Weekly Raw Steel Production - January 1, 2011

In the week ending January 1, 2011, domestic raw steel production was 1,683,000 net tons while the capability utilization rate was 69.6 percent. Production was 1,492,000 tons in the week ending January 1, 2010, while the capability utilization then was 62.3 percent. The current week production represents a 12.8 percent increase from the same period in the previous year. Production for the week ending January 1, 2011 is up 2.1 percent from the previous week ending December 25, 2010 when production was 1,648,000 tons and the rate of capability utilization was 68.1 percent. Adjusted year-to-date production through December 31, 2010 was 88,475,000 tons, at a capability utilization rate of 70.2 percent. That is a 37.6 percent increase from the 64,296,000 tons during the same period last year, when the capability utilization rate was 51.5 percent. Broken down by districts, here's production for the week ending January 1, 2011 in thousands of net tons: Northeast Coast: 84; Pittsburgh/Youngstown: 122; Lake Erie: 43; Detroit: 124; Indiana/Chicago: 401; Midwest: 262; Southern: 574 and Western: 73. (Estimate based on reports from companies representing about 50% of the Industry's Raw Steel Capability + includes revisions for previous months)

Data Breaches in 2010: Indicates Mandatory Reporting Needed

San Diego, CA (January 3, 2011):  The Identity Theft Resource Center recorded 662 breaches on its 2010 ITRC Breach List. It is apparent, with few exceptions, that there is no transparency when it comes to reporting breaches.  Other than breaches reported by the media and a few progressive state websites, there is little or no information available on many data breach events.  It is clear that without a mandatory national reporting requirement, that many data breaches will continue to be unreported, or under-reported. 

Mandatory reporting has had a positive impact on the reported number of medical data breaches.  First published this year, the Department of Health and Human Services (HHS) Breach List has identified 214 breaches to-date.  Unfortunately, the HHS database provides insufficient information for the public to know what types of records were placed at risk.  The HHS breach report does not detail whether names, x-rays or Social Security Numbers (SSN) were included in the exposed data.  The public has no way of knowing just how minor or serious the data exposure was for any given incident. Media has helped by reporting more details for some breach events.

In addition, state mandated reporting of all breaches - by several state Attorneys Generals - increased public reporting, but only applies if an individual in that state might be affected.  In 2010, New Hampshire listed 96 breaches and Maryland reported 160.  Wisconsin and Vermont have small lists of reported breach events. 

Approximately 200 breaches, 29% of the 662 total reported by the ITRC, were credited to information provided by these “mandatory reporting” states.  This is a clear argument for mandatory reporting to achieve transparency for the public. 

Highlights of the ITRC Breach List analysis include:

·       Paper breaches account for nearly 20% (1/5^th) of known breaches and typically go unnoticed until a consumer reports the problem to local media.  There is generally no mandatory reporting requirement for paper breaches.

·       Malicious attacks still account for more breaches than human error, with hacking at 17.1% and insider theft at 15.4%.

·       38.5% (255) of listed breaches did not identify the manner in which the information was exposed.  This indicates a clear lack of transparency and full reporting to the public.

·       51% of publicly reported breaches indicated the number of records exposed, totaling
16.1 million records.  Note: records can mean credit cards, bank accounts or other information.  It is not representative of the number of people involved.

·       However, nearly half of all breaches (49%) did not list number of potentially exposed records. This ingrained inaccuracy in reporting is another argument for mandatory reporting.

·       412 breaches (62%) reported exposure of Social Security Numbers, representing 76% of known records.

·       170 breaches (26%) involved credit or debit cards, representing about 29% of known records. 

The nation needs a centralized, publicly available, data breach reporting site.  It should be comprehensive enough to allow readers to find out what happened, what information was compromised, and why the breach happened.  This would also allow law enforcement to better address this type of crime. 

Breaches happen.  Consumers, government and the business community need to stop acting like ostriches with their heads in the sand.  Second, the concept of “risk of harm” is not acceptable for determining notification.  This is true especially if the company involved is allowed to define “risk of harm.”  Only a federal IT forensic specialist should have that authority.  Breached information has been used months after the original exposure.

Are breached entities going to like the future?   ITRC hopes they will embrace the change as productive and valuable.  Mandatory reporting is on the horizon.  It will be demanded either by consumer lobbying or legislation. 

For the reports and statistics used for this release, go to www.idtheftcenter.org

About the ITRC
The Identity Theft Resource Center® (ITRC) is a nationally recognized non-profit organization established to support victims of identity theft in resolving their cases, and to broaden public education and awareness in the understanding of identity theft.  Visit www.idtheftcenter.org.  Victims may contact the ITRC at 888-400-5530.
 

Keyur Patel's 2011 picks!

Keyur Patel

 

Buy the following stocks as long term investment. Investors can start accumulating the stocks when market corrects and add more on declines and average for decent returns of 100%-200% over the next 12-18 months or more.

1.Abhishek Industries.
2.Astec Lifescience.
3.Bang Overseas.
4.Bilcare (Buy at every decline)
5.Brand House Retails.
6.Delta Corporation.
7.Den Networks.
8.Dhanuka Agritech.
9.Gitanjali Gems.
10.Gujarat Ambuja Export.
11.Max India.
12.MRPL.
13.NIIT.
14.OCL.
15.Orient Paper.
16.Rei Agro.
17.Sabero Organics.
18.Shree Ganesh Jewellery House.


Buy the following stocks as long term investment. Investors can start accumulating the stocks when market corrects and add more on declines and average for decent returns of 100%-200% over the next 12-18 months or more.

1. Auto line Industries.
2. Balaji Amines.
3. Bilt.
4. Camson Biotech.
5. Compuage Solutions. (Buy at every decline)
6. DIC India.
7. Fortis Healthcare.
8. Glodyne Technology.(Buy at every decline)
9. GMM Pfaudler.(4 times in a year dividend paying organisation,with equity base of less then 3 crores,with overseas management holding of more than 75% of total share capital, Face value Rs 2/per share. Only BSE listed.)
10. GRUH Finance.(subsidary of HDFC,with holding of 63% with HDFC itself.)
11. IL&FS Investment Managers.
12. Jubilant Foods.(Buy at every decline)
13. Jubilant Organosys.
14. Karuturi Global
15. Khaitan Electricals.
16. Kilburn Engineering.
17. Kinetic Motors.
18. KS Oils.
19. LG Brothers.(Buy at every decline)
20. Mahindra Ugine Steel.
21. Norben Tea Exports. (Only NSE traded)
22. Pfizer India.
23. Praj Industries.
24. Ramco Systems.
25. Sical Logistics
26. S Kumar Nationwide.
27. Southern Online Biotech ltd.
28.Steel Exchange of India.
29.Steel Strips and Wheels.(Buy at every decline)
30.Tilaknagar Industries.
31.Tube Investment.(Buy at every decline)
32.Varun Industries.
33.Zen Technologies.

New Subsidiary of Blohm + Voss Industries in Singapore

Blohm + Voss Industries has opened its own sales and service branch in Singapore at the beginning of 2011. This expansion into the Asian market proves that the manufacturer of ship components recognises the strong growth potential in this region.

The newly founded subsidiary of Blohm + Voss Industries (BVI) - a company of ThyssenKrupp Marine Systems - has taken over the operational business in Singapore on New Year's Day 2011. The Hamburg-based manufacturer of ship components offers sales and service activities for its Simplex Turbulo product group in the city state.

"By taking over our Singapore business and handling it through our own company, we have created an important module that will ensure our greatest possible presence in strategic markets," said BVI Managing Director Martin Johannsmann. Asia has developed into a core market in shipbuild-ing over the last few years, and Singapore alone has over 100 shipyards and related industries. The new subsidiary will be managed by C.J. Ng who has worked in this region and in the ship supply industry for many years. "BVI subsidiary in Singapore would mean that customers of Simplex Turbulo product group can expect higher service quality in the most effi-cient way," says Ng. "And of course BVI sales and services is not limited to just Singapore but beyond the region." The Singapore branch will be serv-ing other countries in South East Asia and South Asia.

Blohm + Voss Industries currently has subsidiaries in China and South Korea as well as strategic holdings in companies within Japan and the UK. In all other countries with shipbuilding markets, BVI works through a closely-knitted network of sales and service agents. The company produces and sells ship components such as seals, bearings, stabilisers and bilgewater separators.

ThyssenKrupp Marine Systems
ThyssenKrupp Marine Systems is a leading European systems house providing submarines, naval surface ships and premium segment yachts to customers globally. The company's outstanding shipbuilding competence includes repairs, services, and ships' components. With its headquarters in Hamburg, ThyssenKrupp Marine Systems is part of the Marine Systems business area within the ThyssenKrupp Group.

JSW was the newsmaker in action-packed year for steel sector

Mumbai, Jan. 1 It was a busy, action-packed year for the steel sector. While JSW Steel, Essar Steel and Rashtriya Ispat Nigam increased capacity, the industry was also forced into quarterly pricing for coal and iron ore supply.

Both JSW and Essar will complete their expansion projects in Vijayanagar and Hazira in the first quarter of 2011. While the former will increase capacity to 10 million tonnes from 6.8 mt, Essar will double production to 10 mt. Rashtriya Ispat Nigam is also likely to achieve its goal of hiking capacity from 2.9 mt to 6.3 mtpa by 2011.

In more ways than one, the year belonged to JSW which offered a stake to JFE of Japan to lower the debt burden in its books and just a fortnight ago, snapped up Ispat Steel for Rs 2,157 crore. The entire deal was finalised in a record eight days, according to Mr Sajjan Jindal, Managing Director.

In April, JSW acquired a controlling stake in South African Coal Mining Holdings for about Rs 51 crore, and followed that up by buying 123 mt coking coal assets in West Virginia for Rs 450 crore. In October, JSW bought a controlling stake in Canada's CIC Energy, a coal miner, for Rs 1,886 crore.

Expansion plans

With crude steel production capacity of 72.96 million tonnes per annum, India emerged the world's fourth largest producer in 2010, up from eighth position in 2003. It is expected to become the second largest global producer of crude steel by 2015. India also maintained its lead position as the world's largest producer of direct reduced iron (DRI) or sponge iron.

Crude steel production grew at 8.4 per cent annually from 46.46 million tonnes in 2005 to 64.88 mt in 2010, according to Steel Ministry data. Finished steel output stood at 59.69 mt in 2010, against 46.57 mt in 2006 — an average annual growth of 6.5 per cent.

Despite hiccups in land availability and raw material tie-ups, steel companies signed 222 MoUs with various State Governments for creating 276 million tonnes of capacity at an investment of Rs 870,640 crore by 2020.

NMDC signed an MoU with the Chhattisgarh Government to set up a greenfield integrated steel plant of three mtpa at an investment of Rs 15,525 crore. It also plans a joint venture with Russia's third largest steelmaker, Severstal, which would invest about Rs 4,500 crore. Major investments are planned in Orissa, Jharkhand, Chhattisgarh and West Bengal.

Greenfield plans

JSW Steel was among the few companies that managed to kickstart its greenfield project. Its arm, JSW Bengal Steel, acquired land for its plant at Salboni and has targeted financial closure for the first phase of three mtpa by this fiscal-end. It has also obtained linkages to coal mines. JSW Steel will hold 89 per cent of the equity with West Bengal Government taking up the balance.

The others have not been as fortunate. While the likes of ArcelorMittal and Posco are still trying hard to get their plans off the mark, Tata Steel's plans for three new projects of 22 mtpa in Jharkhand, Chhattisgarh and Orissa, have been delayed. The company was facing acquisition problems in Chhattisgarh and Orissa where some land owners are yet to relocate.

Having sunk huge investment in capacity addition, steel companies kept their focus on moving up the value chain by entering into tie-ups with global counterparts for high-end automobile steel. Essar Steel, for instance, roped in Japanese steel major Kobe Steel for technology know-how to produce advanced high-strength steel grade steel sheets used in automotive and other applications. JSW Steel signed a similar agreement with JFE Steel.

The year saw the industry switching to a new pricing regime for coal and iron ore. In April, it moved to a quarterly contract system, instead of annual resets in contract prices. While iron ore prices skyrocketed 90 per cent, it was 55 per cent in the case of coking coal. The new pricing policy exerted pressure on companies' operating margins and volatility in steel prices.

The luckier ones with deep pockets acquired mineral assets abroad. State-owned SAIL, RINL, CIL, NTPC and NMDC, formed a special purpose vehicle, International Coal Ventures, to acquire coal properties in Australia, Mozambique, Canada, Indonesia and the US. With an equity base of Rs 3,000 crore, the SPV can raise about Rs 7,000-crore debt. It will have a navaratna status which will mean no clearance for investments up to Rs 1,500 crore.

Outlook

India is expected to emerge as the third-largest consumer of steel in 2011 after China and the US . The biggest growth drivers will be building infrastructure, coupled with strong growth in the automobile and consumer goods sectors.

According to the World Steel Association, steel demand in India is expected to rise 13.6 per cent in 2011 to 68 million tonnes. China is tipped to grow by 3.5 per cent, albeit on a larger base.

Vinod Rai: Exposing Corruption

As Comptroller and Auditor General of India, Vinod Rai has produced unforgiving audit reports pinning government departments, the most recent being one on the 2G spectrum scam, which led to the telecom minister’s losing his job.

Vinod Rai has a good first serve. He takes full advantage of his over six-foot frame to smash the ball across the court. The opponent, a colleague of his, has to receive the ball at an uncomfortable height. It is not competitive tennis; it is a match that is almost like evening banter. But the players are at it with enthusiasm. The venue is an abandoned parking lot converted into a tennis court at the old office of the Comptroller and Auditor General (CAG) in Delhi, a few hundred metres away from the spanking new Dholpur stone structure that is the new CAG office complex. Rai has just inaugurated the court and is playing the first match with his colleagues. “After we got a new office, we decided to convert this space into a tennis court,” says 62-year-old Rai, who has been playing tennis and climbing mountains since he was in college. But it is not the aces he serves on the tennis court that have made him famous.  As Comptroller and Auditor General of India, Rai has served up a few uncomfortable audit reports that have pinned many government departments beyond the baseline.  He has consistently hit the headlines for his unforgiving audits, ranging from the scathing report on the shoddy preparation for the Commonwealth Games to the latest on spectrum allocations for second generation (2G) telecom services.  Bureaucratic grapevine suggests there was quite a bit of pressure on Rai to dilute the 2G report but he held fast, merely asking his people to check for unnecessarily harsh or unfair language.  The report ripped apart the government, even pointing a finger at the prime minister for arbitrarily giving away spectrum, a valuable and limited national resource. The CAG report said the ultimate loss to the exchequer could be as high as Rs 1.76 lakh crore.  The report, coupled with the leak of a set of recorded conversations with a corporate lobbyist, has already cost Andimuthu Raja his job as telecom minister and stalled the Winter Session of Parliament.   Rai is among that rare breed of civil servants who know how to get work done in the government. A former colleague says Rai has an uncanny ability to cut through red tape.  One morning in January 2006, top officials of the finance ministry were summoned by then finance minister P. Chidambaram. The minister was reviewing proposals for the forthcoming Budget and there was a paragraph in his speech about the setting up of India Infrastructure Finance Company, something he had announced in the previous Budget speech as well. The hitch was the company had not yet been incorporated.  “Chidambaram was livid. He asked how long will you guys take to just incorporate a company,” remembers a bureaucrat familiar with the incident. The usual passing-the-buck had happened within the ministry and both the department of economic affairs and the department of financial services had not been able to get the company going.  As Chidambaram flew into a rage, Rai, who was then heading the department of economic affairs, butted in and said it would be done by the weekend. After he came back to his office, Rai called a joint secretary in the ministry of corporate affairs and told him this company had to be registered by that evening. The official told him it was next to impossible and offered to brief him on the long process and the required documentation.  “I am told by your colleagues that you are a very good officer. It is the prestige of the department at stake. This has to be done,” he told him. The official reportedly said that since Rai had challenged his competency, he had to get it done. The entire machinery cranked into action, with the registrar of companies even getting a diesel generator from another department to print the incorporation certificate because there was a power cut.  India’s premier infrastructure funding agency was incorporated in those frenetic 24 hours and the certificate was on Chidambaram’s table, along with a note from Rai, the next day.  In the finance ministry, Rai is well regarded by his former colleagues because he served as a bulwark between them and the minister. “He had this thing that he was the captain of the team and he could not expose them to the minister’s ire,” says an official, on condition of anonymity, who worked under him.  Rai himself does not believe in being confrontational; he believes in being persuasive. Sometimes it works, sometimes it doesn’t.  He considers bringing autonomy to the boards of state-owned banks as one of his biggest achievements in the finance ministry. But it was severely put to test once.   This incident too happened in 2006, when Chidambaram was his minister. In May that year, the Reserve Bank of India had increased interest rates against the minister’s wishes. The markets had tanked and Chidambaram went on television reassuring investors, despite his officials advising him against it. Next, he wanted them to call up public sector banks and ask them not to hike lending rates.  “I advised him that he should not do it. We should let the bank boards decide for themselves,” Rai remembers. Chidambaram was adamant that since the government owned the banks, he had a right to direct them. Rai stood his ground until the minister finally relented. Rai says it is the secretary’s duty to give his minister the correct advice, however unpleasant it may be.  Unpleasantness is built into the CAG’s job as the chief nitpicker of the government. The CAG audits how the government’s money is spent and holds its different arms accountable for the rupees that pass through them. He is now trying to change that impression and convince government departments that CAG audits can be constructive. “My endeavour here has been to convince various departments that it is not us versus them but that we are on the same side,” says Rai.  At the prime minister’s request, the CAG recently made a presentation before the defence ministry on spending money allotted to it. Defence deals often attract criticism because of their very nature and size and the ministry has been hesitant in spending on even legitimate and urgent requirements. Rai suggested to the ministry that it should, perhaps, look at a time frame of 30 months for budgeted spending. The ministry has now agreed to start placing orders that have been stuck for a while.  Rai is now trying to get the mandate of the CAG expanded in keeping with the times. Currently, the CAG can audit the finances of only government departments. For instance, when it examines utilisation of funds under the National Rural Employment Guarantee Act, panchayats, which ultimately use the funds, are under no obligation to share information about the funds they use. “In 1971 [when the Audit Act was enacted], there were no PPPs [public private partnerships] or Panchayati Raj institutions. So they do not come under our purview unless the government specifically requests us to audit them. Even then, each panchayat will have to make a request,” says Rai.   Also, there is no time limit on providing information that the CAG asks for. Rai says even an applicant under the Right to Information (RTI) Act can get information within 30 days. “I am only saying that we also get the information we ask for within 30 days, the same as an RTI applicant.” Back at the tennis court, Rai and his partner have won the game comfortably. It is not that easy inside the office though. The 2G report, ironically, has held up Parliament and one of the casualties is the new Audit Act that would have widened the CAG’s mandate and strengthened Rai’s hands. In government, you don’t win points even on aces.

BHP Billiton Donation To Premier's Disaster Relief Appeal For Queensland Flood Assistance

1 January 2011

BHP Billiton has confirmed a A$1 million donation to the Queensland Premier's Disaster Relief Appeal to assist with Queensland flood relief efforts.

This assistance is in addition to the $300,000 donation provided by BHP Billiton Mitsubishi Alliance (BMA) to the Premier's Disaster Relief Appeal and Emerald and Blackwater communities, as well as emergency assistance to these communities provided by BMA's workforce.

On top of the $A1 million donation, BHP Billiton will match dollar for dollar all employee donations made through the company's Matched Giving Program.