STAINLESS STEEL BULLETIN # 102 April NEWSLETTER OF THE AUSTRALIAN STAINLESS STEEL 2009 DEVELOPMENT ASSOCIATION
ONLINE APPRENTICE TRAINING success assda ACHIEVEMENTS ASSDA is about to embark on its This year will see the program 60 ASSDA Accredited Fabricators second year of federal government available in other states, with a approved since May 2004 funding for the integration of view to enrol TAFE students from (and more applications pending) e-learning in sheet metal and metropolitan and rural areas. boilermaker TAFE apprenticeships. 1271 student enrolments in the Plans are already underway for Stainless Steel Specialist Course March saw the induction of twelve competency mapping of stages 2a since April 1999 TAFE apprentices from South East and 2b, to be ready for second year 190 technical enquiries received by Queensland, as the first to experience enrolments in early 2010. ASSDA between 01 February and this new learning development ASSDA’s TIG Welding demonstration 31 March 2009 pathway. is still available free of charge. 1406 opportunities issued in The first year of funding involved To find out more about the e-learning LeADmail since September 2001 mapping of ASSDA’s training modules project or to order your copy of the 441,448 visits to ASSDA’s website (available through the Stainless Steel TIG welding demonstration, call between 01 February and 31 Specialtist Course) against current ASSDA on 07 3220 0722. March 2009 competencies for stages 1A and 1B of the apprenticeship. assda COMING TELL US WHAT YOU THINK events STAINLESS STEEL IN THE BUILT “ We’ve been ASSDA Accredited for 12 months. Recently we received G E ENVIRONMENT SEMINARS (General Electric) Energy Accreditation. The initial contact came through Melbourne, Sydney, Brisbane, the ASSDA Accredited Fabricators website, which led to us receiving a large Adelaide stainless steel fabrication contract ($350K+). ASSDA Accreditation gives our 27 May - 11 June 2009 customers confidence in our manufactured products and our staff satisfaction in having the knowledge available to solve complex material issues.” Darren Colbert, Northern Stainless Secretary’s contribution
Our industry lives and operates in difficult undertaken at a very low cost – times and this trend has emerged on a a “shoestring approach” is an apt number of occasions over ASSDA’s now description. Despite this, ASSDA has almost 17-year life. Establishing this achieved an international reputation and association set a benchmark against which holds its head up as a competent body on subsequent progress and performance the world scene. could be judged. In this regard the In the early years financing was contribution made to the stainless industry underpinned by BHP Stainless division. and its members by this association is When this company exited our industry notable. For example: in 1996 a problem area emerged with • Market growth in Australia the Secretariat contractor, PJ Matheson 1992 - 60,000 tonnes of stainless steel Resources Consultancy Pty Ltd, funding consumed ASSDA’s activities over an extended trading 2008 - 130,000 tonnes of stainless steel consumed period (trading blew out to 120-150 days). The ASSDA Board at the time through the • Membership in 1992 - 30; 2008 - 248 then president brokered an agreement • Publications creating the current Major Sponsors Australian Stainless - 45 issues arrangements which brought certainty and Reference Manual - 7 editions stability to a significant part of ASSDA’s ASSDA website – Currently over 200,000 income and underpinned most of the hits per month progress mentioned earlier, since BHP’s • Problem solving established - 12,000 departure. successful industry association has been technical questions subsequently answered crafted and built at a low cost. since 1999 We as an industry again face a time of uncertainty caused by the planet-wide In February 2007 PJMRC handed over its • Education courses, workshops and seminars increase in market and financial turmoil. consultancy to RJ Matheson Consultants exceeded 900 over the year ending (passing on the torch to a rising generation). 30/06/08 ASSDA’s hard work and initiative over the However I agreed to staying on as the • Hundreds of projects – assisted eg. In last decade remains available to help our ASSDA Company Secretary and Public Brisbane these range from the Brisbane industry survive these troublesome times Officer. These are retained as voluntary River floating walkway to the current – however this will require mutual effort positions and I remain a paying sustaining second Gateway bridge crossing at all levels; technical support, education, member of the Association. I encourage you • Accreditation has been a recent innovation publication and by no means least, to join me in providing ongoing support to to improve the quality of contract and predictable financing to see us all through ASSDA, so ASSDA can be there to support fabrication projects. 60 fabricator groups the next few years. your business whenever you need it. have signed up for participation with a I have set out this bit of history to help further 15 currently in the approval pipeline. the many new names and faces who have Best Regards, With the help of a far-seeing Board and joined the ASSDA membership over recent Peter J Matheson an experienced Secretariat, this impressive years to have some insight into how a ASSDA Secretariat history of the Association has been nsw social day HAWKESBURY RACE This year’s NSW Raceday was a ASSDA would like to thank all great success, despite the lack of the sponsors for making the of horses. event possible: Wet weather meant the track Atlas Specialty Metals was closed but Hawkesbury Austral Wright Metals Race Club organised a Punters Australian Stainless syndicate which had everyone Distributors involved. Congratulations Fagersta to Austral Wright’s table for Sandvik winning the pool! Stainless Sections Pty Ltd A tantilising array of food A further thanks to Poli-Film, and beverages accompanied M&S Stainless, Outokumpu, an afternoon of networking Chess Engineering and and entertainment - a most Roladuct who helped make enjoyable mix of business and the day a success. leisure, enjoyed by some 100 attendees. pacrim stainless 2009 cancelled ASSDA is disappointed to advise that the Board has taken the difficult decision to cancel PacRim Stainless 2009, which was scheduled to be held in Hobart on October 21-23. As you would all be aware, times are tough at the moment and the Board felt the mood wasn’t right for successfully staging an event of this nature. When the Australian stainless steel industry is in a stronger position, PacRim Stainless will be back.
Meanwhile, ASSDA still needs to hold an AGM and the Association plans to do this later this year, in conjunction with a half day of presentations. ASSDA expects to advise further details in the next issue of the Bulletin.
If you have any questions or wish to discuss, please don’t hesitate to call or email ASSDA. paul norman here became a director of ASSDA and was on the board stainless steel bulletin APRIL 2009 for 13 years, during which time I was President for two years. It is worth noting that the ideals and focus of the Association have not changed from day one, but what has changed is the services being offered and the means of providing them to members and stainless users in Australia. The Association has remained entrepreneurial and business-like in its thinking and the services it provides and, in many respects, this approach has allowed ASSDA to developed an international profile that has put it at the forefront of global stainless steel associations and in a country that itself does not manufacture commercial quantities of stainless. Prior to the Association there was no cohesive approach to the development of stainless steel usage in Australia. Up until then it was left to the one major flat product cold roller in BHP Stainless and “My contact with ASSDA predates the formation overseas producers to promote and it was limited. of the Association when in 1992 Peter Matheson The Association pulled together a fragmented and Jim Howard, the then MD of BHP Stainless, industry and gave it a focus and a means to address visited myself and Kym Godson, former MD of Atlas, the needs of the product users. It is no coincidence with a proposal that a stainless steel Association that the consumption of stainless steel in all its be formed for the Australian market encompassing grades and forms has increased significantly in this manufacturers, distributors and end users. country since the Association was formed. More Subsequent to the roadshow by Peter and Jim and importantly the Association has no barriers to entry following a number of meetings with interested and its membership has grown significantly in my parties the Association was formed with 30 member time, from mining corporate to the small end user companies and a board of directors from a cross- of stainless product. The Association has helped its section of the industry. members and the industry to be better at what they My first role was as Chairman of the Market do and for this reason it will continue to be the voice Development Committee. Our objective in the first of stainless in this country well into the future. instance was to build up membership and this could On a personal note, my contact with the association only done by selling the value of the Association has been a highlight of a long career in the stainless to potential members through the networking and steel industry. It has helped me - and hopefully services it could provide. One of our first major other members - to network and meet people from tasks was to develop the Association’s “Reference all different levels of the stainless supply chain and Manual” which still is a prime communication of in some instances those contacts will remain for a the Association and the concept has been adopted lifetime. I am now leaving the industry on a full time by other stainless organisations in other parts of the basis and wish the association, its members and globe. In some respects it lead into the “on-line” industry colleagues all the best for the future, which stainless product training program and the technical looks a little rocky right now but will recover, as will help line that are hallmarks of ASSDA today. I later the growth in stainless consumption.” accreditation update
The Accreditation Directory has material issues, but this becomes program. Recently organisations been a great success with almost a competitive advantage for their such as Coca-cola, Parmalat, 700 downloads in the first two organisation. Worley Parsons, and Project months of its release. An update Differentiation Having their Services Queensland had positive of this publication will be released organisation easily identified as responses to the scheme, just after the end of financial year a best practice stainless steel with quality of stainless steel and ASSDA will undertake an fabricator. fabrication being of great extensive mail out to specifiers importance and are looking for around the country. If you would Promotion The program has a efficient methods of identifying like to become an Accredited proven track record of delivering best practice fabricators. work opportunities. Fabricator and have your company Another trip to promote showcased in this publication Alex has recently been on Accreditation is being organised please contact Alex Colls, ASSDA two promotional trips: in and for mid May, which will visit both Accreditation Manager, at alex_c@ around Sydney in February and Melbourne (May 11-15) and assda.asn.au. Brisbane in March. Once again Adelaide (May 18-21). If you ASSDA’s Accreditation scheme the Accreditation scheme has would like to set up a meeting to offers fabricators been well received, with many find out more about Accreditation interested fabricators. Full technical support Not please contact Alex Colls on (07) only does this give fabricators Specifiers are also recognising 3220 0722. the confidence to solve complex the value and benefits of the stainless steel bulletin APRIL 2009
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We also identified potential jobs also identified We assisting steel and are in stainless with internalsome specifiers specification. to improve efforts well The workshops were with feedback very received, this feedback is positive. Some of graphs below. illustrated in the seminars running been has ASSDA continue We for over 15 years. the you with to strive to provide relevant and most comprehensive and information. Suggestions Give encouraged. comments are us a call on (07) 3220 0722. For further assistance, seminar Staining packs and the Tea available Bulletin are Technical and a selection tool ASSDA, from can be accessed on the IMOA website.
CALL ASSDA FOR MORE INFORMATION ON 07 3220 0722 CALL ASSDA FOR MORE INFORMATION MAY 27 - JUNE 11 MAY STAINLESS STEEL IN THE BUILT ENVIRONMENT ASSDA’s SECOND SEMINAR SERIES FOR 2009 WILL TAKE PLACE SECOND SEMINAR SERIES FOR 2009 WILL TAKE ASSDA’s THE DATE! SAVE IN MELBOURNE, SYDNEY, BRISBANE AND ADELAIDE IN MELBOURNE, SYDNEY,
ars ars min se ining Tea sta product knowledge. product and 18 distributors, all seeking 16 consultants, 28 fabricators, 15 specifiers, 7 asset owners, 100 delegates attended, including 100 delegates attended, including of “tea staining”. used to assist our understanding practical demonstrations of tools presentation and discussion and and discussion presentation of a combination of a powerpoint of a combination cities over five days and consisted cities over five days The workshops were held in five held The workshops were market. holding and developing our holding and developing environments is a key goal in is a key goal environments owners of structures in marine in marine owners of structures eliminate unmet expectations for eliminate unmet educate people on this topic and educate people on to ASSDA’s technical hotline. To To technical hotline. to ASSDA’s the largest types of enquiries types of enquiries the largest Issues with coastal corrosion in coastal corrosion Issues with of steel still form one stainless stainless steel bulletin APRIL 2009
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l w stee inless ta Louisa Callanan at ASSDA on (07) 3220 0722 or email [email protected] Bulletin profiles are a free service offered to ASSDA members. If you are interested in profiling your organisation in the Bulletin, contact in profiling interested you are to ASSDA members. If service offered a free are Bulletin profiles INCLUDE YOUR FREE PROFILE INCLUDE YOUR
Our 4000 ton inventory includes 409, 430, 304 and 316 master coils and slit coils, as well as some sheet stock. Our turnover in the past 12 months consisted of approximately inventory 25,000 our available have MT currently We of products. steel stainless listed live on this site and will be expanding this to include large packages and lists for our overseas customers. GLOBAL STAINLESS STEEL INC STEEL STAINLESS GLOBAL An international stock-list and trading 1995, Global company Stainless sells founded stainless steel in products worldwide, including key markets in China, India, the European Union and three on located are offices purchasing and Sales America. North place market of advantage take effectively to order in continents fluctuations. member S Maastricht, The Netherlands. 10-12 November 2009. 3220 0722. these events, please contact ASSDA on (07) For further details on AL Upcoming 25-30 May 2009. Perth, Western Australia. 25-30 May 2009. Perth, of calendar industry news local & global stainless steel bulletin APRIL 2009
STAINLESS STEEL Asia, not including China, now BHP stayed out of bidding wars PRODUCTION DOWN represents about 31% of the world’s over LionOre Mining and Jubilee AGAIN stainless steel output, and China Mines, letting Norilsk Nickel and alone produces about 27% of the Xstrata pick them up even though Manufacturer’s Monthly total. they would have been a good fit Global stainless steel production in BHP’s portfolio. With hindsight, Western Europe and Africa represent the LionOre and Jubilee deals - fell again with production in 2008 a single region for ISSF’s record- totalling 25.9 million metric tons, both all-cash - appear to have been keeping, the second-largest stainless overpriced at the peak of the boom. according to the International producing region. Its stainless Stainless Steel Forum. (ISSF is a non- Norilsk paid $C6.8 billion ($8.1 production decreased by 4.8% to billion) for LionOre and Xstrata $3.1 profit research organisation, which 8.3 million metric tons in 2008. serves as the world forum on various billion for Jubilee. aspects of the international stainless In North and South America, stainless BHP has struggled to keep costs steel industry. ISSF was founded in production decreased by 11.1% to down at its Mount Keith mine and 1996.) 2.3 million metric tons. recently sacked 300 workers to These preliminary figures indicate Production in the Central and Eastern “preserve its economic viability”. an output decline of 6.9% less than European region fell by 8.6%, which It needs concentrate with a high the 2007 level, which would mean is above the than the world average. iron content to mix with the Mount a second consecutive year of global It produced only 333,000 tons in Keith concentrate. It mines some at production decline. 2008. Leinster, but the rest comes from third Production totals for 2007 were 2% parties and supplies have dwindled due to the low nickel price. below the previous year’s output. BHP BOLSTERS NICKEL ISSF proposes that the global SUPPLIES Mincor, Consolidated Minerals and economic downturn in the fall of Australian Mines have closed mines 2008 was likely only one reason for The Sydney Morning Herald in the Kambalda region which fed the decline. BHP Billiton has secured a new ore to BHP’s concentrator in the area It said “normal seasonal factors” steady supply of high-quality and, in turn, to its Kalgoorlie smelter and “external raw materials price nickel concentrate from Western and Kwinana refinery. volatility” were also influential. Areas amid continued speculation BHP also lost a source of ore with about whether it will keep its West In addition, ISSF notes that the 2008 high iron content when Xstrata Australian nickel division in the long bought Jubilee and cancelled a production patterns were similar to term. those in 2007, with positive trends supply contract. prevailing in the first half, followed After the closure of its disastrous Western Areas is one of the by an “extremely depressed second Ravensthorpe nickel laterite mine, world’s lowest-cost nickel sulphide half,” of each year. some analysts have questioned producers, which means its Flying Fox whether the Nickel West division mine and its Spotted Quoll project “In a matter of weeks we moved BHP bought from WMC Resources from a bright future to a gloomy are unlikely to be uneconomic even in 2005 has enough long-life, low- at low nickel prices. environment,” the Forum stated. cost assets to make it a core part of Other factors the group cites for the the miner’s portfolio. BHP will provide Western Areas with production decline are “overstocks, $45 million in finance repayable from An Ord Minnett analyst, Peter Arden, July 2012 in return for up to 10,000 reduction of excess inventories said the deal with Western Areas bought at inflated prices, complete tonnes of nickel in concentrate a could be a sign BHP has recommitted year up to a total of 75,000 tonnes. stop of purchases from distributors, itself to the nickel business in the and some end users.” longer term and may later consider Western Areas had contracted its Regional stainless production a bid for the smaller miner. nickel to Norilsk, but re-tendered it showed a decline in Asia broadly after the Russian miner decided to But a Deutsche Bank analyst, Paul close its LionOre mines in Australia. and in China, specifically, in 2008. Young, said it was also possible In Asia, minus China, stainless steel BHP was simply attempting to Western Areas plans to produce output declined by 10.3% to 8.1 maintain output. “That doesn’t 20,000 to 25,000 tonnes next year, million metric tons in 2008. While mean it is more positive [in terms of and is looking to sign a shorter-term ISSF says China has been the driving keeping the business],” he said. “It contract for ore that will not be sold force behind increases in global means that business could be more to BHP. stainless steel production, in 2008 attractive to sell when the nickel The managing director of Western the country’s output dropped 3.6% price rebounds.” Areas, Julian Hanna, said the short- to 6.9 million metric tons. term contract would probably last for stainless steel bulletin APRIL 2009 industry news local & global two to three years, was not likely to said during the weekend in a report ensuring the successful ramp-up of be extendable and would probably that urged workers to improve its current infrastructure platform,” go to someone other than BHP. efficiency. a company statement said. Jubilee was an attractive takeover The national radio newscast report “As part of its usual business target as its concentrate was sold on eastern Holguin province, where activities Fortescue holds discussions on short-term contracts. Large the nickel industry is based, said, with a range of parties in regards nickel players like BHP, Xstrata, Vale, “The factories continue to produce to future investment and finance Jinchuan and Norilsk tend to only with more discipline and efficiency opportunities.” want to buy miners if they can get and that’s what is needed.” the concentrate in return. Shares in Fortescue soared on The report dealt with how the confirmation of the multi-billion- province was coping with the global dollar investment talks. More than financial crisis and slowdown. 10 million shares were traded and IF YOU WANT EXPOSURE, shares climbed almost 9 per cent, or HEAD TO THE HIGHLANDS “Thousands of families in Moa, 22¢, to $2.75. Nicaro and other areas in Holguin The Age depend on nickel. International Sources close to the deal had told The recent bottoming of commodity nickel prices have fallen close to 80 BusinessDay the sovereign fund was prices suggests that the theory for percent ... but not a single worker in keen to structure the investment a December-half global economic the industry has been thrown onto so as to skirt around any concerns recovery — with attendant the street,” the report said. from the Foreign Investment Review Board. commodity price improvements — Cuban Vice President Jose Ramon might just be on the money. Machado Ventura warned earlier Earlier this month federal Treasurer That’s why the search for leveraged this month that nickel prices were Wayne Swan approved, with exposure to the recovery through on the verge of making the island’s conditions, Chinese-owned Hunan mining equities has stepped up a most important export industry Valin Iron & Steel buying up to notch in recent weeks. Believers in unprofitable. 17.55 per cent of Fortescue. The the December-half recovery need $1.2 billion investment deal is still “Nickel has declined from $50,000 awaiting approval from the Chinese look no further than PNG-specialist per tonne to $10,000, $9,000 and Highlands Pacific Group if it’s Government, but Fortescue has said at $9,000 it is no longer profitable, it is confident of it being signed. leveraged exposure to the upside and we have been selling nickel that they want. these days at $9,000, then up to Mr Swan rejected a $2.6 billion Highlands was priced at all of 6.1¢ $10,000,” Machado told reporters. takeover by another Chinese company, Minmetals, for OZ Minerals a share on Friday for a market The country produced some 70,000 capitalisation of $41 million. Because on national security grounds, saying tonnes of unrefined nickel plus one of its mines was too close to a it is holding cash of $30 million and cobalt in 2008 for export. is set to receive another $5 million defence facility. from an asset sale, it can be said that all of the group’s PNG interests are being valued by the market at the FORTESCUE CHIEF IN TALKS princely sum of $6 million. WITH CHINESE The group’s current low valuation The Age reflects its prolonged time in the sin- Iron ore miner Fortescue Metals bin for the stuff-ups at its Kainantu Group has confirmed reports it is gold project. in “preliminary” investment talks The group sold the troublesome with China over expanding its operation to Barrick in late 2007 operations. for $US141.5 million, so it might be BusinessDay reported yesterday that time for the market to move on. Fortescue founder Andrew Forrest dined with Lou Jiwei, the head of China’s sovereign wealth fund at the CUBA SAYS ALL NICKEL Bo’ao economic forum on Friday. He PLANTS REMAIN OPEN was spotted speaking with China Investment Corporation official Bai Reuters Xiaoqing a day later. Cuba’s three nickel processing “Fortescue confirms these are plants remain open despite low preliminary and incomplete in nature international prices, state-run radio as the company remains focused on
New assda members ASSDA is pleased to welcome the following new members: Decoware Australia Pty Ltd Langford Metal Industries Pty Ltd Coventry Fasteners Davies Metal Works Pty Ltd 3 Monkeez Pty Ltd
Total members: 251
New accredited fabricators ASSDA is pleased to announce the following fabricators have recently become ASSDA Accredited:
A&G Engineering (SA) Pty Ltd Major sponsors AGC Industries Pty Ltd Ancon Building Products Pty Ltd Atlas Specialty Metals Austral Wright Metals are your fellow workers Fagersta Steels Pty Ltd fully informed about If you would like your copy Midway Metals Pty Ltd of the Stainless Steel Bulletin stainless steel? mailed to you in hard copy, Nickel Institute Put your work colleagues and clients squarely please contact ASSDA on Outokumpu Pty Ltd in the information loop. If anybody you (07) 3220 0722. know wants to receive ASSDA’s free quarterly Sandvik Australia Pty Ltd colour magazine simply email ASSDA - [email protected] with the person’s name, Sponsor A position, company, postal address and phone number and ask to be added to the Acerinox Australasia Pty Ltd Australian Stainless magazine mailing list. Arcelor Stainless International
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Australian Stainless Steel stainless steel bulletin editorial Nisshin Steel Co Ltd Development Association OneSteel Sheet & Coil ABN 18 061 226 051 Members are invited to contribute editorial to the Stainless Steel Bulletin at no cost but offers Outokumpu Stainless Level 15, 215 Adelaide Street no guarantee of publication. Brisbane QLD 4000 Valbruna Australia Pty Ltd This newsletter is a free stainless steel industry Telephone (61) 07 3220 0722 news service for ASSDA members. Facsimile (61) 07 3220 0733 Sponsor B For editorial enquiries contact Louisa Callanan Email [email protected] Stoddart (Tom Stoddart Pty Ltd) on (07) 3220 0722 or [email protected] Website www.assda.asn.au
Material presented in this publication has been prepared for the general information of the reader and in some instances is produced from information supplied by third parties. While all care is taken in the compilation of this publication, neither ASSDA nor any of its members, agents or servants accept responsibility for the contents. ASSDA complies with privacy laws. ASSDA’s privacy statement can be downloaded at www.assda.asn.au