Indian steel makers to ask for cap on iron ore exports

PTI reported that Indian domestic steel makers will press for a cap on iron ore exports at 90 million tonne a year during their presentation to the Mr Shivraj Patil headed Group of Ministers, which would be reviewing the National Mineral Policy 2007 on May 28th 2007.

The report cites that "There will be no impact on the employment and current investments if these steps are taken. It will also help achieving equilibrium between production and domestic consumptions.

As per report, Indias steel industry would also suggest gradual reduction in iron ore exports to conserve the mineral for domestic steel industry whose production in increasing. Indian steel industry is opposed to the Anwarul Hoda Committee recommendation of unrestricted export of iron ore.

Indian steelmakers citing an Indian Bureau of Mines report said that India has only 15.5 billion tonnes of iron ore resources, which would entirely be consumed by 2034-35. It also quoted a report prepared by National Council of Applied Economic Research, which also calculated that resources of high and medium grade of iron ore might not last more than 19 years.

Citing statistics, the domestic steel industry also state that India, which has the lowest per capita resources among the top iron ore bearing countries, was the only country in the world with large population base, which exports iron ore. It said that against Ukraine's per capita availability of iron ore of 1,417 tonnes, Brazil's 333 tonnes, Russia's 389 tonnes, China's 35 tonnes and Australia's 2,000 tonnes, India's per capital availability is only 21 tonnes.

India has been exporting about 100 million tonnes of iron ore each year to China, Japan and other countries.

SAIL Kiriburu iron ore mine gets ISO 9001 certificate

It is reported that Steel Authority of India Limited Kiriburu iron ore mine in Jharkhand has been certified for ISO 9001:2000 Quality Management System by the Bureau of Indian Standards. The Kiriburu mines also bagged the ISO 14001 Environment Management System certification earlier in June 2002.

Operating under SAILs raw material division, Kiriburu iron ore mine is the first mine to receive the Quality Management System certification. The mine has recorded the lowest cost of production for three years consecutively. The ISO 9001 certification testifies the mines systematic improvement in process, quality and maintenance that boosts SAILs global competitiveness in setting its mines on strict quality track.

Mr AK Singh spokesperson of SAIL said that Kiriburu iron ore mine, which has planned to ramp up iron ore production to 4.1 million tonne since 2007-08 has taken up a number of projects for further improvement in quality and productivity. The major upcoming projects include augmentation of capacity of screens and secondary crushers, replacement of bucket wheel reclaimer and re commissioning of tertiary crusher.

Another step the mine is taking is related to environment protection. The mine would soon commission water recovery system to bring down the natural water consumption, which is a step ahead in making the mine environment friendly.

More violence reported in POSCOs Orissa project

It is reported that tension gripped a village in Orissa's Jagatsinghpur district Sunday after activists of the Rashtriya Yuba Sangathana and the Nabanirman Samiti clashed on Saturday night at Nuagaon over POSCOs proposed project in the region. IANS reported that over a dozen of Posco supporters rushed to the village and beat up the anti POSCO activists. Four of our activists were injured.

Nuagaon, with a population of over 1,500, is one of the villages to be affected by the mega project. On May 16th 2007, protesting villagers in Nuagaon had detained two POSCO officials for two hours and released them only after they promised not to visit the village again.

More than 20,000 people from about 15 nearby villages including Dhinkia, Gada Kujanga and Nuagaon are opposing the project saying it will displace them and ruin their betel leaf farming.

The region has witnessed a series of clashes since the steel company and the Orissa government signed a deal in June 2005 for the USD 12 billion plant. There has been no progress on the project due to the protests. But a series of clashes over the project have been witnessed in recent weeks indicating escalation in violence in the area.

Indian energy industry needs USD 150 billion investment

According to a study India Energy Outlook 2007 released by leading consultancy KPMG, India's power and upstream energy sectors such as coal, oil, gas and nuclear power need funds to the tune of USD 120 to USD 150 billion over the next 5 years. According to it, India's energy consumption is rather low by world standards and the robust growth rate targeted by the country should entail a four fold rise in energy requirement.

The study said that in 2004-05, the total energy consumption for India was estimated at 572 million tonne oil equivalent and the per capita consumption was placed at 531 kilograms oil equivalent. However, with the targeted gross domestic product growth rate of over 8% and an estimated energy elasticity of 0.80, the energy requirement of the country is expected to grow at over 6.4% per annum.

Some of the other highlights of the study are
1. India to exhaust extractable coal reserves in next 45 years
2. Only 10.6% of installed electricity capacity in private sector
3. India has the world's lowest per capita natural gas consumption
4. Theft, pilferage, non collection result in losses of over USD 6 billion annually
5. Railways can contribute in major way to energy savings
6. 38 new coalfields with reserves of 800 million tonnes need USD 2 billion investment
7. Discovery of new gas fields in India point to potential in the area
8. Tariff reform in the energy sector and distribution reform in the power sector are two important steps that need to be successfully carried out
9. India has one of the largest deposits of thorium. Thus nuclear energy has tremendous potential in the country.
10. India is endowed with a potential for 150,000 MW but just 17% of it is harnessed. To achieve the target of 45,000 MW in 10 years private sector participation will be important.

Caparo group acquires Polish forging firm Zuo Bomet SA

UK based Caparo Group has acquired a medium sized Polish company producing a range of forgings for the ship building industry. An announcement said "Caparo plc is pleased to announce the purchase of Zuo Bomet SA, Barlinek, Poland from the Agencja Rozwoju Przemyslu SA and Korporacja Polskie Stocznie SA."

Bomet, a medium sized manufacturing company, comes with a proud history, skilled engineering employees, a strategic location and potential for high growth. Bomet produces a range of forgings for the ship building industry. Products include turnbuckles, lashing bars, twistlocks, sockets, valves and ship hooks. The company also supplies forgings to the truck, earth moving and railway industries. Bomet currently operates from a 27 acre site and employs 270 people.

Bornet will form part of the Caparo Forging group of companies and will be owned by the UK based Caparo Engineering Limited.

Indias coal imports to hit 53 million tonne in 2011-12

Reuters reported that Indian coal imports will rise to around 53 million tonne by 2011-2012 from around 30 million tonnes at present to make up the anticipated supply & demand shortfall.

Mr Joshy Varghese vice president of trading with Indian Coal & Oil told Reuters that out of the 53 million tonnes of expected imports, 34 million is likely to be taken by the power sector, 7 million by cement, 5 million by the steel and sponge iron sectors and 7 million by miscellaneous industrial buyers.

Mr Joshy added that the cement production sector in India is expanding rapidly to meet growing demand due to India's construction boom. India produces 156 million tonnes of year of cement, using domestic and imported coal. He further added that Indian cement production is expected to rise to 251 million tonnes by 2011-12 and a continued boom in cement output will require higher coal imports.

RKKR Steel to set up steel plant in Nellore

It is reported that RKKR Steels Limited will invest around INR 200 crore to set up a steel plant at Kolanakuduru of Manubolu mandal in Nellore district of Andhra Pradesh. It is reported that Mr YS Rajasekhara Reddy chief minister of AP will lay the foundation stone for the steel plant next month.

RKKR Steel will set up the plant in 2 phases. It will be spread across 151 acres of land allotted by the Andhra Pradesh Industrial Infrastructure Corporation.

The unit will manufacture special bar quality iron required for the automobile sector at the new plant.

RKKR Steels Limited has been involved in manufacturing and trading flat and long steel products. As of now, it has steel manufacturing facilities and re-rolling mills at Tiruvottiyur and Gummudipundi close to Chennai port.

JMM draws up a rehabilitation policy for Jharkhand

Ranchi Express reported that the Jharkhand Mukti Morcha, a key constituent of the Mr Madhu Koda government, has come out with its own version of compensation package to the people likely to be displaced by mega projects across the State and that certain features in the JMMs policy appear different from what the State's draft policy paper said to suggest. As per report, this paper has consent of Mr Sibu Soren chief of JMM.

The JMM paper says "The government should not directly involve itself in land acquisition and leave it to the respective industries and raiyats. Land should directly be taken from the raiyats for industries and mines."

Jharkhand government is gearing up for an all party meeting for approval of its new draft rehabilitation and resettlement policy.

Indian Railways higher axle load wagon running questioned

BL has reported that the Indias Comptroller and Auditor General has pulled up Indian Railways for permitting freight trains to run with higher axle loads endangering the safety of the rolling stock, bridges and tracks. It has also pointed that this had led to increasing cases of spring failure, buffer coupler failures and wagon body damage.

The CAG has charged Railways with ignoring the conditions laid down to ensure safety of rolling stock and tracks and warned that permitting load increase by 6 to 8 tonnes for coal and iron ore would have an adverse impact on tracks, bridges and rolling stock unless Railways takes immediate action to upgrade its existing rolling stock.

CAG stated that the enhanced loading of wagons commenced without compliance of conditions. The report stated that "This has resulted in overshooting the revised axle tolerance limits. The extra loading, however, has to be restricted to up to a maximum axle load of 22.82 tonne."

Railway board stated that carrying capacity enhancement was done as a policy after paradigm shift in the conceptual perception of design of track structures from deterministic to parabolistic. The Railways said before allowing the CC+ loading, a review of track modulus as well as the rail and bridge stress was carried out.

Prior to November 2004, wagons were allowed to be loaded to up to CC+2 tonnes where the permissible axle load was taken as 20.32 tonne. From November 2004, the loading was permitted to up to CC+4+2 tonne. In May 2005, the railway board as a pilot project permitted running of these wagons with up to CC+8+2 tonnes load on 16 identified iron ore routes, in order to increase throughput. Subsequently, wagons loaded with coal up to CC+6+2 tonne were also allowed to run on nominated coal routes.

GAIL may divest ONGC stake to fund its expansion

GAIL India Ltd may sell part of its 2.4% stake in Oil and Natural Gas Corp and borrow at home and overseas to fund expansion. Mr RK Goel director of finance for GAIL said that We plan to invest INR 280 billion (USD 6.85 billion) on expansion in next 5 years and we will raise money from internal sources, borrow funds from the markets and may look at selling some of our stake in ONGC.

Mr Goel said that about 60% of the borrowing would be through overseas markets, while remaining would be from domestic markets. The loans would be used to meet investment needs for the next two to three years.

GAIL plans to borrow INR 25 billion by March to fund a CAPEX of INR 27.4 billion for the current fiscal year. GAIL plans to spend INR 18.5 billion on pipeline projects, INR 5 billion on exploration and production and the remainder on coal gasification, petrochemicals, city gas distribution and other projects during 2007-08.

GAIL owns 6,000 kilometer of gas pipeline with a capacity to supply 130 million standard cubic meters per day and it has government permission to add 5,000 kilometer and raise capacity to around 280 million standard cubic meters per day.

Indias hydro electric potential pegged at 150,000MW

Mr Sushil Kumar Shinde power minister said that reassessment studies of India's hydroelectric potential, conducted by the Central Electricity Authority in 1987, placed economically exploitable hydropower potential at 84,044 MW at 60% load factor, which when fully developed would result in an installed capacity of about 150,000 MW on the basis of probable average load factor.

Mr Shinde added that "This would yield an annual energy generation of 600 billion units out of this 20.76% of the installed capacity has been developed and 9.04% is under development."

Mr Shinde also said that India has proven coal reserves of 38,114 million tonnes of oil equivalent out of which 13,489 million tonnes of oil equivalent is extractable.

NTPC's power equipment venture attracts global majors

It is recently reported that NTPC has received proposals from 5 international firms, including 4 turbine manufacturers and 1 boiler making company, for jointly setting up a power equipment manufacturing facility in India. NTPC has been looking at various options to expand its manufacturing business to include heavier equipment such as turbines and boilers for faster capacity expansion.

NTPC is also looking at the possibility of floating a subsidiary that will undertake manufacture of spare parts, equipment and components for the power plants. It is also looking at the possibility of undertaking maintenance and repair jobs through this subsidiary.

NTPC has already initiated a pilot project at its existing thermal power station at Rihand in Uttar Pradesh and has set up a maintenance workshop for its existing power units. Another similar project is likely to come up in some other locations.

NTPC is also working on the possibility of hiving off its coal mining operations into a separate company. It has acquired 7 coal blocks in the past few months and firmed up plans to mine about 60 million tonnes per annum of coal.

MEPSs price update on flat product market in EU

MEPS reported that flat product prices are generally stable in May 2007 as producers are mulling some further rises for the July to September period however buyers are anticipating little change in the second half of the year. MEPS added that third country price offers continue to stay at higher levels than those quoted at the start of 2007.

MEPS said that demand is still good in Germany and business looks healthy going forward. It said Inventories at the service centers are reasonable. There is no lack of supply from either home or abroad. Third country imports, bought earlier in the year, are now arriving and we have reports that some European mills are delivering to customers ahead of schedule. Certainly, a number of producers now have ex stock material for sale, suggesting that their order books may not be as robust as they were. The second quarter is now settled at the prices published in our April issue. Period three deals are unlikely to be discussed until the end of May at the earliest.

MEPS said that In France, real demand is holding up well amidst signs of recovery in the automotive sector. However, market activity this month has weakened slightly because of all the national holidays. Stocks are reported to be well balanced and third country import levels are subsiding, following increased penetration earlier in the year. The second trimester price rises are now fully implemented. Producers are said to be looking at further advances of EUR 20 per tonne to EUR 30 per tonne for period three but negotiations have not started yet and stockholders are quite doubtful they will be achieved.

MEPS said that Italian demand is still satisfactory with inventories in good order. There is more material available now from non EU sources. After securing a number of significant increases in April, Riva has kept prices in a "no change" mode this month. Distributors report difficulties in boosting resale values as end-users are opposing the rises.

MEPS added that Although there is not a lot of steel available in the UK market, buyers are not rushing to place orders, despite reasonable consumption. Most companies have sufficient stock. Real demand is steady but service centre capacity is in surplus, causing negative pressure on resale prices. The domestic producer has indicated that the positive price trend will continue into period three. As the volumes of third country imports due to arrive in the middle of the year are relatively small, a rise could prove possible, despite the third trimester being a notoriously difficult quarter.

MEPS also said that The Belgian market is enjoying good demand with healthy order books through to the holidays, although some market players have voiced concerns for business levels later in the year. Service centre sales are solid and it is now easier to recoup the mill hikes from their customers. Strip product values remain at the higher figures accepted in April. Buyers report large volumes of imports at the Antwerp quayside, mainly of Far East origin. The steel was ordered in January and February when prices were quite low but much of it is already sold.

MEPS said that Spanish customers are still reluctant to pay more for second quarter deliveries since inventories are at reasonable levels. Demand has slowed down somewhat. The private construction sector in particular is showing signs of deceleration. General industrial activity is satisfactory but unlikely to improve very much over the next few months due to local elections this year and a general election.

Evraz Groups subsidiaries report Q1 results

Evraz Group SA announced that its major Russian operating subsidiaries have filed financial results with the Federal Financial Markets Service of the Russian Federation for the January to March 2007. The results are prepared in accordance with Russian accounting standards.

The highlights include
1. Higher sales volumes and b prices for steel products contributed to further profit growth at NTMK and Zapsib
2. The net profit of NTMK and Zapsib for 1Q 2007 went up by 66.3% YoY and 130.7% YoY respectively as against 1Q 2006 due to higher sales volumes and pricing environment in both Russian and export markets.
3. Net profit fell by 18.4% at Zapsib compared with 4Q 2006 as a result of a marginal decline in sales volumes, seasonal product mix change and increased production costs on the back of higher iron ore and scrap prices.
4. The 1Q 2007 net profit rose to RUB 2,293 million up by 118.2% YoY at KGOK and to RUB 366 million at VGOK due to higher prices and expanded production volumes driven by b demand from the steel sector.

Following is the 1Q 2007 RAS financial results for major subsidiaries

OAO Nizhny Tagil Iron and Steel Plant (NTMK)

In million RUB

OAO West Siberian Iron and Steel Plant (Zapsib)

In million RUB

OAO Kachkanarsky Mining and Processing Integrated Works (KGOK)

In million RUB

OAO Vysokogorsky Mining and Processing Integrated Works (VGOK)

In million RUB

SSINA releases February data for special steels

The Specialty Steel Industry of North America has released the latest available statistical data on imports, US consumption and import penetration for January to February 2007 as compared to January to February 2006.

Imports of total specialty steel, comprising of stainless steel, alloy tool steel and electrical steel, in February 2007 were 164,243 tons up by 15% YoY as compared to February 2006. US consumption was 487,650 tons up by 4% YoY while import penetration was 34%, a four percentage point increase.

Alloy tool steel
Imports in YTD February 2007 were 15,779 tons down by 7% YoY as compared to YTD February 2006 while US consumption and import penetration were not calculable.

Electrical steel
Imports in YTD February 2007 were 17,735 tons up by 112% YoY as compared to YTD February 2006; US consumption was 71,658 tons up by 17% YoY while two month import penetration was 25%, an eleven percentage point increase.

Stainless steel
Import in YTD February 2007 were 130,729 tons an 11% YoY increase compared to YTD February 2006, US consumption was 403,526 tons a 2% YoY increase and import penetration was 32% a two percentage point increase.

In tons
Source SSINA

SSINA is a Washington DC based trade association representing virtually all continental specialty metals producers. Its member companies are AK Steel Corporation, ATI Allegheny Ludlum Corporation and ATI Allvac, Carpenter Technology Corporation, Crucible Specialty Metals, Electralloy, Haynes International Inc, ThyssenKrupp Mexinox SA de CV, North American Stainless, Outokumpu Stainless Inc, Precision Rolled Products Inc, Latrobe Specialty Steel Company, Universal Stainless and Alloy Products and Valbruna Slater Stainless Inc.

Norilsk to increase CAPEX by 50% in 2007

Bloomberg has reported that the worlds largest nickel and palladium producer OAO GMK Norilsk Nickel will increase spending by 50% this year as it seeks to boost ore production.

Mr Denis Morozov CEO of GMK Norilsk Nickel said that it will invest RUB 34 billion (USD 1.32 billion) in 2007 and continue spending more actively through 2010 to lift the volume of extracted ore to 26 million tonnes from 21 million tonnes in 2006.

Mr Morozov added that "Our goal is to remain the industry leader. Increasing the volume of metal extracted from ore, improving product quality, and focusing on the impact Norilsks facilities have on the environment are also priorities."

Norilsk is competing with Brazilian and Canadian metals producers to retain its spot as the largest producer of nickel. Nickel has been the best performing commodity on the London Metals Exchange this year, rising by 50%.

USs March shipments down by 5.15% YoY

The American Iron and Steel Institute reported that for the month of March 2007, US steel mills shipped 9.331 million net tons, a 5.15% decrease from the 9.830 million net tons shipped in March 2006 and an 11.7% increase from the 8.350 million net tons shipped in the previous month, February 2007

According to the AISI, a comparison of steel shipments during January to February 2007 shows the following changes within major market classifications in US
1. Service centers and distributors down by 8.49.7%
2. Automotive down by 6.1%
3. Construction and contractors products down by 0.4%
4. Oil and gas down by12.5%

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.

Baosteel to modernize HSM and plate mill

Baoshan Iron & Steel Group Co Ltd has orders Siemens Industrial Solutions and Services Group to supply drive and automation equipment for the modernization of the Hot Strip Rolling Mill No 1 and expansion of the plate mill. Commissioning of these modernized plants is scheduled for November 2007 and December 2008 respectively.

The principal focus of both projects is to equip the production facilities with powerful and reliable drives that will increase the productivity and availability of the rolling mills.

The plate mill, already equipped with electrical and automation equipment from Siemens, has been in operation since 2005. The plate mill will be equipped with an additional roughing stand which will increase the capacity of the plant to 1.8 million tonnes per year. Siemens is supplying a twin main drive with cylindrical rotor synchronous motors which at 40 revolutions per minute will produce a rated output of 8000KW and is designed for an overload of up to 275%.

For 15 years now, the Hot Rolling Mill No 1 has formed the backbone of the production facilities of Baosteel in Shanghai. The electrical equipment of the hot rolling mill was replaced in stages since 1998 with the aim of increasing plant availability and improving product quality. As part of the current project Siemens is supplying the drives for the roughing mill and sections of the finishing mill.

With an annual output of 23 million metric tons, Baosteel is China's largest steel producer and the sixth largest producer worldwide.

US ITC conducts hearing in sunset review of rebar AD order

Platts recently reported that the US International Trade Commission conducted a full day public hearing on May 10th 2007 in Washington DC as part of its 5 year sunset review concerning the antidumping duty orders on imports of steel concrete reinforcing bar from eight countries.

The order covers imports from China, Indonesia, South Korea, Latvia, Moldova, Belarus, Poland and Ukraine and the ITC heard testimony from three US steel producers and a rebar distributor, as well as representatives from Latvia and Ukraine.

Representatives of US steel producers Nucor Steel, CMC Steel Group, Gerdau Ameristeel, as well as Southwesten Suppliers, a wholesale distributor of rebar and other construction materials gave testimony for the US industry. The petitioners argued for continuation of the antidumping orders, which were imposed in September 2001, saying that all of the countries subject to the duties had excess production capacity of rebar that could be diverted to the US and harm the domestic industry.

Mr Jim Fritsch executive VP of CMC said "US is vulnerable because it is an attractive, open market with rebar prices that have historically been significantly higher than world prices."

Latvia and Ukraines representatives responded to the petitioners' claims, arguing that the antidumping orders should be revoked, mainly because international markets have changed significantly since the initial investigation period in 2001.

Nippon Steel Drum to Become a subsidiary of Nippon Steel

Boards of directors of Nippon Steel Corporation and Nippon Steel Drum Co Ltd resolved in meetings both held on May 18th 2007 to make NSD a wholly owned subsidiary of NSC through a share exchange and the two companies have entered into a share exchange agreement. The share exchange will be executed effective on July 31, 2007 subject to shareholder approval at the ordinary general meeting of shareholders of NSD scheduled to be held on June 25th 2007.

When the Share Exchange takes place, NSC will become a wholly-owning parent company of NSD effective on July 31st 2007 and NSD in turn is scheduled to be de listed on July 25th 2007.

The release said From the viewpoint of enhancing consolidated management, the NSC group has built a foundation for the efficient promotion of its business strategy by making its main subsidiaries into wholly-owned subsidiaries and integrating and restructuring its group companies, so that the profitability and competitiveness of the entire group would be reinforced.

The release added that NSD is currently responsible for the manufacturing and sale of steel drums, which are a major source of demand of steel sheets manufactured and sold by NSC. In view of this, when NSD becomes a wholly owned subsidiary of NSC, it will surely enhance the sharing of the business strategy between the two companies, bring in optimum and efficient use of management resources, reinforce the business infrastructure and improve the dynamism in the group management. Consequently, through the Share Exchange, we believe that the corporate values of NSC and NSD will be increased and the restructuring will be beneficial for the shareholders of both companies.

MSHA issues emergency mine safety rules

USs federal Mine Safety and Health Administration has issued new emergency rules under which mine operators will be required to give up the long standing practice of sealing and forgetting abandoned sections of underground mines, will now be required to monitor such areas for explosive gases and if conditions become dangerous, miners in other areas will have to be evacuated. The new rules took effect last week.

This is only the fourth time in its 29 year history that the Mine Safety and Health Administration has used its emergency authority to make immediate rules changes. Under federal law, such rules take effect immediately, instead of waiting until public comment is considered and a final rule is issued. MSHA still must accept comments, and then publish a final rule within nine months. Federal law allows MSHA to implement emergency rules only when it determines that some hazard addressed by the rules poses a grave danger to miners.

In its new emergency rule, MSHA generally followed recommendations from a draft National Institute for Occupational Safety and Health report released in February, creating a three tiered approach for seal strength requirements
1. Seals may be constructed to withstand 50 pounds per square inch, if the atmosphere behind them is monitored and maintained so that methane is not within the explosive range of 5% to 15%
2. If the atmosphere is not monitored and maintained inert, the seals must be constructed to withstand 120 pounds per square inch.
3. Where higher explosion pressures are possible within larger sealed areas that are not monitored or maintained as inert, the seals must be even stronger.

MSHA said mine operators will be required to submit design and installation applications for agency approval. Seal plans must be certified by a professional engineer from the company or a consultant, and proper construction must be certified by the operator.

MSHA said that, for new 50-psi seals and existing seals, mine operators must follow a gas sampling protocol that includes baseline sampling and periodic monitoring. They also must develop an action plan to address explosive atmospheres in sealed areas, including withdrawal of miners if oxygen and methane reach certain levels.

In addition, the new emergency rule requires that insulated cables be removed from future areas to be sealed and it prohibits welding, cutting and soldering with an arc of flame within 150 feet of a seal.

Since 1969, coal operators were supposed to build all seals so that they were explosion proof. In 1992, however, MSHA wrote a rule that weakened the standard, allowing seals to withstand just 20 pounds per square inch of force.

TMK to upgrade Volzhsky continuous caster

Worlds one of the largest oil and gas pipe producers and Russian pipe industry market leader ??? announced that it has agreed with SMS Demag for the supply of technological equipment designed to increase TMKs Volzhsky Pipe Plant billet production volume.

Under this agreement, SMS Demag will supply the equipment for the continuous casting machine No 3 used for billet production in Volzhskys arc furnace shop. This equipment will increase this machines productivity and improve production mix, raising its annual capacity to 750 000 tonnes of high quality billets, used in high tech seamless pipe production.

This agreement with SMS Demag falls under the Strategic Partnership Agreement between TMK and the SMS Group, valid up to 2015. The SMS Group has been working with TMK since 2001 and is supplying equipment for the upgrading of steelmaking and pipe mill production facilities at Volzhsky Pipe Plant, Seversky Tube Works and Taganrog metallurgical Works, all part of the TMK group.

Lingyuan Steel asked to eliminate 2.2 million tonne capacity

According to a report issued recently by the National Development and Reform Commission regarding the elimination of outdated iron and steel capacities in China, Lingyuan Iron and Steel Group has been urged to eliminate all of its 2.2 million tons of iron and steel capacity.

The NDRC expects the new Chaoyang facility to replace the soon to be eliminated capacity resulting in little net effect on Lingyuan Steel's output. However given that Lingyuan Steel only holds a 25% stake in the new facility with the remaining 75% held by Anshan Iron and Steel Group the elimination of the old 2.2 million tonne capacity will be disastrous for Lingyuan Steel.

Lingyuan Iron and Steel Group official said that "The 2009 deadline for capacity elimination has been set to coincide with the completion of our 2 million tonne steel plate facility in the city of Chaoyang in Liaoning Province. Although our capacity cannot be considered outdated by NDRC standards, we pledged to eliminate the 2.2 million ton old capacity when applying for approval for the new 2 million tonne project. We only made the commitment to attain NDRC approval, which was around the time the state commenced imposing tight controls on new iron and steel facilities. We did not expect the NDRC to hold us to the pledge as they are currently doing."

The official believes that Lingyuan will either be acquired by Angang or will introduce other shareholders in order to change its state-owned nature and avoid having to eliminate capacity. The official added that Lingyuan Steel is the largest steelmaker in the city of Lingyuan, contributing 60% to local government revenues and is hoping that the Lingyuan city government and the Liaoning provincial government will petition the NDRC to reconsider their request.

Villares Metals aims for 110,000 tonnes capacity by 2010

BNamericas reported that Brazilian specialty steel producer Villares Metals expects capacity to reach 110,000 tonnes per year in 2010, up from some 79,000 tonnes per year currently.

Mr Franz Struzl president of Villares Metals told BNamericas that "Our goal is to expand volumes, sales and results 40% by 2010 versus 2006." He said that Villares Metals growth plans do not involve acquisitions.

Mr Struzl said that by comparison net profits came in at BRL 108 million (USD 54 million) in 2006, while net operating revenue amounted to BRL 795 million and output reached 79,000 tonnes.

Investments in 2007 are expected to total BRL 110 million destined partly to the new rolling mill at its facility in S Paulo state's Sumarcity and toward capacity increases at existing operations. Investments totaled BRL 152 million in 2006.

Austrian specialty and tool steel and materials group Bler Uddeholm acquired Villares Metals from As Villares in 2004.

Mittal Steel SA & DTI difference appear to deepen Report

South African Creamer Media reported that differences between the South Africas Department of Trade and Industry and Mittal Steel South Africa over an appropriate steel pricing policy appeared to have deepened last week.

The report cites that government officials refused to comment on claims by Mittal Steel SA that its new international benchmarking pricing model had shaved some ZAR 550 million off group revenues during 2006. An official said that he could not make a direct comment on Mittals claims as he had not seen the presentation.

However, it is understood that the DTI remained unconvinced about the sustainability of the price reductions and was skeptical about the appropriateness of the make up of the benchmark basket developed by Mittal Steel SA.

Mr Rick Reato CEO of Mittal Steel SA at a media briefing in Vanderbijlpark said that the lower revenues were a direct result of its move away from the controversial import parity pricing model and the implementation of the international benchmarking model from January 1st 2006.

Schindler develops synthetic ropes for elevators

It is reported that the Swiss lift maker Schindler has developed an elevator system which dispenses entirely with steel lifting wires, relying instead on ropes made of synthetic materials.

Schindler claims that its rope will revolutionize lift technology, allowing the use of smaller, more efficient drives which are easier to install and use less energy.

The synthetic ropes contain around 300,000 aramid filaments, said to provide the same strength as a steel rope but in a much lighter and more flexible format with a longer life. The ropes, protected by around 20 patents, contain electrically conducting carbon fibers which monitor constantly for any wear or stretching. Schindler says the slightest damage is reported to the control system.

Schindlers announcement of an aramid based lifting system marks an even more radical change to lift technology than the steel cored belts launched by Otis earlier this year.

Mechel Campia Turzii posts profit in Q1 of 2007

Romanian steel maker and processor Mechel Campia Turzii recently reported a gross profit of RON 3.69 million (EUR 1.1 million) for the first quarter of 2007 as against loss of RON 12.5 million in January to March 2006 quarter. Its turnover during January to March 2007 amounted to RON 120.3 million (EUR 35.9 million) up by 44.71% YoY from RON 83.13 million in January to March 2006.

Mechel Campia Turzii ended 2006 with losses of RON 27.73 million (RON 8.2 million) three times less than in the past year when the company posted losses of over RON 88 million turnover rose by 28.8%, totaling RON 424.79 million (EUR 125,6 million).

The majority shareholder is Mechel International Holding AG with 86.04%, followed by financial investments company SIF 1 Banat-Crisana with 11.54%.

Brazilian foundrys Q1 production down by 2.5% YoY

BNamericas citing a spokesperson with local foundry association Abifa reported that foundry production within Brazil totaled 755,760 tonnes in the first three months of 2007 down by 2.5% YoY from 775,048 tonnes in same period 2006.

Export volume in the first quarter fell 2.3% to 174,043 tonnes compared to 178,228 tonnes in 1Q of 2006 while the value of shipments abroad FOB slipped 1.7% to USD 321 million from USD 327 million in the first three months of 2006.

The spokesperson said the beginning of the year is usually a weak period, due to holidays and fewer working days. Some companies take this time to carry out maintenance works. He said meanwhile the outlook for the remainder of 2007 is positive with the forecast of increasing foundry production due to strong demand, despite the Real's appreciation versus the USD,

Abifa was founded in 1969, and boasts members such as Tupy, Foseco and Teksid.

Ukraine to increase 2007 steel output by 6% YoY

Interfax reported that Ukraine's steel industry could increase its production of finished steel by 6% in 2007 as compared with 2006 to 36.33 million tonnes.

Mr Serhiy Hryschenko VP of Ukrainian steel industry association UKRMET said that production of crude steel was forecast to grow by 6% YoY to 43.25 million tonnes and pig iron by 9% YoY to 35.79 million tonnes.

Ukraines production of steel pipe is expected to rise by 7% YoY to 2.81 million tonnes, coke by 5% YoY to 20.02 million tonnes and hardware by 7% YoY to 463,000 tonnes.

Beijing to reduce coal output by two thirds by 2010

Xinhua reported that Beijing will cut its annual coal production by two thirds in the coming four years to 3 million tons, down from 9 million tons in 2005. Mr Zhou Yuqiu head of the Beijing's workplace safety administration said that as a first step, the city will close down 16 small coal mines in the outer districts of Fangshan and Mentougou and the closures will take place before the end of the year.

He said that at the end of 2005, Beijing had 52 small mines that together produced 5.5 million tons a year. Thirty one of these mines were closed last year and the rest will be shut down by the end of 2010. Small coal mines are coal mines that each produces less than 300,000 tons a year.

Mr Zhou said that Beijing was working to meet the central government's agenda to more than halve the country's small coal mines from 20,622 in 2005 to 10,000 by 2010. He said that It's important for safety reasons as well as for development and the environment to close down small, low yield mines adding that their management was often lax and many failed to meet safety and labor protection requirements set by the state.

Australias iron ore and coal export volumes growth poor in last 6 years Report

It is reported that Australias resource exports are growing at a slower rate, despite the mining boom.

The Centre for Economic Development said that Australia's export volumes jumped by 56% between 1994 and 2000 but only 9 % in the last 6 years. Manufacturing exports grew at a faster rate than those of oil and metals.

Mr John Edward author of the report said that infrastructure cannot keep up with the demand for energy and minerals. He said "When you look at volumes actual tonnes of iron ore, actual tonnes of coal we've done very poorly indeed. And the growth of exports over the last six years, despite the very favorable global circumstances hasn't been nearly as fast as it was over the last 20 years."

Siemens appoints Mr Peter Lcher as new CEO

The Supervisory Board of Siemens AG approved the proposal of its Chairmans Committee to appoint Mr Lcher, a full member of the Managing Board of Siemens AG, as Siemens President and CEO at an extraordinary meeting in Munich on May 20th 2007.

In addition, the Supervisory Board of Siemens AG approved the proposal of the Chairmans Committee to appoint Dr Heinrich Hiesinger to the Managing Board of Siemens AG. Effective June 1st 2007, Mr Hiesinger who is currently Group president of Siemens Building Technologies will be a full member of the Managing Board of Siemens AG and a member of the companys Corporate Executive Committee.

Mr Gerhard Cromme chairman of Siemens Supervisory Board said In Mr Peter Lcher we have found an exceptional individual for the office of President and CEO of Siemens AG. His upright character his global background, his outstanding international reputation and his wide-ranging experience in business development and strategy the financial markets and technology-related issues were the key factors in our decision. I am convinced that Mr Lcher has what it takes to steer Siemens through its current difficulties and into a better future. I am looking forward to our collaboration with great pleasure.

Thach Khe Iron JSC formed in Vietnam

VNS reported that a consortium of leading Vietnam local companies established VND 2.4 trillion (USD 150 million) Thach Khe Iron JSC in Ha Tinh Province of Vietnam.

As per report the companys largest shareholders include the Viet Nam National Coal Mineral Industries Group Vinacomin with a 30% stake, Ha Tinh Minerals and Trading Corp Mitraco with 24% and Viet Nam Steel Corp with 20%. Other minor shareholders control between 3% to 5% each, including the Viet Nam Post and Telecommunications Group and the Bank for Investment and Development of Viet Nam.

The company will exploit ore from the Thach Khe mine, which has an estimated capacity of 540 million tonnes, and build a mill with an output capacity of 2 million tonnes of refined steel a year.

Zambia plans to tax miners more

Zambia recently ruled out exempting foreign mining companies from paying higher taxes in return for doing more to train local workers.

Mr Ngandu Magande finance minister of Zamibia told reporters on the sidelines of the annual meeting of the African Development Bank that "Now when we go into these negotiations we want to know whether the mines have been able to do that. If they havent what is the problem and how can we work together to create this capacity?"

Mr Magande said asked whether there could be a tradeoff "No. What we feel is that if we let each one of them say I have a social responsibility, I will do this` it will be very difficult to supervise." He said if social development were left to the mining firms, inequality and social problems would result.

Mr Magande said that he would explain to the mining companies that the development agreements were about more than tax breaks and they were also obliged to train local contractors if they lacked the necessary skills. Mr Magande said the government, in embarking on the negotiations, had discovered that some technicalities were involved and said some multilateral financial institutions and bilateral donors had offered to help Zambia prepare for the talks.

Zambia gave foreign firms that bought copper mines starting from 2000 tax breaks as part of development agreements so they could keep up output at a time of low prices. With prices now sharply higher on the back of strong global demand, especially from China the government recently told 10 foreign copper and cobalt miners that it wanted to renegotiate these pacts.

Olympic Steel announces management changes

Olympic Steel Inc announced that Ms Esther Potash will assume the role of chief information officer. Ms. Potash has been with Olympic Steel since 1998, most recently serving as its Corporate Director of Strategic Initiatives. Prior to joining Olympic Steel, Ms Potash spent 13 years as a management consultant with a public accounting firm and 6 years as an analyst with the United States Navy.

Olympic Steel Inc also announced that Mr Frank Ruane will assume the role of VP Purchasing & Materials Management. Mr Frank rejoined Olympic Steel Inc in 1998 recently serving as Director of Purchasing & Materials Management. Prior to re joining Olympic Steel held leadership positions in marketing and sales management at other service centers. Early in his career served as an Outside Sales Representative for Olympic Steel from 1987 to 1992.

Olympic Steel Inc. is founded in 1954 and is a leading US steel service center focused on the direct sale and distribution of large volumes of processed carbon coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio Olympic Steel Inc operates 16 facilities.

Lifetime achievement award for Mr Galante from Triad/Merrick

HPSFAs Mr Sam Galante of Steel Truss & Panel LLC was awarded with a Lifetime Achievement Award by Triad/Merrick last April 2007 at Alda in Nebraska.

Triad/Merrick awarded Mr Sam Galante for his valuable contribution in the steel framing, particularly in the use of automated panelizing machines. Mr Sam has been directly involved for almost 30 years in cold formed steel framing construction. He built the first ten steel framed houses and set up the first steel wall penalization and truss plant in the State of Hawaii. Mr Sam is a past president of the Hawaii Pacific Steel Framing Alliance.

Triad/Merrick is considered a pioneer in the invention of Automated Machine Tools for housing production. Since 1960, Merrick Machine Company, under the Triad brand name, has gone on to develop Wall Panel Fabrication Machines, Fastening Equipment and Sub Component Machines.

Labrador Iron Ore appoints Mr AR Thomas as CFO

Mr Bruce C Bone Chairman & CEO of Labrador Iron Ore Royalty Income Fund announced the appointment of Mr Alan R Thomas as new Chief Financial Officer of the Labrador Iron Ore Royalty Income Fund and Mr James C McCartney as Vice Chairman and Secretary of the Fund.

Mr Thomas, a Chartered Accountant, has been a Labrador Trustee since May of 2004. He spent over 20 years as a staff member and then partner with Clarkson Gordon (now Ernst & Young) before joining Noranda Inc as CFO in 1987. In 2000, he joined ShawCor Ltd., an energy services company, serving as CFO until his retirement in June of 2006.

Comprehensive report on Indian steel sector

The Indian steel industry is poised for massive expansion. Dramatic consumption growth over the last few years has stimulated enormous expansion plan, facilitated by unexploited iron ore raw material base. India is now being hailed as the new China, where crude steel production soared from less than 100 million tones in 1995 to over 400 million tones in 2006.

Indian crude steel output at just 38million tonnes in 2005 is starting from a much lower base, and the economic steel- consuming structure of China is substantially different from India. Nevertheless, India has recently established a long-term goal of raising crude steel production to 100 million tonnes per annum by 2020.

UK based GFMS Metals Consulting in an innovative way and value for money report on Indian steel industry includes complete statistical coverage of the industry, an unbiased and frank assessment of growth expectations, a base case outlook for each steel product & the industry as a whole with a clear view of potential risks, an assessment of raw material availability and trends and production, trade and consumption forecasts out to 2011.

The report coverage includes historic production, trade & apparent consumption of carbon steel both long and flat products, raw materials, producers, economic environment, political and other risk factors.

If you are interested to know more about it please visit http://www.steelguru.com/GFMS_MC/indian_steel_report.php

or send a mail at research@steelguru.com

China imposes export tax on steel products

Beginning from June 1st 2007, China government will slap export duties of 5% to 10% on over 80 steel products lately brought under export license regime, following its latest string of policy moves to tame the rampant exports of the material. The moves are aimed at containing exports of high energy consuming and polluting products.

A statement on the website of Chinas Ministry of Finance said that steel products subject to such imposition include common carbon wire rod, flat steel, sections and other steel varieties. The statement added that export duties on semi steel products, such as billet & slab, ingot and pig iron, will be raised to 15% from the present 10%.

China's exports of steel products hit a record 7.16 million tonnes in April 2007, as mills and traders raced to beat a change in export policy that took effect on April 15th 2007, when China removed export rebates on 83 types of steel products while reducing the rebates on more value added products to 5%.

On April 30th 2007, Ministry of Commerce and General Administration of China Customs issued a policy on New Export License System for some steel products. According to the policy, a new export license system will be carried out for the afore-mentioned 83 steel products since May 20th 2007, including deformed bar, wire rod, hot-rolled, medium & heavy plate and part of sections. But the majority of Cold rolled & Galvanized products and all tubes & pipes are exempted from the new export license system.