Business Standard reported, citing an unnamed source has reported that TATA Steel Ltd's bankers are ready to extend their line of credit to the company to fund a bid worth 550 pence a share for Corus.

Meanwhile, the Economic Times reported that Tata Steel has roped in UK based merchant bankers NM Rothschild & Sons as financial advisor for the proposed acquisition. Rothschild will be the third advisor to TATA Steel on the deal. ABN Amro and Deutsche Bank are already acting as its advisors for this acquisition.

These development point to a higher bid from TATA Steel, although TATA group has not commented on whether it will engage in a bidding war and said that it has noted CSN's higher offer and is considering its position and will make a further announcement in due course.

There are differing views from analysts on the chances and rational of higher bid for Corus. But acquisition of Corus, by both TATA Steel and Corus is crucial for their growth plans and as the next takeover target is likely to be more expensive, higher bids for Corus are likely to come in.

Caparo Group is the targeting India for future expansion of the company and its operation will expand there from current 5% to around one third of the total business.

Lord Swraj Paul chairman of Caparo in an interview published in 'Manufacturer' said "60% of my business is in Britain, 35% in the US and, so far, less than 5% is in India. However, India is the target for future expansion. The Indian operation will expand to around one third of the company's total business.

Lord Paul said that 7 plants have been built in India in the last three years and 9 more are under construction.

TATA Steel (Thailand) Plc, formerly known as Millennium Steel Plc will invest between 3.4 billion baht to 3.6 billion baht to develop an iron ore smelting plant to create a 0.5 million tonne fully integrated production operation in the Bo Win Industrial Estate of Chon Buri in Thailand.

Mr Santi Charnkolrawee president said that the new major shareholder had decided to invest in a blast furnace iron smelting facility in order to promote economies of scale, reduce raw material costs and create opportunities to make new products. He said that the company would apply for Board of Investment privileges for the smelter next month. If approved, construction could start in the first quarter of next year and would be completed in the third quarter of 2008.

TATA Steel now holds a 67% stake in the company, after buying 2.1 billion shares in Millennium Steel from the Siam Cement Group for about 7 billion baht.

Indias ministry of shipping has short listed three locations on the east coast Tuticorin and Ennore in Tamil Nadu and Kakinada in Andhra Pradesh for setting up an international size shipyard.

As per report Ennore Port is the nodal agency for making a preliminary preparation and has invited expression of interest from firms to set up a shipyard on the East Coast on BOT basis at a suitable location.

The selected firm will design, finance, engineer, construct, operate, market and maintain the shipyard of adequate capacity to build and repair merchant ships of up to VLCC and ULCC and all other ships within this range. The firm may also be required to develop a green field project at a suitable location on East Coast exclusively for the shipyard.

The project involves developing the shipyard consisting of two big docks and preferably three (two for building and one for repair), quay side length of at least 2.5 kilometer with 12 meter water depth with various support facilities.

Mr Sushil Kumar Shinde minister for power informed the Rajya Sabha that the gap between the requirement and supply of coal for power generation during 10th Plan is being bridged through import. As against the projected requirement of 537 million tonne of coal to achieve the targeted generation in the terminal year of 11th Plan 2011-12, the availability of coal from domestic sources has been indicated by the Ministry of Coal as 478 million tonnes. The deficit is planned to be met through import of coal.

Mr Shinde said to overcome the shortage of gas for power generation, Ministry of Petroleum & Natural Gas is taking necessary steps to increase availability of gas from domestic sources by awarding gas blocks for exploration and production as well as import of LNG and natural gas through international gas pipeline. He said there has not been any report of shortage of Naptha and other liquid fuels being used for generation of power. However, their use is restricted on account of high cost of generation based on these fuels.

Mrs Kanti Singh minister of state in the ministry of heavy industries and public enterprises informed the Rajya Sabha that the Government has received pre budget memoranda from automotive industry for inclusion in the Budget 2007-08. She said the ministry of finance would examine these suggestions at the time of formulation of Budget for all the sectors including automotive sector.

The proposal includes
(i) Tax holiday for investments exceeding INR 500 crore on the lines of infrastructure projects
(ii) 100% tax deductions on export profits
(iii) One stop clearance for FDI proposals in the auto sector etc

Mrs Kanti Singh said these proposals were received from the Society of Indian Automobile Manufacturers and Automotive Component Manufacturers Association.

Ariba Inc announced that Jindal Stainless Limited will leverage Ariba services, expertise and technology to streamline its sourcing and procurement processes and fuel the growth of its business. Under the terms of a multi year agreement, Jindal will use Ariba to manage more than $1 billion in direct and indirect spend annually.

Mr Sanjay Sarda VP Sourcing & Supply Management of JSL said With our vast geographic presence and extensive product portfolio, it is critical for Jindal to streamline the purchasing process and manage our spend in the most efficient manner possible. With Ariba, we have access to commodity expertise, best practice processes and robust technology that help us to drive innovation and organizational growth. By using their solutions to manage our strategic spend, we can source more efficiently, reduce our time to market and purchasing cycle and increase our savings.

Jindal has been using Ariba Spend Management solutions to transform its procurement process since 2005.

It is reported that Danieli Engineering India is examining prospects of setting up a new fabrication unit in Kolkata so as to provide engineering support service to all Danieli Engineering group companies. Danieli Engineering already has a small fabrication unit at Taratola in West Bengal.

Mr Mezulic MD of Danieli while speaking on the seminar on "Opportunities in the Steel Sector" organized by the Confederation of Indian Industry and the Italian Consulate said With India emerging as major consumers of steel, the action had now shifted to eastern India, which had huge reserves of raw materials such as iron ore, coal and other natural resources. He said "We have major expansion plans for India in the near future."

There are around 20 group companies in Danieli group, which is headquartered at Buttrio in Italy.

Sanvijay Rolling & Engineering has announced that it is planning to set up a 2x20 MW captive power plant at MIDC Butibori in Nagpur district of Maharashtra. The power plant will come up at its existing location which houses a mini steel plant and two rolling mills.

As per report the DPR will be ready by mid December 2006 and Phase I, envisaging one power unit of 20 MW, is likely to be commissioned by July 2008, with an investment of INR 98 crore. Work on phase II will begin thereafter.

It is reported that Bihar Tubes is planning to set up a 0.3 million tonne steel strip unit at Sikandarabad in Bulandshahr district of Uttar Pradesh.

As per reports, land for the project has already been acquired and the company is in the process of finalizing machinery suppliers. The project is scheduled to commence work by May 2007.

Nucor Corporation announced that earnings for the fourth quarter ending December 31, 2006 are expected to be in the range of $1.05 to $1.15 per diluted share. By comparison, Nucor earned $1.09 per diluted share in the fourth quarter of 2005.

The $1.05 to $1.15 per diluted share guidance for the fourth quarter represents historically strong earnings, but is below our record third quarter earnings of $1.68 per diluted share.

Nucor said that the fourth quarter earnings will be less than anticipated because spot market prices for sheet and bars are lower than expected and scrap prices have not decreased as much as anticipated, both factors which have negatively impacted our margins. The continued high customer inventories and record levels of imports have negatively affected both fourth quarter production and shipments, which will be down an estimated 12% to 15% versus the third quarter and will be only marginally down year over year.

Nucor said Looking forward, we expect demand for our products to continue to be strong through next year. The inventory corrections at service centers and OEM's are continuing, as are domestic production cutbacks; however, the continued record levels of imports of finished steel are delaying this inventory correction. We expect to see the inventories back to desired levels by the end of the first quarter; however, this will depend entirely on a significant reduction of import volumes from current levels, particularly from China.

As per the quarterly report from Australian Mineral Statistics, Australia's export earnings from mineral resources rose to $26.5 billion in July to September 2006, an increase of $829 million or 3% from earnings in the previous quarter.

Mr Phillip Glyde ED of ABARE said that This stronger performance mainly reflects higher export prices and increases in export volumes for over half of the mineral and energy commodities. This reflects higher world prices for most commodities compared with a year ago.

Mr Glyde said that Commodities that recorded the largest increases in export earnings in the September quarter 2006 were crude oil up by $951 million, nickel up by $664 million, iron ore and pellets up by $404 million and petroleum refinery products up by $126 million.

The US International Trade Commission determined that revoking the existing antidumping duty order on foundry coke from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. All six Commissioners voted in the affirmative.

As a result of the Commission's affirmative determination and the Department of Commerce's recent affirmative finding, the existing order on imports of this product from China will remain in place.

Today's action comes under the 5 year sunset review process required by the Uruguay Round Agreements Act, which was instituted on August 1st 2006.

Source Mysteel.net

Analysts at UBS expect the high level of Chinese steel exports to continue to exert pressure on steel prices globally going forward.

In a recent research note UBS analysts mention that Chinese net steel exports rose to 4.6 million tonnes, marking another record high, during November, according to the preliminary Mysteel data.

The analysts said that Chinese exports are being bolstered by premium pricing in the overseas markets and the delay of the finished steel VAT rebate reduction from 11% to 8%.

UBS added that the global gap in steel prices continues to be wide, with the Chinese hot rolled coil prices weakening since mid October.

Cleveland-Cliffs Inc announced that it has signed a definitive share purchase agreement with Centennial Asset Mining Fund LLC, an affiliate of MMX Mineracao e Metalicos SA, to acquire 30% of the Amapa Project through the acquisition of 100% of the shares of Centennial Asset Amapa Participacoes SA.

Under the definitive share purchase agreement, Cliffs would purchase 100% of the shares of Centennial Amapa for $133 million. Closing is anticipated to occur during the first quarter of 2007, subject to completion of project financing, final due diligence, regulatory approvals and other customary closing conditions.

Centennial Amapa owns 30% of the Amapa Project, a Brazilian iron ore project. When completed, Amapa is expected to produce 6.5 million tonnes of iron ore concentrate annually.

Mr Joseph A. Carrabba CEO said "We are optimistic about the Amapa Project. The proposed transaction marks an additional step in Cliffs' long-term strategy, further diversifying our operations and expanding our presence in the global iron ore business."

Cleveland-Cliffs Inc is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. Cleveland-Cliffs Inc operates a total of six iron ore mines located in Michigan, Minnesota and Eastern Canada. The Company is also majority owner of Portman Limited, the third largest iron ore mining company in Australia.

Russian business daily Vedomosti has reported that Russias state arms export monopoly Rosoboronexport, which already controls the worlds largest titanium producer VSMPO-Avisma, is seeking to buy steel assets. Vedomosti said that by seeking to create a steel holding, which would eventually unite other steel producers in Russia, Rosoboronexport was aiming to carve out a lucrative niche among producers of high quality steels.

Quoting sources close to Rosoboronexport and industry officials, Vedomosti reported that the arms exporter sought a large stake it the Red October Steel Works in Volgograd in southern Russia owned by international steel producer and trader Midland Group.

After Rosoboronexport has replaced the management of Russias largest car maker AvtoVAZ and acquired controlling stake in titanium producer, analysts have said that the arms export has turned into a Kremlin vehicle with which the state aims to tighten its grip on the sectors of the economy it views as strategic.

ABB has won a contract worth $36 million from ThyssenKrupp for engineering and supply of power equipments for ThyssenKrupp and CVRDs steel upcoming plant in Brazil.

ABB will carry out extensive engineering work and supply power equipment, including a 138 KV substation, high & medium voltage switchgear, transformers and power cables.

The steel plant southeast of Rio de Janeiro will have two blast furnaces, two converters and two continuous casting plants. When it begins operations in 2008, the plant will produce about 5 million tons of slab steel annually for North American and European markets.

China's coal export during January to November 2006 declines by 12% YoY to 57.4 million tonnes. China exported 4.9 million tonnes of coal in November 2006.

Chinas coke exports during January to November 2006 increased by 18.3% YoY to 13.62 million tonnes. China exported 1.59 million tonnes of coke in November 2006.

(Sourced from Mysteel.net)

Harsco Corporation announced that its MultiServ mill services division has been awarded two new multi year contracts in Mexico valued at more than $13 million over their term.

MultiServ will expand its ongoing services to the DeAcero Saltillo mill southeast of Monterrey under a ten year contract that awards MultiServ added responsibilities to undertake a comprehensive on site slag processing and handling service for the mill. MultiServ will process 100% of the mill's slag in a newly centralized on site slag processing and shipping operation. The operation is designed to effectively support DeAcero's plans for increasing its market share of commercial slag sales throughout Mexico. DeAcero is the largest wire and steel mesh producer in Mexico and the third largest in North America.

At the Cosica-Apizaco mill in Tiaxcala, MultiServ has been awarded a 3 year contract to handle steel billets and finished products on site, taking over work previously performed by a local contractor. The new contract will run concurrently with MultiServ's existing mill services contract at this site. The rebar and special structural steel mill, formerly known as ATLAX, was purchased in 2004 by Industrias CH, SA de CV (ICH), one of Mexico's principal producers of specialty steels. ICH operates additional plants where further contract opportunities may be possible.

Mittal Investments, which is a subsidiary of Mittal Steel Co NV, agreed to acquire a 50% minority stake in Caspian Investments Resources Ltd from Lukoil Overseas Holding Ltd, which is a subsidiary of Lukoil Holdings OAO, for a total consideration of KZT135.7 billion ($1.1 billion).

Of the total consideration, KZT10.2 billion ($80 million) will be used to pay off half of Caspian Investments Resources Ltd's debt.

Caspian Investments Resources Ltd owns a 100% stake in Nelson Resources Ltd, and as a result of this transaction, Mittal Investments will also acquire Nelson Resources Ltd. Nelson Resources Ltd explores and develops oil deposits.

Ukrainian Forum has reported that Mr Victor Yanukovych prime minister of Ukraine met with Mr Serhiy Tulub coal industry minister to discuss building of seven new mines in Donetsk, Luhansk and Lviv regions of Ukraine. These would be the first mines built in the last 25 years.

Mr Yanukovych said that the construction of new mines will allow providing the energetic security of the country, using high quality coal instead of natural gas, which is consumed now at thermoelectric power stations.

Mr Tulub said that science and technique department of coal ministry has considered projects of 25 sites for building of new mines and 7 projects were selected with 3 in Donetsk region and 2 each in Luhansk and Lviv regions. Mr Tulub said that with these mines Ukraine will get extra 17.7 million tonnes of coal, out of which 70% would be energy coal.

Linde Groups BOC Gases has signed a multi year contract worth over $20 million with Gerdau Ameristeel. Under the agreement BOC will construct an air separation unit to provide the mill with over 130 tonnes per day of gaseous oxygen and nitrogen to support Gerdau's plan to increase the mill's long term competitive position.

Gerdaus Knoxville mill recycles scrap metal to produce long products, such as rebar and plain rounds. Gerdau Ameristeel is a majority owned subsidiary of international steel producer, Gerdau SA based in Brazil. Gerdau Ameristeel is the second largest minimill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of mill finished steel products.

Mr Ray Carr BOC tonnage business vice president said "BOC and Gerdau collaborated closely to develop a plan to accommodate the total site requirements. The solution we achieved will deliver optimal value to the site to support Gerdau's growth targets and competitive position in the marketplace."

The Linde Group is the world leader in the supply of industrial gases to the metals industry, supplying over $1.1 billion of gases each year to steel customers or some 20% of the global steel industry's total gases requirements.

AFP has reported that the Czech government and Mittal Steel have made a breakthrough in negotiations that should end the EUR 700 million claims by Mittal Steel over its exclusion from bidding for state owned Vitkovice Steel last year.

Czech finance ministry said that Mittal Steel representatives promised during negotiations to table an offer that would end its arbitration claims without any financial obligations for the Czech Republic.

Mittal Steel lodged an arbitration claim in 2005 citing Prague's failure to protect its rights under a bilateral investment agreement with the Netherlands. The claim was sparked after Mittal was excluded from bidding for Vitkovice Steel, one of the biggest Czech steel companies.

The Czech government eventually sold the company to the Evraz Group for 252.7 million euros.

Mittal Steel Group has a 70.67% stake in the country's biggest steelmaker, Mittal Steel Ostrava, formerly known as Nova Hut.

Chinese experts have cautioned that foreign steel makers are penetrating into Chinese market boasting technical competitiveness from scale superiority, weakening the domestic counterparts' comparative technical advantage.

Anbound a strategic information provider in its risk assessment report said that BaoSteel, which is considering to invite Nippon Steel and POSCO to buy its stake in potential listed unit overseas, which industry insiders commented as an attempt to resist hostile takeover from European or US titans, is pressed by lack of high end technology. Despite an overwhelming coverage of China's domestic high end steel market, BaoSteel still lags behind its foreign rivals in exclusive technology or original creation.

Reportedly, it has been very difficult for BaoSteel to buy advanced tech and equipments since the declaration that it aspires to become one of the world top three steel makers by 2010.

BaoSteel's choosing to tie with the big Asian steel producers by crossover shareholding in order to introduce technologies, as was considered, reflects a pressing sense of crisis, while other big scale makers in China, which had combined simply adding up the output, may pose wider gap with BaoSteel and lose the first rate position in technical layer.

(Sourced from Mysteel.net)

According to state media, China produced 82,300 tonnes of refined nickel in the January to October period up by 5.4% YoY.

Production in October itself came in at 9,575 tonnes a sharp increase over previous months mainly due to rise in output at the countrys leading producer Jinchuan, which accounted for 9,125 tonnes of Octobers national production up by over 1,000 tonnes over September.

That October production rate is equivalent to an annualised 112,740 tonnes and is evidence of the companys steady capacity growth. Production last year was 91,000 tonnes.

Interfax Kazakhstan news agency citing a lawyer for the relatives of seven miners killed at Arcelor Mittals Lenin coal mine in Kazakhstan reported that they are suing for moral damages. Mr Yevgeny Tankov the lawyer was quoted as saying A class action has been filed in Karaganda. The plaintiffs demand compensation for moral damage.

Mr Tankov said that widows and mothers of seven of the 41 men killed in September at the Arcelor Mittal owned Karaganda mine were each seeking 7 million tenge ($55,000).

As per reports, this amount would be in addition to $20,000 that Arcelor Mittal promised in late November to pay the families of victims of all accidents between 2005 and 2006 on mines owned by Mittal Steel Temirtau.

Peabody Energy announced that Mr Phillip V Smith has joined its international sales and trading subsidiary, COALTRADE International, as Director of Trading for China, reporting to COALTRADE International President Mr Paul Demzik. Mr Smith will be responsible for Peabody's coal sales, marketing, trading, brokerage and agency activities in China. He will be based in Peabody's Beijing office.

Mr Smith has more than 30 years experience in sales, marketing and trading, including 14 years with Drummond Coal, where he most recently served as Managing Director with responsibility for sales and administration in Europe.

Mr Richard M. Whiting executive VP and CMO said "China has the fastest growing major economy and the fastest growing coal market in the world. Peabody is expanding its international presence to assist in meeting China's growing energy needs and capitalize on significant long term growth opportunities there."

Peabody opened its Beijing office in the fall of 2005 and earlier this year signed a MoU with Shenhua Group, China's leading coal producer, to pursue coal related projects.

Russian United Metallurgical Companys Vyksa plant reported that its production of pipe products during January to November 2006 is 1.37 million tonnes up by 55% YoY.

As per report the production of big diameter pipes grew 1.93 fold to 728.16 thousand tonnes from 378.78 thousand tonnes. In November, the Works produced 150.783 thousand tonnes of pipes, which is 65% more YoY. Turnout of big diameter pipes totaled 75.296 thousand tonnes.

VMW was founded in 1757. The Works produces pipes of various grades, including big diameter pipes for main oil and gas pipelines, as well as railroad wheels.

According to the latest figures from the countrys customs department, Russia exported 213,700 tonnes of refined nickel in the January to October 2006 period. This represented a marginal 0.4% YoY decline.

Russias biggest producer and exporter Norilsk Nickel is targeting production of 243,000 tonnes to 248,000 tonnes this year as compared with 243,000t last year. The countrys smaller producers have a capacity of just less than 60,000 tonnes.

Therefore Russian nickel exports over the full calendar 2006 should be broadly in line with last years 261,700 tonnes.

It is reported that unionized workers at Peruvian zinc miner Volcan are threatening to strike from December 19 in a dispute over a new labor contract.

Union leaders have been quoted as complaining that the companys offer falls below the average in Peru and they are looking for something better from management.

It is understood that the threat of a walk out is a standard part of the Peruvian negotiating process and does not necessarily mean there will be one.

It is reported that Freedom Metals Inc of Louisville bought 25 acres to expand the additional acreage is adjacent to Elizabethtown site to use the additional acreage for processing of scrap metal prior to shipment to steel mills.

Mr Spencer Blue VP & CEO of Freedom metal declined to disclose the purchase price for the property

Freedom Metals launched a steel and fabrication division at the Elizabethtown site earlier this year. The company also plans to invest $1 million in equipment for the Elizabethtown site. Plans for the site include a railroad spur to facilitate rail shipping

Platts has recently reported that Chinese domestic ferrovanadium prices have dropped further this week to around Yuan 117,000 to 120,000 per million tones as market is depressed by weaker demand from local steel plants in China. Prices were quoted mostly within Yuan 120,000 to 130,000 per million tones in November.

One trader told Platts that he heard that domestic offers at Yuan 117,000 to 118,000 per million tonnes despite no spot deals. He added "I doubt domestic ferrovanadium would be able to sell at above Yuan 120,000 per million tonnes for the moment. Prices are down for sure as demand has cooled down but Chinese supply is increasing with more producers wanting to sell and get more cash before the end of the year.

A source close to the Chinese producers told Platts that "Prices are down and are all over the place especially when it's closer to the year end. Prices traditionally move lower closer to the end of the year."