Steel Authority of India Limited is reported to be firming up plans to move into high end steel products required for making auto body, oil & gas transmission pipes and the white goods sector and has asked MECON to conduct a feasibility study on speeding up expansion and is also looking at a better product mix.

Mr SK Roongta chairman SAIL has made a plan to move up in the value chain while increasing the capacity to 40 million tonnes by 2020. Mr Roongta told ET that While the Rs 37,000 CAPEX program is already on, my effort would be to launch sustenance schemes, quality improvement, cost competitiveness and move up the value chain.

So far SAIL was making CR for inner applications in auto components but now it plans to move into CR for outer application. The new cold rolling mill being set up at SAILs Bokaro Steel Plant would have capability to make CR steel sheets for outer application in auto segment and appliances segment.

Under these plans SAIL would also be making steel plates and coils in higher API grades like X75 etc for supplies to booming gas & oil pipe segment.

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week.

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

Steel Authority of India Limiteds Rourkela Steel Plant has posted an impressive performance in sinter plant, blast furnaces and steel melting shops registering its best show for august since the plant's inception. Sinter plant produced 264,206 tonnes, BFs produced 176,846 tonnes of hot metal and SMS produced 164,121 tonnes of crude steel registering growth of 69%, 50% and 51% YoY respectively over August 2005.

RSPs finishing lines produced best ever August figures of 156,782 tonnes of total saleable steel up by 38% YoY over August 2005. As per reports, the category wise August production is as under

JSW Steel is reported to be considering plans to manufacture cold rolled grain oriented electrical steel. Mr MVS Sheshagiri Rao director finance of JSW Steel said "CRGO steel is a potential segment and JSW Steel has plans to tap this. Since manufacturing being technologically intensive, we will talk to global players for getting the right technology."

CRGO a critical raw material for the electrical industry and is not manufactured in India and the entire requirement is met through imports. As per estimates the domestic demand for CRGO is more than 0.1 million tonnes but is likely to go up substantially due to infrastructure development and expansion in power sector.

Rastriya Ispat Nigam Limiteds Visakhapatnam Steel Plant has produced 0.333 million tonnes of hot metal, 0.278 million tonnes of liquid steel and 0.237 lakh tonnes of saleable steel during the month, of August 2006. VSPs production figures for April to August 2006 are 1.688 million tonnes of hot metal, 1.48 million tonnes of liquid steel and 1.307 million tonnes of saleable steel.

VSP achieved sales of Rs 679.5 crore during August 2006 and the cumulative sale for the April to August 2006 is Rs 3,205 crore up by 9% YoY over April to August 2005. Domestic sales accounted for Rs 3,015 crore and exports Rs 190 crore.

It is reported that the Indian government is planning a new royalty structure for coal with a fixed as well as a variable component to replace the existing system of a fixed rate per tonne of coal extracted, based on suggestions the Prime Minister's Advisory Council headed by Dr C Rangarajan.

The new formula is a middle way to accommodate the interests of both coal producing and coal consuming States. The coal producing States had been demanding the introduction of an ad valorem royalty system and states without coal reserves had been demanding continuation of the existing system.

At present the state governments receive a predetermined fixed amount per tonne of coal mined and their revenues are not linked with the selling prices. As per the new formula, the new royalty amount would be determined by the summation of a fixed amount per tonne that would be decided by the Government plus a fixed percentage of the selling price of the coal.

The implementation of new system would increase the royalty revenues from coal by 5% to 10% but may result to an equivalent increase in coal prices if the producing companies decide to pass on the increased costs to the consumers.

Jindal Stainless Ltd has informed that the its board of directors at a meeting held on September 2nd 2006 have decided to elevate Mr VS Jain as Managing Director & Chief Executive Officer of the company with immediate effect.

JSL also informed that Mr B D Gupta has been inducted as additional Director.

29 young members of TATA Steel Parivar from Kalinganagar, after successful completion of a training program on welding technology under the TATA Steel Parivar initiative, have been appointed in the construction companies engaged in the project work.

Upon commissioning the TATA Steels Kalinganagar Steel Plant, these trainees will be employed as per the Rehabilitation & Resettlement policy of Kalinganagar Industrial Complex.

TATA Steel Parivar was formed by TATA Steel to ensure better future for all the displaced families at its Greenfield steel project sites. The TATA Steel Parivar concept is based on the need to address the rehabilitation and resettlement issues of displaced families. Tata Steel believes that industry is as much responsible for protecting and improving the quality of life of the project affected people. Each displaced family will be identified as a member of the TATA Steel Parivar and would receive long term support from the Company.

TATA Steel, in collaboration with Nettur Technical Training Foundation, has designed a customized training intervention titled Prerana for a brighter future to deliver quality training to the displaced youths of Kalinga Nagar.

Steel Authority of India Limiteds 41 employees have been selected for the prestigious Vishwakarma Rashtriya Puraskar for 2005 and will receive the award on September 17th 2006. Among the SAIL winners, 35 employees hail from Bhilai Steel Plant, 4 from Rourkela Steel Plant and 2 from Salem Steel Plant. The total cash prize for all the SAIL award winners works out to be Rs 2.1 lakh.

Vishwakarma awards are distributed every year by the ministry of labor on the auspicious day of Vishwakarma Puja. The awards are given to employees of industrial undertakings, mines, plantations and docks in recognition of their outstanding innovative contributions leading to improvement in productivity in their own area of work

Reliance Energy Ltd plans to develop a 1,000 MW coal based Rajbar power project along with a 5 million tonne thermal coal mine in Jharkhand at an investment of Rs 5,000 crore and has identified around 1,300 acres of land. REL is reported to be pushing for a completion time frame of around mid 2011.

As per reports REL has submitted a detailed project report to the Central Electricity Authority and has also got in principle approvals from Punjab National Bank and Standard Chartered Bank for project financing, sources said.

REL has finalized arrangements with Indian and international coal mining companies for bringing in mining techniques and high productivity equipment for the coalmine. REL is looking to synchronize the commissioning schedule of the first unit of the power project with the start of the mine production.

Japanese Nihon Keizai Shimbun reported that world's 2nd largest steelmaker Nippon Steel Corp and the 3rd biggest steel maker POSCO are considering expanding their capital and business partnership amid worries that they could become takeover targets given the global realignment in the steel industry.

Nihon Keizai Shimbun citing unidentified officials from Nippon Steel said that discussions are underway to bolster their alliance for developing mines in Australia and other areas in 2007 and on transporting raw materials. They are also planning to supply each other with slabs during maintenance of BF and other facilities.

According to the report, Nippon Steel and POSCO are also discussing strengthening cross holding. Nippon Steel has currently a stake of just over 3% in POSCO and POSCO owns slightly more than 2% stake in Nippon.

SSAB has sold its minority holding in the UK electrical steels company Cogent Power to its majority owner Corus for $34.3 million.

Cogent Power was formed in 1991 through a merger of SSAB's and British Steel's respective electrical steels operations and is one of the largest producers of electrical steels in Europe. Prior to the deal, 75% of Cogent Power was owned by Corus and 25% by SSAB. The operations are based in Wales, Sweden and Canada.

Mr Olof Faxander president and CEO of SSAB in a press statement said "Following exercise of a put option we have sold our 25% holding in Cogent Power to Corus. Since the synergies with other operations within the Group are marginal, the sale is a natural step towards concentrating upon our niche strategy in high strength steels."

SSAB produces high strength steel sheet and steel plate. The group comprises four subsidiaries: SSAB Tunnplat and SSAB Oxelosund are the steelworks businesses, Plannja is the processing company and Tibnor is the group's trading arm. SSAB group has a turnover of almost SKr 25 billion ($3.45 billion).

Russian pipe major TMK announced that it would go ahead with plans to issue $300 million in Eurobonds and would use proceeds to fund a loan to its key shareholder TMK Steel Ltd to increase its stake in the company. After the debt is repaid, the company intends to use the funds to finance its strategic investment program.

The bonds would be issued by TMK Capital SA, its Luxemburg based special purpose vehicle. The bond issue will be managed by City Group, Credit Suisse, Dresdner Kleinwort and Renaissance Capital.

TMKs strategic investment program need about $1.2 billion CAPEX investment till 2010, which aims to raise production efficiency, product quality and expand the range of seamless pipes. TMK said that it has already implemented 25% of this program.

TMK is the world's second largest steel pipe producer with 2.86 million tonne pipe production in 2005 accounts for 42% of Russian pipe output.

US based investment bank Lehman Brothers have forecast that the earnings of Korean shipbuilders would improve through 2008 and beyond as the tight supply and demand balance in ships allows them to pass on rising costs. Lehman expects earnings at the shipyards to report a 64% growth over the 2006-2008 period as revived interest in container ship investment amid continued demand for tankers and gas carriers is increasingly making global shipbuilding a seller's market.

Lehmans report said that Korean shipyards are keen on managing risk and costs by hedging their foreign exchange exposure and procuring lower cost steel plates from China and that their flexible vessels design capabilities are the key differentiating factor that positions them ahead of their Japanese and Chinese shipbuilders.

The report also said that Korean shipyards will face big challenges from upcoming shipyards in Brazil, Russia, India and China after 2008 as they will meet the growing demand for vessels, which is currently supplied by South Korean shipyards who export almost 95% of their production.

China is building large dockyards in Shanghai, Qingdao and Shandong Province and is likely to reach shipbuilding capacity of 7 million to 10 million gross tonnages by 2008. India has also planned to invest more than $1 billion to build two large shipyards on the eastern and western coasts and spend $200 million in improving existing shipyards. Russia also plans to build a new shipyard on the Baltic Sea. Construction of a new shipyard in southern Brazil is to be completed by 2008.
To make up for the lack of technology, shipyards of the BRIC nations are purchasing shipbuilding know how from Korea, Japan and Europe.

It is reported that ferroalloys company Precious Metals Australia Ltd has joined the Geraldton Iron Ore Alliance to take its member count to 7.

Mr Neil Roberts acting chairman of alliance said that he was delighted to welcome PMA, with the Windimurra Project representing a potentially significant producer of magnetite concentrate in the Mid West region. He said PMA is well advanced with plans to redevelop the Windimurra operation, proposing a major $175 million investment in the region. Once in production, Windimurra will be a major producer of magnetite concentrate and PMA is currently reviewing opportunities to market this product in China.

Mr Roderick Smith MD of PMA said that The key factor for selling iron ore mined in the Mid West region is the provision of infrastructure, and we are looking forward to working with the other members of the Geraldton Iron Ore Alliance to work on common user infrastructure solutions. Of particular interest to us is the development of rail and road infrastructure within the so-called Southern Transport Corridor in the Mid West region, which already carries the railway from Geraldton as far as Mullewa, and the Mid West Natural Gas Pipeline from Geraldton to Windimurra.

PMAs core asset is its 100% owned Windimurra Vanadium Project near the town of Mt Magnet which contains the largest reported vanadium proven ore reserve in the world and is being developed at an estimated cost of $175 million. Once commissioned in 2007, Windimurra project would process about 3.25 million tonnes of ore for vanadium and titanium production and almost 1 million tonne of magnetite concentrate grading approximately 57% Fe will come out as a by product.

Mysteel.com has reported that the Chengdu Subsidiary of Pangang Group International Economic & Trading Corp has decided to cut domestic prices for deliveries in September for flat products by RMB 520 to RMB 600 per tonne over prices applicable for August delivery.

The category wise reduction is reported to be as under

The prices of HDG and PPGI remain unchanged.

World's 2nd largest coal export port, South Africa's Richards Bay Coal Terminal received 5.78 million tonnes of coal in August 2006 down by 5.2% YoY as against 6.1 million tonnes in August 2005 and up by 2.3% MoM as against 5.65 million tonnes in July 2006.

Johannesburg based rail operator Spoornet transported 68.35 million tonnes of coal to RBCT in 2005 and has set a target of 75 million tonnes for 2006, but at the current delivery rate will end up at 63.2 million tonnes in 2006.

BHPB, Anglo American and Xstrata are some of South Africa's biggest coal exporters and own most of the RBCT.

South Africa is the world's 3rd biggest exporter of thermal coal after Indonesia and Australia.

China's National Development and Reform Commission said that Chinese shipbuilding industry continues to grow rapidly with shipbuilders getting new orders totaling 16.08 million DWT during January to June 2006 up by 113% YoY.

NDRC said that Chinese shipbuilders hold total orders of 50.92 million DWT in the first half of the year with an increase of 43% accounting for 20% of the world's market share.

Chinese government approved medium and long term plans for the shipbuilding industry in August to accelerate its restructuring and upgrading to become strong enough to drive the growth of related sectors. The plan stated that China needs to break the bottleneck of insufficient production capacity of auxiliary sectors and develop the ability to independently design high technology ships and ocean engineering equipment.

China's shipbuilding industry accounted for 17% global market share of ship building in terms of DWT and as per the plans would grab 25% share soon.

Mittal Steel South Africa and its three major unions the National Union of Metal Workers of South Africa, Solidarity and the United Association of South Africa have reached an agreement to extend the long term wage agreement by a further year to June 2008. The initial long term wage agreement, which was negotiated in 2004, would have expired on June 30th 2007.

Mittal Steel SA said that the agreement with the three unions comprised the original components of an increase on guaranteed and variable pay, which was based on the achievement of individual and operational targets.

Mr Davinder Chugh CEO said that the successful extension of the long term wage agreement was an indication of the positive relationship the company enjoyed with its unions. He said The negotiations were conducted in a robust yet conducive manner. I believe both our staff and union members can be pleased with the outcome of the results achieved on their behalf by the unions.

Mount Gibson Iron Limited announced a net profit after tax for the year to 30 June of $23.5 million as against a net profit of $13.5 million in the previous year. The iron ore miner said revenue from the sale of ore decreased by 5% in 2006 from the previous year as the mine embarked on major cutbacks of existing open pits. This resulted in a decrease of 26% in ore tonnes sold, which Mount Gibson said was partially offset by an increase of 29% in the realized selling price per tonne of ore sold over the previous year.

Mr Luke Tonkin MD said that waste mining during the second half of the 2005-06 financial year prepared Mount Gibson for growth, with the company focusing resources on improving access to deeper ore zones, enabling Tallering Peak in Western Australia to achieve sustainable ore production of 3 million tonnes per annum for the remaining life of mine.

Mr Tonkin said this operational imperative resulted in a decline in financial performance for the 6 months to 30 June 2006 compared with the 6 months to 31 December 2005. The company said 403,000 tonnes of ore was mined and 450,000 tonnes of ore sold for the 6 months ended 30 June 2006 resulting in a decline in revenues from ore sold. Consequently, the net profit after tax for the 6 months ended 30 June 2006 was $1.4 million compared with $22.1 million for the 6 months to 31 December 2005.

At Tallering Peak during the year under review, waste mined increased by 73%, ore tonnes mined decreased by 42%, while ore tonnes sold decreased by 26%.

System Capital Management's Tsentralny GOK at Kriviy Rih in Ukraine increased iron ore pellet output tentatively by 2.9% YoY during January to August 2006 to 1.469 million tonnes. Its concentrate production also rose by 7.4% YoY to 3.737 million tonnes.

Tsentralny GOK produced 206,000 tonnes of pellets and 480,000 tonnes of concentrate in August.

Tsentralny GOK accounts for almost 15% of iron ore pellet production in Ukraine and had produced 5.33 million tonnes of concentrate and 2.15 million tonnes of pellets in 2005.

Air Liquide SA has posted net income of Euro 480 million for January to June 2006 up by 10% YoY over Euro 436 million in H1 of 2005. The French company on July 26 reported that first half sales rose by 8.8%t to 5.48 billion euros. Orders for oxygen, used to make steel, helped drive growth, together with hydrogen and pharmaceutical gas.

Mr Benoit Potier CEO expects hydrogen sales to double to 1 billion euros by 2008 as refiners seek to lower sulfur levels in gasoline and diesel. It is also expanding in medical products, including a gas that will help treat asthma. Nr Potier said in a statement The momentum of our strategy is evidenced by the signing of large contracts and a rapidly growing project portfolio. We therefore remain confident and maintain our target for the year of growth in comparable net profit close to that of 2005.''

It is reported that the Indonesian government will review a plan to integrate or merge state mining companies. The review would include aspects on finance, manpower, working capital and taxation. Among the state mining companies to be merged were PT Aneka Tambang Tbk, PT Timah (Tin) Tbk and PT Batubara (Coal) Bukit Asam.

Mr Sugiharto state minister of state enterprises said "I have received a report on the plan to integrate state mining companies. However, I have not read it. There will be a presentation on this plan and I will be asked to review it."

The government is preparing three alternatives regarding the merging of the three state mining companies. The first alternative is to form a holding company under the flag of PT Indonesia Resources Company, the second it to set up a holding company without operating the merged companies and the last alternative is to change the operational company into a savior company which will be followed by the issuance of new shares changeable with company shares.

It is reported that Shanxi Huanhai Stainless Steel Co Ltd has commissioned its 200,000 tonnes per year HR stainless strip line in August end.

Shanxi Huanhais steel smelting project was put into production 3 months ago and now it plans to commission SS pickling line in October 2006 followed by a SS CR mill later during the 11th 5 year plan period.

Ukraine's biggest ferroalloy producer Nikopol Ferroalloy Plant has increased its ferroalloy production to 558,700 tonnes during January to August 2006 up by 1.9% YoY. During this period, NZFs production of 395,300 of silicon manganese is up by 6.8% YoY, 159,100 tonnes of ferromanganese is down by 6.7% YoY and 4,300 tonnes of other ferroalloys is down by 44% YoY.

NZF produced 79,000 tonnes of ferroalloys including 54,600 tonnes of silicon manganese and 24,500 tonnes of ferromanganese in August 2006.

NZF had produced 812,800 tonnes of ferro alloys in 2005.

The Chinese Chamber of Commerce of Metals, Minerals and Chemicals of Importers and Exporters had called for a conference on August 31st 2006 in Eastern China's Anhui Province to discuss various issues relating to iron ore import business.

It is reported that as per the draft suggestion at the conference, Chinese traders applying for iron ore import licenses should have transacted more than 0.7 million tonnes iron ore import in 2005 with minimum registered capital of RMB 20 million yuan. As per the draft, they are also required to possess port yards necessary for iron ore storage or have investment involvement in overseas mining projects.

The draft is still subject to CCCMC members' deliberation before being finalized.

Standard & Poor said that it has assigned its B+ long term corporate credit rating to Russian pipe producer TMK.

S&P also assigned its B+ preliminary senior unsecured debt rating to TMK's proposed Eurobond. The final rating is subject to the receipt and review of final documentation and legal opinion which will be issued by special purpose vehicle TMK Capital SA.

S&P said that "The ratings on TMK reflect the company's ambitious capital expenditure plans, improving but volatile margins, limited liquidity, and short track record as a combined group. These factors are offset by TMK's robust market positions and the currently favorable market fundamentals for seamless and large diameter welded pipes."

It is reported that the newly built 2550m3 blast furnace at Nanjing Steel has managed to achieve daily output of molten iron of 5161 tonnes after it was put into operation on August 21st 2006.

Nanjing steel has invested 710 million yuan on the new blast furnace of 1.96 million tonnes hot metal capacity.

Subsequent to resignation of Mr Felix Mikhailovsky the board of directors of OJSC Yenisey River Shipping Company has approved the appointment of Mr Nickolay Molochkov as its new GD of Yenisey River Shipping Company.

MMC Norilsk Nickel holds 43.9% of the Yenisey River Shipping Company. MMC Norilsk Nickel is the worlds largest producer of nickel and palladium and one of the major producers of platinum, copper and cobalt.