STAINLESS STEEL BULLETINNEWSLET TER OF THE AUSTR ALIAN STAINLESS STEEL

DEVELOPMENT ASSOCIATION

# 100 Dec2008

52 ASSDA Accredited Fabricators approved since May 2004 (and more applications pending)

1260 student enrolments in the Stainless Steel Specialist Course since April 1999

151 technical enquiries received by ASSDA between 01 October 08 and 30 November 08

1352 opportunities issued in LeADmail since September 2001

ASSDA COMING eveNtsNSW RACEDAY

Hawkesbury Race Club

18 February 2009

ASSDA ACHIeveMeNts

AssDA MeMbersHIp WHY be A MeMber?ASSDA membership means you are part of a team, working to grow the stainless steel market and increase consumption.

Members and their customers have access to specialist technical advice, education, promotion and networking opportunities through:

ASSDA’s three publications with readership •of over 8,000 and potential for its articles to be reprinted in hundreds of other trade publications

Seminars, annual PacRim conference, other •seminars with architects and engineers

Reduced rates on the Stainless Steel •Specialty Course, DVDs, CDs, conference papers

Attendance at networking and social •events

ASSDA could not continue without the support of its valuable members and sponsors so why not become a member?

WHAT DO I gET? As well as these benefits, members receive:

3 editions of the • Australian Stainless Reference Manual

New member letter and membership certificate•

Stainless Steel Bulletin• - the bi-monthly newsletter of ASSDA

Australian Stainless • - ASSDA’s quarterly, eight page colour magazine

Advertising opportunities in • Australian Stainless

Listing in • LeADmail - a twice weekly email providing job leads throughout the country

Annual Report and ASSDA’s AGM Report•

Stainless Steel Specialty Course information•

Inclusion in the ASSDA website member listing•

Stainless Steel Prices Graph, statistics, FAQs•

Publication guide ... • and more!

This Bulletin marks the first century for this important ASSDA publication, timed for the first month of the 2008/2009 summer. If you are a cricket fan there are parallels for the record book!

Memory suggests publication No1 saw the light of day in the early 1990s, when ASSDA was a chubby toddler, so the Bully’s life has far exceeded that of many of its contemporary publications. Congratulations team!!

Many of the luminaries extant for publication No1 are still active and visible. Our then leading opening bat - inaugural president, Bill Stoddart - still meets the active and visible category, although like so many longterm “cricketers” he has just traded his original knees for a modern metal alloy pair. Bill is currently resident in the Brisbane Private Hospital and we wish him a speedy recovery, as well as an appreciation and thanks for what he has contributed to the stainless steel industry and this Association over the years.

Circulation is important to any publisher and most of this nation’s “dailies” regularly publish these statistics to boost their image and bragging rights. ASSDA’s first Bulletin was distributed to the initial 30 members. This centenary edition runs to 350 copies which is either printed or emailed to the 2008 membership of about 250, plus the satellite offices of those members domiciled in several states.

The high level of activity generated at the Secretariat’s Brisbane base continues. Some staff turnover has occured over the last few weeks. Debbie Govier has moved on to advance her career in the infrastructure field. Her job has been split with Louisa Callanan taking on Publications and Public Relations, and Marion McConaghy, Education. Clare Harrison will be keeping an eye on the ISSF/ASSDA student body, including student communication, publication of LeADmail, assistance in day-to-day bookkeeping and secretarial services as required by Peter Matheson. Laura Cassimaty has joined the ASSDA team as Receptionist and will be assisting other staff members wherever necessary.

This being the last publication before the Christmas / New Year break, we wish you all a safe, joyous Christmas tide and (despite all the gloom and financial uncertainty) a successful and prosperous 2009.

Best Regards, Peter J Matheson ASSDA Secretariat

SECRETARy’S CONTRIBUTION

AssDA NeWs

ASSDA is currently organising the next NSW Race Day to be held at the Hawkesbury Race Club on February 18, 2009. Raceday sponsorship is a great opportunity to promote your organisation whilst enjoying a fun day of networking and socialising.

Sponsorship cost is $3,300 including GST.

Take advantage of this terrific opportunity today! Priority will be given to the first organisations to commit. To find out more contact Alex Colls on (07) 3220 0722.

NSW RACEDAy 2009 SPONSORSHIP AVAILABLE

PACRIM 2008 CONFERENCE PAPERS AVAILABLE NOWPacRim 2008 Conference Papers are now available for purchase on CD. Highlights include a webcast presentation by Outokumpu President & CEO Juha Rantanen; end-user and specifier perspectives on stainless steel in desalination, mineral processing and foodservice; e-learning for the stainless steel industry; the development of lean duplex tubular product; the design handbook for round and square hollow sections; and stainless steel clusters. Costs are $55 for members and $66 for non-members. Contact ASSDA on (07) 3220 0722.

NEW BOARD MEMBERS APPOINTEDAt the Annual General Meeting held on 30 October 2008 in Townsville, positions on the Association Board were filled as follows: President: Chris Bridges-Taylor Directors: Paul Norman Ford Murray Treasurer: Peter Caswell Peter George Steve Warnett Executive Director: Richard Matheson Greg Kelly

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SEPTEMBER 2008

CALENDAR OF eveNts

UPCOMINg CONfereNCes

ALtA 2009 NICKeL-CObALt, COpper & UrANIUM CONfereNCe 25-30 May 2009. Perth, Western Australia.

pACrIM stAINLess 2009 21-23 October 2009. Hobart, Tasmania.

For further details on these events, please contact ASSDA on (07) 3220 0722.

PAIgE STAINLESS

Paige Stainless Fabrications Queensland is a leading supplier in heelguard grating systems. Supplying the architectural, plumbing and building industries with complete drainage systems, meeting the demands from the top end of the market to architectural walkways and industrial platforms.

Our unique drains are fabricated from stainless steel wedge wire offering maximum hydraulic characteristics along with superior rubbish retention at surface level, an ideal situation for surface water drainage. The PAIGE STAINLESS HEELGUARD ®™ system also has safety advantages as high heel shoes can not penetrate the 5mm gap grate, greatly reducing the risk of injury.

Paige Stainless now exports internationally reaching markets such as the Middle East, USA, Asia, New Zealand, and Europe via our marketing arm Heelguard Grating Pty Ltd.

Contact Kevin Finn

Phone (07) 5499 1511

Fax (07) 5499 0741

Email kevin@paigestainless.com.au

Website www.paigestainless.com.au

SOUTHERN CROSS POLISHINg

Southern Cross Polishing specialises in the electropolishing of products such as fasteners precision machined components and product with internal bores. We also operate our own machine shop allowing us to custom manufacture our own tooling ensuring that we are always able to produce optimum product quality.

Contact Fred Parker

Phone (03) 9369 5231

Fax (03) 9369 8737

Email frederickparker@bigpond.com

MEMBER prOfILes

INCLUDE yOUR FREE PROFILE

Bulletin profiles are a free service offered to ASSDA members. If you are interested in profiling your organisation in the Bulletin, contact Louisa Callanan at ASSDA on (07) 3220 0722 or email louisa_c@assda.asn.au

Southern Cross Polishing Pty. Ltd.

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SEPTEMBER 2008

Now with over 50 Accredited Fabricators across the country, ASSDA has been concentrating more on reaching specifiers in the various stainless steel markets.

ASSDA’s National Accreditation Manager, Alex Colls, recently finished a three week trip around the country, visiting fabricators, suppliers and various specifiers.

Specifiers visited included:

Food Industry Fonterra Murray Goulburn Kraft Cadbury Schweppes

Architectural Industry Eeles Trelease Hassell Tectvs Paul Campbell Architects

Local Councils City of Kingston

Water Industry Water Corporation

The meeting with the Western Australian Water Corporation was set up in response to the upcoming Desal 2 Project. Alex was able to secure a meeting with some of the key decision makers of the WA water authority, to make them aware of the importance of the fabrication process for stainless steel and to introduce them to some Accredited Fabricators in the Perth area. The fabricators were able to present their case directly to the Water Corporation as to why their organisations are well suited to the task at hand.

Another recent ASSDA initiative is to collaborate with other industry associations to present stainless steel technical seminars for their members with the aim to promote best practice fabrication through ASSDA Accreditation. This has been successful with the Foodservice Consultants Society International.

ASSDA recently teamed up with the Australian Institute of Architects (AIA) in South Australia to conduct a seminar with a technical presentation, new product concept and a practical forum to answer local Accredited Fabricators’ questions. The attending architectural companies praised the format, especially the forum.

ASSDA will work with the AIA to syndicate this seminar around the rest of Australia and the Australian Food Engineers Association is also very interested in organising a similar event.

Specifiers and end users are becoming more aware that there are necessary skills, capabilities and knowledge required to fabricate stainless steel to its highest quality.

If you are interested in finding out more about ASSDA Accreditation, either with regard to implementing it in specifications or becoming an ASSDA Accredited Fabricator, please contact Alex Colls on (07) 3220 0722.

ACCREDITATION SHIFTINg UP A gEAR

PACRIM STAINLESS 2008 HOW DID WE RATE?

PACRIM STAINLESS 2009 HOBART

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SEPTEMBER 2008

More than 100 delegates gathered in Townsville for PacRim Stainless 2008, networking and sharing knowledge about the challenges facing the stainless steel industry.

Thank you to all those PacRim Stainless delegates who took the time to complete the feedback form. In summary, on a scale of 1 (least favourable) to 5 (most favourable), the vast majority of responses were at 3, 4 or 5 (peaking at 4). We are very happy with the results, while acknowledging that there is always room for improvement.

The strong theme was that the Fabrication Forum was a success and we plan to feature this again at Hobart (with more time allocated for speakers and discussion).

There was also strong support for the social events and the conference program generally.

We are taking on board some constructive criticism and plan to continue strengthening the conference in future years.

If you weren’t able to make it to Townsville for PacRim Stainless 2008, but want to benefit from the knowledge shared at the conference, order your copy of the Conference Papers on disc. Cost is $55 for members or $66 for non-members. Order your copy by emailing assda@assda.asn.au

Please remember to note next year’s dates in your diaries: October 21-23 at Wrest Point Hobart.

WREST POINT HOBART, TASMANIAOCTOBER 21-23, 2009

PacRim Stainless 2009 is an ideal opportunity to bring your family to visit one of Australia’s most intriguing cities.

Hobart is a stunning blend of history and lifestyle, culture and scenery - a striking harbour setting against the backdrop of Mount Wellington. History abounds on every corner, all within close proximity to historical landmarks such as Richmond and Port Arthur, as well as unique wilderness and numerous gourmet delights.

Located on the shores of the Derwent River, the host venue for PacRim Stainless 2009 - Wrest Point Hobart - offers deluxe accommodation, conference facilities, restaurants, bars, a tennis court, mini-golf, a health centre, shops and complimentary car parking ... all in the one location. The perfect venue for business and pleasure.

While the program for PacRim Stainless 2009 is yet to be finalised, we have received the message loud and clear: delegates at PacRim Stainless 2008 loved the opportunity for discussion and debate offered in the

Fabrication Forum and they want more of it, so that’s what we’ll be doing in 2009.

The Fabrication Forum will be expanded to allow more time for speakers and discussion and we may even incorporate a second similar forum.

As usual, a collection of excellent speakers focussing on issues of significance to the stainless steel industry in Australia and the other Pacific Rim nations will share their experiences and look to future trends.

Make sure you mark these dates in your diary - you will not want to miss PacRim Stainless 2009.

INDUSTRy NEWS LOCAL & GLObAL

FERROALLOy MAKERS CUT OUTPUT ON FREEZE IN ORDERS FROM STEEL COSWall Street Journal

The global economic slowdown has now impacted India’s ferroalloy industry, the world’s fifth largest, forcing it to drastically cut production.

“The offtake of ferrochrome by stainless steel companies has totally stopped and consequently, most of the (Indian) ferrochrome producers have shut production and are focusing on liquidating their inventory,” said Rahhul Aggarwal, analyst with the Mumbai-based equity research firm Pinc Research.

Demand for ferroalloy — alloy of iron with chromium, silicon and manganese, and a key material for steel makers — has fallen sharply in recent times as international steel companies have reduced output.

Indian firms have an installed capacity of 3.25 million tonnes (mt) of ferroalloy a year and account for some 7 per cent of the global market, according to industry lobby group Indian Ferro Alloys Producers’ Association (Ifapa).

Global steel firms, such as ArcelorMittal and Corus (part of Tata Steel Ltd), have announced that they will be curtailing production by as much as 35 per cent, and local steel makers are set to follow suit. India is the world’s fifth largest producer of crude steel with an installed capacity of 53.1mt a year.

India’s steel secretary, Pramod Rastogi, told reporters last week in Hyderabad that Steel Authority of India Ltd may cut output. The country’s largest steel maker, Tata Steel, last week said it would lower production by 30 per cent in Europe.

“This is one of the worst crises that the Indian ferroalloys industry has suffered in the last three decades and several players have either announced or are in the process of announcing significant production cuts,” said R.K. Saraf, chairman of Ifapa and vice-chairman and joint managing director of Ferro Alloys Corp. Ltd. “We are yet to ascertain how long the crisis will continue.”

“We see a difficult two-year period ahead for the steel industry with a squeeze in demand, prices and margins. In previous recessions, the US steel industry consumption has declined by an average of 10 per cent per annum. We believe it will be significantly worse this time around,” a team of Mumbai-based equity research firm Edelweiss Securities Pty. Ltd said in a report published on 12 November.

Pinc’s Aggarwal said things have changed dramatically in the past two months. “Most of the ferrochrome players have totally stalled production due to lack of demand and reducing value of inventory that they are carrying.”

The ferroalloy sector suffered a similar crisis in 2000 following a global recession. It took around two years for it to recover in tandem with the revival of the global economy.

ORNL’S STAINLESS STEEL ATTRACTS gLOBAL INTERESTYour Industry News

A super-strong form of stainless steel developed at Oak Ridge National Laboratory is attracting worldwide interest, and maybe that’s fitting because the steel could be used in an international project — the International Thermonuclear Experimental Reactor.

Lead researcher Jeremy Busby, a 36-year-old nuclear engineer, said all the attention caught him by surprise.

“U.S. Beats Britain to Fusion Super Steel,” was among the headlines streaming around the World Wide Web in recent days. Busby found some humor in that one because he and other members of his research team, which includes a couple of Brits, didn’t realise there was a competition.

Researchers in ORNL’s Materials Science and Technology Division were approached a couple of years ago by the U.S. ITER team, which is based in Oak Ridge, and were asked to work on better materials for the high-priority fusion project. Among the U.S. responsibilities is the shielding blanket that goes around the magnetically confined fusion chamber, where the plasma fuel may reach 100 million ºC.

The components won’t need to survive that kind of inferno, but their location would be 200 to 300 ºC, so heat is still an issue, Busby said. So would radiation levels and water corrosion, he said.

ORNL’s cast stainless steel is reported to be 70 per cent stronger than comparable steels, and further testing will determine if, indeed, it’s the right material for the international project. Busby said the fusion reactor will need about 100 of the steel components, each weighing three or four tons.

“We’re hopeful and optimistic,” he said earlier this week. “The only downside at this point is it’s just so new. So we need more information (to qualify the material for use in ITER).”

How to proceed will be a topic of discussion between the U.S. team and leaders of the international project, which is being built near Cadarache, France. In addition to the United States, other partners on ITER are the

European Union, India, China, Japan, South Korea and Russia.

Busby, who came to ORNL four years ago from the University of Michigan, said the super steel doesn’t have a name yet. “We’ve been calling it the improved cast steel,” he said.

EUROPEAN STAINLESS STEEL OUTPUT SEEN DOWN IN 2009Reuters

European stainless steel production in 2008 is seen at a lower-than-expected 7.6 million tonnes and for next year production is seen falling to less then 7 million, a top industry official said on Thursday.

Sluggish demand has cut stainless steel output in Europe in the third and fourth quarter 2008 and instead of producing a previously estimated 8.1 million tonnes, output is seen 6.2 per cent lower, said Michael Wright, chairman of the Stainless Steel Division of the Bureau of International Recycling (BIR).

“For Europe as a whole, unfortunately we do not see any sign of good news, certainly for the next six months,” said Wright, who is also Chairman of ELG Haniel Metals Ltd., referring to demand for stainless steel scrap from European mills.

Demand for stainless steel, which is widely used in kitchen appliances and cutlery, has fallen as consumers slow spending, due to fears of economic recession, and distributors delay restocking until the market stops sliding.

BHP SCRAPS EASTERN INDONESIA NICKEL PLANThe Sydney Morning Herald

BHP Billiton Ltd has ended a study into a potential integrated nickel development in eastern Indonesia.

“The study has not been able to identify a business case which would support an investment in this opportunity,” BHP said in a statement.

A resource at Gag Island in eastern Indonesia was initially being evaluated.

A second resource at Buli in Halmahera was later included, following a conditional agreement to form a joint venture alliance with PT Antam Tbk, a publicly listed Indonesian mining company.

INDUSTRy NEWS LOCAL & GLObALThe agreement with PT Antam Tbk was conditional on obtaining a `contract of work’ for the Buli resource by October 31, which did not happen.

“BHP Billiton has therefore decided to terminate the agreement with PT Antam Tbk,” it said.

It won’t pursue a stand alone development at Gag Island.

BHP Billiton said it will continue to work closely with the Indonesian Government and regional and local government authorities in other projects in Indonesia.

BINDURA NICKEL CORPORATION FIgHTS FOR SURVIVALSteelguru

It is reported that Zimbabwe’s largest nickel producer Bindura Nickel Corporation is exploring measures to mitigate the impact of falling prices of the metal on the international market threatening the survival of the company.

Majority owned by Mwana Africa PLC, BNC issued a cautionary statement urging investors to exercise caution in dealing with its shares saying the poor international prices and a skewed exchange rate policy had crippled its ability to trade profitably.

Bindura Nickel Corporation said in a statement that the cash flow in recent months has been affected negatively by a number of factors, including declining nickel prices, low production levels, unfavorable exchange rates and periodic power blackouts.

Prices of nickel have come crashing down over the past few months from an all time high of USD 51,800 per tonne in May 2007 to as little as USD 9,800 in recent weeks.

The prices have plunged almost 60 per cent in 2008 as slowing global economic growth cuts demand for the metal, prompting a range of mine closures and project delays.

While the fall in prices was affecting all nickel producers, it has been worse for Bindura Nickel Corporation operating in the world’s harshest economy with inflation as high as 231 million per cent.

CHINESE THREAT TO INDIAN STEEL MILLS SEEMS REALThe Economic Times

The Indian steel industry, which is currently bearing the twin impact of a sharp fall in demand and a cut in production, could likely face a bigger blow post December, when China plans to lift export tax on steel.

China, which is the world’s largest steel market, has recently proposed to remove the existing 5 per cent levy on its steel exports from December 1, in a bid to boost the local steel industry which has been severely hit by the global slowdown. China had earlier imposed export duty up to 15 per cent to discourage exports, as local demand was high and steep domestic steel prices were affecting the local economy.

According to Indian primary steelmakers, this move by China could likely lead to an increase in steel imports from China, especially as India currently has no import duty to check such a move. Duties were removed in April.

India annually imports about 3.6 to 4 million tonnes of steel of various categories, of which, last year, about 1 million tonnes came from China alone. “If this year too Chinese steel of the same quantity comes to India, then the industry would be severely affected,” said the senior official of a large private steel company.

The Indian steel industry is witnessing trying times as demand has slowed down sharply and companies are forced to cut production to keep operations viable. Although most Indian companies are reluctant to officially announce production cuts, it has been widely reported that all companies have slashed output by an average of 30 per cent.

RIO UNIT TO FEEL THE STRAINThe Australian

China’s slowing demand for iron ore is even being felt by Rio Tinto’s South African copper subsidiary, Palabora Mining Company.

PMC has built a 240 million tonne magnetite iron ore stockpile over the past 45 years, and has recently been selling some to Chinese trader Minmetals.

But things had slowed in the past three months, PMC managing director Matt Gili said.

In the first half, PMC sold 793,000 tonnes of the magnetite ore, which has a grade of 66 per cent, at 300 rand ($46) a tonne. That was up from about 600,000 tonnes a year earlier at 256 rand a tonne.

Because of the processing that needs to be done to the ore, it sells at a big discount to benchmark Pilbara iron ore that goes for $US100 ($154) a tonne.

Palabora is working on a feasibility study to double magnetite sales by boosting local rail capacity, building a plant to make pig iron or making a slurry pipeline.

KUDREMUKH IRON ORE UNFAZED By MELTDOWNBuisness Line

Undeterred by the current crisis, Kudremukh Iron Ore Company Ltd (KIOCL) sticks to its plans to set up a ductile iron spun pipe manufacturing facility and modernising the pellet plant at Mangalore to ensure a better future.

The Rs 400-crore investment may be fully financed from the company’s Rs 1,200-crore cash reserves.

“We stick to our plan to set up the spun pipe facility as a forward integration to our pig iron making facility. The project proposal is now ready. The estimated cost is revised from approximately Rs 225 crore to Rs 300 crore. We will seek board approval for the project in the next meeting scheduled in end November or early December,” company Chairman and Managing Director, Mr K. Ranganath, told Business Line. The project would take 18 months to be implemented.

According to him, the spun pipe sector continues to enjoy strong demand position due to increasing investments in civic infrastructure such as water pipelines and is not hit as severely as the rest of iron and steel industry during the present crisis.

Plans are also near finalised on modernising the pellet plant at an estimated investment of Rs 100 crore. This will help KIOCL in using wider variety of iron ore.

“Larox is identified as technology provider. We have already received the technical and commercial offers from the technology provider. Technical discussions are currently under way and price discussion will take place next week. We expect to seek board approval for the project in a month or two,” Mr Ranganath said.

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SEPTEMBER 2008

MAjOr spONsOrs

Atlas Specialty Metals

Austral Wright Metals

Fagersta Steels Pty Ltd

Midway Metals Pty Ltd

Nickel Institute

Outokumpu Pty Ltd

Sandvik Australia Pty Ltd

spONsOr A

Acerinox Australasia Pty Ltd

Arcelor Stainless International

BHP Billiton Stainless Steel Materials

Nisshin Steel Co Ltd

OneSteel Sheet & Coil

Outokumpu Stainless

ThyssenKrupp Stainless International GmbH

Valbruna Australia Pty Ltd

spONsOr b

Stoddart (Tom Stoddart Pty Ltd)

Townsend Group Pty Ltd

TOTAL MEMBERS:

248

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

AUstrALIAN stAINLess steeL DeveLOpMeNt AssOCIAtION

ABN 18 061 226 051

Level 15, 215 Adelaide Street Brisbane QLD 4000

Telephone (61) 07 3220 0722 Facsimile (61) 07 3220 0733

Email assda@assda.asn.au Website www.assda.asn.au

stAINLess steeL bULLetIN eDItOrIAL

Members are invited to contribute editorial to the Stainless Steel Bulletin at no cost but offers no guarantee of publication.

This newsletter is a free stainless steel industry news service for ASSDA members.

For editorial enquiries contact Louisa Callanan on (07) 3220 0722 or louisa_c@assda.asn.au

ARE yOUR FELLOW WORKERS FULLy INFORMED ABOUT STAINLESS STEEL?Put your work colleagues and clients squarely in the information loop. If anybody you know wants to receive ASSDA’s free quarterly colour magazine simply email ASSDA - assda@assda.asn.au with the person’s name, position, company, postal address and phone number and ask to be added to the Australian Stainless magazine mailing list.

NEW ASSDA MEMBERSASSDA is pleased to welcome the following new members:

Austfluid Link Nova Hardware Pty Ltd

NEW ACCREDITED FABRICATORSASSDA is pleased to announce the following fabricators have recently become ASSDA Accredited:

Diverse Welding LWA Engineering Inox Fabrications Australia

If you would like your copy of the Stainless Steel Bulletin mailed to you in hard copy, please contact ASSDA on (07) 3220 0722.