remain world's fourth largest steel maker this year India will remain the world's fourth largest steel maker this year even as its production growth outpaced the global average in the first 11 months, World Steel Association (WSA) data showed. India has produced 76.19 million tonnes (MT) steel in the January-November period compared to 74.37 MT during the same period last year, clocking 2.4 per cent growth and positioned itself again at the fourth slot. Global steel production during the period grew by 1.8 per cent to 1,497.75 MT, compared to 1,471.44 MT in the same period last year. Despite dip in production in some previous months, China has been world's top steel producer in the first eleven months of current year, with output of around 650 MT. Japan produced 101.66 MT during the 11 months, clocking a 0.4 per cent growth over 101.25 MT in the year-ago period. Production in the US grew by 1.5 per cent in the first 11 months of the year grew to 80.95 MT from 79.75 MT a year ago. Though the gap in production between India and the US is not wide as of now, that is unlikely to change the order as the US produced more steel even in November. (Economic Times)
Source: Other (22.12.2014)