Times news network reported that Indian government has failed to take a resolution over the participation in the steel committee of Organization for Economic Cooperation and Development as industry representatives opposed this move saying that it would betray the interest of the domestic steel industry.

The domestic industry feels that the move would impinge the freedom that the Indian industry enjoys and fear that membership of OECD might make it difficult for the country to restrict iron ore export to support the domestic industry.

A representative of the steel industry said that In India the steel is a sunrise industry unlike in West where there is overcapacity and consumption also is on the decline. We feel that with India part of OECD membership, conditionality similar to developed countries would be deliberately imposed upon us.

Indias move to join the OECD club as a member is encouraged by both ministry of commerce and ministry of steel saying that, this would enable the countrys industry to tap a vast pool of data and resources available in OECD countries. As per report, steel ministry would again convene a meeting on the subject to take the issue further.

Manganese Ore India Limited has posted a growth of 32.6% YoY in sales during the 3rd quarter of 2006-07 as compared to Q3 of 2005-06 by posting sales revenue of INR 109.05 crore as compared to INR 82.83 crore in Q3 of 2005-06. MOIL has earned a net profit of INR 29.77 crore for Q3 of 2006-06 up by 31% YoY as compared to profit of INR 22.71 crore in Q3 of 2005-06.

MOILs The production of manganese ore has registered a growth of 21% during October to December 2006 as compared to Q3 of 2005-06 and its sale registered a quantum jump of 43% YoY.

MOILs cumulative sales turnover and net profit earned during April to December 2006 is INR 294.63 crore and INR 80.19 crore respectively up by 25 % YoY and 20% YoY respectively.

MOILs sale of manganese ore during April to December 2006 has hit an all time high of 0.825 million tonnes against 0.504 million tonnes in April to December 2005.

It is reported that National Hydroelectric Power Corporation Ltd has outlined a capital expenditure of about INR 30,000 crore to generate 10,000 MW by the end of 2012 for 14 projects to augment its generation capacity form current installed capacity of 3,755 MW. Mr SK Garg CMD of NHPC told media "We aim to become to a 10,000 MW company by the end of the 11th Plan."

Of the 14 projects lined up for the Eleventh Plan, 12 are already under various stages of implementation and clearance for the remaining two projects is expected by March 2007.

Out of the proposed INR 30,000 crore expenditure internal accruals will account for INR 4,800 crore and the government's budgetary support would be to the tune of INR 6,000 crore, while the company plans to raise INR 1,000 crore from the markets through an IPO and the balance amount will come from domestic and international borrowings.

Kolkata based rebar maker SRMB Udyog SRMB, in order to increase its sales volumes, is tying up with small rebar manufacturers across the country under contract manufacturing. As per reports, SRMB has tied up for production of 60,000 tonnes per annum unit in Allahabad in Uttar Pradesh, 40,000 tonnes per annum unit at Koderma in Jharkhand and is close to finalizing a similar arrangement with a unit in Kerala and Gujarat.

Mr Ashish Beriwal director of SRMB Udyog told a media briefing This is perhaps the first time that such an outsourcing model is being tried out in this sector. Our overall target is to achieve a production capacity of 0.4 million tone by March 2008. We want to have a similar outsourcing deal in Punjab or Himachal Pradesh to address the north India market.

Currently, SRMB has a total capacity of 0.15 million tonnes of TMT bars & sections between its 3 units at including Paharpur, Dankuni and Durgapur in West Bengal and is planning to set up an additional 0.15 million tonne per annum capacity adjacent to its existing unit in Durgapur to be operational by August 2007.

It is reported that the government is considering revisiting the policy of depending on imported coal and is considering shifting to usages of 40:60 or 50:50 blend ratio of imported to domestic coal for coastal projects.

The decision to set up power plants based on imported coal was taken because of limited reserves of coal in the country, but now with the reserves estimation going up and also taking into account the volatility of the international coal market, the same is being revisited.

Moving to a blended coal approach would have considerable price advantage and would also ensure energy security whereby the countrys power needs would not be solely dependent on fuel imports.

The performance on operating power plants on blended coal has been satisfactory with blended coal used in power plants of NTPC at Farakka and Talcher, in fact blended coal has improved their operational performance.

Indian government is planning to setup at least six coastal ultra mega power projects of 4000MW each.

The Himachal Pradesh government recently announced a new hydropower policy to facilitate building of generation capacity capitalizing hydro power potential in the state.

Under the new policy, preference will be given to local companies for 5 MW project, for projects between 5 MW and 100 MW the state would adopt the MoU route for awarding such projects and for projects of above 100 MW international competitive bidding route would be followed.

For projects above 100 MW, the state government would be charging royalty ranging from 12% to 30% of power generated. Such projects would be offered under a 40 year concession agreement after which they would be transferred to the state government. The state will also reserve the right to subscribe to up to 49% equity stake in such projects.

The new policy also suggests that 1.5% of the total project cost would be earmarked for local area development and that 70% employment opportunities would be given to the local population.

The state government has recently created Himachal Pradesh Power Corporation Ltd to oversee safety and related issues concerning hydropower projects.

It is reported that the Gujarat government has awarded the INR 4,000 crore 1,000 MW imported coal based power project to be set up at Jamnagar to Essar Power as its bid of INR 2.4 per unit was the lowest.

The other companies, which were in the race includes China Light & Power Hong Kong, TATA Power and Torrent Power.

Essar Power has already commissioned 120 MW co generation plant at Vadinar for captive use by Essar Oils refinery and a 25 MW coal based plant at Visakhapatnam for captive use by Essar Steel and is executing captive gas-based combined cycle power plant of 355 MW capacities at Hazira for captive use by Essar steel. In addition it is exploring several opportunities for new projects based on thermal, wind and hydel energy and is reported to be close to finalizing plans for a 1,500 MW gas based project at Hazira.

American Iron and Steel Institute, based on the US Commerce Departments most recent Steel Import Monitoring and Analysis, reported that steel import permit applications for the month of December 2006 totaled 2,590,000 net tons, 26% decrease from the 3,495,000 permit tons recorded in November and a 24% decrease from the November preliminary imports total of 3,389,000 NT.

AISI Said that, however, on an estimated full year basis for 2006, including November preliminary and December permits, total imports this year would be 45 million tons of steel mill products, including 36 million tons of finished steel, both all time records. AISI said that, for December, the largest volume of steel import permit applications for an individual country was, once again, China at 415,000 net tons with other notable countries being Ukraine at 243,000 net ton and Taiwan at 203,000 net tons.

Mr Andrew G Sharkey III president & CEO of AISI said that AISI has serious concern over the fact that 2006 total and finished imports appear likely to set all-time records and imports from China, a country that practices mercantilist trade policies, have surged to unprecedented levels. The fact that this has occurred in the face of a record buildup of service center inventories and a slowing demand only exacerbates our concern and gives further cause to the need to defend, enhance and enforce US trade laws.

Estimated full year 2006 imports from China would be 5.4 million tons, up by 125% from 2005. On an estimated full year basis, 2006 will likely see a precipitous rise in imports of all major Steel Mill Product categories.

BNamericas reported that Brazilian pig iron producers are confident about 2007 as the new year is due to bring positive demand from abroad, specially Asia, and strong prices on international markets and are pursuing new sales contracts to booming markets such as Mexico.

Mr Reinaldo Torres president of pig iron maker Sideruna told BNamericas that "I think that the market will heat up, as China and Japan are reducing pig iron production due to the greenhouse effect and will be demanding pig iron. Prices are now at $300 per tonne and I believe they will reach $350 per tonne to $370 per tonne by mid 2007 and could remain at this level until year end. Mr Torres added that Europe is likely to contribute additional demand for the material in 2007.

Mr Silvia Carvalho Nascimento commercial and financial director of pig iron group Ferroeste also expressed happiness about the outlook for pig iron in 2007. He said "Our view is very optimistic. We have closed 2006 with purchase orders of more than $300 per tonne, although we have just suffered a 9.5% increase in iron ore prices for 2007. Mr Nascimento explained that China's increasing steel production demands not only iron ore but also pig iron. He said that "Pig iron consumption in Asia is growing at a frightening pace and the lack of scrap around the world also increases the need for pig iron. Demand is rising in Taiwan, Korea, Japan and Malaysia and European countries also want more. Purchases in the US are due to expand in early 2007, as winter ends."

Ms Regina Gonzaga financial manager with pig iron company Cossisa, told that demand in Asia could be strong this year, citing China and Russia's possible reluctance to sell their production to neighboring countries as a reason She said "We have already held meetings with pig iron consumers, and they have told us that demand in the Asian market will be positive. Consequently, there could be a shortage in supply and prices could expand up to a certain level. Asian country would rather sell steel at $500 per tonne than pig iron at $300 per tonne.

Although, Chinas production of value added steel varieties has expanded notably especially for shipbuilding plate, pressure vessel plate, container plate, bridge plate, silicon steel and the auto grade steel sheets, but still the supply remains short of demand and Chinese users still rely on imports for a part of varieties or grades. China imported 15.306 million tonnes of steel products during January to October 2006 with 11.05 million tonnes or 72.2% being high end steel amounting to $1.266 billion almost 81.4% of total import value.

Mr Wu Xichun of China iron & Steel Association while addressing the 2006 strategic development and investment summit said that Chinese steelmakers should focus on improving quality of the products in the sector's development course. Mr Wu urged steelmakers to improve quality of steel products and further expand high value added steel output to replace the imports. He put this as the main task and goal of future steel product mix upgrading

Mr Cai Weici deputy director of China Machinery Industry Federation said that Due to slow structure upgrading of the upstream sectors, equipment manufacturing industry tends to be confined of growth." Mr Cai thus urged to base product mix upgrading on requirements of those manufacturing enterprises, reinforce new product development and enable the equipment industry to rely on domestic steel supply. Mr Cai contended propping up of the steel industry over equipment manufacturing will include richer varieties, higher quality in addition to increased output.

Mr Gao Huiju deputy chief engineer of Dongbei Special Steel Group disclosed that many quality problems may occur. A manufacturer of equipments also said raw material has been the major problem that prevents their product competing with those made abroad giving example of gas pipes.

The high price of imported steel products also makes equipment price cut unaffordable and special steel enterprises are having a good opportunity to develop with growth of the Chinese manufacturing sector.

(Sourced from Mysteel.net)

The European Commission announced that the deadline for its inquiry into Evraz Group's proposed acquisition of a 24.9% stake in Anglo American's Highveld Steel and Vanadium Corp Ltd is set for February 6th 2007.

In addition, Evraz banker Credit Suisse is also acquiring a 24.9% stake in Highveld Steel and Vanadium. Evraz has an option to increase its stake once regulatory approvals are received and will then be entitled to buy Anglo American's remaining 29.2% stake as well as the 24.9% holding of Credit Suisse through separate option agreements.

Highveld Steel and Vanadium is a leading global vanadium producer and also produces steel in South Africa.

Reuter has reported that Sinosteel Corp plans to buy the largest ferroalloy plant in the China from the Jilin government authority as part of a strategy to boost its market share and has signed a framework deal with the government to restructure the Jilin Ferroalloys Group Corp Ltd.

A Sinosteel spokesman told Reuters that the two companies were still talking about prices and other conditions. He said "After all our takeover plans are realized, we will have the lions share of the market."

The Jilin plant has an annual capacity of 400,000 tonnes of ferroalloys.

Sinosteel had already bought two ferroalloy plants in the northwest regions of Xinjiang and Qinghai.

It is reported that the Vietnamese government has approved the plan on raising coal selling prices as proposed by the Vietnam Coal and Mineral Industries Groups and as a result some of the big coal consumers will have to buy coal at higher prices effectively revoking the subsidies they were enjoying.

With the governments nod for the price hikes, the paper, fertilizer, and cement industries will have to pay more for coal, as determined by VCMI and no longer at the preferential rates decided by the government. The price increases will be defined by VCMI, which means the price of coal will be determined on the supply and demand basis.

Ministries of finance and industry said that the coal price increases will be conducted in two phases. In the first phase, the price will rise by 20% for paper, cement and fertilizer producers from January 1st 2007. In the second phase, the prices will be defined by the supply and demand basis beginning from the third quarter of 2007.

However, Vietnams prime minister has asked the ministries to take actions to prevent possible negative impacts on peoples lives and asked the ministries of finance and trade to keep close watch over the effect of the new pricing policies on production and society. The two ministries will have to submit the necessary solutions to ensure normal production of enterprises.

VCMI had announced last November a 44% hike in coal prices for the three industries which was stymied by the finance ministry.

Xinhua News Agency has reported that at least eight workers were feared dead at a coalmine in central China's Henan Province due to a gas explosion. The report of the accident came late as the owner of the illegal mine failed to report the accident in time or the number of workers inside of Songbiao Colliery when the blast happened at 11PM.

Mr Yu Dongfang a senior official with the local mine safety administration told Xinhua that "We received information about the blast this morning from the provincial government. The eight victims died after being sent to a nearby hospital and there may be more bodies in the mine.

As per report, the blast almost destroyed the mine, so rescuers don't know where the entry is and that the cause of the accident is still remained unknown.

Rizhao Port Co, Ltd announced its affiliate Rizhao Yuqiao Iron Ore Loading Co Ltd and Rio Tinto International Limiteds subsidiary Shanghai Rio Tinto have signed cooperation agreement on January 5th 2007 for expanding Rios iron ore imports at Rizhao Port from estimated 1.5 million tonnes in 2007 to 10 million tonnes between 2010 and 2017.

Rizhao port is limited by its stock capacity and t remove the obstacle, Rizhao and Rizhao Yuqiao plans to jointly invest RMB 1.47 billion into Rizhao ore wharf. Rizhao Port is slated to fuel additional RMB 600 million into Rizhao Yuqiao's Phase II Rizhao ore wharf project in a push for increasing stocking capacity from current nearly 10 million tonnes to 15 million tonnes.

It also stated that Rizhao port has developed it self from a small harbor into China's 9th largest port with 10 million tones of throughput and its throughput of metal and iron ores has grown at the fastest pace in China.

(Sourced from Mysteel.net)

It is reported that Shanghai Waigaoqiao Shipbuilding Co has become the world's eighth largest shipyard by building 3.11 million DWT of ships in 2006. This is also the first time a Chinese shipbuilder has surpassed the 3 million DWT output mark and joined the worlds top 10 shipbuilders by output.

Shanghai Waigaoqiao Shipbuilding Co had a record profit of RMB 1 billion in 2006 by increasing spending on production technology and innovation, which offset the rising costs associated with high steel and other material prices.

SWSC has orders for more than 80 ships, totaling 14 million DWT valued at about $5 billion.

China, the world's third biggest shipbuilding nation, built about 12 million DWT of ships in 2005 and has set the target of becoming the world's top shipyard by 2015 by building 24 million DWT of ships a year.

It is reported that worlds two biggest export terminals, Newcastle in Australia and Richards Bay in South Africa, have reduced export volumes fall in 2006 despite earlier forecasts that volumes would increase, mainly due to reduced supplies of raw materials to the terminals.

According to Port Waratah Coal Services Ltd, which runs the two terminals at Newcastle, Newcastle exported a total of 79.8 million tonnes in 2006 down by 0.6% as compared to 80.3 million tonnes in 2005. PWCS had earlier anticipated that exports from Newcastle for 2006 would increase by 9.6%.Newcastle accounts for about one third of Australias coal export capacity with other key ports being Port Kembla in New South Wales and Abbot Point, Brisbane, Dalrymple Bay and Gladstone in Queensland.

South Africas Richards Bay Coal Terminalalso handled to 66.5 million tonne sin 2006 down by 4% as compared to 69.2 million tonnes in 2005, partly due to lower capacity from the Mpumalanga Province coal belt. Last year RBCT received a R1 billion loan to fund a capacity expansion to 92 million tonnes by 2008 which would mean overtaking Newcastle as the worlds largest coal export terminal.

HR product outputs of stainless steel mill under BaoSteel Group broke 3 million tons in 2006.

It is reported that BaoSteel will now strive for annual output of 3.15 million tons in 2007.

(Sourced from Mysteel.net)

YIEH reported that US based Allengheny Ludlum Corp has raised its base price for one of its duplex stainless products AL 2205 by 4 % effective since January 3rd 2007.

Sources said the strong demand from oil, gas, and energy market helped the price hike. AL 2205 is a duplex stainless steel alloy, which contains chromium, molybdenum and nitrogen and thus has excellent resistance to general corrosion required for these markets.

It is reported that a derailment took place just outside a tunnel at Dassies Hoogte about 20 kilometers outside of Richards Bay on Friday morning, resulting in the closure of both rail lines to Richards Bay Coal Terminal.

A South African transport sources said that the country may loose up to 400,000 tonnes of coal due to this derailment.

A spokesman for RBCT, which is owned by coal exporters including Anglo American plc, BHP Billiton plc, Rio Tinto plc and Xstrata plc said that both rail lines are expected to reopen by the weekend.

It is reported that a sub contractor worker at the Corus site in Wombourne was trapped under the steel plate and died on the spot.

West Midlands Ambulance Service said paramedics were called to the plant and an ambulance service spokesman said "Unfortunately, the man had been trapped under some steel plate and was confirmed dead at the scene."

Massey Energy announced that it has hired Ms Elizabeth Chamberlin as new safety chief. Ms Elizabeth Chamberlin, a lawyer and certified mine foreman, chairs the National Mining Association's safety committee. She has worked since 1993 for Pittsburgh based Consol Energy.

Massey is facing federal criminal and civil investigations into a conveyer belt fire that killed two men in Logan County in West Virginia last January. West Virginia investigators determined that missing walls for controlling air flow and faulty firefighting equipment were factors in the deaths at the Aracoma Alma No 1 Mine.

Massey is USs 4th largest coal company based on revenue and operates 19 mining complexes in West Virginia, Virginia and Kentucky.