Mr Lalu Prasad Yadav union railway minister of India, while presenting the Railway Budget for the year 2007-08 in the Lok Sabha, has announced reductions and discounts in the freight tariff on various commodities including diesel, petrol, steel, cement and further discounts for consignments of wheat and fertilizers etc to maintain the unprecedented growth in freight transportation.

Mr Lalu Prasad announced that on the demand of mineral based industries like steel and cement etc, freight rates for transportation of all minerals including iron ore and limestone would be charged at Class 160 in place of 170 thus reducing the freight rates for these commodities by about 6 %. In a significant move the minister proposed to extend this discount to all commodities except coal, coke and iron ore, thus making this discount broad based.

Mr Lalu Prasad also announced a discount of 20% in lean season and 15% in peak season if train load traffic is offered in covered wagons for both up and down directions. However, this discount would not be available for commodities placed in LR-1 or lower classes. Further liberalizing this scheme he announced that this discount shall be available on all commodities except for all types of coal, coke, iron ore and commodities placed in class-120 or below during the lean season. The maximum distance between two unloading points will be increased from 200 kilometers to 400 kilometers for the immensely popular two point rake scheme during lean season.

Other initiatives by the Railway Minister that would have a positive impact on the steel industry in terms of increasing demand are the proposed expansion of INR 30,000 crore for freight corridor, increase in wagon production by 10% including addition of 800 bogies to popular trains, revamping of rail infrastructure and laying of new rail lines, proposal of three tier freight container movement and conversion of most of the meter gauge to broad gauge track.

The Railway Minister also announced that taking the process further, the commercial policy is also being made dynamic from this year as was done in the case of freight loading policy last year which has yielded the expected results.

Indian steel industry has welcomed the cut in freight rates and other announcements related to steel industry in the Railway Budget 2007-08.

Mr SK Roongta chairman of Steel Authority of India Ltd said "Over the last few years, the changes in freight classification on steel making inputs had substantially increased freight cost. We welcome the reversal of this trend. Freight reduction of 6 per cent on iron ore, limestone and dolomite is likely to have a positive impact of around INR 70 crore annually on SAIL in terms of savings on freight cost." Mr Roongta added that the growth plans of the steel industry, including those of SAIL, will need substantial additions to the railway infrastructure in the coming years and the announcement of dedicated freight corridors is also a positive step and, when completed, will help meet the growing transportation requirements of the economy.

Mr Naveen Jindal vice CMD of Jindal Steel & Power Limited said Steps like reduction in passenger fare, additional trains, other infrastructure developments, ease in ticketing, focus on cleanliness will encourage higher footfalls resulting in higher revenues. A reduction in freight rates of diesel and petrol by five per cent will help the economy and will have direct effect on the prices, which affects the common man. The reduction in freight rates for minerals will have a positive impact on the steel industry over all. The overall freight impact on the industry is in the right direction and the goal of the budget is to improve efficiency and higher output. Keeping the freight rates untouched is a positive sign for the economy.

Mr J Mehra director of Essar Steel welcomed slashing of freight rates and described the budget as a shift from passenger related issues to economy related issues. He said basic freight rate on iron ore would support our top line and the freight rate cut would reduce iron ore costs by INR 40 per tonne. He said "Railway Minister's shift to expanding new railway capacities is a welcome development after his earlier focus on utilizing existing assets during past 2 to 3 budgets. His promise for new railway lines to new steel & power project is also a positive initiative. We hope it becomes a reality soon. Railway Minister's announcement about cut in freight tariffs on iron ore is an initiative in the right direction. I hope it is applicable to all steel plants."

Mr NC Mathur director of Jindal Stainless Ltd told PTI that "We welcome the move and congratulate the railway minister for a growth oriented budget. The move would directly benefit the consumers as well as the industry."

The Chhattisgarh government has requested the central government to grant TATA Steel a prospecting license for a survey or iron ore deposits in the state's Bastar region.

Mr Rajesh Munat industry minister of Chattisgarh told the state assembly The state government's recommendation letter was sent November 10th 2006 after TATA Steel submitted a proposal in March 25th 2006 seeking a prospecting license survey of a 2,500 hectare stretch in Bailadila Deposit No 1.

TATA Steel has signed a MoU with the government of Chattisgarh for setting up a 5 million tonne per annum integrated steel plant in Bastar district with INR 100 billion investment.

Steel Authority of India Limited announced that on nomination by the government of India, SAILs board of directors has approved the appointment of Mr S Bhattacharya executive director as director finance on the board of directors of the company.

India Steel Alliance wants the steel sector to be eligible for deduction at the rate of 150% on R&D expenditure in the forthcoming budget as Indian companies need to continuously invest in research and innovation to not only stay on par with global competition but also get ahead of global companies.

ISA has also demanded that the government should allow complete set off of both accumulated loss and unclaimed depreciation from the book profit of steel companies for each year till such loss is fully exhausted, a period of 15 years to 40 years to avail the depreciation allowance, and flexibility to the companies to get large funding from abroad for their expansions.

Among other demands is 0% duty on project imports for green field and brown field expansion of steel projects for the next 15 years. . Nearly 50% of cost of the steel project is on plant and machinery. With the peak duty at 12.5%, it means that overall project costs are automatically higher. Making the duty nil will not only reduce project costs substantially but will also make Indian steel even more globally competitive.

ISA added that captive access to iron ore and coal must be provided when investment commitment of Rs 5,000 crore or more is made by a company.

ISA further said that both the central and state governments should be made responsible for provision of all needed projected related infrastructures.

Some of the initiatives announced by the union ministry of railways in the Railway Budget for n2007-08 for improvement in freight business by the include

1. Target for freight loading kept at 785 million tonnes in 2007-08 and 1,100 million tonnes in the terminal year of 11th Plan

2. Mission 200 million tonnes - Railways target higher share in transportation of Cement and Steel of 200 million tonnes each by 2011-12

3. Mission 100 million tonnes - Container traffic target of 100 million tonnes by 2011-12

4. Planning for Triple stack container trains on diesel route and double stack container trains on electrified route

5. Railways offer to run merry go round systems of power plants

6. Up gradation of freight terminals handling more than 15 rakes per month

7. 22.9 tonnes and 25 tonnes axle load freight trains to run on more routes

8. Production of wagons of higher axle load and payload to commence

9. Wagon manufacturers to be encouraged to design wagons with higher payload and new technology

10. Majority of air brake trains to be examined in accordance with premium CC or premium end to end examination system

11. Implementation of Unit Exchange Maintenance for rolling stock to improve productivity

12. Zonal Railway to engage independent marketing agencies for exploring further possibilities in freight business

13. Construction of Eastern and Western Dedicated Freight Corridors at a cost of INR 30,000 crore will commence from 2007-08 for completion during the 11th plan

14. Pre feasibility surveys for East-West, East-South, North-South and South-South Corridors

15. New Electric Loco works to be set up at Madhepura

16. Wagon Bogie Complex to be set up at Dalmia Nagar

17. Shortfall of rolling stock bogies to be met by setting up of Joint venture company with Kerala Government at Alleppey.

Steel Authority of India Limiteds Salem Steel Plant and Indian Institute of Metals of Salem Chapter have organized a workshop on stainless steel in Bharathi Arangam in Salem, which was attended by Mr PM Balasubramanian ED of SSP and Mr Vijay Sharma JMD of SISCOL in addition to many other participants.

Mr Balasubramanian while speaking on the occasion explained about the unique combination of properties of stainless steel including corrosion resistance, heat and fire resistance, hygienic character, a surface with pleasing appearance and long life. He pointed out that due to this unique combination of properties; stainless steel is widely used in process industry, construction, transport, white goods and utensils etc.

He outlined application and need of stainless steel is various segments including chemical industry, power plant equipment like gas turbines and solar panels, textile machinery, vessels that carry dye and bleaching solutions, exterior applications such as roofing & paneling and for interior applications such as doors, curtain rails, escalators & elevators.

Mr Balasubramanian stressed that in order to sustain the growth in stainless steel usage, it is necessary to develop new applications.

In addition to officers of SSP, various delegates from IGCAR Kalpakkam, participated in this workshop and delivered speeches during technical sessions. Students of Government Engineering College Salem, National Institute of Technology Trichy, PSG College of Technology Coimbatore, Vinayaka Engineering College Salem, Sona College of Technology Salem and JM Engineering College Dharmapuri, also participated in the workshop.

Civil engineering firm McNally Bharat Engineering Co Ltd announced that it has secured INR 5.56 billion order from Rashtriya Ispat Nigam Ltd to construct a new sinter plant at Visakhapatnam.

At the II Annual Convention on Energy Conservation Initiatives by Industries conducted by Andhra Pradesh Productivity Council at Hyderabad recently, Rashtriya Ispat Nigam Limiteds Visakhapatnam Steel Plant was adjudged the overall winner for promoting energy efficiency at the organizational level. The award was presented by State Horticulture Commissioner Mr Anil Puneetha.

VSP also bagged the first prize for case studies on installation of rotary discharge system in place of batch discharge and installation of frequency converters at MMSM.

Ten industries from engineering and processes participated in the convention.

VSP had presented the initiatives for promoting energy conservation as well as case studies undertaken. VSP claimed that it saved INR 54 crore by undertaking 44 energy conservation projects in 2005-06.

Local media has reported that Ranchi chapter of the Computer Society of India in association with R&D Centre of Steel Authority of India Limited and Mecon Limited has organized an international conference on automation and information technology in iron and steel making processes named AITISM starting today.

Mr Jagdish Singh ED in charge of RDCIS said the meet will conclude on February 28th.

It also has the support of the Union governments information technology department.

Some of the Indian steel makers are looking for reduction in import duty on their raw materials to remain competitive and meet huge domestic demand.

Mr VS Jain CEO of Jindal Stainless Steel said that "Nickel and scrap are important inputs for our industry. Prices of both are high now, affecting the margin as we brace to meet challenge from Chinese steel industry." Mr Jain said that the prices of nickel have gone up from INR 14000 to INR 15000 per tonne till last year to around INR 40,000 per tonne. He added that currently there is an import duty of 5% on both items and that in comparison China has reduced this duty to 1%.

Mr Krishan Goyal MD of Modern Steels said that "Import duty on products like rods and bars, was reduced from 12.5% to 10% in the last budget. Recently, it was further brought down to 5%. This has taken away a lot of business as competitors could buy roll products from outside. This situation calls for doing away of 5% import duty on scrap."

Mr Harmesh Jain secretary of All India Steel Rollers Association said increased prices of scrap were adversely affecting a large number of ingot and roller sheet units in Mandi Gobindgarh in Punjab.

National Thermal Power Corporation Limited announced that it is submitting a non binding indicative bid to Lehman Brothers of UK for acquisition of assets of 682.5MW Sidi Krir Power Project in Egypt through 100% equity acquisition of Globeleq Maghreb.

Globeleq had appointed investment bankers Lehman Brothers to find buyers for the assets it planned to sell.

KalingaTimes reported that Orissa High Court, on a petition by Kudremukh Iron Ore Company Limited, has ordered status quo to be maintained on grant of prospecting license with regard to Khandadhar iron ore mines in the State's Keonjhar district in favor of POSCO till March 12th 2007 when the matter will be taken up for further hearing.

In its petition, KIOCL had submitted that the state government's decision to recommend the grant of prospecting license in favor of the Korean steel company was arbitrary and illegal. KIOCL had been earlier sought prospecting license for the mines in question.

Companhia Vale do Rio Doce announced that it entered into a purchase and sale agreement to acquire 100% of AMCI Holdings Australia Pty for AUD 835 million. CVRD's stake is equivalent to a nominal production capacity of 8 million tons of coal, predominately coking coal and reserves of 103 million tons. AMCI HA had net debt of AUD 157 million as of November 30th 2006.

AMCI HA is a privately held company headquartered at Brisbane in the state of Queensland of Australia, which operates and controls coal assets through unincorporated joint ventures. Located Hunter Valley and Bowen Basin, AMCI HA's main coal assets are the following

(1) Integra Coal Joint Venture in Hunter Valley - Open cast and underground mines. AMCI HA owns 61% of Integra.
(2) Carborough Downs Joint Venture in Central Queensland - Underground mine ramping up to full capacity in 2009-10. AMCI HA owns 80% of Carborough Downs.
(3) Isaac Plains Joint Venture in Central Queensland - Open cast mine ramping up to full capacity by 2009-10. AMCI HA owns 50% of Isaac Plains.
(4 Broadlea Joint Venture in Central Queensland - Open cast mine, which is 100% owned by AMCI HA.
(5) An extensive and highly prospective coal exploration portfolio that is also included with this acquisition - potential for 3 billion tons of non audited mineralized material.

Investment in the coal business is an important part of CVRD's growth strategy and prior to this acquisition, CVRD already had minority stakes in two Chinese companies Shandong Yankuang International Coking Co. and Henan Longyu Energy Resources Ltd, in addition to a feasibility study to develop a large coal deposit at Moatize in Mozambique and a pre-feasibility study of the Belvedere deposit in the Bowen Basin in the State of Queensland of Australia.

MySteel reported that the steel market was quiet on the first working day after Chinese Lunar New Year with limited transactions and offers.

Commercial hot rolled steel coil of 4.5mm to 11.5mm is being offered at RMB 4150 to RMB 4200 per tonne in Shanghai up by RMB 3 to RMB 80 per tonne than the week before holiday while cold rolled sheet of 1.0mm remain stable at RMB 5100 per tonne and 1.2mm to 1.5mm at RMB 5050 per tonne.

On export, steel makers are still holding offer though they have been receiving a lot of enquires these days. At the same time, traders are actually anxious since overseas customers are pushing them for updated export quotations while steel makers just suspend offers citing the unclear export tax rebate policy.

A major steel maker said "We would rather wait for some time before making new offers as we are still observing the domestic market price situation and awaiting the announcement of export tax rebate cut or cancellation. We would set aside more allocations for domestic sales if domestic prices keep firm. Also the rising domestic prices would bolster the increase of export offers."

(Sourced from Mysteel.net)

BNamericas, citing a latest report from industry trade group Sinferbase, reported that Brazilian iron ore shipments in January 2007 totaled 19.1 million tonnes worth USD 967 million as compared to 16.4 million tonnes worth USD 694 million in January 2006 up by 16.4% YoY and 39.3% YoY respectively. Pellet exports during January 2007 amounted to 4.2 million tonnes up by 50% YoY as compared to 2.8 million tonne in January 2006.

The report said that CVRD exported some 15 million tonnes of iron ore in January 2007 as compared to 13.6 million tonnes in January 2006.

Iron ore sales within Brazil reached 3.3 million tonne in January 2007 up by 6.45% YoY as compared to 3.1 million tonne in the first month of last year.

Sinferbase's data is based on reports and estimates from Brazilian mining companies such as CVRD, MBR and Samarco etc.

As per reports, China became a net importer of coal in January 2007 for the first time. According to figures from the customs bureau, China imported 4.7 million tonnes of coal in January 2007 up by 81.1% YoY and its exports fell by 20.4% YoY to 3.29 million tonnes.

Mr Hao Xiangbin an official with the Beijing based China Coal Transport and Distribution Association blamed the coal shortage to transportation bottlenecks and a change in tax rebate policy.

He said China is strong in the productivity but lacks the transportation ability. Its difficult to transport the coal from mine sites to the coastal areas. Thats why the coastal area needs to import from foreign countries, adding that it was the first time that China has had to import more coal than it exports.

Increased demand of coal from Chinas energy hungry economy could pressure international coal prices higher, much in the same way as oil and steel few years back.

It is reported that Ukrainian Interpipe and Danieli have signed an agreement for building a steel making complex in Dnipropetrovsk.

Mr Victor Pinchuk owner of Interpipe group said that the total cost of the projects makes up nearly USD 600 million. He noted that the source of the projects financing is Interpipe and plan to attract a syndicated credit of a foreign bank.

Mr Pinchuk added that the capacities of the new enterprise will allow producing 1.3 million tons of high quality billets for pipe and wheel enterprises of Interpipe group a year

Mr Volodymyr Makukha Economics Minister who attended the signing ceremony noted that this project will allow reducing the consumption of natural gas at Interpripe enterprises by 8.5 times.

It is reported that a Chinese consortium of state owned China National Machinery & Equipment Import & Export Corp and Export Import Bank of China won the sole rights in June to exploit untapped iron ore reserves in Gabon Republic and will invest USD 3 billion to develop them.

The officials in the consortium said that it had signed the final agreement on the project with Gabonese government recently The project include construction of railways a port and 2 hydroelectric power stations It also said the consortium plans to begin work next year and complete it in three years and that would sell all iron ore from the mine to steel mills in China.

Companhia Vale do Rio Doce and French nickel firm Eramet had originally been part of the consortium eyeing Belinga but they pulled out because they were unwilling to bear the cost of building the accompanying infrastructure in such a remote, undeveloped location more than 500 kilometer east of Gabon's capital Libreville.

Japan Iron and Steel Federation said that Japan's output of crude steel in January 2007 was 10.07 million tonne up by 6.5% YoY and was a record for the month of January. Japan's crude steel output continued YoY growth for the 8th consecutive months on the back of robust machinery and automobile productions and since October 2006 its monthly crude steel output levels has exceeded 10 million tonne.

JISF however said that Japan may not achieve the 10 million tonne crude steel output in February 2007 as Nippon Steel's 3 million tonne per year blast furnace in its Nagoya works in central Japan has been shut for repairs from February 1st 2007 and will restart at the end of April. In addition February has less operating days.

JISF forecasts crude steel output of 29.25 million tonne for the Q1 of 2007 based on the production plans of its member mills.

Russian pipe majors Romanian subsidiary TMK Resita has commissioned a news billet caster. The launching ceremony was attended by Mr Dmitriy Pumpyanskiy chairman of the board of directors of OAO TMK, Mr Konstantin Semerikov CEO of OAO TMK, Mr Ioan Romulus executive GD of TMK-Resita and Mr Adrian Popescu president of TMK-ARTROM.

The annual production capacity of the new billet caster machine is 450,000 tonnes and is designed to produce 340 x 260mm bloom and round billets with cross sections of 250 and 280mm. In the second half of 2007, it is intended that the machine will be used to produce round billets with a cross section of 180mm.

TMK Resita was acquired by TMK in March 2006 together with TMK-ARTROM pipe plant in Romania. TMK Resitas annual production capacity at the beginning of 2007 was 380,000 tonnes of liquid steel and 350,000 tonnes of billets.

The American Iron and Steel Institute reported today that for the month of December 2006, US steel mills shipped 7.609 million net tons, an 11.8% decrease from the 8.513 million net tons shipped in December 2005 and a 5% percent decrease from the 7.991 million net tons shipped in November 2006.

AISI said that a YoY comparison of year to date shipments shows the following changes within major market classifications

AISI is comprised of 32 member companies, including integrated and electric furnace steelmakers, and 125 associate and affiliate members who are suppliers to or customers of the steel industry. AISI's member companies represent more than 75% of both US and North American steel capacity.

Ukrainian iron ore company Ferroexpo is reported to have secured a long term pellet supply agreement with international trading company under Anyang Steel Group.

According to the agreement, Ferroexpo will supply Anyang Steel with 300,000 tonnes to 500,000 tonnes of high quality pellet per year.

(Sourced from Mysteel.net)

According to Interfax, Chinas iron ore imports rose by 63.3% in January to RMB 712.16 million (USD 91.95 million) and that 31.7% of total imports or 508,000 tonnes of iron ore concentrate came from Brazil, representing a 110% increase from last year.

The rise in imports was mainly attributed to new iron ore import requirements for 2007, issued by the China Iron and Steel Association in late December 2006 to take effect on February 1st, as a result of which, many importers accelerated iron ore imports before the new rule deadline.

Xinhua reported that Angang Steel Company Limited announced that Mr Liu Jie chairman and member on Ansteel's board of directors have resigned from both posts because of retirement.

The board of directors with Ansteel has agreed that Mr Tang Fuping the incumbent vice chairman of the board, should serve as the acting chairman until late March when shareholders will hold a congress and formally elect a new chairman of the board.

The board of directors of Ansteel also suggested that Mr Zhang Xiaogang, the incumbent general manager of Anshan Iron and Steel Group, serve as a managing director on the board. When shareholders meet late in March, they will discuss the proposal about Mr Zhang's appointment as the managing director on the board of directors with Ansteel and vote for their decision. Mr Zhang was elected president of China Iron and Steel Industry Association early this month.

Ansteel is the steel making subsidiary of Anshan Iron and Steel Group Corporation, a diversified conglomerate with headquarters in Anshan, a city in northeast China's Liaoning Province. Anshan Iron and Steel Group produced 15 million tons of iron and 15 million tonne of steel in 2006.

It is reported that Mr Nambaryn Enkhbayar president of Mongolia and Mr Shinzo Abe prime minister of Japan signed a joint action plan for expanded bilateral cooperation including ways to utilize rich mineral resources in Mongolia. The action plan outlines that the two countries will expand a working group under their trade ministries to include the private sector and discuss development of Mongolia's mineral wealth.

Mr Enkhbayar was quoted by a Japanese official as saying during his meeting with Mr Abe as I would like to welcome the fact that Japanese companies, particularly large firms, have shown interest and eagerness in developing the underground resources." He said that the Mongolian parliament and government are now preparing laws concerning mining development adding the country will welcome proposals from Japanese companies on the legislation.

Japan is trying to boost ties with Mongolia, which boasts vast underground resources such as coal, gold and copper. The Tavan Tolgoi coal deposit reportedly has reserves of 5.1 billion tons, one of the largest in the world and the Oyu Tolgoi area reportedly has 15 million tons of copper, the world's second largest reserve. Mongolia has difficulties developing these resources, including insufficient transport infrastructure.

Gindalbie Metals Ltd announced that it has deferred the expected completion of the bankable feasibility study for its Karara iron ore project by six months to August 2007 but maintained that it is still aiming to commence production by late 2009.

Mr Garrett Dixon MD of Gindalbie Metals said the deferral was a joint decision by Gindalbie and its JV partner Ansteel. He said that the delay in completing the feasibility study was attributed to three factors - an increase in the size of Gindalbie's magnetite deposit located south east of Geraldton, delays in obtaining ore samples for pilot plant testing and Ansteel reviewing its preferred off take specifications.

Mr Gindalbie also disclosed that several key elements of the engineering and detailed design process will be undertaken in China following discussions with Ansteel. He said that Ansteel will take over the design of the concentrator, which will supply feedstock for Ansteel's pellet plant in China. He added that "Its turned into a real joint venture."

Mr Gindalbie also disclosed that it has not settled on its preferred power supply for the project, nor its preferred shipping arrangement at Geraldton port. The company previously announced that engineering plans for a new ship loader and berth were due to be concluded in January.

It is reported last week that world's largest integrated tin miner Indonesian PT Timah Tbk has received a new license from the Indonesian trade ministry to export tin under it since February 23rd 2007.

Indonesian trade ministry had imposed new regulations governing tin exports in January 2007 under which all tin producers must demonstrate that they can meet all the laid down conditions for grant of new licenses for exporting tin. The new regulations stipulate that tin producers must be able to refine ingots to 99.85% minimum purity hold a mining concession and demonstrate that they have paid taxes on revenue earned on tin exports.

Mr Thobrani Alwi president of PT Timah Tbk said that Timah is currently negotiating a deal with its 25% owned unit PT Koba Tin to utilize current under capacity to produce more tin ingots at Koba's smelters but he didn't elaborate on when the deal might be concluded or how much tin it might produce but said that such an arrangement is legal and has been carried out before.

Dofasco Tubular Products announced that its Shelby Ohio plant has been awarded certification for its compliance with the TS 16949 Quality Management System standard.

Mr James R Baske VP and GM of Mechanical Tubing Business emphasized that it was the hard work, attention to detail and determination to continually improve all facets of their system by the Shelby employees that enabled the plant to achieve TS certification.

Mr Baske also discussed the customer benefits that will result from the stringent quality system. He stressed that "While TS 16949 certification was designed as an automotive quality standard its exceptional quality management system focus on defect prevention and the reduction of variation and waste will benefit all of Shelby's customers."

The TS 16949 process specifies development of a Quality Management System that provides continuous improvement, emphasizes defect prevention and the reduction of variation and waste in the supply chain. It provides specific system requirements for the design development and production of automotive related products.

Dofasco Tubular Products is one of the largest and most diversified producers of steel tubular products in North America. Dofasco Tubular Products was formed in 2005 when the Dofasco de Mexico and Marion tubing plants were merged with Copper Welds automotive and mechanical tubing businesses. The Shelby plant is a worldwide supplier of high quality drawn over mandrel, as welded mechanical cold drawn and hot finished seamless steel tubing products.

It is reported that Arcelor Mittals Mittal Steel Kryviy Rih increased it sales of steel products by 15.9% in 2006 to 7.089 million tonnes.

Mr Volodomyr Shalymov sales manager of Mittal Steel Kryviy Rih at a conference on metals and the construction industry in Kiev said that its domestic sale in 2006 increased by 2% to 1.415 million tonnes.

Baosteel Group Corp announced that it has not finalized an overseas listing plan. Mr Wang Chengran head of asset management at Baosteel, refuting a media report was quoted by Bloomberg as saying that "We haven't planned a timetable or a place for an overseas listing.

Ms Cheng Ying board secretary and CFO at Baoshan Iron & Steel Co also said that she is not aware of the listing plan.

Shanghai based China Business News, citing unidentified sources, had reported that Baosteel is planning an overseas listing in America by issuing American depositary receipts adding that the amount of capital the steelmaker intends to raise and its share price has not been finalized.

American depositary receipts, typically known as ADRs, represent stock in overseas companies and are traded in the United States. They enable holders to buy stakes in companies without the need to trade on an overseas exchange.

POSCO has expressed an interest in Daewoo Shipbuilding & Marine Engineering Co, which is slated to go on sale around September 2007 and is regarded as an attractive M&A target for POSCO, as it uses nearly a million tons of steel plates annually to make vessels. POSCO supplies nearly 40% to 50 % of Daewoo's steel needs.

State run Korea Development Bank and restructuring agency Kamco jointly own half the shipbuilder a former unit of the bankrupt Daewoo Group with a market value of USD 5.7 billion.

Arabian Business reported that shortage of labor and raw materials could hold back Middle East region from becoming a major steel production centre and that some experts fear that there is limited potential for the long term sustainability of steel rolling mills in the region.

The report cites Mr Arvind Sharma MD of Kwik Steel Structures FZCO as saying that "I think rolling mills have a limited potential in this area and there is a current requirement because of the construction boom but steel factories here still wouldn't be able to compete effectively with places like Turkey rolling mills for this region could be just passing projects." Mr Sharma added that progress towards the GCC becoming less dependent on steel imports could also be hampered by a shortage of labor as well as scrap material.

Mr Raman Madhok CEO Al Ghurair Iron & Steel said "Imports will continue to rise but people can make and sell more here, although they have to do it in the proper fashion He said "The question is, how you will run the facilities? People already based in the region need to be trained to run the plants continuously over a period of time and if you don't start now what will you do in ten years time? Workers from places like Yemen and Egypt who are settled here could be trained both for vocational as well as metallurgical reasons."

Steel demand in the GCC stood at 15 million tonnes in 2006 of which 14.3 million tonnes were imported and import is expected to reach around 19.7 million tonnes in 2008 mainly because of a surge in industrial and infrastructure projects.

Wuhan Steel announced that it may double iron ore self sufficiency rate to 40% if the iron ore exploitation at Exi in West Hubei Province proves successful.

Wuhan Steel, although one of the largest steelmakers in China, is severely short in captive iron ore supply totaling only some 3 million tonnes per year, as compared to some of the domestic rivals.

China's steel industry is posing dramatically increasing demand for iron ore, during recent years of expansion.

(Sourced from Mysteel.net)

2006, in addition to being the year of mother of all mergers, was greatly influenced by happenings in the steel industry in China, which witnessed crude steel output increasing to 420 million tonnes. Chinese steel sector witnessed many happenings including some unexpected ones.

At the beginning of 2006, China steel market was covered by the atmosphere of productivity surplus, China steel price ran at low level, still mills saw high stock and most of them suffered profit loss, after great ups and downs in 2005, China steel market was still unstable in early 2006. Many global steel companies cut production and digested inventory, meanwhile driven by rapid global economy growth and the reestablishment stock, international steel price halted dropped and started to rise.

During 2006 China changed its role from a net steel import to a net steel exporter. When US steel price dropped after touching the peak, many industry insiders doubted the continuous growth in China steel export, while the fact is that China steel export reached 6.47 million tonne in Q1, 10.62 million tonnes in Q2, 11.51 million tonnes in Q3 and 13 million tonnes easing domestic market pressure. Despite of export jump Chinese mills faced price decline in H2.

Now, on one hand Chinese steel makers are facing threats if trade measures from various countries and on another their production of crude steel is forecast to reach 460 million tonnes in 2007, which is bound to result in surplus availability scenario. And the formost question is that how will the China steel market be in 2007?

Chinas leading steel information provider SteelHome has prepared an Annual Report which analyzes China steel market for 2006 and perspective for 2007. The report addresses the burning issues being faced by Chinese steel makers and covers construction steel, plates, HR, CR, coated products, strips, seamless tubes, section, SS, iron ore, scrap, coke and ferroalloys.

If you are interested to know more about it please visit
http://www.steelguru.com/steelhome/steelhome_annual_report.php
or send a mail at research@steelguru.com.

You are cordially invited to be a part of Asian Metallurgy 2007, by way of your presence during March 1st to March 3rd 2007 at the Bombay Exhibition Centre, Goregaon (E) Mumbai.

Asian Metallurgy is now an established international exhibition being organized since 1996. This is a technology, equipment and products exhibition for ferrous as well as the non-ferrous metals industry in the Asian region. Asian Metallurgy 2007, the fifth edition of the event, will be held during March 1st to March 3rd 2007 at the Bombay Exhibition Centre, Goregaon (E) Mumbai.

Asian Metallurgy 2007 is the biggest biennial exhibition of technology, equipments, materials and products related to ferrous and non-ferrous metals industry of Asia. Today, steel & metal industry in the Asian region is on the upswing and experts believe that this momentum will be sustained for at least the next 5 to 6 years. Many metal & steel business houses, equipment manufacturers, technology companies, trading houses have identified Asia as the fastest growing marketplace for their products.

Asian Metallurgy 2007 will showcase the latest technologies and equipments being utilized in the metallurgical industries. Around 125 companies & brands are expected to participate in this mega event. The event will attract visitors from not only Asia but also from the other parts of the world.

To know more about it, please contact Mr DA Chandekar Editor & CEO of SteelWorld at info@steelworld.com or at: 91-22-2619 2376.