Steel Authority of India Limiteds Rourkela Steel Plant has concluded the calendar year 2006 with the record production 2.16 million tonnes of hot metal, 2.01 million tonnes of crude steel and 1.98 million tonnes of saleable steel representing increase of 27%, 26% and 29% respectively over 2005.

RSP produced 301,750 tonnes of sinter, 193,098 tonnes of hot metal, 183,269 tonnes of crude steel, 184,806 tonnes of saleable steel and dispatch of 188,364 tonnes of steel during December making it the best ever December since its inception.

In addition to record volumes of production, RSP also achieved all time best figures in techno-economic parameters such as Coal to Hot Metal Ratio in the BFs, Lining Life in LD Converters in SMS, besides specific energy consumption in crude steel production. This has contributed significantly to bringing down production cost, thus enhancing profitability.

IANS has reported that Coal India Ltds subsidiary Bharat Coking Coal Ltd plans to close down its unsafe and economically unviable mines, mostly in Dhanbad district of Jharkhand and has sent a proposal to CIL and the coal ministry to close down 41 operational mines.

A BCCL official told IANS 'We have surveyed the operational coal mines of the company through an NGO. The report has suggested that 41 mines are unsafe and they are also not viable from the economic point of view.

He said that the mines would be closed in a phased manner once the coal ministry approves the proposal. Fifteen will close this year, 10 each in 2008 and 2009 and the remaining six in 2010. The phased closer has been planned to adjust the workers in other operational mines. The closed mines workers will be shifted in the operational mines.

BCCL employs 86,000 workers and the company plans to bring down the strength of workers to 58,000 by 2010 but trade unions are opposed to the BCCL plan.

JSW Steel Ltd has announced a hike of INR 500 per metric tonne for its galvanized steel and said that the price for HR Coils remains unchanged.

Mr Seshagiri Rao director finance of JSW said "The price hike for galvanized steel has been necessitated by the increase in zinc prices and the impact of other raw material prices."

It is reported that Paradip Port Trust is planning to augment its capacity to 100 million tonne by the end 2012 from the existing 51 million tonne form 14 berths.

The projected additional capacity will be built by way of PPP basis and the company to likely to spend INR.300 to INR 600 crore for the deepening of the channel and making of the berths and another INR 300 crore for the construction of breakwaters.

The PPT, which celebrated its 41st anniversary on Wednesday, recorded a traffic throughput of 27.93 million tonnes in the first nine months of the current fiscal up by more than 14% over 24.47 million tonnes handled in the same period of last year. It may close the current fiscal might close with a throughput of 37 million tonnes as compared to 33 million tonnes in 2005-06.

Steel Authority of India Limiteds Salem Steel Plants quality circle teams have won 7 awards in various categories at the National Convention of Quality Circles held at Kanpur during December 20th to 23rd 2006.

The Brearley QC of CRM Mechanical, New Tech QC of HRM Mechanical, Power Team QC of HRM Mechanical and Dragon QC of HRM Operation departments, bagged the Excellent Awards. The Brilliant QC of HRM Mechanical and the Modern QC of CRM Operation departments have won the Distinguished Awards. The Jasmine QC of CRM Operation department took the Meritorious Award. Mr S Ranganathan, Technician, CRM Mechanical department, got the consolation prize in the slogan competition at the Convention.

A total of 567 QC teams participated and made case study presentations at the Convention, in which all the seven participating QC teams of Salem Steel Plant have won awards.

RPG Transmission, under global bidding, has secured two orders worth INR 193 crore from Power Grid Corporation of India.

The first order worth INR 108 crore is for supply and construction of 203 kilometers of 500 KV HVDC transmission line from Sultanpur to Kanpur in Uttar Pradesh under Ballia - Bhiwadi transmission system. The project is expected to complete by March 2009.

The second order valued at INR 85 crore is for supply and construction of a 141 kilometer 765 KV transmission line from Tendukheda to Bina in Madhya Pradesh under Seoni Bina transmission system. The project is expected to complete by November 2008.

It is reported that Bharat Heavy Electricals is likely to bag an engineering, procurement & construction contract, from Electricity Generation Co Bangladesh, worth nearly INR 400 crore for setting up a 200 MW gas based power plant at Siddhirganj in Bangladesh.

The project will involve setting up of an open cycle plant with two units of 100 MW each and is slated for completion within 17 months from the date of award of the contract.

EGCB is a wing of the state run Bangladesh Power Development Board, specifically floated to implement, own and operate a 300 MW power plant at Siddhirganj. As per reports, ADB will lend $60 million under its credit program while the Bangladesh government will fund the balance cost.

A concession agreement was signed between the Indian Railways and 14 container train operators aimed at increasing the rail share of container traffic and introducing competition in the intermodal rail freight market leading to service improvements. The operators will be investing about Rs.400 crore for manufacture of more than 2000 wagons.

The concession also contains enabling provisions to meet the future requirements in terms of infrastructure and technological developments. It is expected that with the induction of private operators in intermodal rail transport, there will be substantial increase in the share of rail borne container traffic which is limited to 22% at present. This is likely to result in increase in growth of container traffic from the present 20 million tonnes to over 100 million tonnes by the end of the XI Five Year Plan.

Mr Lalu Prasad union minister for railways said that a new beginning was made last year by granting licenses to private parties for running container trains and the signing of the concession agreement heralds a new era in giving legal shape to mutual relations, rights and responsibilities between the Indian Railways and container train operators.

The fourteen operators are Adani Logistics Ltd & Mundra Port & Economic Zone Ltd, Boxtrans Logistics India Services Ltd, Container Corporation of India, Central Warehousing Corporation, Container Rail Road Services Pvt Ltd, Delhi Assam Roadways Corporation Ltd, Emirates Trading Agency; Gateway Rail Freight Pvt Ltd, Hind Terminals Pvt Ltd, India Infrastructure & Leasing Pvt Ltd, Innovative B2B Logistics Solutions Pvt Ltd, Pipavav Railway Corporation Ltd, Reliance Infrastructure Engineering Pvt Ltd and SICAL Logistics.

Local media has reported that Mr B Muthuraman MD of TATA Steel and Mr Sharad Baijal GM of TATA Power recently paid a courtesy visit to Mr Madhu Koda chief minister of Jharkhand on the occasion of New Year.

As per reports, the meeting had no specific agenda but issue pertaining to TATA Steels proposed 12 million tonne Greenfield project in Seraikela-Kharsawan district, ongoing expansion of its Jamshedpur based plant were discussed and help was sought for acquisition of land. In addition TATA Power's recent decision to set up an additional 120 MW captive power plant in Jamshedpur was conveyed.

Goas herald has reported that the deputy commissioner of Karwar, as per an order from the deputy director of mines and geology, has seized iron ore stored on encroached area of about 82,000 square meters at Belekeri Port by Salgaocar Mining Industries Pvt Ltd, Adani Exports Pvt Ltd and Mallikarjun Shipping.

Mr Riteshkumar Singh deputy commissioner said that notices were issued to the companies on November 16th 2006 to vacate the land, December 1st 2006 and December 13th 2006 directing them to vacate encroached land but during an inspection by a team of officials it was noticed that the directions were ignored by these companies.

Jai Corp Ltd has informed BSE that Mr Satyapal Jain has resigned as the managing director of the company with effect from January 4th 2007 and that he will continue to remain in the Board as a Director.

It also said that its board of directors at its meeting held on January 4th 2007 has appointed Mr Virendra Jain as the managing director of the company with effect from January 4th 2007, subject to the approval of the members of the company.

Companhia Vale do Rio Doce plans to set up a JV in China with Chinas 5th largest steel maker Shougang for transporting iron ore from Brazil to a new 8 million tonne Shougangs plant under construction in north Chinas Hebei province likely to come on stream by 2008.

Mr Chen Hanyu a Shougang executive said in the report that The move is designed to cut freight costs to offset mounting iron ore prices and secure a stable supply. Mr Chen added that Shougang is also considering building an iron ore palletizing plant with CVRD in Caofeidian to supply the new plant.

Further details on JV are not available but it is understood that it involves increasing iron ore vessel carrying capacity. According to the report, Shougangs existing fleet currently has smaller vessels with loading capacity of less than 200,000 tonnes

Tian Shuhua a steel industry analyst from China Galaxy Securities Co Ltd said that "Freight accounts for the bulk of iron ore's CIF prices for Chinese steel mills, which have been violently fluctuating in recent years. Shougang's partnership with CVRD will enable it to control price risks and obtain a reliable iron ore supply."

It is reported that Chian Iron & Steel Association and China China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters, through the newly released 2007 criteria for iron ore import license, are promoting to change the role of iron ore importers to that of agents to improve Chinese iron ore market.

As per report, instead of trading on their own account, iron ore trader would become agents for steel mills and shall sign an agency contract illustrating the imported quantity, usage and destinations. Moreover, traders and steel producers are encouraged to establish a more mature industrial chain through cross-shareholding, a common practice in Japan's steel industry.

The move has been met with strong skepticism from Chinese iron ore traders as their operating margins will be reduced because agents' commissions are understood to be meager by comparison to traders margins.

However, the prospect of the import agency system remains unclear, with some are worried about the effectiveness of the new requirements. Besides, the import agency system has no binding force on traders and producers, and the authority would only play a part in promoting it.

The new guidelines for iron ore importers includes that the importer has an overseas iron ore investment, a credit line of over RMB 400 million, certain iron ore warehousing facilities, the steelmakers must have a minimum crude steel output of 1 million tons and meet certain environmental, coal and water consumption standards.

(Source from MySteel.net)

EU antitrust regulators will rule on Cia Siderurgica Nacional SA's offer for Corus Group by February 5th 2007.

EU's antitrust regulator body, European Commission in Brussels has announced the deadline in an e-mailed statement without providing any other details.

Valin's Steel Groups output has crossed 10 million tonnes mark. It is expected that the steel maker will realize sales revenue of 36 billion RMB with a profit of RMB 1.85 billion.

Valin's Steel Group was founded in 1997 and the steel maker has only taken 10 years to elevate its steel capacity from 2.36 million tonnes per year to 10 million tonnes per year.

Valin Group has successfully carried out technology reformation during 10th Five Year Period with total investment of RMB 20 billion.

(Source from MySteel.net)

AP has reported that Colombia's antitrust authority has blocked Brazilian Gerdau SA from bidding for control of Colombia's second largest steel maker Acerias Paz del Rio, which is supposed to be auctioned in the coming weeks.

Mr Jairo Rubio head of the Colombias antitrust agency said that A possible merger between Gerdau and Paz del Rio would unduly restrict competition. Mr. Rubio however said that Gerdau may still be allowed to partake by accepting certain conditions should it place the winning bid, such as spinning off certain operations.

Gerdau said in a statement the company was appealing the antitrust authority's decision in time for a Tuesday deadline to participate in the auction.

Mr Willington Ospina, a stock trader with local brokerage Corredores Asociados said that One bidder less means the auction will be less fought over and the final price may be lower than expected.

As per reports, regulators have approved a possible bid for Paz del Rio by Arcelor Mittal.

Gerdau became Colombia's biggest steel producer after it acquired two steel mills, Diaco SA and Siderurgica del Pacifico SA in 2005.

It is reported that BHP Billiton Ltd and Minara Resources Ltd, Australias two largest nickel producers, have halted mining operations temporarily at BHPBs Nickel West division and Minaras Murrin Murrin mine in Western Australia after 3 inches of rain and 75mph winds hit the Kalgoorlie mining belt.

The deep, low weather system, formed out of what was Cyclone Isobel, was producing unseasonably heavy rain and localized flooding in southern WA, where BHP Nickel Wests Mt. Keith and Leinster mines are located.

Ms Emma Meade a spokeswoman for BHPB said "Some very heavy rains have hit Western Australia and we have had to partially close two of our mines, Leinster and Mt Keith. The concentrators are still operating from stockpiles and it is business as usual with the exception of the actual open-cut mining operations."

Mr Willie Rowe spokesman of Minara said While open pit mining has stopped at Minaras Murrin Murrin mine, processing operations are continuing and wont be affected by the rain as the company has significant amounts of ore inventories. However, the poor weather has slowed some trucking of ore from Mincor's four underground nickel mines in the area although this was unlikely to affect production during January.

Amongst the other miners, Jubilee Mines NL and Sally Malay Mining Ltd, which also have nickel projects in the area, said the rains hadnt disrupted their operations.

It is reported that Evraz Group SA has sought antitrust approval to take full control of Highveld Steel & Vanadium by acquiring Anglo American Plc's remaining interest and has submitted applications to both European and South African authorities in this regard around December 20th 2006.

Mr Andre de Nysschen CEO of Highveld said that Russia based Evraz submitted applications to both European and South African authorities "around December 20. And we may have a decision from Europe and South Africa's competition councils by June or July."

Evraz bought 24.9% of Highveld from Anglo for $642 million last year and has the option to buy a stake of the same size from Credit Suisse Group and Anglo's remaining 29.2% holding. Evraz also must offer to buy minority shareholders' interests if its own shareholding in Highveld exceeds 35%, according to South African regulations.

Anglo is selling assets to narrow its focus on platinum, diamonds, coal and industrial metals such as copper.

Moodys Investor Services believes that metal prices in 2007 will continue to be positive for producers although they will dip somewhat due to lower demand from the United States, partially offset by continued strong demand from China. Moodys Investor Services in a recent report titled Base Metals Industry Outlook 2007 said that Supply will also continue to be constrained by lack of new capacity in copper, zinc and nickel. Price levels of these metals are likely to continue to derive support from continued production challenges and ongoing labor disputes.

It said that The biggest threat to prices, apart from a significant reduction in Chinese demand, will be from the fund sector which has supported growth in prices over the past few years, but also contributed significantly to increasing volatility witnessed in 2006. Other significant negative factors for the entire mining industry are both operating cost platforms and development costs.

In case of nickel, Moodys expects a price correction from current levels, which could be significant, but it believes that the price will remain high. It said that The nickel price has been on a rise for a year as demand for stainless steel has been strong, the exchange inventory has dwindled to just over one days supply, supply
disruptions have persisted and the timetable for new mine supply has been pushed out. It is now accepted that the deficit expected in 2006, could occur again in 2007. Moodys said the biggest negative factor for nickel producers today, was the rapid escalation in development costs and while these costs and delays support the nickel price, they also have a direct negative impact on companies involved in producing the metal.

Moodys believes the zinc price is likely to correct in 2007, but will remain at attractive levels for producers. It said that strong demand from China is likely to continue as it expands its galvanizing capacity. It said The greatest risk to zinc would be a reduction in demand for galvanized steel, a sector that Moodys believes will perform well in 2007.

China's coke export price is affected by multiple factors like domestic coke capacity and output, domestic coke demand, up stream coal price and the downstream steel industry situation, the nation's industry policy and export tax regulations, export licenses quantity as well as foreign coke demand and the foreign end users self sufficiency rate.

All these factors have a big impact on the export price, while export availability and the demand from overseas market will also function. The export price will now hinge on domestic price given the export only taking up 6% out of the total output in China.

During 2006, a 1 million tonne big order from Mittal Steel at $ 150 to $160per tonne during the second quarter and another enquiry to buy 600,000 tonnes at end July has pushed up the coke export prices from China, demonstrating the influence lent by demand changes.

During January to October 2007, China produced a total 226 million tonne of coke, with annualized output predicted at 260 million tonne out of which 14 million tonne to be exported and 240 million tonne around will be left at home.

The export coke price may be driven up in short term regarding the 5% export tax imposed on four energy resources with effect from 1st Nov 2006. However, the tax was levied as well on pig iron, ferroalloy, billet & slab and coking coal. With a part of coking coal flowing back to domestic market under the tax, increased supply of it may oppress costs for the coking plants and lend a downward pressure on the export price thereby.

Meanwhile, ferroalloys export may decline and domestic availability will increase to drive down market price further. The steel enterprises thus benefit from reduced cost and in turn relax constrains on coke purchase. By this logic and from a longer perspective, effect of tax imposition on coke export may wear off, and the export price will finally be determined by fundamentals like domestic price, capacity and output, and the demand of foreign customers.

(Source from MySteel.net)

Austrian stainless tubemaker Schoeller-Bleckmann Edelstahlrohr GmbH has been hit by fire on 21st December 2006 and the company announced to resume the production next week.

Consequent to some welding work a fire started to spread in the Austrian Schoeller-Bleckmann Edelstahlrohr GmbH tube mill around noon on December 21st 2006 and the plant needed to be evacuated and several hours later the fire brigade of Ternitz succeeded to extinguish the flames. No persons were harmed but two cold pilger machines were damaged.

The fire was happened during Christmas holidays and didn't occur too much production lose however the fire affected SBER's production capacity and order backlog in January 2007.

Schoeller-Bleckmann Edelstahlrohr GmbH is part of TUBACEX Group since 1999.

Texas based Commercial Metals Company announced that it has completed acquisition of substantially all the operating assets of a steel fabrication business in Rosslau Saxony Anhalt in eastern Germany through its subsidiary Commercial Metals Deutschland GmbH.

The 40,000 tonnes per annum capacity fabrication unit has customers in the eastern and western part of Germany and its product reaches the major markets surrounding Leipzig, Halle, Berlin, Hanover and Hamburg.

The acquisition was announced in late November subject to regulatory approval and other conditions precedent. Bruhler Stahlhandel GmbH had previously owned and operated the facility.

AFX has reported that Arcelor Mittal has declined to comment on a press report that it is one of four bidders for Mitsui's 51% stake in Indian steel company Sesa Goa whose full value was put at $1.8 billion on the basis of the offers.

Stemcor Holdings Limited announced that it has acquired a 30% stake in London based consultancy business expert Euro Strategy Consultants.

EuroStrategy Consultants is a specializing in the steel industry, providing a bespoke service to both government agencies and corporate clients internationally.

AFX has reported that Arcelor Mittal is trimming a liquidity contract for shares in Mittal Steel Co NV to EUR 25 million from EUR 50 million as a strong rise in liquidity that coincided with the merger of the two steel companies made the lower amount sufficient.

The contract was set up with Societe Generale Securities last August 2006.

Interfax-Kazakhstan reported that Mr Nurlan Kalimov former head of the Karaganda has been declared wanted by the regional police unit for his alleged involvement in large scale theft from Mittal Steel Temirtau plant in Karaganda.

A report of the investigative team received by Interfax said that Mr Kalimov is suspected of covering up criminal groups that engaged in large scale theft from Mittal Steel and they believe that for big sums of money Mr Kalimov patronized and assisted criminal groups that easily stole huge quantities of metal from the steel mill. They said that shortly before the investigators started suspecting Mr Kalimov, he resigned and retired.

The police stopped two Kamaz trucks loaded with 60 tonnes of metal stolen from Mittal Steel Temirtau in April 2006, supposed to be illegally transported to Uzbekistan and later established that an organized criminal group had operated in the territory of the steel works and stolen big quantities of metal unhindered.