Steel Authority of India Ltd, with reference to the news item appearing in a leading financial daily titled "SAIL set to buy 30% in Canadian Coal Company" has clarified that the SAIL has been exploring several opportunities for acquisition of equity stake or ownership interest in coal mines abroad for establishing long term security in supplies of coking coal and the Western Canadian Coal Corporation opportunity is one amongst many under examination.

SAIL said that as of date, nothing concrete has emerged either in the WCCC opportunity or in the other opportunities under exploration & examination for their suitability.

It is reported that Indias finance ministry has denied granting infrastructure status to coal mining industry and has also rejected a proposal from the coal ministry to give tax benefits to mining firms and increase the limit of overseas debt these companies can raise.

The finance ministry has turned down proposal for permitting coal exploration and mining projects to tap External Commercial Borrowings to the extent of 50% of their total cost and declined a proposal to grant income tax exemption up to 40% of the profits earned by financial institutions through investment in coal exploration.

The finance ministry refused to provide relief in import duty of machinery and equipment for coal industry and did not agree to grant full tax exemption for the first five years for coal projects under Section-80 IA of the Income Tax Act 1961 and concessional taxation in the next five years by way of 30% deduction.

The coal ministry had sought 20% tax rebate for investments in shares, debentures and bonds of coal mining companies or units of mutual funds subscribing to those securities up to INR 70,000 and as per reports, this has also been refused.

All these recommendations were part of Coal Ministry's proposal to give infrastructure status to the mining industry. As per reports, the coal ministry is likely to submit its proposals to the finance ministry yet again for reconsideration.

Maharashtra Seamless Ltd has announced that it has bagged a prestigious order from Oil & Natural Gas Corporation Ltd for supply of both higher and smaller diameter seamless casing pipes for a value of approximately INR 474 crore.

MSL said that, with the above order, their total order book now stands at INR 800 crores for seamless pipes & INR 50 crores for ERW Pipes.

It is reported that Dr Manmohan Singh prime minister has assured the chief minister of West Bengal that a new expert panel would be constituted to formulate policy for iron ore.

Mr Buddhadeb Bhattacharjee chief minister of West Bengal while addressing the annual general meeting of Bengal Chamber of Commerce and Industry said that "The Anwarul Hoda committee report was not correct and did not take care of the ground realities. I told the Prime Minister that Hoda report was not proper and the Prime Minister had assured of constituting a fresh expert panel again."

Mr Bhattacharjee also said that there was need for a clear policy on iron ore and added that he had also apprised the Prime Minister on the issue of iron ore exports as it is not in the interest of Indian steel industry.

Tokyo Boeki Development of Japan has proposed to invest $2 billion in the steel and mining sectors in India by writing a letter detailing its investment plans to Dr Manmohan Singh prime minister of India. The investment plans were also explained to senior officials accompanying Indian PM during his recent visit to Japan.

As per reports, Tokyo Boeki is in the process of tying up with IFC and Japan Bank for International Cooperation for a JV in India and is in talks with Bharat Mines and Minerals, Mineral Enterprises, VSL Mining Company and Essel Mining & Industries.

Tokyo Boeki said that it will bring in Ironmaking Technology Mark Three technology developed by Kobe Steel, to India, which produces a high quality iron nugget product that contains essentially pure iron and carbon.

Tokyo Boeki is involved in several businesses ranging from coal mining to lifestyle support services. It has operations in the US, Canada, Eastern Europe and Asia. It has set up a steel plant in Qatar.

It is reported that Coal India Limiteds subsidiary Bharat Coking Coal Ltd has decides to close 41 coal mines out of 53 mines as the mines have not been very profitable and making them safe would be pointless. BCCL also plans to rehabilitate the 45,000 people working in these mines to open cast mines

Mr DC Garg acting CMD of BCCL said that "We will be shutting down the mines in a phased manner. This will be complete in four years. But we are not going to sack any of our workers"

But as per miners, there does not seem to be a clear rehabilitation plan in place and they are opposing the BCCL's decision to close the mines.

Mr Chandrashekhar Duve a union leader and MP has joined the protests and said that "We would not let any mine shut down. If need be I will resign from my Lok Sabha seat but we will not give up."

AFP has reported that hundreds of villagers of 27 farming villages have filed petitions with district authorities against Arcelor Mittals steel project in Orissa and that some 500 villagers demonstrated one day after the agreement was signed.

According to the report the villagers are scared of an impending land takeover with meager compensation and they fear that as has been happening elsewhere, their lands will be snatched away from them cheaply.

Arcelor Mittal signed an agreement with the Orissa government to build a steel plant on a 19,768 acre site in mineral rich Keonjhar district of Orissa on December 21st 2006.

Indian Institute of Metals Rourkela chapter and Steel Authority of India Limiteds Rourkela Steel Plant, while celebrating the 44th Metallurgists Day, organized seminar on Recent developments in continuous casting of steel.

Mr BN Singh MD of RSP in his inaugural address said that Being leader in technology should be the vision of the metallurgists and India should aim to become a world leader both in the volume of steel production and in technological innovation.

Mr. Singh reminded the participants that the continuous casting component of steel making in India is still far behind the leading steel producing nations and emphasized the fact that technology like continuous casting provides a cutting edge in both quality and cost and gives tremendous advantage to steel producers.

Dr Debashish Bhattacharjee chief of R&D & scientific services of TATA Steel in his presentation Continuous casting and clean steel practice in automotive applications touched various aspects of producing high grade automotive steel and its vast untapped market in the country.

Mittal Steel Company NV announced that, on December 22nd 2006, ThyssenKrupp AG initiated summary legal proceedings against Mittal Steel in the District Court in Rotterdam alleging that Mittal Steel has breached a Letter Agreement between Mittal Steel and ThyssenKrupp, dated January 26th 2006, with respect to the sale of Dofasco Inc, the North American steelmaker, to ThyssenKrupp. A hearing on ThyssenKrupps suit has been scheduled for January 11th 2007 before the President of the District Court in Rotterdam.

ThyssenKrupp alleged that Mittal Steel has breached the Letter Agreement by failing to cause Arcelor SA to initiate litigation against the Strategic Steel Stichting, an independent Dutch foundation which currently holds 89% of Dofascos shares, to force the Stichting to transfer the Dofasco shares to Arcelor so as to permit their sale to ThyssenKrupp.

The suit seeks a Court order directing Mittal Steel to cause Arcelor to commence summary proceedings in the Dutch courts to force the Stichting to return the Dofasco shares to Arcelor and imposing a penalty of 500,000 per day for each day that Mittal Steel fails to do so.

Mr Simon Evans Mittal Steels general counsel said ThyssenKrupps suit is entirely without merit. Mittal Steel is very surprised and disappointed that ThyssenKrupp has initiated this lawsuit since Mittal Steel has taken all reasonable actions to comply with the Letter Agreement and to obtain the dissolution of the Stichting. Moreover, as ThyssenKrupp is well aware from ongoing discussions, neither Mittal Steel nor Arcelor has yet made a final decision regarding possible litigation against the Stichting.

Boards of Directors of Mittal Steel and Arcelor formally requested that the Stichting dissolve and return the Dofasco shares to Arcelor. On November 10, the Stichtings board of directors unanimously decided not to dissolve and to retain the Dofasco shares, thereby continuing to prevent their sale. Mittal Steel is continuing to consider the possibility of litigation against the Stichting with its Dutch legal advisors, although Mittal Steel has been advised that the prospects for success of such litigation are remote.

World's 2nd largest steelmaker Japanese Nippon Steel Corp and JFE Holdings Inc have agreed for a 9.5% increase in iron ore prices with CVRD for shipments next year. Next to settle may well be South Korea's POSCO, which had been jointly negotiating for iron ore with Nippon Steel.

The settlement appears follow the global benchmark prices established last week by China's Baosteel, which was also representing other Chinese mills, under which iron ore prices for Carajas SFCJ and Southern System fines SSF FOB Ponta da Madeira and Tubarao, respectively, increased by 9.5% relative to the 2006 reference prices. The new reference prices, on a dry metric tonne basis are $0.7320 per iron unit for the SFCJ and $0.7211 per Fe unit for the SSF.

POSCO announced that it will set up a coal mine JV with Australian coal producer Resource Pacific Holdings Ltd to secure a supply of metallurgical coal. POSCO said that it will invest $23 million for a 10% stake in the JV that will operate Resource Pacifics Newpac mine in Hunter Valley of New South Wales.

POSCO said it plans to buy 400,000 tons of coal from the Newpac mine next year, and 500,000 tons annually for the following four years. The coal price will be agreed annually.

Newpac, which has a reserve of 252 million tons of high quality coal, began operating in March 2001.

Bolstered by national economic boom, China's steel industry rapidly expands in the past years especially in last two years, during which steel output rocketed suddenly from 300 million tonnes to 400 million tonnes as the steel output this year is estimated to reach about 420 million tonnes compared with 100million tonnes in 1996 with Baosteel taking the leading role in this strong growth

Baosteel also intends to raise its annual capacity to 30 million tonnes in the eleventh Five Year Plan period and enhances its global presence after actively participating in M&As in the country.

Mr Xulejiang the chairman in charge of BaoSteel in an interview shared BaoSteels aims to rank among top three steel makers in the world, as it boasts following great advantages.
1. China, the world's biggest steel producer, expects its steel output to top 420 million tonnes
2. Administrative policies pave the way for consolidation among steelmakers
3. BaoSteel stands as leading steelmaker nationwide
4. BaoSteel plans to strengthen its competitive power through technical and management improvement

Mr Xu based the above opinions on this year's governmental steel policies which signal that government encourages consolidation to fight against hostile takeover bid from world's steel titans and strives to wash out obsolete capacity.

(Sourced from Mysteel.net)

Osaka based Sumitomo Metal Industries Ltd. will spend 6.5 billion yen ($54.7 million) at its Amagasaki mill to boost production of seamless steel pipe.

The steelmaker intends to raise its production capacity of seamless stainless pipe at Amagasaki by 50% to 18,000 tons by the first half of the fiscal year starting April 1st 2007.

Nihon Keizai newspaper had earlier reported that Sumitomo Metal will invest 51.5 billion yen during the next four years to expand production of high grade steel pipes at its Amagasaki, Wakayama and Kashima mills.

Air Liquide SA, a publicly listed provider of industrial gases in France, agreed to acquire the remaining 45% stake in Japan Air Gases Ltd from Linde AG for approximately JPY 92.0 billion ($ 776.7 million). This acquisition will allow bidder to consolidate its industrial gas operation in Japan.

Tokyo based Japan Air Gases was created in January 2003 following the merger of industrial and medical gas business of Air Liquide Japan and Osaka Sanso Kogyo. The company supplies gas to the shipbuilding sector, which requires oxygen and acetylene welding and cutting techniques.

Baiyi Steel recently announced that NDRC has given its official approval to Bayi Steel's 1750mm HR strip steel production line project and 120 tonne converter project.

These two projects are financed with a total investment of 4.683 billion Yuan. Own capital accounts for 40% of the total investment, of which the rest is fund financed from the market. Among the total, steel making, refining, continuous casting and hot rolling system is financed with a total investment of 3.525 billion Yuan with the rest applied to construction of iron making system and preparation system for iron making.

Baiyi Steel will possess a capacity of 1.04 of hot metal, 1.2 million tonnes per annum of steel and 1.12 million tonnes per annum of hot rolled coil.

In the meantime, in order to keep its steel capacity unchanged, Bayi steel is to shut down three sintering machines with capacity of 20m2, two small blast furnaces of 380m3 and two converters of 20t. Besides, new measures will be taken to save energy and protect environment.

(Sourced from Mysteel.net)

According to Kasikorn Research Center the demand of steel in Thailand is expected to increase by 7% to 8% to around 13 to 14 million tonnes in 2007.

Thailands domestic steel market was down due to unstable political affairs and high oil prices in 2006 but the steel industry will be prosperous in 2007 as the government is planning some biggest construction projects. It is believed that the steel demand for automakers, auto part, and home appliance will also be increasing next year.

It is reported that Brazilian Steel Institute intends to negotiate with the Brazilian government for increasing import tax for steel product mainly for steel wire and rebar in order to protect domestic steel market and steel industry.

BSI is worried that China would transfer dump Brazilian market with steel as it still has no duties on construction steel like wire and rebar, while some countries such as Japan and Mexico etc are putting barriers for reducing the import of Chinese steel.

Steel importation is increasing sharply in Brazil also due to US dollar depression against Brazilian real, increased domestic steel demand and stoppage of CSNs BF NO 3.

As a review of China's silicon steel market in 2006, following three features can demonstrate the general situation.
1. The market price is dominated by stability with fluctuations bounded in certain extent and no big ups and downs.
2. Traders face greater operating risks amid price inversion now and then
3. Downstream enterprises tend to take low & medium grades to replace the high grades, incurring stagnant transaction of the high grade silicon steel and encumbering cash flow.

In 2006, available silicon steel would reach some 4.12 million tonnes, with 2.654 million tonnes of CR silicon steel including GO, 950,000 tonnes to 1000,000 tonnes of HR silicon steel, 700,000 tonnes to 710,000 tonnes of imported NGO and export of 230,000 tonnes to 240,000 tonnes of NGO. Yearly demand for NGO silicon steel is estimated at 3.8 million tonnes to 4 million tonnes showing basically balanced supply demand situation or a small glut.

Next year, it's expected the silicon steel market would look up, backed by following favorable circumstances.
1. Export tax rebate on electric motor and other household appliances was raised up to 17% from 13% to encourage export of relative products, thus driving up the demand for silicon steels.
2. In view of rumored VAT to be levied on imported silicon steel, the imported subject product may lose competitiveness compared with homemade product, which enjoys lower transport cost, timely delivery and swift settlement of complaints etc. The rumor is concerned particularly by foreign funded enterprises or JVs, who are mulling to take cheaper local materials in stead. This is surely favorable to absorption of domestic silicon steel resource.
3. Electrolytic copper price is expected to turn downward next year, cutting cost for downstream users and bring opportunities to silicon steel.
4. Import of silicon steel is predicted to stay flat with this year's amount, with possibilities to shrink further. The export may however increase, giving support to domestic outlook.
5.The downstream enterprises, especially the reputed and large household appliances makers are expect to pose greater demand for silicon steel by applying economy of scale.

Companied are the uncertainties face China next year, which can explain seasonal or regional fluctuations in stock or price amid the general stability as expected.

First, CR silicon steel would stay in shortage. The four largest producers are estimated with a total capacity of 3.3 million tonnes (including 200,000 tonnes or up of GO). Their output is predicted at above 3 million tonnes coupled with bound to be launch at Ma'anshan Steel and Lianyuan Steel, the total production is still uncertain. Trial production of CR at some HR silicon steel mills may also add to the uncertainties.

Second, increase or deduction in HR silicon steel output would put a direct impact on the trend of CR silicon steel. The price of each will also affect the other.

Third, cost pressure still exists with electric motor and the household appliance sectors. Aside from electrolytic copper, fluctuating chemical and insulating material prices would also force the downstream consumers to turn to substitutes for silicon steel.

Fourth, with establishment of various serve centers in East China and employment of new and advanced cutting/trimming machines, silicon steel resource can be made use of more efficiently and the demand is expected to lessen on this account.

(Sourced from Mysteel.net)

It is reported that nickel market has recorded a deficit of 95,000 tonnes in January to October 2006 with reported stocks some 32,000 tonnes lower.

Mine production was, at 1,146,000 tonnes 45% above the 2005 total. Refined production was fractionally below the comparable total for 2005 due mainly to reduced output in Oceania.

World demand was 58,000 tonnes higher than in the first ten months of 2005.
No allowance is made in the consumption calculation for unreported stock changes.

In October, world production was 103.7 kilo tonnes and demand totaled 114.8 kilo tonnes.

It is reported that Vietnamese steel producers have decided to raise selling prices by VND100 to VND150,000 per tonne in December 2006 due to increase in imported billet prices.

According to the Vietnam Steel Association, finished products are all seeing price increases due to higher billets price from China which are being offered at $450 PMT CNF since mid December an increase of $15 per tonne over the beginning of the month although no steel producer has accepted the price level.

Mr Nguyen Tien Nghi deputy chairman of VSA said that there was a rumor that China would raise the export tax rate on ingot steel by another 5% from the current level of 10%.

China now provides 75% of the ingot steel imported to Vietnam. If China raises ingot steel prices, locally laminated finished steel products will also see increases.

China Daily citing sources from the China Coal Trade & Development Association reported that Chinese government is not engaged in the coal order meeting and intends to focus solely on marketization.

The report cites an insider at the National Development and Research Commission as saying that the coal order meeting 2007 will be presided over by CCTDA instead of the commission.

The coal order meeting is the main way of ensuring smooth connections from coal production and transportation to demand in China. Coal and electricity enterprises set prices and sign contracts at the meeting.

It is reported that ongoing negotiations with the European Union on the restructuring program of the Turkish iron and steel sector is facing trouble due to the EU's insistence on collecting company data. One of the main reasons why the program has not been implemented is reported as the insistence of the EU gathering information from firms that will join the program.

Turkish bureaucrats have been reluctant to disclose details of firms in the sector on grounds that it could cause unfair competition. Officials cautioned that submitting information the EU was seeking could prove harmful to the Turkish sector and that they were looking for an intermediate formula to solve the issue. Mr Veysel Yayan general secretary of Turkish Iron and Steel Producers Association DD said that The non stop insistence for more and more information is a very disturbing situation.

A Turkish official said they were reluctant to provide company information as this data can be used against Turkish firms in later stages and because of that we have been very cautious about providing company information.

EU wants Turkey to implement a national restructuring program, continue governmental investments in the sector and makes it one of the main conditions for the continuation of talks and is a benchmark for accession talks. The program started in 2001 and was finalized in August and submitted to the EU but till now negotiations on the program continue without any implementation.

It is reported that a N$5 billion supplementary agreement for the completion of the Phase II of the 277 kilometer Ajaokuta to Aladja rail line was signed between the Nigerian government, contractor Julius and consultant Team Nigeria Ltd.

The project, known as Addendum I, is designed to address the urgent need to connect the two main steel plants of Nigeria, Delta Steel Complex in Aladja near Warri and Ajaokuta Steel Company along with the nearby National Iron Ore Mining Project Itakpe for the purpose of hauling the raw materials.

The contract for this phase was first awarded in 1991 by the Nigerian ministry of power & steel, but was transferred to the transport ministry in June 1996 with the aim of creating the backbone of a multi purpose and modern rail line for the North south axis as a result of which the project was redesigned to accommodate the handling of passengers and miscellaneous cargoes rather than steel products alone.

Xinhua has reported that the Chinese government plans to impose tariffs on exports of high polluting, energy consuming and resource intensive products from January 1st 2007.

Chinas ministry of finance said that these products include stainless steel ingots, preliminary processed tungsten, manganese, molybdenum and chrome.

According to the ministry, the government would maintain export tariffs on coal, crude oil and stone next year.

China government has taken a slew of measures to prevent low value added resource intensive products from going abroad as its is running short of natural resources.

Perus export promotion agency Prompex in its latest presentation said that Peru's steel and metallurgical exports soared up by 106% to $70 million in November 2006 as compared to November 2005.

Prompex also said that in January to November 2006 period, the sector achieved growth of 86% YoY to $643 million.

Portland based Northwest Pipe Company has announced that Mr Terry Mitchell senior VP has decided to resign from the company to pursue other business and personal interests and that his resignation is effective December 31st 2006. The Company does not have plans to replace this position at this time and his duties will be assumed by other staff members.

Mr Mitchell joined the Northwest Pipe Company in 1985 and has led its Tubular Products Group for the past several years.

Mr Brian W Dunham CEO of Northwest Pipe Company said that "Terry has been an instrumental part of the restructuring of the Tubular Products Group. He has led the Group through difficult times and is leaving us with a solid organization with a good future. It has been my pleasure to work with Terry and I thank him for all his contributions. All of us at Northwest Pipe wish him well in his future endeavors."

It is reported that construction of the 1,200 MW Vung Ang I thermal power plant worth $1.25 billion began last week in Ky Anh district in the central province of Ha Tinh of Vietnam. The new power plant will have two 600 MW turbine groups that will produce 7.2 billion kWh a year. Construction of the first turbine group is scheduled to be completed in March 2011 with the second group completed in March 2012.

Mr Dung PM of Vietnam, who officially opened construction at the site, said that Vung Ang I power plant was an important project for the country as it will generate 10% of Viet Nams current total electricity output. He also asked the Viet Nam Construction and Machinery Installation Corporation, the projects investor, to ensure the progress, quality, safety and effectiveness of the project. Mr Dung asked Ha Tinh province to be prepared to carry out other major projects, including the Ngan Truoi Cam Trang hydro power plant and the Thach Khe iron mine and steel manufacturing plant.

China's BaoSteel announced price increase for some coated products on 25th of December. The price for normal polyester color coated with thickness 0.5mm and below has increased by RMB200 per tonne while for thickness 0.5mm and above has increased by RMB100 per tonne.

The price of alluzinc color coated remains unchanged with January price level and the present price for TDC51D coil with thickness 0.5 is at around RMB 6507per metric tonne excluding the tax.

China's Lianzhong Stainless Steel Corp has announced that it produced cold rolled stainless steel coils with width of 1,500 mm successfully. The wide width coils are manufactured in 304 and 201 Grade in the thickness ranging from 1mm to 3mm.

Taiwans largest SS maker Yusco has built Lisco.