As per the latest data on global crude steel production during March 2007 released by International Iron and Steel Institute, India has edged out Germany to take 6th spot. India produced 4.211 million tonnes of crude steel up by 10.2% YoY as compared to 4.174 million tonne in Germany with a marginal growth of 1.4%.

India is on its path to become 2nd largest steel making nation in next decade. To regain 5th slot India has to now overtake South Korea which produced 4.348 million tonnes in March 0.147 million tonne more than India. With the likely steel making capacities coming on stream in near future, India in all likelihood will take 5th slot this year.

The top 10 steel making nations are as under

In 000 tonnes
Source -IISI

It is reported that Indias coal ministry has received 1400 applications for 38 coal blocks with an estimated reserve of 6.12 billion tonne offered for captive mining in November 2006. There are 748 applications from power companies, 142 from steel and 531 from cement. As per report, the applications are against the advertisement published January and the blocks are likely to be allotted in the next two to three months.

The coal blocks, having reserves of 6.12 billion tonnes, are in Chhattisgarh, Jharkhand, Bengal, Maharashtra and Madhya Pradesh. The mines have been earmarked for power, steel and cement. The ministry has reserved 15 blocks for the power sector, while for the rest iron and steel will get preference over cement. In power, projects of 500MW and above will get preference and in steel, it will be projects of 1 million tonne and above.

This is the highest number of applications ever received by the coal ministry for allotment of blocks. Last time when the ministry allotted 130 blocks with an estimated reserve of 27 billion tonne for captive mining, the number of applications received was around 400. The big increase is being attributed to the Indian governments decision to allow domestic as well as overseas mining companies to directly access captive blocks reserved for power, cement and steel sector players.

The guidelines for allocation of captive coal blocks have been amended. The government has now allowed standalone mining companies, both Indian and foreign, to bid for the blocks. However, they must have supply contracts with power, steel and cement companies. Foreign companies will have to set up an Indian arm or propose to do so within a specified period.

Statesman News Service reported that Mr Naveen Patnaik chief minister of Orissa has offered to hold talks with those facing displacement by the POSCO project and has even indicated that he is open to the idea of an all party meeting on the matter. The report cites Mr Patnaik as saying that We will certainly examine all avenues which help facilitating the project.

This is a major shift in the stance of Orissa government as so far it had not responded to calls made by various agitating organizations for an open debate on these matters and had turned them away.

Dr Manmohan Singh prime minister of India recently reviewed the progress of infrastructure project in Orissa and has directed Orissa government to expedite its implementation.

POSCOs steel project has been bogged down by protests by the local people and the hue and cry raised by the political parties and hardly any progress has been made over last two year. The two main problems are related to acquisition of land and allotment of iron ore deposits. So far, no headway is made by POSCO and considering the prevailing situation it may take a long time to find solutions to both the problems. Orissa government is unable to even provide access to the proposed site for survey work let alone acquiring land and displacing people.

Times News Network reported that during the recent visit of Indias trade delegation led by Mr Kamal Nath union commerce minister, there have been discussions with Chinese counterparts about removing export hurdles on met coke from China in return for an assured supply of iron ore from India.

The report mentions that India has made it clear to China that it is unfair to seek a more favorable trading regime for iron ore if its restrictions continue for exports of met coke to India continue.

China has put met coke exports to India under canalization route and has invoked quantitative restrictions. The exports of Chinese met coke to India last year stood at 3 million tonnes. It is understood that India has sought removal of canalization mechanism from China and has also asked that the quantity of met coke exports should be increased to 5 million tonnes.

The Chinese side also sought review and removal of INR 300 export duty on iron ore imposed in this years budget. Sources said that India has assured China that iron ore exports would continue unhindered. The report cites a source from the delegation as saying that while no assurance has been given on the withdrawal of the export duty, the Indian side has said the matter would be reviewed.

BL reported that Indias leading steel pipe maker PSL Ltd has recently announced that it plans to form a 75:25 JV with A&L Group to set up a pipe making unit in the US.

PSD has raised USD 10 to USD 11 million through a qualified institutional placement to fund its expansion plans last month.

Bharat Earth Movers Ltd has unveiled plans to raise money from the capital market in 2007. BEML has filed a draft red herring prospectus with the Securities and Exchange Board of India for a follow on offering of 4.9 million shares.

BEML has reserved 049 million shares for eligible employees and the net issue to the public will be 4.41 million shares. Indian government holding is expected to fall to 54% after the issue.

The money raised from the issue will be used to part finance the expansion of the metro coach manufacturing facility in Bangalore and meet BEMLs capital expenditure needs. BEML also intends to use a part of the proceeds to set up a 5MW wind mill.

It is reported that Bharat Heavy Electrical Limited is planning to enhance the installed capacity of its Trichy complex to 10,000 MW by the end of the 11th Five Year Plan period. The project is being carried out at an outlay of INR 190 crore and is scheduled to compete by October 2007.

Mr S Sathyanarayanan adviser of BHEL while delivering the inaugural address of the 2 day International workshop on Manufacturing Technology Realms Ahead organized by the Welding Research Institute of Trichy said that with the completion of the present modernization project, BHEL would have an installed capacity of 5750 MW from 4000 MW.

He said that the PSU would go in for another expansion upon completion of the present one at an outlay of INR 1,000 crore which would raise the capacity to 6,500 MW. The target to reach the 10,000 MW capacities by the end of 11th Plan period and simultaneously all the other units of BHEL across the country would also enhance their respective installed capacities to keep in line with expansion of the Trichy unit. He added that BHEL would spend around INR 2,300 crore over a period of 3 year.

SNS reported that Jindal Stainless Ltd at Kalinga Nagar is expected to commission its 250 MW captive power plant soon when the ferrochrome based furnace complex becomes operational. It will reduce the dependency of the company on power grid and would release the surplus power required for other areas of development.

Plant sources said that the fly ash produced by the power plant would be used for production of fly ash bricks, highway development and for use in horticulture.

In addition to this, fly ash application improves soil textures, reduces bulk density, improves water holding capacity, reduces crust formation and hence, improves capillary action. It has also been found that out of 150 million hectares cultivated land, 2 million hectares of land can be brought under fly ash treatment. In addition, reclamation of 1 million hectare wasteland per year can consume 100 million tons of fly ash and Orissa having lot of wasteland have vast potential for such utilization.

PTI reported that, with all major projects in the pipeline in Orissa affected by acute land acquisition problems, Orissa state government will establish a separate directorate under revenue department to exclusively deal with rehabilitation and resettlement issues. Mr Naveen Patnaik chief minister of Orissa has directed officials to open the new directorate, the first of its kind in the country, within a week.

According to decisions taken at the meeting, a Land Acquisition Officer and a Rehabilitation Officer will be appointed for each mega project. The officials said that These two officers will ensure that the land acquisition and rehabilitation processes go side by side. The officers will be responsible to talk to people and ensure peace in the project areas.

The meeting also decided that the new directorate would take up some projects on a pilot basis before being given responsibilities to look after all projects. Mr Patnaik reportedly told the revenue department that The activities of the new directorate should be result-oriented and focused.

The report also mentions a source as saying that the meeting also resolved that the acquisition of land and rehabilitation of affected people must be done through negotiations and not by force.

Orissa had adopted a new rehabilitation and resettlement policy since 2006 but it mostly remained on paper.

Coal India Limiteds subsidiary Bharat Coking Coal Limited has recently reviewed all existing security measures after recent Maoist attack on the Khasmahal located barracks of the Central Industrial Security Force under the command area of the Central Coalfields Limited.

BCCL has requested Mr RR Bhardwaj DIG of CISF to shore up the strength of the CISF personnel at all vital installations of the company more specifically in and around explosive stores and magazine houses.

Mr RR Bhardwaj later told media that they had already sounded a high alert and deployed additional forces at all explosive and magazine houses spread across different areas within the BCCL's command area.

International Iron and Steel Institute reported that the total crude steel production in Marchy 2007 for the 66 countries was 110.920million tonnes up by 8.6% YoY as compared to March 2006. The global crude steel production in January to March 2007 was 318.158 million tonne up by 10.3% YoY

The growth in crude steel production during March 2007 among regions was again led by Asia which registered growth of 51.4%, Africa, South America, CIS (6), Middle East, Oceania and European Union (27) also registered YoY positive growth of 12.2%, 9%, 8.6%, 7%, 7% and 5.6% respectively in March 2007. Only North America witnessed negative growth of 11.3%

In million tonnes
Source IISI

Among the top 20 nations, China as usual stood first with 40.157 million tonne production of crude steel registering tremendous growth of 20.4% YoY as compared to March 2007.

In million tonnes
Source IISI

Mr Wang Tianyi GM of Shougang Jingtang Iron and Steel JV Company Ltd said that it has started the construction of 5,500 cubic meters blast furnace for iron melting began recently in the new site of Shougang in Caofeidian Industry Zone at Tangshan in Hebei Province.

Shougang Jingtang Iron and Steel got under construction on March 12th 2007. The construction of the affiliated projects began successively. No 1 blast furnace, which got under construction recently is scheduled to be completed in 18 months and then No 2 blast furnace the second one of the two same furnaces will be constructed.

Arcelor Mittal employee representatives and management have agreed on the principle of a new combined European Works Council replacing previously existed agreement in which both Mittal steel and Arcelor represents a major additional step in the integration process of Arcelor Mittal. The new Arcelor Mittal EWC will be representing over 130.000 employees within the EU27.

21 representatives from 9 countries of Belgium, Czech Republic, France, Germany, Italy, Luxembourg, Poland, Romania and Spain representing 18 trade unions and supported by the European Metalworkers Federation were involved in discussions with Arcelor Mittal. The negotiations where held in a constructive atmosphere and strengthened the quality of the social dialogue.

Mr Roland Junck a member of the Arcelor Mittal group management board in charge of corporate functions and advisor to president & CEO said that "For Arcelor Mittal, social dialogue and employee involvement are key drivers for success. This agreement is yet another major step forward in our integration process. We look forward to work with the new EWC on all the challenges and opportunities we have in Europe.

Mr Jacques Laplanche secretary of the Arcelor European works council said that "This is a good agreement and it exceeds provisions of other agreements within the metallurgical industry. The conclusion of this agreement is based on the intention of the two parties to develop a combined Arcelor Mittal identity and a high quality European transnational social dialogue which guarantees the Group's further successful development in Europe."

Mr Uwe Scharnberg chairman of the Mittal European works council commented that "The full commitment of all involved parties and the confidence in the Arcelor Mittal values made this agreement possible".

Mr Peter Scherrer general secretary of the European Metalworkers Federation commented that "With this agreement Arcelor Mittal management has shown that it combines diversity and coherence with regard to national Industrial Relations which gives a solid basis for working with this agreement and is a clear example for other multinationals."

Mr Zhou Guobao director of the China Nonferrous Metals Industry Association Zinc and Lead Branch while addressing the 3rd China Non Ferrous Metals Industry Chain Development Forum held in Beijing said that China will produce 3.15 million tonnes of refined lead and 3.6 million tonnes of refined zinc in 2007 up by 15% respectively over 2006.

Mr Zhou also forecasted an apparent consumption of refined zinc 3.7 million tonnes in 2007 up by 10% YoY while lead consumption is expected to climb 10% YoY to 2.5 million tonnes this year. He also attributed strong lead and zinc production growth this year mainly to a continuous growth on domestic consumption lead & zinc mines' output hike.

According to his prediction, lead concentrate and zinc concentrate production are anticipated to grow 18% to 1.59 million tonnes and 3.40 million tonnes respectively in 2007. Last year, lead output reached 2.74 million tonnes up by 15% YoY from the previous year and zinc output reached 3.15 million tonnes up by 16% YoY from 2005.

Mr Jia Yinsong a senior official with the National Development and Reform Commission said in the same conference that the state would upgrade the zinc and lead sector through a number of means such as raising industry requirements, strengthening supervision and administration by regularly publishing a list of qualified zinc and lead manufacturers enhancing controls on land, loans, environment protection and safety.

China is making efforts to control redundant investment in lead and zinc smelting sectors in order to maintain a demand and supply balance in the zinc and lead sector. By 2010, domestic refined lead capacity is set to be reduced to 4 million tonnes and zinc capacity to approximately 5 million tonnes.

US steelmaker and scrap metal recycler Nucor Corp announced that its Q1 earnings increased by 4% due to strong metal prices offset lower production. While production of steel fell by 4% from the year ago period and its average sales price increased by 6%. That helped Nucor to earn USD 381 million as compared with USD 380 million year ago.

Nucor said that its revenue up by 6% to USD 3.77 billion from USD 3.55 billion in the year ago quarter. Its shipments fell by 1% to 5.7 million tons.

Mr Daniel R DiMicco CEO of Nucor, while acknowledging an inventory pileup and a volatile raw materials market, said that These results were achieved as our team successfully managed through significant challenges.

Scrap metal costs a key indicator for Nucor, which uses scraps to make steel at its mini mill operations across the country up by 9% during the quarter. But the company said scrap costs dropped sharply in March and should continue to fall. With lower scrap costs and higher prices for its products, Nucor predicted a strong second quarter with healthy margins.

Nucor completed its USD 1.07 billion cash acquisition of Canada's Harris Steel Group Inc in March and said the purchase immediately helped the company's expansion efforts.

According to a Wall street Journal report, China's GDP which is increased by 11.1% in Q1 raises new worries about excesses in an economy that has grown by more than 10% a year for four straight years. According to the report, the sharp rebound in China's economic growth this year displays the difficulty Beijing faces in setting the course of a vast, far flung nation and reignites debate on the best tools for guiding the world's 4th largest economy.

China's cabinet said that administrative restrictions on growth would be strengthened this year. Economists now expect it to accelerate increases in both borrowing costs and the level of the Yuan this year and failure to do so will only increase inflationary risks and worsen structural problems and tensions with the US and Europe.

Meanwhile, Chinese authorities have so far adjusted policies only very gradually and generally less aggressively than many outside analysts are advising. Key levers of economic policy, such as interest rates and the currency are at levels that stimulate economic growth rather than retard it.

Over the past 12 months, the central bank has raised benchmark borrowing costs by a total of only 0.81% point. But with interest rates so low small increases are unlikely to do much to deter borrowers from taking out new loans and standard rates at just over 6% are far less than the average growth rate of the overall economy and corporate profits, giving companies and households plenty of reason to keep borrowing.

It is reported that central China based Hunan Valin Iron & Steel Groups subsidiary Xiangtan Steel has started constructing a CNY 1.42 billion plate line with production capacity of 1 million tonnes per year with a maximum width of 3650mm and a thickness of 100mm. The new plate mill is expected to commence operation in June 2008.

The new plate mill will focus more on high value added plate products, such as ship and bridge making plate than the company's existing plate line.

Xiangtan Steel which is capable of producing 6mm to 120mm thick and 1500mm to 3600mm wide plate produces mostly commercial grade product. It was commissioned in 2005 and has a 1.4 million tonnes per year capacity, but produced only 1.2 million tonnes in 2006, out of which it exported about 400,000 tonnes to Europe and South America.

Hunan Valin Steel Tube & Wire has announced net profit of CNY 1.068 billion up by 95.19% YoY to in fiscal 2006.

(Sourced from MySteel.net)

Xinhua news agency reported that a burst of gas has trapped at least 11 coal miners in north China on Friday. According to the report the burst in which gas, coal and rock are expelled at high speed without catching fire, happened at the Taoer colliery in Handan Hebei province, 440 kilometers south of Beijing when 17 miners were underground.

This is second such accident in the area in 2 days where an accident also killed 9 and left 8 missing on Thursday in Handan colliery when 313 people were working underground.

Reuters has reported that Mexico's IMSA is in talks with Luxembourg based Ternium for a possible merger acquisition or sale.

IMSA in a statement said that it has also held talks with other steel companies for similar moves amid a global consolidation of that industry. IMSA did not name the other companies.

Ternium is controlled by Argentina's Techint and groups Argentina's Siderar Mexico's Hylsamex as well as the Venezuelan company Sidor.

It is reported that Osaka based Nippon Seisen announced that it will take control of Daido Stainless Wire from October 1st 2007 which is owned 87% by Daido Steel and operates plants in Nagoya and in Higashi Osaka not far from Nippon Seisen's Hirakata works.

Daido Stainless produces about 11,000 tonnes per year so together the two firms will make about 35,000 tonnes per year and enjoy a 33% Japan market share.

Besides titanium and high nickel wires Nippon Seisen produces 24,000 tonnes per year of stainless wires used in springs, mesh and similar applications.

On the backdrop of corruption scandals, German engineering giant Siemens announced that its former CEO and current supervisory board chief Mr Heinrich von Pierer will quit next week. Mr Von Pierer will now be replaced by fellow board member Mr Gerhard Cromme, once head of steel and heavy industry giant ThyssenKrupp.

Mr Von Pierer was CEO at Siemens between 1992 and 2005 and has acted as advisor to both current Chancellor Ms Angela Merkel and her predecessor Mr Gerhard Schroeder. Mr Von Pierer denied any wrongdoing and said that he was standing down in the interests of the company. He said "The sole reason for my decision is to serve the best interests of Siemens. My goal is to support the company's sustained success, and our impressive performance worldwide makes my decision much easier.

Siemens is currently engulfed in a massive slush fund scandal, in which prosecutors allege that company managers siphoned off hundreds of millions of euros in company money to obtain foreign contracts. Prosecutors recently arrested two more current and former managers in connection with the matter following a series of high profile arrests at the end of last year. Prosecutors allege that the employees concerned are suspected of collaborating to open slush fund accounts abroad and of operating a system to embezzle company money.

The Shanghai Morning Post reported that families of 32 victims who were engulfed in molten steel spill accident will receive CNY 271,940 each (USD 35,225) in compensations from the steelmaker and the government.

The mishap happened last week at the Qinghe Special Steel Corp at Tieling City in Liaoning Province, when a huge ladle used for pouring molten metal sheared off and about 30 tonnes of 1,500 degree Celsius molten metal poured into a room and burying all the 32 workers who were changing shifts inside. 6 injured workers are still hospitalized in Shenyang Armed Police Hospital.

Local police is still identifying the victims using DNA technology because their bodies were burned beyond recognition. The Local police said Mr Gao Feng the workshop director the operator and a technician are under supervision. Mr Gao is a delegate of Liaoning People's Congress and assistant head of Qinghe District.

The report said the company had launched a 100 day competition on January 9 to promote work safety and the accident happened on the 99th day.

According to a report by Indonesia local agency Indonesias state owned mining company PT Aneka Tambang will build its 4th ferronickel plant at an estimated cost of around USD 800 million.

Mr Deddy Aditya Sumanagara president of PT Aneka Tambang told local news agency that the plant will be built in cooperation with South Korean steel producer POSCO and is expected to have an annual production capacity of 30,000 tonne per year nickel in ferronickel. He said a feasibility study is currently being prepared with a particular focus on where the plant should be located and the construction is expected to start no sooner than 2010.

Antam produced 14,500 tonne of nickel in ferronickel lower than expected due to technical problems with its new FeNi III plant. The latter which was commissioned in January 2007 increased Antams capacity to 26,500 tonne per year but output in 2007 is forecast at a lower 20,000 tonne to 22,000 tonne.

AP reported that rescue workers have found the bodies of two miners trapped when a wall section collapsed in an open pit coal mine in western Maryland.

Mr Bob Cornett acting regional director for the federal Mine Safety and Health Administration said that one body was found in a backhoe the man had been operating Tuesday when the two were buried beneath at least 45 feet of debris. The second body was found inside a bulldozer a few hours later.

Mr Cornett said the men appeared to have died instantly "With the extensive damage I saw on the equipment, I don't think that we worried whether they suffocated to death." He said both pieces of equipment were spotted Thursday night after workers removed thousands of tons of rock and dirt. The vehicles were found side by side and upright, but the caterpillar tracks normally under the backhoe had been blown sideways and the blade had come off the bulldozer.

The section of the high wall collapsed at the Tri-Star Mining Inc site near Barton, about 150 miles west of Baltimore. Mr Cornett said the cause of the collapse was under investigation. He said heavy rain and the ground freezing and thawing could be a factor.

According to MSHA the mine had no fatal injuries since at least 1995 and was not cited for violations in its most recent inspection which began March 5th. The mine employed 51 people at the end of 2006 and produced nearly 653,000 tons of coal in 2006.

TMK announced that it has appointed Mr Vladimir Shmatovich CFO as its senior VP for strategy and business Development. Mr Shmatovich will now focus on TMKs strategic development including mergers and acquisitions the companys capital markets activity and the handling of all external communications including investor relations and stock exchange regulatory compliance.

Mr Shmatovich, prior to joining TMK in 2005, he worked as CFO in Udmurtneft Director for Financial Control in SIDANCO and CFO of Ruspromauto.

Mr Tigran Petrosyan previously VP for planning and budgeting has been appointed as CFO of TMK to focus on current operational and financial management. Before joining TMK in 2001, Mr. Petrosyan worked as head of planning and budgeting of Volzhsky Pipe Plant.

Times News Network reported that Arcelor Mittal will soon launch its new brands in June and TBWA Corporate part of the Omnicom Groups creative agency TBWA, has been awarded the global corporate communications and advertising business.

The TBWA will be responsible for above the line and below the line advertising, corporate strategy and creative development. The agency will focus on establishing relationships with the companys stakeholders. This is Arcelor Mittals first foray into advertising since the two companies merged last June.

Mr Keith Smith vice president of TBWA International said that In a business to business field that often considers communication as a by product, Arcelor Mittal is intent on developing a brand that will bring value to their company and to the industry as a whole.

It is reported that Baotou Steel has invested CNY 2.6 billion on construction of energy saving and resource utilization projects during 2000 to April 2007. The company will obtain CNY 700 million per year with full operations of the projects mentioned above.

In March 2007, it generated power of 116 million kilowatt hour by using surplus pressure, heat and gas. Recycling utilization ratio of industrial water reached 93.25%.

Baotou Steel in 2006 established lines to produce various floor brick and quadrel by using waste slag, recycled all of washing slag, replaced coal based boilers with coal based gas boilers in order to make good use of surplus gas and added generators using surplus pressure on five blast furnaces.

The company also built No.5 and 6 dry coking quenching projects, applied dry dust removing process in large blast furnaces above 2,000 cubic meters for the first time in the country as well as upgraded dry dust removing method on converters in sheet mill.

It is reported that Anshan Steels proposed CNY 6.3 billion JV with Lingyuan Steel has started construction and will come on stream in 2009.

The new mill will have annual integrated capacity of 2 million tonnes realizing sales revenue of CNY 5.8 billion and pretax profit of CNY 2.22 billion.

(Sourced from MySteel.net)

Metals USA Holdings Corp announced the promotion of Mr Randall Fox to President of Metals USA Building Products L.P.

Mr Fox joined Metals USA in 2003 and from 2003 to 2006 ran several locations within the various divisions of the company. In 2006, he was promoted to VP sales and operations for Metals USA's Building Products Division. Previously he worked for California Steel Industries and Bethlehem Steel.

Mr Lourenco Goncalves chairman, president and CEO of Metals USA Holdings Corp stated that "With Mr Randy's leadership, experience, and commitment to excellence, I am confident that the Building Products Division of Metals USA will further strengthen our national leadership position in both metal roofing and patio products, for the benefit of our customers, shareholders, and employees."

Metals USA provides a wide range of products and services in the heavy carbon steel flat rolled steel specialty metals and building products markets.

BNamericas reported that Brazilian steel can manufacturer Bertol aims to produce some 180 million cans in 2007 flat compared to 2006. The company had forecast production of 240 million units for 2006.

Mr Claudenir Edson Occhi commercial manager told BNamericas.that "There was substitution in the use of metallic packages in 2006." Mr Occhi added that some sectors are using polyethylene terephthalate packages for their products instead of steel due to costs.

Mr Occhi said Bertol targets its sales in southern Brazil and is focused on the food industry meanwhile the company has ruled out launching new reshaped cans in 2007 as well as investments to expand production in 2007 due to the current situation.

Bertol is based in Rio Grande do Sul state of Brazil.