STAINLESS STEEL BULLETINNEWSLET TER OF THE AUSTR ALIAN STAINLESS STEEL

DEVELOPMENT ASSOCIATION

# 104 August

2009

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

1298 student enrolments in the Stainless Steel Specialist Course since April 1999

175 technical enquiries received by ASSDA between 01 July and 31 August 2009

1484 opportunities issued in LeADmail since September 2001

367,141 visits to ASSDA’s website between 01 July and 31 August 2009

assda aCHIEVEMENTs+ AGM & Networking DinnerFriday, October 23, Brisbane

What is the Stainless Fabrication Forum?A half-day forum for fabricators, distributors and other stainless steel industry participants to listen, share, debate and network.

Why should you attend?In these tough economic times, you need to stay informed of current issues affecting your business. This will give you the chance to share knowledge, debate the issues and catch up with colleagues and competitors at a low-cost, convenient event.

What is included in the program?Stand-up working lunch•

• AtouroftheStoddartFoodserviceEquipmentshowroomand manufacturing facility at Sunnybank Hills

• AFabricationForummoderatedbyGregYorkston,WesternAgencies(backduetopopular demand!) and featuring a panel of 5 speakers on the following topics:“Emissionstradingandhowitwillaffectyou”,PaulGallimore,CTCConsultingGroup“Sustainablemanufacturing”,MarkMcKenzie,QMISolutions“Aspecifier’sperspectiveonaccreditation”,speakertobeconfirmed“Distributoraccreditation:thewayforward”,PeterMoore,AtlasSpecialtyMetals“Thee-learningpathwayforapprentices”,IanWoods,SkillsTech

• Optionofbanquetdinner&drinks

How much does it cost?$275forASSDAmembers($330fornon-members)$110foroptionalbanquetdinner&drinks(allcostsincludeGST)

REGIsTER NOW!FOR THE 2009 STAINLESS FABRICATION FORUM

More informationGo to www.assda.asn.au to download the registration form.

Photograph taken at StainlessMetalCraft manufacturing facility EmuPlains,NSW.

The structure and growth of the Association since its inception in 1992 has depended on the ability of its Board to attract a secure financial base sufficient to support the programs put, from time to time, to its members and supporters. This hasn’t always been an easy task.

The early few years were covered by input from BHP Stainless plus some latent support and financial wizardry. The first major financial problem occurred in 1997 initiated by the withdrawal from the industry, and ASSDA, of BHP Ltd.

This Association could have floundered at this time, however, the Board of the day initiated the Major Sponsors program, involving distributor and offshore mills input. These organisations entered into guaranteed inputs into ASSDA both for quantum and timeliness of each contribution. This, with some modest modification, worked well until the current planet-wide financial shudder appeared last year to shake worldwide confidence. The consequences of this phenomena again disturbed the long-term stability of ASSDA’s financial arrangements with one departure from the ranks of the Major Sponsors plus the

question as to how the Brisbane office lease could be financed after September 2009.

The Board again took up the task of solution solving. The current President, Chris Bridges-Taylor, who had been instrumental in the original Major Sponsors program again led the process with a July meeting of minds at her premises. From this meeting some propositions were considered by the August 27 Board meeting which gives hope that ongoing support for an assured financial program – including office leasing – will emerge. This is indeed good news and a victory for ongoing support for ASSDA’s work.

This matter will gain prominence in the 2008/09 Annual Report and will give our rank and file members a chance to raise support questions at the forthcoming Annual General Meeting on October 23.

Best Regards,

Peter J Matheson

ASSDA Secretariat

sECRETaRy’s CONTRIbuTION

FLEXIbLE LEaRNING FOR sTaINLEss aPPRENTICEsAtthebeginningof2008,ASSDAwas successful in its application for funding from the Federal Government for a project focused on the integration of e-learning into industry. The funding has seenASSDAcreateaWorkforceDevelopment Strategy and a FlexibleLearningDeliveryPathwayincorporating e-learning, with plans to develop an additional e-learning module titled Practical Skills of Surface Treatment to complement the existing Gas TungstenArcWeldingModule. TheWorkforceDevelopmentStrategy provides an industry-wide framework in which to address the workforce challenges for the stainless steel industry: skills shortages, staff retention, knowledge retention. This document assisted ASSDA in definingwhattheindustryrequiresin training, skills development and the retention of employees. The body of the project sees ASSDA working in conjunction with SkillsTech Australia and multiple industry partners to develop e-learning as a form of

theory training for apprentices aimingtoacquiretheirqualificationin stainless steel fabrication.ASSDA created a Flexible Learning DeliveryPathwaythatgives apprentices and employers the choice of conducting training both online and within the workplace. This form of training is beneficial to the apprentices as they are able to work at their own pace, in a location of their choice and in a non-threatening learning environment. For the employer the pathway is economical as the apprentice can conduct their study in the workplace, therefore reducing time spent away from the workplace.

Using ASSDA’s Stainless Steel Specialist Course and existing resourceswithintheTAFEsystem,SkillsTech Australia has developed an e-learning system based on therequiredcompetenciesforaqualificationinfabrication,withaparticularfocusontheuniquerequirementsofworkingwithstainless steel. These training modules offer learning through video, audio, text, images and interactives that are interesting

to the apprentice whilst teaching them the underpinning knowledge theyrequiretodevelopaskill.

InMarch2009,12apprenticeswereinducted into the e-learning program for Stage 1a at SkillsTech. This stage is now complete and feedback from the apprentices has been extremely positive. Stage 1b has now commenced and will see the apprentices training solely within the workplace with a workplace mentor to oversee their theory training and instruct them in their practical experience. This is an exciting development aimed at positioning e-learning as the training method of choice within the stainless steel industry and will help meet ASSDA’s goal of building a strong workforce with a focusonqualityandinnovation. If you are interested in viewing theWorkforceDevelopmentStrategy or learning more about the learning options becoming available for apprentices, call ASSDAon(07)32200722.

DAVIES METAL WORKS PTY LTD

TheDaviesMetalWorksteamhaveover60yearsofcombined experience in stainless steel fabrication and installation. Our team is experienced in all aspects of stainless steel fabrication from design through to final product and is dedicated to high qualityworkmanship.DaviesMetalWorksfabricatesstainless steel products for the food, hospital and architectural industries, as well as industrial products for domestic and commercial builders, cabinet makers, caterers and general industry in the NorthernTerritoryandKimberleyregions.

Contact PaulDavies

Phone (08)89473363

Fax (08)89473963

Email dmworks@bigpond.net.au

MORGAN METAL CORP PTY LTD

MorganMetalCorp is anAustralianowned familybusiness which specialises in the supply of stainless steel flat bar, pipe and cut plate all polished to your requirementsinstore.Pleasevisitouronlinestoreat www.morganmetalcorp.com.au

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CALENDAR OF EVENTs

UPCOMING EVENTs

sTaINLEss sTEEL WELdING - assda sEMINaR sERIEs

7-9 September 2009. Melbourne, Sydney, Brisbane.

assda MajOR sPONsORs MEETING

17 September 2009. OneSteel Hemmant, Brisbane. assda FabRICaTION FORuM & aNNuaL GENERaL MEETING 2009

23 October 2009. Sunnybank, Brisbane. sTaINLEss sTEEL WORLd CONFERENCE & EXHIbITION 2009

10-12 November 2009. Maastricht, The Netherlands. For further details on these events, please contact ASSDA on (07) 3220 0722.

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 LouisaCallananatASSDAon(07)32200722oremaillouisa_c@assda.asn.au

Contact RichardMorgan

Phone 1300132728

Fax (07)32713050

Email admin@morganmetalcorp.com

Web www.morganmetalcorp.com.au

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The Federal Government funded project for the integration of e-learning in industry is progressing into its second year. The apprentices are now working through Stage 1b of their CertificateIIIinFabrication(Light)online in the workplace, thanks to the project’s Flexible Learning DeliveryModel(pictured).

The model gives apprentices the option of completing their training through e-learning in the workplace. For apprentices, the self-paced training with appropriate support and the increased accessibility of training enables a faster, less frustrating completion of their studies. For employers, this training method is more economical as both the cost of training and the loss of productive work time is reduced significantly.

Stage2oftheCertificatewillbe available in this form by the endof2009.1stand2ndYearApprentices and employers interested in this training option for2010shouldcontactASSDA’sEducationManager,TamaraChapmanattamara_c@assda.asn.auoron(07)32200722.

Nine of the ASSDA and ISSF StainlessSteelSpecialistCourse(SSSC)modulesarenowavailableonline.Module8the‘Weldingand Joining of Stainless Steel’ now accompanies modules 1, 2, 3,4,5,7,10and17.Module13‘StainlessSteelPipeandTube’andmodule14‘ColdFormingStainless Steel’ will be available online by the end of September.

AnIntermediateCertificate(5modulescompleted)andaFullCertificate(12modulescompleted) are available to

anyone through ASSDA. Certificatesareawardeduponsuccessful completion. If you are interested in finding out more about the Stainless Steel Specialist Courseorarelookingtoenrolin a great opportunity to up-skill through a program created by the best in the industry go to http://www.issftraining.org/ or call ASSDAon(07)32200722.

Calling all 2010 1st & 2nd year apprentices and their employers!

IT’S NOT TOO LATE TO REGISTER! Stainless steel welding - from basics to high productivity

September 7-9, 2009.Melbourne - Sydney - Brisbane

GO TO www.assda.asn.au to download the registration brochure.

FREE! Australian Stainless

Reference Manual with

registration

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ST 2009assda aCCREdITaTIONOver the next two weeks, ASSDA’s Accreditation ManagerAlexCollswillbevisitingfabricatorsinNewcastle,Sydney,Melbourne,AdelaideandPerthto promote the Accreditation Scheme.

Despite the economic climate of the past financial year, 15 fabricators became Accredited, making 08/09thesecondlargestgrowthinafinancialyearperiodsincethescheme’sinceptionin2004.ASSDAcurrentlyhasare64Accreditedfabricatorsacross Australia.

Alex will also be attending a seminar presented by ASSDA in association with Australian Institute ofArchitectsentitled“TheStainlessEdge”-apractical approach to aspects that need to be considered by specifiers when designing with stainless steel.

STAY COMPETITIVE!To join the growing number of ASSDA Accredited fabricatorscontactAlexatalex_c@assda.asn.au

FABRICATORS ACCREDITED IN 08/09

Fingers Specialised Metals NT

Triplenine Stainless NSW

Handrail & Balustrade Fab. SA

UniversalEngineering NT

DiverseWeldingServices WA

LWAEngineering SA

Inox Fabrications Australia VIC

A&GEngineering(NSW) NSW

Signature Stainless SA

AGCIndustriesPtyLtd WA

A&GEngineering(SA) SA

AnconBuildingProducts NSW

Stainless Tanks Australia QLD

ParamountStainless QLD

DaviesMetalWorks NT

Did you knowthat as a member of the Association, you can contribute to our Association’s future by participating in our AGM? This year’s AGM will be held in conjunction with the Stainless Fabrication Forum in Brisbane on Friday, October 23. The Forum is replacingPacRimStainless2009,soitwill be your best opportunity this year to network and catch up with others in the stainless steel industry. Visit www.assda.asn.au for more information.

Everwantedtotakeacloseup look at one of Australia’s largestfoodserviceequipmentmanufacturingfacilities?Youcantour the Stoddart showroom and manufacturing facility as part of ASSDA’s Stainless Fabrication Forum in Brisbane on Friday, October 23. Visit www.assda.asn.au for more information.

INDUSTRY NEWS LOCaL & GLObaL

IRON AWE BUT COALMINERS CAUTIOUSThe Australian

Demand for Australia’s two biggest exports, coking coal and iron ore, has been building in recent months, as steel mills in the struggling markets of EuropeandJapanstarttocrankup idle blast furnaces, joining strongbuyingfromChina.

But while iron ore miners are relieved at avoiding a more protracted slowdown, coking coal producers remain guarded because China’s recentlydormant coal industry threatens to spoil the party.

Its capacity is three times the size of total global exportsand an unknown amount lies idle, but it is believed much of it can be quickly brought intoproduction.

After production and jobs were slashed during the global financialcrisis,Queensland’scoalmines have been undergoing a mini-boom in the past quarter,withXstrata, Peabody,MacarthurCoalandBHPBillitonrestarting idle production and re-employing some workers.

Demand growth became obvious last quarter, sparkedby the closures of thousands of small Chinese mines forsafety, environmental and cost reasons.

Chineseimportsofcokingcoal,mostly from Australia, surged to about4.6milliontonnesinJune,upabout50percentfromMay,compared with virtually nothing ayearearlierwhenChinawasanet exporter.

WORLD PIG IRON PRODUCTION IN JUNE UP BY 3.34PCT MOMSteelGuru

According to the data released byTheWorldSteelAssociation,world pig iron production for the countries surveyed was 74.19million tons in June down by 11.35%YoY,butupby3.34%MoM.

Meanwhile, global direct reduced iron production in June totaled 4.578 million metrictons, decreasing by 10.14%YoYascomparedtoJune2008andby1.48%MoM.

Moreover, world pig iron production in the first half of the year amounted to 410.55million metric tons, decreasing by 15.67% YoY, while globalDRIproductionintheperiodinquestion decreased by 9.24%to26.3millionmetrictons.

PNG MINING CHIEF HALTS NICKEL OPERATIONSABC Online

Papua New Guinea’s chiefinspector of mines has revealed that work at a $1.7 billion nickel mining project has been suspended because of health and safety concerns.

The chief inspector of mines, Mohan Singh, ordered a halt to constructionworkattheRamunickelmineinMadangProvincelast week.

Mr Singh went to the site to investigate an accident in May in which a worker was injured after being run over by a tractor.

NICKEL PRICE FORECAST RAISED BY CPM FOR FINAL QUARTER ON STRIKEBloomberg

Nickel will average 6 percenthigher in the fourth quarterthan previously forecast after a strike at Vale SA and increased importsbyChina,accordingtoCPMGroup.

Nickel for immediate delivery will average $15,015 a metricton in the final three months this year, up from a previous forecastof$14,155aton,CPManalystCatherineVirgasaidbyphonefromNewYorktoday.

Vale workers in Sudbury, Ontario, began picketing the company’s sites on July 13 after voting against a proposed contract. The company had through such an agreement sought concessions on pensions, bonuses and seniority benefits, according to Wayne Fraser, a director atthe United Steelworkers union. China’s imports of unwroughtnickel and alloys climbed for a third month in June, customs data showed.

CPMalsoraiseditscopper,lead,aluminum and zinc forecastsand lowered its estimate for tin, Virga said.

MEPS SEES RECOVERY IN STAINLESS STEELSteelGuru

UK based consulting majorMEPS sees a recovery inthe stainless steel sector is underway. World steelproduction in the second half of this year will be significantly higher than in the first six

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INDUSTRY NEWS LOCaL & GLObaLmonths. It said that “The Asian market has started to pick up. Destocking is coming to an end in most western nations and inventory rebuilding has commenced. We should pointout that this revival is from a verylowbase.”

MEPS forecasts global crudestainless steel production at 21.6milliontonnesin2009.Thisequates to a 16.7% reductionon the previous year’s outturn and a 23.5% decrease on the peakvaluein2007.However,itrepresents a significant upturn in the fortunes of the industry compared to results in the final quarter of 2008 and the firstthree months of this year.

MEPSsaidthat“DemandontheEUmillshaspickedupinrecentmonths. Rising nickel costshave prompted end users and distributors to begin to place orders, as stainless steel selling values show signs of further increases. Several regional mills plan to lift output later in the year. We now expect 2009production to reach 5.7 million tonnes -27%belowthe2008figure.’

It added that “Japanese output collapsed in the first trimester. Wedo,however,detectapickup in consumption from the automotive and IT sectors. The main steelmakers have indicated that they will increase production to meet the requirements ofthe market over the next few months. The total for this year is not expected to reach the 2 milliontonnemark.”

MEPS said that “Real demandin the United States remains at a low level. However, the local mills have started to claw back market share from importers.

This is expected to continue for the remainder of the year.Wenowexpectcrudeoutputin2009tobe900000tonnesbelowthepeakfigurein2006.”

Italsosaidthat“SouthKoreanactivity is likely to remain relatively slow. A modest improvement in production is anticipated in the second half of the year but from an extremely low point in thefirstquarter.Incontrast,theTaiwanese market has picked up as a result of government stimulus measures. The two major producers have increased output. This year’s total should nowreach1.1milliontonnes.”

Itaddedthat“Chinesedemandand production rose in the first trimester as the producers lifted their operating rates to near maximum capacity.We believethat oversupply will develop in the coming months and a slowdown in orders will take place. Nevertheless, we predict a record production level in 2009.”

MEPS also said that “Stainlesssteel production in the remaining countries held up reasonably well. Mills in India maintained a strong activity level during the first three months of the year. This is expected to continue. Steelmakers in South Africa and Brazil made significant cuts inoutput in the first quarter butincreases are predicted over the nextsixmonths.”

NICKEL AT CURRENT PRICES WILL SEE MORE SUPPLYCommodity Online

Nickel gained as the demand for stainless steel is expected to have bottomed out. There is plenty of

spare nickel capacity and new supplies are also expected to start if the prices stay near the currentlevels.Chinaholdsmorethan 100,000t of commercialnickel stocks, according to the state-controlled research agency, Antaike. It is expected that nickel market may show a surplus of 91,000 tonnes in2009, which could largely beworkedoffbytheendof2010.But with plenty of spare idled capacity available, the price will be as much a hostage to supplier responses as to the size and rapidity of the globaleconomic recovery.

The LME warehouse stocksthough have declined this month but are still at much higher levels as compared to previous years which may provide hindrance to the rise in prices in the coming months. Nickel has formed complete V pattern last month. It formed a high of Rs794/kgin the beginning of the month, but failed to sustain at higher levels as was not able to surpass theresistanceofRs800/kg,thusrelegated to lower levels of aroundRs702.20/kgfromwhereit has bounced back swiftly.

It is still facing crucial resistance at$16600/tinLMEandRs795-800/kginMCX.Thetrendisquitefavorable for bulls at present and once the level is taken out convincingly, one can expect it to traverse an upward journey and even form new highs of this yearinitiallyofaroundRs850/kgand then Rs940/kg, otherwisesome consolidation might be seen.

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MajOR sPONsORs

Atlas Specialty Metals

Austral Wright Metals

Fagersta Steels Pty Ltd

Nickel Institute

Outokumpu Pty Ltd

Sandvik Australia Pty Ltd

sPONsOR a

Acerinox Australasia Pty Ltd

BHP Billiton Stainless Steel Materials

OneSteel Stainless

Outokumpu Stainless

Valbruna Australia Pty Ltd

sPONsOR b

ArcelorMittal Stainless International

Morgan Metal Corp Pty Ltd

Nisshin Steel Co Ltd

Stoddart (Tom Stoddart Pty Ltd)

TOTAL MEMBERS:

250

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:

Morgan Metal Corp Pty Ltd

Paramount Stainless

Shakanda Australia Pty Ltd

Jansen Industries (Aust) Pty Ltd

Star Stainless

M B Fabrication Pty Ltd

Stainless Fabrications (WA) Pty Ltd

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

Davies Metal Works Pty Ltd

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

Ever wanted to take a close up look at one of Australia’s largest foodservice equipment manufacturing facilities? You can tour the Stoddart showroom and manufacturing facility as part of ASSDA’s Stainless Fabrication Forum in Brisbane on Friday, October 23. Visit www.assda.asn.au for more information.