Kalyani Groups specialty steel makers Kalyani Steels is set to take over the 0.25 million tonne steel plant of SJK Steel at Tadipatri near Hyderabad. Mr BN Kalyani chairman of the group said We expect to finalist this acquisition fairly quickly since we are interested in capacities. Mr Kalyani also said that there was scope to expand capacities at its existing location.

While Mr Kalyani declined to comment on the acquisition price or the stake, indications are that the Kalyani group is looking to acquire an 80% stake for Rs 56 crore and that KSL is keen that the original promoter Mr Jithin Kumar retains a minority stake.

Mr Kalyani said that a special purpose vehicle would have to be formed for the acquisition since KSL will run the plant but is unwilling to take huge Rs 1300 crore debt on its books.

Construction at the SJK plant began in 1995 and it was completed in 2005. It is currently produces hot metal and its blast furnace is working at full capacity while its steel melting shop is shut. Revival will require installation of a second blast furnace, a rolling mill and commissioning of melting shop.

Essar Globals wholly owned subsidiary Essar Wind Power Pvt Ltd has signed a licensing agreement with RE Power Systems AG of Germany on for the design and manufacture of 1.5 and 2 MW wind turbines in India and marketing in South East Asia. According to a company spokesman, the two corporations have also agreed to set up a JV in the near future, which will allow access to 3MW and 5 MW turbines as well as other future developments and wider market reach.

EWPL proposes to set up the manufacturing plant in a port based location either in Hazira or Bhuj and plans to pump in around Rs 50 crore as initial investments and would be funded through internal resources, a company release said. The company plans to start commercial production by the middle of 2007.

Mr Anshuman Ruia director of Essar Power said that the agreement comes at a time when there is a huge demand for power in India. He said "It also fits in perfectly with our strategy of diversifying into renewable energy sources," he said.

The Indian market for wind energy is the largest in Asia and the fourth largest in the world. According to estimates, India has wind resources to harvest around 45,000 MW of power. Currently, India has about 5,300 MW installed wind power capacity with additional capacity of 1700MW to 1800MW likely to be added in 2006-07.

It is reported that Jindal Stainless Limited is considering investing Rs20 billion in a stainless steel manufacturing project in Pakistan and is trying to talk to the Pakistans Board of Investment for this purpose and will go ahead with its plans after getting approval.

Mr RK Goyal director commercial on the sidelines of a conference on Enhancing competitiveness through use of chromium-manganese austenitic stainless steel organized by Pakistan Sugar Mills Association told newsman that his company was interested in investment in Pakistan because stainless steel worth Rs1 billion was being consumed in Pakistan annually and the consumption was increasing by an average 15% to 20% per annum.

Tata Steel and Indian School of Mines signed a MoU for appointing a Tata Steel Chair Professor" in the mineral processing with fuel & mineral engineering department in ISM. TATA Steel Limited has granted Rs one crore to ISM for this purpose.

The appointed professor would be part of the faculty and conduct research and development work on coal and mineral beneficiation. The agreement would give access to the Chair professor to give recommendations and to TATA Steel on daily basis.

This alliance would not only help miners in TATA Steel to enhance their knowledge base but would also enable ISM students to gain information about operations in coal mining.

It is reported that Indian SS maker Shah Alloys Ltd has raised over Rs78 crore ($16.96 million) through Foreign Currency Convertible Bonds and Global Depository Receipts.

Shah Alloys is looking to raise their annual melting capacity from 0.26 million tonnes to 0.32 million tons by installing a new EAF and expanding CR capacity. They are also currently raising funds to be able to increase their captive power project capacity.

Indian Railways have generated Rs. 16334.34 crore of revenue earnings from freight traffic during the first five months of the current financial year as compared to Rs 14125.13 crore during the corresponding period last year, registering an increase of 15.64%. Railways carried 288.81 million tonnes of freight traffic during April to August 2006 as compared to 262.91 million tonnes carried during the corresponding period last year registering an increase of 9.85%.

The earnings from freight traffic during the month of August 2006 were Rs. 3112.22 crore as compared to Rs. 2786.25 crore during August 2005. Railways carried 55.34 million tonnes of freight traffic during the August2006 as compared to 51.56 million tonnes in August 2005.

The volumes transported and earnings from important sector during August 2006 is as under

Sector Earnings in Crores Volume in million tonnes

Anil Dhirubhai Ambani Group and Singapore based Temasek Holdings 50:50 JV Reliance India Power Fund has picked up 23% stake in Mumbai based unlisted power equipment company EMI Transmission for Rs 50 crore. KPMG Corporate Finance was the advisor to this transaction.

EMI is a supplier to power transmission line companies and intends to use the proceeds to fund its growth plans, including expanding its existing capacity, setting up a new plant in Sharjah and a rubber plant in Nashik.

This deal has resulted in EMI deferring its proposed IPO, which was supposed to hit the market this year.

Suzlon Energy has asked the New Mangalore Port Trust to set up an exclusive berth and 60,000 square meter storage area to facilitate export and import activities of its upcoming windmill manufacturing unit in Udupi near Manglore.

The plant is being developed at the energy SEZ in Udupi at the cost of Rs 4,000 crore. The windmill manufacturing unit will be zero effluent and zero pollution plant. Exports will comprise of wind turbine generators, rotor blade units, nacelle cover units and control panels and Suzlon will import steel plates for its plant.

Larsen & Toubro Ltd has recently announced that it has reached an understanding with Swedish heavy vehicle major Scania to distribute its range of multi axle trucks in India.

These heavy duty trucks, in the 300HP to 500HP range, will cater to the needs of the construction and mining sectors. The trucks will complement the Company's range of hydraulic excavators that are widely used in mining and construction projects around the country.

Scania, with a turnover of $8.8 billion, is a leader in the production of trucks of capacities exceeding 16 tonnes, heavy duty buses and engines for mining, power generation and marine applications. Currently, about one million Scania vehicles are in operation in 100 countries in Europe, Latin America, Asia, Africa and Australia.

Indias mineral industry major Ashapura Minechem has sold about 20% for Rs 150 crore to a clutch of foreign funds under the qualified institutional placement route. The money will be used to finance the company's expansion program that includes the Rs 2,500 crore alumina projects in Gujarat and processing units in Nigeria.

The institutional buyers include HSBC Global Investment Fund, Deutsche Securities, DSP Merrill Lynch, Standard Chartered Bank, Union Bank and Bank of India.

The QIPs were introduced after SEBI was concerned that the Indian market was losing out to its overseas cousin, which was a preferred destination for Indian companies to raise resources.

USs 2nd largest steel maker Nucor Corp said that its 2006 profit probably will rise to a record for a third straight year as metal demand keeps prices close to 18 month highs.

Mr Terry Lisenby CFO of Nucor said "We expect to set a new quarterly earnings record in the third quarter and 2006 should be our third consecutive record earnings year."

Nucors profit was $1.31 billion in 2005 and its H1 of 2006 net income rose to $832 million from $677 million a year earlier.

Carpenter Technology Corp announced that its specialty alloys unit is changing its surcharge mechanism to raise the nickel premium component to 38 cents per pound from 30 cents effective October 1st 2006.

Carpenter said that strong market demand for nickel based super alloys and stainless products have contributed to rising nickel premiums.

Carpenter makes corrosion resistant materials, including stainless steel products and alloys that provide special heat or wear resistance or special conductive properties for aerospace, automotive, medical and industrial companies.

Vietnamese media has reported that Vietnams ministry of planning and investment has licensed Tycoons Group Enterprises local subsidiary Tycoons Worldwide Steel Vietnam to invest $1 billion in a steelworks factory in the Dung Quat Industrial Zone in the central province of Quang Ngai. The ministry has said that Tycoon will receive the license on September 18th.

Tycoons Worldwide Steel Vietnam, which is presently operating a CR complex in Ba Ria-Vung Tau Province, had submitted an application for the license to the ministry in this March for setting up a 5 million tonne steel plant along with rolling mill.

According to the ministry the 1st phase would require an investment of $539 million to produce 2 million tonnes of steel by 2009 followed by another $500 million investment to increase capacity to 5 million tonnes by 2013.

Russian government feels that Russia is facing major discrimination on the world metal market after the European Union has re imposed anti dumping duties on Russian made steel pipes varying from 24.1% to 35.8% on June 29th as against previous duties of 26.8% during 1997-2004.

Mr Andrei Deineko the head of the ministry's industry department said "The recent EU decision to impose anti dumping duties on rolled pipes is an insolent trampling on all international trade principles. Although the European Union acknowledges Russia as a country with a market economy, it again treats us as an uncivilized country.

He said the ministry will seek a special probe into dishonest rivals and anti dumping sanctions on stainless rolled products from Europe. He said "We should respond properly to challenges on the world market.

South Koreas shipbuilding exports are projected to increase by 24.1% to surpass record $20 billion levels in 2006 resulting in contributing $19 billion to countrys trade surplus. Shipbuilders posted over $11.35 billion in exports in the six months to June this year and are expected to secure another $10.65 billion in the second half, to reach an annual sum of $22 billion.

Korean shipbuilders accounted for 38.5% of global production volume and 37.9% of total order backlogs worldwide in the first half of this year. They also received new orders for 1,083 ships worth $86.7 billion in the eight months to August. They are expected to build 11.23 million compensated gross tonnages this year up by 10% over 2005.

Korea Shipbuilders Association said in a report released that "Korea is outdoing Japan and other rivals in liquefied natural gas carriers, floating production, storage and offloading vessels and 10,000 TEU container ships which cost over $200 million per unit.

Mr Kim Jing-wan chairman of KOSHIPA and CEO of Samsung Heavy Industries Co during a celebration of Shipbuilding Day said "We surprised the world with innovative technologies of new engineering methods using mega blocks, skids and dams that changed the landscape of the shipbuilding industry.

JMB has reported that Japanese ferrous scrap export price reached to 27,000 yen per tonne for the first time in 2 years and 6 months as Taiwanese steel makers increase scrap purchase from Japan after the summer time maintenance outage.

It said that at the monthly export tender for October shipment held by Kanto Tetsugen on Tuesday successful bid averaged at FAS 27,300 yen up by 2,030 yen from previous tender.

Tokyo Steel Manufacturing and other Japanese electric furnace steel makers are trying to secure scrap under the tight supply situation.

Vietnams ministry of natural resources and the environment in a newly promulgated document has allowed imports of 20 categories of scrap for recycling in Vietnam. The decision by MoNRE is expected to be welcomed by local steel makers, for whom steel scrap is the mail manufacturers, which are thirsty for material.

As per reports now several thousand tonnes of scrap steel being kept at ports will get customs clearance and several hundred imported vessels intended for domestic demolition are also being kept at ports.

The Vietnam Steel Association had earlier warned that if Vietnam prohibits scrap steel, the local steel industry would perish, as many mills would have to shut down due to lack of material.

BNamericas citing an analyst has reported that Colombian steelmaker Acers Paz del R would finalize its sale by 2006 end to be able to take advantage of high steel prices on international markets.

Mr Edgar Jimez of Promotora Bursil de Colombia told BNamerica that "It needs to be sold quickly because nothing guarantees that steel prices will stay high. On the contrary, it's expected that the prices will start to drop since China is showing some signs of slowing down. It's nothing serious but there are signs and if it manages to sell quickly, I think it will be the best deal that the workers and selling parties can make here in Colombia."

The sellers of the 42.5% APR share package are its employees who hold 33.4%, the state's industrial development institute IFI with 6.9%, and the finance ministry with 2.2%. Among the other shareholders, Boyacs government controls 20.91% of APR and has said that its stake is not for sale.

According to local press reports companies that have shown interest in buying the APR shares will have access to a data room for a fee of 80mn pesos ($35,000), giving them the right to access all existing information about the company. As per reports practically all of the large companies in the steel sector including Arcelor Mittal, Gerdau and Techint are interested.

Belem based APR produced 304,222 tonnes of steel products mainly drawn wire rods, hot rolled plates, bars and cylinders.

Sumitomo Metal Industries announced that it will start commercial production of ultra high strength line pipe in fiscal 2010 ending March 2011 after 10 billion yen ($85 million) expansion at its Kashima works.

With the investment, the firm can produce the grade API5L X100, which represents strength that doesn't deform under a force of up to 70 kilogram per square millimeter of internal pressure.

The company intends to begin producing the pipe in 2011 for the planned US natural gas pipeline linking the state of Alaska with the city of Chicago. This pipeline will cover a distance of approximately 5,600 kilometers, and Sumitomo Metal estimates that it will involve the laying of some 2 million tons to 2.5 million tons of steel pipe.

As per release Sumitomo Metal Industries is targeting that high strength products represent 95% of total sales for large diameter welded pipe in fiscal 2011.

Amid a global shortage scenario, Xstrata Plc, Votorantim Metais and Louis Dreyfus Corp have agreed to buy zinc concentrate from miner AIM Resources Ltd for their plants.

Sydney based AIM said that the concentrate will come from its Perkoa mine in Burkina Faso. Perkoa will be able to produce zinc concentrate at a rate of 65 000 metric tons a year over a 14 year mine life. Production will start mid 2007.

Mr Marc Flory MD of Aim said in the statement that "The purchase agreement with the three companies is a key step forward towards finalizing our funding arrangements for the development of Perkoa."

Under the announcement made by Chinese government agencies on 14th September, the export rebate has been removed for unwrought zinc of 99.99-99.995% purity, unwrought zinc of less than 99.99% purity, unwrought lead, zinc & lead scrap, zinc & lead powders, unwrought zinc alloys, and unwrought lead alloys.

Unwrought zinc formerly had an export tax rebate of 5% while unwrought lead had a rebate of 13%.

In the same announcement, the government said export rebates on various zinc and lead semi products have also been reduced to 8% from a previous 13%. These semis include mainly zinc and lead rods, bars, wires, extrusion, sheets, strips, and foil.

A Beijing based trader said the removal of export rebate on zinc was expected, but the removal for lead was quite a surprise and there will be quite a big impact on the lead market.

Reuters has reported that French Total SA will launch its new R210 million 1.5 million tonnes per year Forzando South coal mine in South Africa by end November this year and is awaiting a license to build the 0.5 million tonne per year Tumelo mine.

Mr Jean-Marc Otero del Val MD of Total Coal South Africa on the sidelines of a coal miners meeting told Reuters that "We are already producing some 10 000 tonnes a month from Forzando South, it is in the commissioning phase and the grand opening will be at the end of November or early December."

He said that Forzando South mine will produce only a third of its capacity in 2007 but will ramp up gradually to full capacity once the expansion of the country's coal export terminal is completed in the first half of 2009.

Total Coal SA, which currently produces about 4 million tonnes of coal and exports about 80% of its output, plans to export most of its new output. The company had previously said that it has reserves of 25 years at its original Forzando mine and would produce more if it had additional rail and export handling capacity.

Mr Otero del Val said the push to boost output by his company was market driven. He said "As an oil and gas company, we see the coal market as very reasonably robust in the future. Carbon is lacking on earth and because of this we see a very strong and bullish market, it may see dips and peaks, but will be overall robust."

Chinese steel raw material trader Sino Steel and Shandong Province based Taishan Steel Group have recently signed agreements for strategic cooperation in Laiwu.

Mr Wang Shoudong chairman of Taishan and Mr Huang Tianwen president of Sino Steel signed an agreement for strategic cooperation and Mr Wang Yongsheng deputy GM of Taishan Steel and Mr Xin Xile GM of Sino Steel signed another agreement for steel sales.

Taishan Steel Group and Sino Steel have been cooperating in raw material trade, product sales, technical innovation and market exploration even before this agreement.

AFP has reported that Arcelor Mittal intended to continue its expansion mainly in Asia but also in the Middle East.

Mr Roland Junck CEO of Arcelor Mittal recently said that the group would grow in Asia, an area of the world where it was least active.

Head of the Federal Industry Agency has suggested that Russias largest automakers AvtoVAZ, GAZ and Kamaz could merge to create a national champion in the car-making and engineering industry.

Mr Boris Alyoshin told RIA Novesti that The amalgamation of Russias largest automakers is possible, but these processes should occur naturally, without any forced measures. Kamaz operates as a self sufficient company, so we could talk about an alliance of car manufacturers. Mr Alyoshin praised Kamazs development strategy as absolutely right and positive and said the auto giant was a modern and dynamically developing enterprise.

Howver Mr Sergei Kogogin chief of Kamaz said his company planned to remain an independent truck designer and manufacturer but added that this independence does not mean that there would be no new alliances with leading global manufacturers of auto components.

BHP Billiton Ltd said it will extend its on market share buyback program for a further 12 months, until September 30th 2007.

Reuters has reported that BHPB said it may buy back up to 349 million shares on the Australian Stock Exchange, which represents less than 10% of its issued share capital.

Last month, BHPB said it would return US$3 billion to shareholders over the next 18 months via a series of buy backs.

As per a pact recently signed recently in Colombo the Asian Development Bank will provide $225 million to part finance Colombo port's expansion project.

The first phase of the project, estimated at $615 million, presupposes the construction of breakwater and a container terminal and for dredging.

The government of Sri Lanka proposes to expand the South Colombo terminal to enable deep draught vessels to enter the Colombo port by 2010 to be on a par with other leading ports of the world.

Mr Malay Mukherjee has been appointed in Arcelor Mittal board last month with responsibility for mining, Asia & Africa, stainless steel business areas.

Mr Mukherjee has over 30 years of experience in a variety of technical and commercial functions in the steel industry, including iron ore mining, project implementation, materials management and steel plant operations.

He joined the LNM Group in 1993 from Steel Authority of India Limited, where his last position was as ED Works at the Bhilai Steel Plant. Mr Mukherjee joined Ispat Karmet in 1996 from Ispat Mexicana where he was MD. He joined Ispat Europe as president and CEO in June of 1999 to take higher responsibilities. Formerly the president and COO of Ispat International NV, Mr Malay Mukherjee became COO of Mittal Steel Company in October 2004.

Mr Mukherjee has a Masters Degree in Mining from the USSR State Commission in Moscow and a Bachelor of Science Degree from the Indian Institute of Technology in Kharagpur in India. Mr. Mukherjee has completed an advanced management program conducted by the Commonwealth Secretariat in joint association with University of Ottawa in Canada and the Indian Institute of Management Ahmedabad.

Mr. Mukherjee is also a recipient of the MECON Award from the Indian Institute of Metals.

It is reported that Vietnams ministry of trade officials met representatives from the Vietnam Steel Association to discuss ways to keep stricter control over steel imports as cheaper Chinese steel is flooding Vietnam and VSA is contemplating trade actions.

Trade ministry officials said that no suitable solution has been found to the current situation and Vietnamese rebar makers have to cut costs and source cheaper billets in order to reduce production costs.

Mr Pham Chi Cuong chairman of VSA Chairman said that trade ministry officials feel that Vietnamese steel producers were not in a good position to file an anti dumping suit against Chinese producers as Chinese steel has been flooding Vietnam for one month only and VSA has not collected enough information to prove that Chinese enterprises are dumping their products in Vietnam. VSA would have to collect information about the selling prices in the Chinese market in the last year, about the production costs and the Governments support for Chinese producers to start anti dumping proceedings.

As per reports approximately 10,000 tonnes of Chinese rebars have been imported to Vietnam in the past month almost at price levels of billets making local rebar makers uncompetitive.

As the long product price in China on rise off late, the Vietnamese rebar makers will feel reduced impact.

Metalloinvest Holding's Orenburg Region based Urals Steel plants produced 2.47 million tonnes of crude steel during January to August 2006 almost at the level of 2.49 million tonnes production during January to August 2005.Its hot metal production during this period was 1.7 million tonnes and rolled steel production reduced by 2.3% YoY to 1.9 million tonnes.

Urals Steel produced 324,600 tonnes of crude steel in August 2006 as against 339,100 in August 2005, 206,700 tonnes of hot metal as against 226,200 in August 2005 and 244,600 tonnes of rolled steel as against 243,800 tonnes in August 2005.

Urals Steel is a fully integrated mill with 4 million tonne crude steel capacity and produces several types of carbon, alloyed and low alloy steel.

Mysteel has reported that Benxi Steel announced to change ex works prices for CR flat products by RMB 280 for October delivery over September price level with immediate effect.

As per the report the base price change is as under

Persian service of ILNA has reported that Irans steel industry registered a 5% growth during the first 5 months of the current Iranian year, which started on March 21st 2006 and by 2.5% during the past 16 months.

Mr Abdorreza Rasuli MD of Irans National Steel Group told ILNA that due to the recent reduction in the international steel prices, steel imports have become more viable for domestic users. Mr Rasuli said that the figures show that exports of steel products have increased by about 4% during the 5 months although there was not any export of beams.

He explained that supplying the earthquake stricken regions of the nation with their iron products needs, steel production plants full capacity operation and their avoidance of exporting the commodity with the aim of regulating the market, launching a new steel production plant within the next 4 months are among some examples of good cooperation and coordination between Irans National Steel Industrial Group and the government.