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[grupo guitarlumber] 29/6/2004 22:41

Steel talks stall over disputed subsidies
By Guy de Jonquières
Published: June 29 2004 21:09 | Last Updated: June 29 2004 21:09


The world's main steel-producing nations yesterday suspended formal negotiations on an agreement to curb subsidies to the industry, saying they needed more time to resolve their differences.


The 38 governments, which include the US, the European Union, Japan, China, Brazil and Russia, said they aimed to meet again next year to see whether the talks could be successfully concluded.

No date has been set for the meeting. Although participants said they had made progress and remained committed to a deal, some were less optimistic in private. One said the project probably faced a "prolonged death".

The talks, in the Paris-based Organisation for Economic Co-operation and Development, were launched last year when the world steel industry was glutted with excess capacity and beset by fierce price-cutting.

Since then, the market has rebounded strongly, led by surging demand in China. Some negotiators say the recovery has diminished the urgency of an agreement - which would be the first to cover the industry worldwide.

Shortly before this week's two-day meeting in Paris, the US and the EU indicated informally to other participants that they were losing faith in the talks and had doubts about whether they were worth continuing.

Soon afterwards, US negotiators switched to a more positive stance, apparently after high-level intervention by President George W. Bush's administration.

However, the EU is said to remain deeply sceptical, arguing that it is being called on to make important concessions while developing countries were being required to make almost none in return.

Ian Wilkinson, the EU's chief negotiator, said on Tuesday there was "bound to be a cynical reaction around the world" to the the outcome of the talks, which he called "realistic and positive".

Herwig Schlögl, the OECD deputy secretary-general, said intensive consultations with participating governments showed they remained divided over three main issues.

These were: how far an agreement should allow exceptions for specified subsidies; special treatment for developing countries; and how an agreement should be reconciled with World Trade Organisation rules.

The EU has insisted that it be allowed to subsidise industry research and development and environmental programmes, but the US has opposed its demands.

[waldron] 29/6/2004 13:58

Updating with details of outstanding issues in subsidy talks)

PARIS (AFX) - The OECD said its high level working group on steel expects
steel consumption to continue growing at a relatively high rate this year and
next, and global steel capacity is also expected to expand as a result.
"Growth in global steel consumption had accelerated to more than 6 pct in
2003, with a relatively high rate expected to be maintained in 2004 and 2005,"
the OECD said following a meeting of the steel group, which brings together
senior government officials from 37 major steel-producing economies.
Steelmaking capacity is expected to increase to 1.248 bln tonnes by 2005, up
15 pct from its 1998 level, the OECD said.
It said the economic upturn has increased demand for raw materials. The
strongest growth in demand has been in Asia, but markets in Europe and North
America are also strengthening.
Steel group participants agreed to closely monitor developments in global
steel markets and capacity and to meet periodically to exchange information and
assess conditions.
Meanwhile, the OECD said the high level steel group has made significant
progress towards an agreement on the elimination of steel subsidies, but further
work is needed to narrow differences, and the talks will continue in 2005.
"The high level group...concluded that, while significant progress towards
an agreement has been made, there remain differences among the participants in
key areas that require further examination and discussion," it said.
Participants will hold informal consultations aimed at narrowing these
differences in the months ahead, but the group itself will not meet again until
2005, it said.
OECD deputy secretary general Herwig Schloegl, who chaired the steel
meeting, said countries need more time to reach a subsidies agreement because of
the complexity of the negotiations.
He said the main outstanding issues concern the definition of cases where
subsidies would still be allowed, special treatment to be given to developing
countries, and the relationship between the steel subsidies deal and measures
allowed by the WTO's agreement on subsidies and countervailing measures.
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sw/lam

[waldron] 29/6/2004 12:34

Communique Issued Following the High-Level Meeting on Steel, 28-29 June 2004



29/06/2004 - Senior government officials from major steel-producing economies (1) convened a seventh High-Level Meeting on steel at the OECD in Paris on 28 and 29 June 2004, to review the status of discussions on a proposed agreement to curtail subsidies to the steel sector. The High Level Group (HLG): i) reaffirmed its interest in reaching an agreement that eliminates or reduces trade-distorting subsidies in steel provided at all levels of government; ii) concluded that, while significant progress towards an agreement has been made, there remain differences among the participants in key areas that require further examination and discussion; iii) urged participants to use the coming months for informal consultations aimed at narrowing differences and advancing the negotiations; iv) requested the OECD Secretariat to consult with participants on the future of the process and to report to the HLG; and v) agreed to meet in 2005 to evaluate prospects for successfully concluding the negotiations.


Recent developments in steel

Participants in the meeting discussed the turnaround in steel market conditions in recent months (2) and received a report by the Chairman of the Capacity Working Group. Growth in global steel consumption had accelerated to more than 6% in 2003, with a relatively high rate expected to be maintained in 2004 and 2005. The strongest growth had occurred in Asia, but markets in Europe and North America were also strengthening. The upturn was resulting in increases in demand for raw materials, and was fuelling interest in new steelmaking capacity, which was expected to increase by 15 % from its 1998 level to 1,248 million tons by 2005. In his report, the Chairman of Capacity Working Group noted that the gap between capacity and production had been reduced in recent years.


Participants agreed that developments in global steel markets and capacity warranted close attention given the cyclical nature of the market and agreed it would be beneficial to meet periodically to exchange information and assess conditions, as they evolve. They hoped that the OECD could continue to provide the forum for such meetings, and expressed the view that these activities should be open to all major players in steel, in particular the participation of those non-OECD members that have been important contributors to the work of the High Level process on steel.


Steel Subsidies Talks

Delegates noted that the Disciplines Study Group (DSG) had advanced work on the elements of an agreement [Elements of an Agreement to Reduce or Eliminate Trade Distorting Subsidies in Steel] that could serve as the starting point for further negotiations. They agreed that the draft text reflects the state of the discussions held to date, and addresses the issues which the HLG had instructed the DSG to consider in its work.

The HLG noted that the DSG had been able to develop a framework, and agreed that the proposed agreement should provide stricter disciplines on steel subsidies than those in the Agreement on Subsidies and Countervailing Measures of the World Trade Organisation, taking into account the needs of the developing economies.


However, the DSG’s discussions revealed that there were significant differences in the positions of participants on key issues. These had been explored in background papers prepared for the meeting on Steel Agreement Issues and Ideas for Advancing the Steel Subsidy Talks.

Participants agreed that more time was needed to explore ways to narrow differences, and that it would be beneficial to use the coming months for informal consultations to determine how best to advance the talks. They requested the OECD Secretariat to continue its consultations with participants in order to clarify positions further, and to identify possible ways forward. They asked that the Secretariat report on the results of these consultations to the HLG participants periodically and agreed that the HLG would meet during 2005. The HLG also called for those participants that are WTO Members to avail themselves of opportunities arising within that Organisation to maintain a dialogue on issues relevant to the strengthening of multilateral subsidy disciplines.


The High-Level meeting was held on 28 and 29 June 2004, in Paris, under the Chairmanship of Mr. Herwig Schlögl, Deputy Secretary-General of the OECD. It was the seventh such meeting, with previous sessions held on 17-18 September 2001, 17-18 December 2001, 7-8 February 2002, 18-19 April 2002 and 18-19 December 2002, and 18 July 2003. At the February 2002 meeting, a Disciplines Study Group and a Capacity Working Group were established to support the work of the High-Level Group. At the December 2002 meeting the HLG agreed to initiate work establishing elements of a Steel Subsidies Agreement. Industry representatives have participated actively in the High Level Group’s work since its inception in 2001.

For further information, journalists are invited to contact Stephen Di Biasio, OECD Media Relations Division (tel. [phone]).

---------------------
(1) Australia, Austria, Argentina, Belgium, Brazil, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, European Community, Finland, France, Germany, Greece, Hungary, India, Italy, Japan, Kazakhstan, Korea, Mexico, the Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, Slovak Republic, Spain, Sweden, Switzerland, Chinese Taipei, Turkey, Ukraine, United Kingdom, United States.
(2) A short report on global market developments can be accessed on the Internet, at

[dell314] 29/6/2004 09:06

Surely, the key point is that they appear to want to raise further funding.
Very uninspiring outlook statement from a company that appears to be trying to arrange a placing....

Rgds
dell

[waldron] 29/6/2004 09:02

LONDON (AFX) - ARC Risk Management Group PLC posted a widening in pretax
losses but said it remains cautiously optimistic that the products and services
developed will produce more income and profitable.
The comments came as it posted a pretax loss of 925,246 stg against loss
903,015, on sales of 971,427 against 620,857.
Loss per share was 0.60 pence against loss 1.09 pence.
rn

[waldron] 29/6/2004 09:01

LONDON (AFX) - ARC Risk Management Group PLC year to March 31 2003 vs 15
months to March 31 2003
Sales - 971,427 stg vs 620,857
Pretax loss - 925,246 stg vs loss 903,015
Loss per share - 0.60 pence vs LPS 1.09

vjt/

[waldron] 29/6/2004 08:14

PARIS (AFX) - Arcelor SA said it will raise 1.17 bln eur through the issue
of warrants to subscribe for new Arcelor shares, in order to finance its
acquisition of a controlling 61.8 pct stake in Brazil's Companhia Siderurgica de
Tubarao (CST).
Yesterday Arcelor said the amount raised through the issuance of share
warrants will be 1 bln eur, for the acquisition from the Companhia Vale do Rio
Doce (CVRD) and Acesita SA.
New shares will be subscribed at a price of 11 eur per new Arcelor share,
based on an exercise ratio of one new share for five warrants, it said in a
statement today.
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sr/cmr

[grupo guitarlumber] 28/6/2004 13:53

LONDON, June 28 (New Ratings) — Analysts at Ibersecurities issue a "buy" rating on Arcelor (ARR.ETR). The target price is set to €17.40.

In a research note published this morning, the analysts mention that Arcelor has reached a definitive agreement to take over the controlling stake in Compania Siderurgica de Tubaro from Compania Vale do Rio Doce. Arcelor intends to expand its presence in the Brazil steel industry with its increased stake in Compania Siderurgica de Tubaro from 28% to 61.8%, Ibersecurities says. The transaction is likely to close by September 15, after approval of the regulatory authorities, the analysts add.

[grupo guitarlumber] 28/6/2004 11:30

PARIS (AFX) - Arcelor SA chief financial officer Michel Wurth said the
group's purchase of a majority stake in Brazil's CST will boost net earnings,
EBITDA and return on capital employed, upon closure of the deal.
Speaking at a press conference, Wurth said the group has not yet determined
if CST's results will be integrated with 2004 earnings, or only in 2005, when
the deal is scheduled to close.
This morning, Arcelor said it will pay about 578 mln usd to raise its stake
in CST to 61.8 pct from 28 pct currently.
On a pro forma comparison, the CST acquisition would have raised 2003
revenues to 27.7 bln eur from the 25.9 bln reported, while EBITDA would have
been 1.0 bln eur compared with 600 mln eur.
The gross margin would have been 10.1 pct, compared with the 8.6 pct margin
reported for 2003.
The company will soon launch a 1 bln eur share capital increase to finance
the deal, and Wurth said this would likely be made by issuing warrants to
existing Arcelor shareholders.
Wurth said the company tentatively plans to issue one warrant for every
Arcelor share held, with every five warrants giving the right to buy one new
Arcelor share. The warrants will be traded on the Paris stock market.
Although the amount of the capital increase exceeds the cost of taking a
majority stake in CST, Wurth said the new funds will reinforce Arcelor's balance
sheet ahead of other acquisitions.
"This is the first big expansion of the group" since its creation from the
merger of Usinor, Arbed and Aceralia in early 2002, Wurth said.
The CST deal shows that Arcelor has finished the integration phase of the
merger, and allows the group to embark on a new development phase that will
include external growth, he said.
Chief executive Guy Dolle said the company has not identified any specific
targets, but said expanding in Brazil remains a priority, and cited India as a
potential area of development.
[e-mail]
js/cmr

[grupo guitarlumber] 28/6/2004 10:53

News Update as at 15.00 hrs (IST)
Commodities
Strong, cheap steel invented

NEW YORK: An extraordinary type of steel has been invented that is more like glass than metal, unusually strong, and developers hope it could be used for tougher medical implants or lighter aircraft, a report said.

People have been trying for decades to make these materials, Mr Zhao Ping Lu of Oak Ridge National Laboratory in Tennessee state was quoted as saying by Nature magazine.

Mr Lu and his colleagues have finally succeeded in finding the right recipe for keeping steel glassy as it freezes, the magazine reported.

In normal metals, the atoms are packed together in an orderly, crystalline manner, like oranges on a fruit stall. But in amorphous solids, like glass, the atoms are disorderly; they resemble atoms in a liquid, except that they are more or less frozen in place.

Metals with this jumbled atomic structure are typically harder and stronger than their crystalline counterparts, so they are very attractive to engineers, the report says.

Nature says the amorphous alloys could be used to build aeroplanes that are as strong as those made from regular metals, but that use less material, making them much lighter.

The problem is that amorphous metal alloys are generally very expensive. Those on the market are composed mostly of costly zirconium or palladium. An amorphous version of steel, based on iron, would reduce the price considerably, it says.

All the elements we use in our alloys are cheap, Lu was quoted as saying. He estimates that his glassy steel could reduce the price tag of amorphous metals from 220 dollars a kilogram to less than $33 a kilogram. - PTI

[grupo guitarlumber] 28/6/2004 08:54

PARIS (AFX) - Market data at 9.25 am:

Major indices:
CAC-40 down 5.71 at 3,736.67
SBF-80 down 6.16 at 3,458.61
SBF-120 down 3.53 at 2,639.94

Volume: 160 mln eur
11 CAC-40 stocks up
25 CAC-40 stocks down
3 CAC-40 stocks unchanged

Major gainers:
-Alstom up 0.05 at 13.25 on technical bounce
-Rhodia up 0.01 at 1.04
-Sanofi-Synthelabo up 0.35 at 52.75

Major losers:
-Arcelor down 0.13 at 13.47 after announcement to acquire 61.8 pct
controlling stake in Brazil's CST via capital increase
-Altran Technologies down 0.18 at 10.20
-Carrefour down 0.39 at 40.10 after signing new shareholder pact that
excludes historic shareholding families
-CNP Assurances down 0.50 at 46.71
-Eurotunnel down 0.01 at 0.35


Most active stocks:
-Total down 0.90 at 159.30 in 27 mln mln eur
-Carrefour down 0.39 at 40.10 in 14 mln


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mrg/jfr

[maywillow] 25/6/2004 15:48

RNS Number:1538A
Office of Fair Trading
25 June 2004

INVITATION TO COMMENT

Completed acquisition by Arcelor SA of Corus Group Plc's UK sheet piling
commercial operations

The Office of Fair Trading is considering whether arrangements are in progress
or in contemplation which, if carried into effect, will result in the creation
of a relevant merger situation under the merger provisions of the Enterprise Act
2002. Should it be found to be a relevant merger situation, the OFT will
further consider whether the creation of that situation may be expected to
result in a substantial lessening of competition within any market or markets in
the United Kingdom for goods or services that warrants reference to the
Competition Commission for investigation and report.

Affected Sector: Retaining structures (Civil Engineering)

Please send written representations about any competition or public interest
issues to:

Mr H Bakay

Office of Fair Trading

Fleetbank House

2-6 Salisbury Square

London EC4Y 8JX

FAX: [phone]

to arrive by 9 July 2004


This information is provided by RNS
The company news service from the London Stock Exchange
END

MERSEFFFISLSEIM

[grupo guitarlumber] 24/6/2004 19:30

cheers jwww

[grupo guitarlumber] 24/6/2004 13:53

Steel groups profit from high prices
By Peter Marsh in New York
Published: June 24 2004 5:00 | Last Updated: June 24 2004 5:00

The world's steel companies are set to increase profits by nearly 60 per cent this year, underlining the massively improved financial state of the industry driven by soaring steel prices and rapacious demand from China.

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According to World Steel Dynamics, a US steel consultancy, the average profitability per ton shipped in 2004 of a group of 33 leading steelmakers will be $107, compared to $67 in 2003 and $58 in 2002. The profit figures are equivalent to a rise of 45 per cent.

In analysis presented to a conference in New York - organised by WSD with American Metal Markets, a research group - the most profitable company projected for 2004 will be Tata of India with a figure of $230 per ton, with CSN of Brazil second with $221.

The data are based on estimates by WSD of 33 companies, including most of the biggest steelmakers, which are likely to ship roughly 400m tons of steel in 2004, nearly half of global steel output.

According to WSD, the strong profits record of steelmakers will continue in 2005 though earnings for many steel companies will drop slightly from levels that the consultancy believes are "unsustainable".

In the past two years, prices of many types of steel have doubled, driven by constraints in steel supply as excess capacity has been shut down; heavy demand from China, which now accounts for nearly one-third of world steel consumption; and steady demand from global steel users.

Peter Marcus, managing partner of WSD, said it was possible that prices of benchmark flat steel in the US - now at about $500-$600 per ton - could stay about this level and were unlikely to go down significantly because of strong demand.

Illustrating the upbeat mood, Keith Busse, chief executive of Steel Dynamics, a leading US steel mini mill, said: "I can see steel prices staying high for some time and certainly beyond the third quarter. I'm feeling bullish also for 2005."

Other observers, however, have noted that in recent months demand from China seems to have fallen slightly, because of government efforts to cool down the economy, and as a result they believe the global steel market is likely to decline.

Bruno Bolfo, chairman of Duferco, a Swiss steel trading company, said: "I believe in the laws of gravity. The steel market is bound to cool off and it's only a question of when."

The leading North American company in the list - at 11th - is Ipsco, which had a profits figure of $128 per ton. The leading west European company is ThyssenKrupp of Germany at 17th with projected profits of $96 per ton.

[grupo guitarlumber] 22/6/2004 14:09

LONDON, June 22 (New Ratings) – Analysts at Ibersecurities maintain their "buy" rating on Arcelor (ARR.ETR). The target price is set to €17.4.

In a research note published this morning, the analysts mention that the galvanizing capacity of Borcelik, in which Arcelor has a 40% stake, has been expanded to 4,50,000 tonnes following the inauguration of a new plant in Turkey. The $140 million investment would strengthen the company’s position in Turkey’s auto and white good sectors, the analysts add.

[grupo guitarlumber] 15/6/2004 06:25

LONDON (AFX) - The steep price rises in the global steel industry during the
past two years may be about to come to an end, said Arcelor CEO Guy Dolle in an
interview with the Financial Times.
Dolle said steelmakers are likely to find "limited room" for pushing through
further price increases after the third quarter of this year, as a result of
weakening demand for steel in China and little sign of economic recovery in
Europe.
Dolle said signs of slightly lower economic activity in China in the past
few weeks have led to a slowdown in imports of steel, along with a drop in
Chinese demand for raw materials needed in steel production, such as iron ore
and coking coal.
However, "This year will be the best year of the decade (for earnings) for
the steel industry," he said.
Arcelor announced a 21.8 pct rise in net profit in the first quarter to 234
mln eur, and Dolle said earnings figures will continue to rise later this year.
Looking ahead to 2005, he had concerns about tight supplies of some raw
materials, particularly coke, which is restricting steelmakers' capacity to
increase output. Arcelor's production is likely to be 43 mln tonnes this year,
some 1.5 mln tonnes lower than if more coke had been available.
cmr/jlw

[waldron] 10/6/2004 12:31

LONDON, June 10 (New Ratings) - Analysts at Ibersecurities maintain their "buy" rating on ARCELOR (ARR.ETR). The target price is set to €17.4.


In a research note published this morning, the analysts mention that ARCELOR has confirmed its unwillingness to bid for the Ukrainian steel company, VAT Kryvorizhstal. However, ARCELOR may acquire a minority stake in VAT Kryvorizhstal in the near future if its Russian partner, Serverstal, wins a bid for VAT Kryvorizhstal's privatization process, the analysts say.

[peea01] 04/6/2004 15:58

jwww and ariane

I am aware of Arcelor's status, my point is not entirely critical and certainly no offence meant, but there may be others who are interested in your comments and are not seeing them.

[ariane] 03/6/2004 19:43

nice one jwww

[johnwwwilkinson] 03/6/2004 19:15

peea01 - in defence of the originator, once a thread is created, ADVFN allocate the stock symbol automatically and the originator is powerless to amend it or remove the thread. You could try asking them to sort this out. If you found your way here in error, try clicking on "click here for related discussions" at the top of this page. Incidentally, Arcelor just happens to be the World No. 1 steel producer.

[peea01] 03/6/2004 16:45

Why not post this stuff on the correct BB ARC is Arc risk management which has nothing to do with steel!!

[maywillow] 02/6/2004 17:50

PARIS (AFX) - Arcelor SA expects 2004 net profits to surpass the 257 mln eur
posted last year, a company spokeswoman told Agence France-Presse.
For the second quarter, operating profits will exceed the 409 mln eur
reported in the first quarter. Arcelor had already forecast improved profits for
2004.
"We confirm that our 2004 earnings will be above 2003 earnings, and the
operating profits in the second quarter should be above those of the first
quarter," the spokeswoman said.
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afp/js/lam