TOI has reported that Orissa government has decided to recommend to central government for grant of a prospecting license for Khandadhar iron ore mines in Keonjhar region of Sundergarh district of Orissa to POSCO India and that the recommendation will be sent to the Centre in the next few days.

As per reports, POSCO India had applied for three mines but the state government has decided to forward the application for Khandadhar to the Centre.

The Orissa governments move is being seen as a step to make up delays in land acquisition. Moreover the report also cites a source as saying that "Government has, in an agreement for the Haridaspur-Paradeep railway project committed to ensure POSCO gets a mining lease by October 2007 failing which the company shall withdraw from the railway project.

Dr Dasari Narayan Rao minister of state for coal informed the Rajya Sabha that Geological Survey of India has estimated a total of 73.897 billion tonnes of geological resources of coal n Jharkhand state in proved, indicated and inferred categories on 1.1.2006.

In billion tonnes

Dr Desari told that the total quantities of extractable coal reserves can be estimated only after all the coal resources are established under proved category and Mining Project Reports are prepared for extraction of coal from CIL, captive mining and unallotted blocks.

The Left parties nationwide strike yesterday to protest against the economic policies of the UPA government paralyzed work in many of the states and effected operations at some of the major ports.

As per available information, Haldia, Kolkata, Mumbai, Gandhidham, Goa, Kochi and Vizag ports faced total stoppage of operations while some ports including Bhavnagar, Jamnagar, Kakinada, new Managalore, Paradip, Surta and Tuticorin continued functioning.

The strike was supported by 56 organizations, including Leftist labor organizations like the AITUC and CITU. The labor organizations have a 16 point charter of demands including social security and permanent employment to be included in the Unorganized Sector Bill under consideration by the Government

Indian heavy industry ministry has sought exemption of countervailing duty currently 16% with respect to import of machinery relating to gas and coal power projects. The argument of the ministry is that the final product, which in this case is power generation, is not modvatable and hence the burden of duties lies squarely on the project expenditure.

The ministry said if implemented, the import duty would stand greatly reduced from the current 21% that includes 5% customs duty. It is also suggested that the customs duty could be increased by 200 to 300 basis points so that the CVD exemption does not have a major impact on government revenues.

It is ported that Baring Private Equity Asia has picked up a minority stake of about 10% in Bhushan Power and Steel Limited for about $33 million.

According to Mr Sanjay Singal CMD of BSPL funds received from Baring will be invested in the integrated steel complex, being set up in Orissa. Post commissioning, the company will become a 1.2 million tonne integrated steel company.

Bharat Heavy Electricals Ltd has announced that it is ready with a war chest of up to Rs 10,000 crore for takeovers in the US and Europe and expanding those companies and has amended its article of association recently for this purpose.

Mr AK Puri CMD of BHEL said "We are scouting for suitable companies in niche technology. If we go for 3 to4 acquisitions in next years we would require at least INR 8,000 to 10,000 crore to acquire and then their expansion."

Dr Dasari Narayana Rao minister of state for coal informed the Rajya Sabha that in addition to the existing mining and power generation activities in Tamil Nadu, Naveli Lignite Corporation is expanding its operations in Rajasthan.

Dr Dasari said NLC also has plans for development of blocks in open cast mining, underground coal gasification and Coal Bed Methane in Rajasthan and Gujarat. NLC also takes up exploration activities in various lignite blocks in the country to augment lignite production.

NLC is also designated as a data center for lignite resource database. Therefore, keeping in view the future plans of NLC and to ensure that the resources are put to use in a planned and scientific manner, it has been provided that a state government company or undertaking shall obtain a certificate from NLC to the effect that they have put no plan or willingness to undertake mining operation in the concerned lignite blocks.

Larsen & Toubro has announced that it bagged two major contracts of worth $ 86 million from the leading Chinese petrochemical company Sinopec.

As per report the contract comprise designing, manufacturing and supply of three ethylene oxide reactors, each weighing in excess of 1,000 tonnes. The reactors will form part of the Methyl Ethyl Glycol unit in a petrochemical plant.

L&T has supplied equipment valued over $ 300 million, including the worlds largest coal gasifier and advanced acronitrile reactors in the last two years to China. L&T has also recently set up a factory for the manufacture of switchgear in Wuxi, Jiangsu, for valves in Yangcheng, Jiangsu, and will soon have manufacturing facilities for rubber processing machinery in Jionan, Qingdao.

State Trading Corporation of India Ltd has announced that Mr KK Sood director of marketing on the board of STC has ceased to be on the rolls of the company on his superannuation with effect from November 30th 2006.

Punj Lloyd Ltd has announced that it is set up a new company called Simon Carves India Ltd for carrying out back office engineering activities for the Punj Lloyd Group in India and that Mr Sanjay Goel has been appointed as the CEO of the Simon Carves India Ltd.

As per report Simon Carves India Ltd is a wholly owned subsidiary of the Company catering to the Group's engineering requirements in the initial phase. Simon Carves India will integrate the engineering expertise of the Company with its two recent acquisitions Sembawang Engineers & Constructors and Simon Carves of UK.

Punj Lloyd foresees great prospects emerging for the Group with the engineering services market expected to touch $1,100 billion by 2020, of which outsourced component could be worth around $200 billion.

McNally Bharat Engineering Company Ltd has announced that the it has received an order of INR 39.92 crores for turnkey execution of Ash Handling System including High Concentration of slurry disposal system for 9x135 MW Thermal Power Plant for Vedanta Aluminium through SEPCO of China at Jharsuguda.

The US International Trade Commission announced its determinations in its 5 year sunset review concerning the countervailing duty and antidumping duty orders on corrosion resistant steel products from Australia, Canada, France, Germany, Japan, Korea.

With respect to corrosion resistant carbon steel flat products from Germany and Korea, all six Commissioners made affirmative determinations. With respect to corrosion resistant carbon steel flat products from Australia, Canada, France and Japan, Chairman Daniel R. Pearson, Vice Chairman Shara L. Aranoff, and Commissioners Jennifer A. Hillman and Deanna Tanner Okun made negative determinations whereas Commissioners Stephen Koplan and Charlotte R. Lane made affirmative determinations.

As a result of the Commission's affirmative determinations and the Department of Commerce's recent affirmative findings, the existing orders on imports of corrosion resistant carbon steel flat products from Germany and Korea will remain in place. As a result of the Commission's negative determinations, the existing orders on imports of corrosion resistant carbon steel flat products from Australia, Canada, France, and Japan will be revoked.

The products covered by this investigation are flat rolled carbon steel products, of rectangular shape, either clad, plated or coated with corrosion resistant metals such as zinc, aluminum or zinc, aluminum, nickel or iron based alloys, whether or not corrugated or painted, varnished or coated with plastics or other nonmetallic substances in addition to the metallic coating, in coils and of a width of 0.5 inch or greater, or in straight lengths which, if of a thickness less than 4.75 millimeters, are of a width of 0.5 inch or greater and which measures at least 10 times the thickness or if of a thickness of 4.75 millimeters or more are of a width which exceeds 150 millimeters and measures at least twice the thickness.

Status of Proceedings:
1. Type of proceeding: Second Review.
2. Notice of initiation by USITC: November 1, 2005 (effective date).
3. Hearing: October 17, 2006.
4. USITC vote: December 14, 2006.
5. USITC notification of Department of Commerce: January 17, 2007 (expected).

US Industry Producing Corrosion Resistant Carbon Steel
1. Number of U.S. producers in 2005: 28.
2. US production of corrosion resistant steel in 2005: 20,889,145 short tons.
3. Employment of production and related workers in 2005: 13,348.
4. US producers' US shipments in 2005: 20,065,663 short tons.
5. Apparent US consumption in 2005: 22,686,343 short tons.
6. Ratio of quantity of subject imports to apparent US consumption in 2005: 4.3 percent.

US Imports
1. Quantity of subject imports in 2005: 972,681 short tons.
2. Value of subject imports in 2005: $753 million.

Despite denials of such a market rumor that Russian energy giant Gazprom would bid for Tenaris, its shares climbed for a fifth day amid speculation about a takeover. Over 29 million shares changed hands in Milan as compared with a daily average of 6.7 million in the last six months.

Tenaris has denied that it was not in talks with any third party over a possible stake sale or a similar deal. The company said in a statement Tenaris is not engaged in negotiations with any third party concerning the sale of a participation in Tenaris or any similar transaction.

Gazprom, the world's biggest producer of natural gas, also denied reports that it was considering buying a stake in the company.

Luxembourg based Tenaris is 60% owned by Italy's Rocca family and is the largest maker of seamless steel pipes for the oil and gas industry. Tenaris' share price has roughly doubled since the beginning of the year, boosted by strong demand for the company's tubes on the back of high oil and gas prices and is worth about $30.80 billion at current market prices.

Japanese Nihon Keizai Shimbun, without citing sources, has reported that Nippon Steel Corp and three other major Japanese steelmakers in price negotiations with BHP Billiton have agreed to pay $98 per ton of coal for the year to March 2008. This represents a 15% drop from the $116 set for the current fiscal year. It said that the deal is expected to reduce the cost burden on the steelmakers by a combined 100 billion yen.

The business daily said that in addition to Nippon Steel, JFE Steel Corp, Sumitomo Metal Industries Ltd and Kobe Steel Ltd are part of the pact as well.

Coking coal prices jumped to $125 a ton in 2005 as compared with $57.50 a ton in 2005, and $46.50 a ton in 2004.

Mr Charles Goodyear CEO of BHPB had recently said that the coking coal market is softer, than the past year, because the available supply in China probably developed faster than expected.

According to the Australian Bureau of Agricultural and Resource Economics China will increase coking coal production by 11% to 325 million tons in 2007, from an estimated 294 million tons in 2006. Moreover supplies from Australia will increase as port expansions at Newcastle, Gladstone, Dalrymple Bay and Hay Point may add as much as 71 million tons of export capacity a year by the end of 2007.

Companhia Siderurgica Nacional in its combine with its bankers has increased its holding in the Corus to 22.74% as against the combined holding of CSN and its allies of 19.5% on November 25. The increased holding comes from UBS AG, which has emerged as the largest shareholder in Corus with 10.23% stake.

As per intimation to the London Stock Exchange by Corus on December 11th 2006
UBS 10.23%
Barclays Capital 4.70%
Goldman Sachs 4.01%
CSN 3.8%

Industry experts said the combined holding was inching towards the crucial 25% that could block TATA Steels offer at the extraordinary general meeting on December 20th, if such a situation were to arise. According to the rules, a resolution pertaining to the bid would have to garner support from 50% of shareholders and 75% of shares at the EGM.

Other major shareholders in the Corus group include
Standard Life Investments at 7.81%
Legal & General Investment Management at 3.82%
Lehman Brothers at 3.45%
Capital Group at 3.05%

SteelBenchmarker reported that the US hot rolled band spot price for December 11th fell by 1.8% to $596 per ton FOB the mill for the ninth drop in a row, the world export hot band prices fell by 1.6% to $499 per ton FOB the port of export for the twelfth decline in a row and the hot band ex works price increased by 0.8% to $389 per ton.

SteelBenchmarker publishes steel benchmark prices for hot band, cold rolled coil, rebar and standard plate in the US, Western Europe, mainland China and the world export market fortnightly.

The US International Trade Commission announced its determinations in its 5 year sunset review concerning the countervailing duty and antidumping duty orders on cut to length plate from Australia, Belgium, Brazil, Finland Germany, Mexico, Poland, Romania, Spain, Sweden, Taiwan and the United Kingdom.

With respect to cut to length plate from Belgium, Brazil, Finland, Germany, Mexico, Poland, Romania, Spain, Sweden, Taiwan, and the United Kingdom, all six Commissioners made negative determinations.

As a result of the Commission's negative determinations, the existing orders on imports of cut to length plate from Belgium, Brazil, Finland, Germany, Mexico, Poland, Romania, Spain, Sweden, Taiwan, and the United Kingdom will be revoked.

Hot rolled carbon steel universal mill plates ie flat rolled products rolled on four faces or in a carbon steel cut-to-length plate closed box pass, of a width exceeding 150 millimeters but not exceeding 1,250 millimeters and of a thickness of not less than 4 millimeters, not in coils and without patterns in relief, of rectangular shape, neither clad, plated nor coated with metal, whether or not painted, varnished, or coated with plastics or other nonmetallic substances.

Status of Proceedings
1. Type of proceeding: Second Review.
2. Notice of initiation by USITC: November 1, 2005 (effective date).
3. Hearing: October 19, 2006.
4. USITC vote: December 14, 2006.
5. USITC notification of Department of Commerce: January 17, 2007 (expected).

US Industry Producing Cut to Length Carbon Steel Plate
1. Number of US producers in 2005: 23.
2. US production of cut-to-length plate in 2005: 7,119,199 short tons.
3. Employment of production and related workers in 2005: 3,928.
4. U.S. producers' U.S. shipments in 2005: 6,618,088 short tons.
5. Apparent US consumption in 2005: 7,281,971 short tons.
6. Ratio of quantity of subject imports to apparent U.S. consumption in 2005: 0.9 percent.

US Imports
1. Quantity of subject imports in 2005: 65,439 short tons.
2. Value of subject imports in 2005: $45 million.

ThyssenKrupp Steel AG and JFE Steel Corporation have agreed to extend their Comprehensive Cooperation Agreement concerning the joint development of automotive steel sheet as well as related research and development for another 5 years. The agreement was first signed in April 2002.

JFE Steel has also agreed to license to ThyssenKrupp Steel its proprietary technology for JFE Advanced Zinc. JAZ is high lubrication galvannealed automotive steel sheet, which is environmentally friendly and has excellent press formability. ThyssenKrupp Steel and JFE Steel will build supply systems for the material in both Japan and Europe and will work to establish JAZ as a global standard.

Earlier results of the Comprehensive Cooperation Agreement include the development of common specifications for high strength automotive steel sheet, as well as cross licensing of ThyssenKrupp Steel's CP complex phase steel and JFE Steel's NANO HITEN. A joint venture to enhance early vendor involvement activities was established in 2005 and a tailored welded blank facility made by ThyssenKrupp Drauz Nothelfer GmbH has been working for JFE Steel's affiliate Mizushima Kohan Kogyo Corporation since September 2004.

According to UK based steel analysts MEPS, steel prices in the main West European markets have started to look a little weaker.

However it stressed that the recent declines are only reversing to a small extent the strong gains made earlier this year. MEPS said that After the reductions seen in 2005, all steel prices have showed a recovery this year. In many cases close to, or above, the peaks reached in the latter part of 2004.

Most of the recent easing has been seen in southern Europe, especially Italy, where prices for hot rolled coil have retreated by about 60 per tonne from their third quarter peak, even though they still remain some 85 per tonne higher than they were at the start of the year.

MEPS notes that the hot rolled plate sector remains strong with December prices in most West European markets up by more than 100 per tonne than January, an increase over the year of as much as 30% and in some cases 15%.

Demand for hot dip galvanized sheets has also been good and prices for this product have shown considerable resilience to downward pressures, though low priced imports have impacted the general market, particularly in southern Europe again.

The World Bureau of Metal Statistics said that the global nickel market recorded a deficit of 95,000 metric tons during the first ten months of 2006, with reported stocks some 32,000 tons lower.

WBMS said that mine production was at 1.146 million tons up by 4.5% on the same period last year but the refined production was fractionally below the comparable total for 2005 due mainly to reduced output in Oceania.

WBMS said that world demand was 58,000 tons higher than in the first ten months of last year. In October, world production stood at 103,700 tons while demand totaled 114,800 tons.

PTI reported that Arcelor-Mittal has rubbished speculation that it was backing one of the bidders in their quest for Corus. An Arcelor Mittal spokesperson told PTI There is no truth in these rumors. We are not providing any backing, financial or otherwise, to CSN in its bid to acquire Corus.

Arcelor Mittal also declined to comment on whether it sees the eventual winner as a potential rival or which of the two could emerge as a more formidable rival. The spokesman said We are watching Corus situation with interest but would not wish to speculate on the outcome.

A CSN spokesperson also confirmed that CSN is making the offer on its own with no other industrial parties involved.

The partial revocation of AD on import of corrosion resistant steel into US by USITC has resulted in mixed reactions from steel users and steel makers and workers of US and Japan.

Mr Mike Stanton president and CEO of Association of International Automobile Manufacturers, which represents 14 international motor vehicle manufacturers who account for 40% of all passenger cars and light trucks sold annually in the United States, said "AIAM applauds today's decision by the International Trade Commission to eliminate duties on corrosion resistant steel from Australia, Canada, France and Japan. This decision will benefit automakers, including AIAM companies who collectively produce 3.4 million vehicles annually in the United States and procure nearly all the steel used in these vehicles from US suppliers. American consumers will benefit as a result of more competitive steel prices. This is a victory for automakers and consumers alike."

Mr William E Gaskin president of Precision Metalforming Association, representing the $41 billion metalforming industry of North America with nearly 1,200 member companies, called the verdict good news for American manufacturers that consume steel products. He said "Today's ITC decision appropriately recognizes that the steel industry in the US is healthy and no longer needs government protection from competition on corrosion resistant steel. Steel is a major input for American manufacturing companies, accounting for up to 70% of their costs, especially for the manufacturers of component parts and assemblies which are essential to a huge variety of end products. Steel consumers need a consistent, globally competitive marketplace for the raw material required to meet customer demand. While we would have preferred to see the duties revoked for all six countries, this decision is a step in the right direction to help American steel consumers compete in the global market."

Mr Stephen E Biegun VP of international governmental affairs of Ford Motor Company said "We are pleased that the ITC revoked most of the duties. All of these duties are outdated and hurt American manufacturing competitiveness and US jobs while needlessly helping a steel industry that is now profitable and healthy."

Ms Josephine Cooper group VP of Toyota Motor North America said "Today's decision is a major step forward in restoring needed competition to the US steel market. The ITC's decision supports both a strong steel industry and a strong auto industry, and we look forward to working with our colleagues in the steel industry to continue to strengthen manufacturing in the United States."

The United Steelworkers severely criticized the decision. Mr Leo W. Gerard president of USW said Today, the commission turned a blind eye to the unfair trade practices harming our steel industry. Their decision upends important orders that have helped counteract unfair trade practices and kept good steelworker jobs here in the United States. We appreciate the important orders kept in place, but wiping out the rest of these orders will force us to compete with dumped and subsidized imports and puts the industrys ability to continue investing in the future very much at risk.

Japanese steelmakers welcomed the decision. Mr Hidenori Tazawa chairman of Japan Steel Information Center said that "The small volume of Japanese corrosion resistant steel entering the US market did not harm US steelmakers. Instead, these imports were critical to sustaining a healthy US manufacturing base, particularly in the automotive sector. The ITC made the right decision."

ThyssenKrupp Steel has awarded a contract to SMS Demag for the modernization of its Beeckerwerth hot strip mill for further increasing the annual capacity of the hot strip mill and for expanding the product range to include high strength steels and pipe grades. Commissioning of the new facilities is scheduled for the middle of 2008.

In the finishing stands F1 and F2, the maximum rolling force will be increased from 38 to 42 MN by the installation of new hydraulic adjustment cylinders, new backup roll chocks and Morgoil bearings. In addition to the revamping of finishing stands F1 and F2, the order comprises the supply of three new, fully hydraulic down coilers.

A further element in the modernization is the installation of Continuously Variable Crown into F1 to equip all stands of the finishing mill with CVC systems. This, together with a new model for profile, contour and flatness control, will enable the strip quality to be improved further, particularly for harder steel grades.

The supply scope also includes the renewal of the drive train at stand F1 by fitting a new gear set for the main gear unit, a new mill pinion gear unit and Sieflex gear spindles. The signals for plant monitoring will be supplied by vibration and torque measurement sensors.

Simultaneously with the finishing mill revamping, the down coiler unit will be completely renewed by the provision of three fully hydraulic down coilers. These down coilers are designed for the coiling of high strength pipe grades of up to 25.4 mm thickness.

According to Vietnam Steel Association the price of steel used in the domestic construction industry is forecasted to spike due to continuing increases in the prices of imported ingot steel.

As per report the imported steel ingot is up by $30 to $40 per tonne, which translates into an increase of VND100,000 per tonne for domestic steel bar, now priced at VND 8.3 million per tonne. This is the second increase in November, putting steel prices VND 200,000 higher than in month. But the prices of rolled steel have remained stable fetching VND 7,550 to 7,750 per kilogram in the nations northern region and VND 7,820 to 8,030 per kilogram in the south.

VSA said that its 55 member enterprises had a combined annual capacity of 6 million tonnes of steel but were running at only 60% of capacity due to lack of raw materials. VSA also suggested To support the nations steel enterprises, the Government needed to outline a development plan for the steel industry until 2010."

Lansing State Journal has reported that Grand Ledge based holding company Maxco Inc has struck a deal to sell its chief subsidiary, Atmosphere Annealing Inc to Houston based Quanex Corps subsidiary Quanex Technologies Inc. Terms were not disclosed. The deal is expected to close by February 1st 2007 pending Maxco shareholder approval.

Quanex plans to operate Atmosphere largely as is and does not plan any layoffs. Atmosphere employs about 260 at its two plants in Lansing and facilities at Canton in Ohio and North Vernon in Indiana.

Maxco bought Atmosphere Annealing in 1997 from Mr Max Coon Maxco's chairman and president and two partners. Atmosphere Annealing had annual sales of $46.6 million for its fiscal year that ended in March.

Mr Max Coon president & chairman of Maxco said "They're right at the peak performance now and, like my partners, I'm getting closer to retirement. I thought it would be a good time considering the performance our team at Atmosphere had come through. There are a lot of synergies with the company, which we hold in high regard. I think it opens up a lot of opportunities for Atmosphere."

It is reported that AK Steels negotiators have presented a modified offer to its locked out union workers during a meeting with the International Association of Machinists and Aerospace Workers Local 1943. AK Steel spokesman said the company stands by its October 19 offer, which includes lower wages and higher health care costs compared to the proposals union members rejected.

The modifications to its October 19 proposal include new policies regarding drug and alcohol testing and full arbitration rights regarding grievances and disciplinary measures during the six month transition period.

The lockout of more than 2,500 members of the then Armco Employees Independent Federation began when the union's contract expired at midnight February 28. Fresh negotiations began on November 30, 2005 and the union has rejected two final offers by the company. Union leaders and members have said the two issues yet to be resolved are the plan to return to work following the lockout's end and contracting out work in the future.

Yonhap has reported that Australia has virtually cleared South Korean steel pipe makers of charges of selling their products at below market prices.

As per report, the Australian Customs Service has closed a 6 month anti dumping investigation into steel pipe imports from South Korea and four other countries, which Australian companies claimed were hurting the local industry.

The Ministry of Foreign Affairs and Trade said that the service has decided not to impose anti dumping duties on South Korean products.

Finam.ru has reported that KH Steel of Cyprus, one of the major shareholders and a subsidiary of Evraz Group, sold its 0.9301% share holding (1,091,978 shares) for which the amount of transaction comes to $80.358 million.

Evraz Group offered a 8.3% share holding worth $422m (29.1 million GDR worth $14.5 each) at London Stock Exchange at the beginning of June 2005. Deutsche Bank and Renaissance Capital offered a 6% holding of Evraz Group shares at the end of January 2006 for which the amount of the transaction came to $389 million.

Prior to this, 91.7% of Evraz Group shares used to belong to Crosland Global Ltd. Mr Alexander Abramov had 59.11% of shares through Crosland, Mr A Frolov had 28.2% of shares, Mr V Khoroshkovskiy had a 2% holding. The latter sold a 0.9343% share holding to KH Steel in the middle of June 2006.

Nickel producer Mincor Resources NL of Australia has announced that it paid A$30 million to acquire the Mcmahon and Durkin mines in the Kambalda region of Western Australia, which could contain close to 30,000 tonnes of nickel.

Mr David Moore said "This transaction opens a whole new exploration and production front for Mincor and demonstrates our intention to use our excess cash resources to acquire proven assets in high quality areas that provide both immediate value and long term value." He said due to complexities in the existing ownership structure, completion may occur in up to three stages, with first stage completion scheduled for February 2007.

Following completion of this first stage, the company intends to carry out a fast track feasibility study on the development of a mining operation at the Ken North and McMahon Deeps ore bodies and to commence investigations into the feasibility of mining the deep but high grade mineralization at Durkin Deeps.