Latin America's Business Information Leader
"The new BNamericas.com is already available for you, Get to know it here"
http://www.bnamericas.com/
Monday, January 18, 2010
Today's News Headlines
* Govt earmarks US$150mn for new transformation line at Alcasa - Venezuela
* CIS expects steel demand to recover in 2010 - Argentina
* Government to build thermoelectric plants in Sidor and Venalum - Venezuela
* LME copper price slips 0.5% in week, driven by China - Chile, Regional
* MEM cashes Doe Run's US$14mn guarantee - Peru
* IN BRIEF ArcelorMittal Inox, union agree pay deal - Brazil
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
* Govt earmarks US$150mn for new transformation line at Alcasa - Venezuela
The Venezuelan government has promised to contribute US$150mn to start the first stage of installing a new transforming line at state aluminum reducer Alcasa, an official from the company's union told BNamericas.
The government "has also guaranteed that all workers from production lines 1 and 2 will still have jobs and has promised to pay all benefits," Sintralcasa union leader José Gil said.
Currently the workers that were left unemployed when production lines 1 and 2 closed down are studying the possibility of dismantling these lines and installing a new plant.
"There are two proposals on how to go about the transformation process, one for rolling and the other for extruding, since we already have the resources needed for this," Gil added.
LOCAL MARKET
Since current capacity is not enough to meet local demand, the additional output from this line will be sold on the domestic market, he said.
However, Gil said the plant's potential capacity is currently unknown, since the project is still being analyzed.
"Besides helping develop the company this project will also aid the development of other companies downstream," the union official said.
Alcasa has an installed capacity of 210,000t/y. State heavy industry holding company CVG controls 92% of Alcasa and the remainder is held by US aluminum producer Alcoa (NYSE: AA).
By Harvey Beltrán
Business News Americas
* CIS expects steel demand to recover in 2010 - Argentina
Argentine steel industries association CIS expects steel demand to make a recovery in 2010, although it will remain below the levels seen in 2008.
"On an international level the worst of the crisis appears to be over but some regions have suffered such a severe drop [in demand] that it will take years to recover," the organization said in a statement.
CIS predicts that the NAFTA region will see demand levels similar to those of 1991 and demand in the European Union will be close to that of 1992.
THREATS
However, the global iron and steel industry will also face a major overcapacity problem in the coming year.
Many of the expansion projects that were started during the years that the industry was growing have now been completed and as a result the CIS expects a surplus of more than 600Mt this year.
"This surplus will come from regions that are particularly aggressive exporters, such as China with more than 200Mt of excess, Turkey, or former Soviet Union countries with more than 100Mt," the organization said.
CIS also reported that during the last meeting of the OECD's steel committee in Paris, participants were warned about global overcapacity and China's aggressive export policies that are a danger to both the success of specific iron and steel products as well as the entire industry's value chain.
By Business News Americas staff reporters
* Government to build thermoelectric plants in Sidor and Venalum - Venezuela
The Venezuelan basic industry and mining ministry (Mibam) will be installing a 300MW thermoelectric power plant at state steelmaker Sidor in order to keep production levels up, state news agency ABN reported.
Mibam head Rodolfo Sanz made the announcement several days after Sidor president, Víctor Álvarez, said that the company would be purchasing six hybrid gasoil and gas plants to supply its mill with extra energy and prevent production from falling.
In the last week of December Sidor reduced its power consumption by 200MW by shutting down four furnaces in the plating area and one in the billet area as part of the government-implemented rationing program.
VENALUM
Mibam also said that it would be building a 100MW thermoelectric plant at state aluminum reducer Venalum, where 360 cells have been shut down as well.
Aluminum and steel companies in the Guayana region must comply with this power rationing plan due to falling levels at the Guri dam, which provides energy for the region.
These companies consume about as much power as Caracas, electricity minister Ángel Rodríguez said previously.
By Business News Americas staff reporters
* LME copper price slips 0.5% in week, driven by China - Chile, Regional
The price of copper Friday closed at US$3.359/lb cash on the London Metal Exchange (LME), down 0.5% from the previous week's close. Meanwhile global stock levels rose 2.4% to 716,700t, enough for 2.1 weeks of worldwide consumption.
The week kicked off to positive news about Chinese imports that boosted the LME copper price to a 15-month high of US$3.486/lb cash, according to the latest report by Chilean state copper commission Cochilco.
However on Tuesday (Jan 12) the market suffered a downward correction in the copper price on news that China might tighten up its monetary policy.
Nevertheless, the LME copper price has been steadily rising since it was at about US$1.50/lb in January 2008.
By Business News Americas staff reporters
* MEM cashes Doe Run's US$14mn guarantee - Peru
Peru's energy and mines ministry (MEM) has executed US-owned Doe Run Perú's US$14mn bank guarantee relating to environmental works at the La Oroya polymetallic smelter in Junín and will hold the money until the project is finished, MEM said in a statement.
Doe Run Perú has not renewed the guarantee, and MEM said its move to execute falls under the legal framework of an October 2009 supreme decree that set out the government's expectations for La Oroya following the passing of a law that extended the project deadline by 30 months.
Once the environmental works are complete, MEM will return the money, the statement said, adding that in 2009 it executed a different letter of guarantee for US$4mn for the same reasons.
The company has finished 52% of the PAMA environmental project, which involves construction of a sulfuric acid copper circuit. Further investment of US$160mn is needed, according to MEM.
The original agreement to clean up the decades-old, notoriously polluting smelter was laid out in the 1997 privatization deal between Doe Run and the Peruvian government.
By Business News Americas staff reporters
* IN BRIEF ArcelorMittal Inox, union agree pay deal - Brazil
Luxembourg-based steelmaker ArcelorMittal's (NYSE: MT) stainless steel unit Inox in Timóteo, in Brazil's Minas Gerais state, agreed a pay deal with the local union that grants workers a 4.5% salary increase, ArcelorMittal said in a statement.
The raise is retroactive to November 2009. The collective agreement also guarantees workers participation in a profit sharing program and a minimum wage of 4,200 reais/m (US$2,374/m), among other benefits.
By Business News Americas staff reporters
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
In-deph interview
* A brighter year ahead for São Paulo scrap processors
Valentin Aparicio Escamilla
President
Sindinesfa
Brazil
http://www.bnamericas.com/interviews/metals/Valentin_Aparicio_Escamilla_,Sindinesfa,/170324237
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Main companies covered in today's news
* Administradora de Fondos de Pensiones Habitat S.A.
http://www.bnamericas.com/company-profile/en/Administradora_de_Fondos_de_Pensiones_Habitat_S,A,-AFP_Habitat/170324237
* Comisión Chilena del Cobre
http://www.bnamericas.com/company-profile/en/Comision_Chilena_del_Cobre-Cochilco/170324237
* C.V.G. Aluminio del Caroni S.A.
http://www.bnamericas.com/company-profile/en/C,V,G,_Aluminio_del_Caroni_S,A,-Alcasa/170324237
* Compañía de Acero del Pacífico S.A.
http://www.bnamericas.com/company-profile/en/Compania_de_Acero_del_Pacifico_S,A,-CAP/170324237
* Siderúgica de Orinoco
http://www.bnamericas.com/company-profile/en/Siderugica_de_Orinoco-Sidor/170324237
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Our Products
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Click Here to subscribe Now!
http://www.bnamericas.com/web_subscribe_now.jsp?idioma=I&login=atlantm1210@ukr.net&idForm=95
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Share the news, give your friends and colleagues a two weeks free trial
http://www.bnamericas.com/share_the_news.jsp?idioma=I&Act=
Business News Americas Ltda.
Latin America's Business Information Leader
eMail: info@BNamericas.com
© 1996-2010 All Rights Reserved.