Natsteel buy of Vinausteel & SSE Steel may face hurdle

BS reported that TATA Steel’s proposed acquisition of Vietnam based Vinausteel and Structural Steel Engineering may snowball into a legal battle between its subsidiary NatSteel and the two companies’ parent, Vietnam Industrial Investments over a possible breach of the purchase agreement.

Prudential Vietnam Securities Investment Fund Management Company launched an unsolicited offer of USD 13.3 million, 10.65% higher than NatSteel’s, to acquire a majority stake in the two companies in May 2007. Vietnam Industrial Investment’s independent directors felt that the Prudential offer had more certainty and demonstrably better terms than NatSteel’s.

Vietnam Industrial Investments AGM is slated for June 21st 2006 for vote on the competing offers.

TATA Steel announced in March 2007 that NatSteel would acquire 100% stake in a 250,000 tonne bar & wire rod mill of SSE Steel and 70% in Vinausteel, which produces 180,000 tonnes of reinforcing bars. The transaction was to be completed by June 2007.

UGSL crosses 2 million tonne mark in exports

It is reported that Uttam Galva Steels Limited have crossed a new landmark by exporting 2 million tonnes of value added steel and that It has taken only 30 months to achieve its second million tonnes of exports. Its value added products include galvanized coils, galvanized sheets, CRCA and color coated steel.

Mr Ankit Miglani director of Uttam Galva Steels Limited said “It is a great honor for the company to cross the two million tonne mark in exports. What is more interesting is that the company enjoys the distinction of supplying quality steel to developed markets like US, Europe and Japan.”

Mr Miglani added that he company is fully committed to manufacture high quality value added steel and will continue to supply to international firms of repute underlining India’s strength in this sector at competitive prices.

Uttam Galva is the recipient of the Government of India’s “Highest Exporter Award” for seven consecutive years. Uttam Galva is now exporting its products to more than to 128 countries worldwide. The list includes some of the developed nations like USA, Japan, Australia, New Zealand, Canada and Germany etc.

Indian real estate developer DLF raises USD 2.24 billion in IPO

India’s biggest real estate developer DLF Limited has raised INR 91.9 billion (USD 2.24 billion) in India's biggest initial share sale. Its sold 175 million shares at INR 525 rupees. DLF's offering exceeds the INR 86.2 billion rupees raised by Cairn India Ltd. in December, India's biggest IPO to date

The share sale values DLF at INR 895.7 billion rupees, placing it above ICICI Bank Ltd as India's eighth most valuable company. The sale values Mr KP Singh and his family's stake at USD 19 billion, ranking him as India’s 2nd richest after Mr Mukesh Ambani’s USD 20.1 billion worth assets.

A property boom driven by a record economic expansion has lifted prices near the capital New Delhi, where DLF has half its 10,255 acre (4,150 hectare) land bank, threefold in three years.

RINL to ensure supplies of steel for Pulichintala project in AP

BL reported that Visakhapatnam Steel Plant has promised to supply 10,000 tonnes of steel required for the Pulichintala balancing reservoir on the Krishna River in Andhra Pradesh.

As per report, the assurance was given by Mr PK Bishnoi CMD of RINL when he met Dr YS Rajasekhara Reddy CM of Andhra Pradesh.

Dr Reddy and Mr P Lakshmaiah irrigation minister impressed upon that the Pulichintala project needed uninterrupted supply of steel to be completed on time.

Villagers block Angul sponge factory in Orissa

Statesman News Service reported that the local police have arrested about 26 villagers who were blocking the only route to the Angul sponge factory since May 25th 2007 hampering its sponge production and transportation of raw materials to the factory. As per report, the women members are still on dharna.

The villagers demanded that the village road should be repaired and company transport on that road be stopped immediately. They also alleged that the sponge factory was polluting the environment.

Earlier, several meetings were called by the local police but the administration failed to curb the discontent between the factory authorities and the villagers.

Foundation stone laid for 2 coal based units at NTPC Dadri

National Thermal Power Corporation has started work on 2 new coal based units at its Dadri plant to add 980MW to its capacity, taking the total strength of the project to 2,637MW.

Mr Sushilkumar Shinde union power minister laid the foundation stone for the two units of 490MW each at its National Capital Thermal Power Project.

The additional capacity would be built with an investment of INR 5,135 crore and that the power from stage II of the project would be.

SJVNL expanding to other projects besides Sutlej basin

It is reported that Himachal Pradesh’s Sutlej Jal Vidyut Nigam Ltd is trying to make inroads into other states and even neighboring countries like Nepal and Bhutan.

Mr HK Sharma chairman of SJVNL said “We have bid for 2 hydel projects of 3,000MW and 1,200MW in Arunachal Pradesh and are ready to pay the upfront money on our own as well. We are currently second in the race among a host of players for 2 large hydel projects in Nepal and the Bhutan government is also keen to avail of our services.

Mr Sharma added that “We are also providing consultancy services for building tunnels for the Konkan railway in Jammu and Kashmir. We carried out an investigation report for a hydel project in Chattisgarh but since the cost of production is very high the project is unlikely to be built.”

The centre has 75% equity in SJVNL while the Himachal government holds the rest of the stake. SJVNL built and runs India's largest hydel project, the 1,500MW Nathpa Jhakri project in Himachal Pradesh and is now building the 412MW Rampur project.

Narmada power project to submerge more villages in MP

BS reported that Narmada Hydroelectric Development Corporation has released a public notice warning villagers of Sailani, Bakhatgarh, Palri, Rampura, Sukwa, Ekhand, Godarpura, Gogalgaon, Toki, Kelwa Bujurg and Bilaya in Khandwa district of Madhya Pradesh warning them to stay away from their farm land, which is soon to be submerged in the backwaters of 520MW Omkareshwar project.

The report cites Mr Sanjay Mukharia GM of NHDC as saying that the sluice gates had been closed. He said that “. We have closed sluice gates and are expecting to fill the reservoir till 189 meters by July 3rd 2007.

He added that “A total of 4,153 families were to be shifted. Of those, 2,900 have been shifted. Nobody lives in the affected area. We have paid compensation to the villagers. Those who opted for our 10 rehabilitation sites have been allotted residential plots and those who skipped our rehabilitation sites and resettled at on own have been paid INR 20,000 against each plot.”

Jabalpur High Court had earlier barred the NHDC, from filling the reservoir till the completion of resettlement and rehabilitation of the affected people, roughly 5,000 families, after hearing a petition filed by Narmada Bachao Andolan. But Supreme Court has recently overruled on the matter.

The report cites a Narmada Bachao Andolan activist as saying that “We will file a modification petition before Supreme Court tomorrow. The district administration has cut power connections of Gogalgaon and Ekhand villages and has sent police to serve notices of eviction. The villagers are in panic. The state government is misleading even the Supreme Court. If the R&R has been completed, why have they severed power connections of villages and sent police.”

Narmada Hydroelectric Development Corporation is a JV of the Madhya Pradesh government and National Hydro Power Corporation. NHPC submerged 700 year old Harsood town for its 1,000 MW Indira Sagar project 3 years ago.

M&M's auto subsidiaries eyeing major overseas acquisitions

It is reported that Mahindra & Mahindra’s auto components subsidiary Mahindra Systems and Automotive Technologies is in negotiations for acquisition of around 4 overseas companies worth INR 1,000 crore in the operating in areas like stamping, composites, forging and gear box. It is reported that this move will help it register sales of USD 1 billion, way ahead of its target of achieving this level by 2010.

As per report, M&M’s alloy steel arm Musco, which produces stampings, will acquire a stamping company in the UK while Mahindra Composites, makers of quality composites, will buy out a company in the US and M&M’s gear box making arm Mahindra SAR is also in talks with an Italian company for an INR 350 crore acquisitions. Mahindra Systems and Automotive Technologies is also reported to be prying a buyout in China.

Mr Hemant Luthra president of MSAT said that “We have been growing at a very fast pace for the past few years and will continue to do so. This also involves opportunities arising through inorganic growth in foreign markets. We are looking at options for all our existing business modules, including gears, stamping, forging and composites.”

Mahindra Systems and Automotive Technologies’ Musco presently operates through three plants catering to clients such as TATA Motors, Ashok Leyland, Kinetic Motors and Renault India. Mahindra Composites, formerly Siro Plast, has a technical tie up with Menzolith of Germany addresses manufacturing formulations, processes, applications engineering and mould design cycles through its facilities based in Pimpri and Mangaon in Maharashtra.

NTPC & Kerala to ink MoU for TELK soon

It is reported that National Thermal Power Corporation and Kerala government is expected to sign a MoU for a power equipment JV with Transformers and Electricals Kerala.

Kerala Cabinet had approved the JV plan in May 2007 and the state government through its 3 arms KSIDC, SIDCO and Malabar Cements, will retain 51% equity in TELK. NTPC is expected to bring in investment to the tune of INR 150 to INR 200 crore in the first phase.

SBI Caps had conducted assets and machinery valuation and the initial investment is in the debt equity ratio of 67:33.

Venezuela government and Sidor patch up

AP reported that Mr Jose Khan mining minister of Venezuela recently said that the Venezuelan government has no plans to nationalize steel maker Sidor after reaching an agreement with the Argentine controlled company.

Mr Khan said "We have managed to reach some very important agreements with Sidor. With these agreements we have moved along in the sense that will maintain the same ownership structure."

He said the Venezuela government had considered buying Sidor or increasing its roughly 20% stake in the company but in the end the two sides reached an agreement for the company to provide as much steel output as necessary for the domestic market at or below international prices.

Sidor Ternium also agreed to include one worker representative in the board of directors and allow the government to organize a division within the company for follow up of the agreement.

Mr Hugo Chavez president of Venezuela criticized Sidor for selling the bulk of its production overseas instead of to local producers and threatened to expropriate the company if it failed to change what he called unscrupulous business practices.

Sidor, privatized in 1997, is the major steelworks in the Andean region and the Caribbean, with 4.2 million tons of liquid steel produced in 2006. Sidor's parent company Luxembourg based Ternium SA is controlled by conglomerate Techint Group of Argentina with 60% stake and the Venezuelan state and the company's workers and pensioners hold 20% each.

Cleveland-Cliff's Tilden iron ore mine cited for possible violation pattern

Platts reported that Cleveland Cliffs' Tilden iron ore mine in Michigan has been put on notice by the US Department of Labor on the grounds that its operation have a potential pattern of health and or safety violations.

As per report a Department of Labor L letter addressed to Mr David Blake GM of Tilden iron ore mine said that a review of the 24 month period through March 31st 2007 shows that a potential pattern of violations may exist at the Tilden mine. The violations are considered by the DOL to be significant and substantial and which could be reasonably expected to lead to a serious injury or illness.

The letter directs the Tilden iron ore mine's operator to meet with Department of Labor officials and devise a corrective action program. After implementation, the Department of Labor will inspect the mine. The Department of Labor 's Mine Safety and Heath Administration will monitor the mine's compliance record in the three months following implementation of corrective action. Failure to correct the situation, as perceived by the Department of Labor, could result in work disruptions at the mine.

Department of Labor has had the authority to issue violation pattern notices since 1977, this is the first time the department has resorted to such notifications. The Department of Labor also sent notices to several thermal coal miners, but Tilden is the only iron mine to receive the notification so far.

Tilden Mining Co is one of six iron mines operated by Cleveland Cliffs in the US and Canada. Tilden produced 1.4 million short tons of ore in the first quarter, down from 1.7 million short tons in Q1 2006.

ArcelorMittal dismisses minority shareholders claims

It is reported that the war of words between ArcelorMittal and its minority investors escalated after ArcelorMittal dismissed their claims about the exchange ratio for Arcelor shares as inaccurate and misleading.

ArcelorMittal stated that "Statements made by certain minority shareholders that ArcelorMittal and Arcelor allegedly communicated to the market that the ex change ratio used will be the same as the one used in 2006 are completely inaccurate." It said there was no legal rule in either Luxembourg or the Netherlands that imposed that the exchange ratio must be guaranteed in a merger.

It was responding to a campaign by the minority shareholders. The minority investors have threatened legal action against the directors of ArcelorMittal after it said it would buy out the minority shareholders at an exchange ratio of 8 of its own shares for 7 Arcelor shares compared with its initial offer of 11 for 7.

China's industrial growth in May cross 18%

China's government reported that industrial production growth unexpectedly accelerated in May 2007. China’s National Bureau of Statistics said that production by factories, mines and utilities rose 18.1% in May 2007 from a year earlier after gaining 17.4% in April 2007.

Inflation accelerated to the fastest in 27 months in May and the stock market surged to a record 3.4% outpacing the benchmark one-year deposit rate of 3.06% even as the central bank raised the benchmark one year lending rate to an eight year high of 6.57%.
The trade surplus rose a bigger than estimated 73% in May 2007 from a year earlier to USD 22.45 billion.

For the first five months, China's industrial production climbed 18.1% from the same period last year, up from 16.6% growth for all of 2006. Record trade surpluses have pumped money into the financial system, fueling an economic expansion of 11.1% in the first quarter as compared to 10.7% in 2006 and raising concern about asset bubbles.

Mr Wen Jiabao premier of China recently said that further steps are needed to cool its economy. He said that monetary policy needs moderate tightening,' underscoring the failure of two interest rate increases this year to slow the economy. Mr Wen said that “China's economic problems include rapid growth in industrial production & the trade surplus, fast investment growth, excessive liquidity, increasing inflationary pressure and energy conservation challenges.”

More than half of China's industrial production is for export purposes and the trade surplus was quite large last month but the big jump may also mean acceleration in fixed asset investment.

Acesita may acquire Metalcorte service center

It is reported that ArcelorMittal’s Acesita Brazil may acquire another service center in order to expand its distribution arm Acesita Serviços. As per report, Acesita would be interested in acquiring Metalcorte's plant of Caxias do Sul at the southern state of Rio Grande do Sul in Brazil.

Metalcorte officials have admitted being in talks with Acesita but gave no further details.

Acesita Serviços Campinas supports the strategy of Acesita to supply its customers with solutions in stainless steel, a combination of products, finishing and logistics. It is fitted with state of the art equipment and provides slitting and cut to length services for flat stainless steel products with various types of surface finishing.

Argentina puts 63% AD duty on Chinese SS pipes

YIEH Corp reported that Argentina has implemented a 63% anti dumping duty on welded austenitic stainless steel pipe imported from China through May 2012.

The report added that the anti dumping duty order includes welded austenitic stainless steel pipe with a thickness from 0.7mm to 4mm, with a diameter if 19.05mm to 114.3mm, of square cross section with sides of 15mm to 90mm, and cross section with a diagonal gauging of 22mm to 146mm.

Argentina government opened its anti dumping investigation into Chinese stainless steel pipe in end 2005, after being requested from Fabricacion de Aleaciones Especiales.

Pakistani importers call for avoiding double taxation

Pakistan Daily Times reported that importers of iron and steel products in a recent meeting decided that they would not pay the sales tax that has been increased to 20% from 15% for them and that prices of all steel products including scrap, billets and sheets could rise by PKR 1000 to PKR 2500 per tonne if the change introduced in the budget is enforced.

A leading steel importer told Daily Times that the government should decide at once whether they would be treating the products they import as raw material or as finished products. The report cites a trader as saying that the Pakistan government receives customs duties at 20% to 25% on the products they import and now wants to charge 20% sales tax treating it as raw material. He said that steel traders want the government to remove this anomaly. He said that “They should charge customs duty at 5 to 10% if they think what we import is raw material.”

Mr Omar Ayub Khan finance minister of state in his budget speech said that “In the country, iron and steel, plastic and paper industries are fast growing but unfortunately majority of them are functioning in the unorganized sectors as a result the government as well as the organized sector industry are facing continuous losses. In order to establish equilibrium, the raw material imported for iron and steel, plastic and paper industries the sales tax of 15 % is proposed to be enhanced 20% but the rate of 15% sales tax on the final product for these sectors will remain the same.”

China's output of coal, iron ore and steel products during January to May

China’s National Bureau of Statistics of China published on June 14th 2007 outputs of coal, iron ore and steel products in May 2007 and during January to May 2007 as under

In million tonnes
YoY is change with respect to corresponding period of 2006

(Sourced from MySteel.net)

Anyang to buy CNY 3.15 assets from its parents

China Knowledge reported that Henan based Steel maker Anyang Iron & Steel plans to buy CNY 3.15 billion worth of assets from its parent, Anyang Iron & Steel Group in accordance to the latter's intention to transfer all its operating assets into the publicly traded arm. The transaction is forecasted to raise Anyang Group's stake in the listed company by 7.5% to 60.14 %.

Anyang Iron & Steel said that the deal includes an issuance of 377.25 million new shares at CNY 8.35 each from its state owned parent. The assets include a 78.14% stake in an iron making plant a blast furnace, a steel machinery manufacturing plant and a construction company.

The purpose of the asset acquisition is to propel Anyang Steel towards its target of CNY 162 million this year. The company posted a 28.5% growth in net profit to RMB 556.7 million last year on turnover of CNY 16.54 billion.

Other industry players are also hot on the trail of a rising industry trend whereby mainland listed steel manufacturers restructure operations and boost capacity through assets acquirements from their parents.

China's export of wire rod to Taiwan cross 30,000 tonnes in May

YIEH reported that Taiwan's imports of wire rod reached 41,291 tonnes in May 2007. The imports from China accounted for 82% at around 33,879 tonnes in May 2007.

As per report the imports of wire rod of diameter less than 14mm totaled 38,105 tonnes and the average price was at TWD 16,810 per tonne and for diameter higher than 14mm the price was TWD 18,400 per million tonnes.

On the other hand, Taiwan's exports of wire rod in May were 23,977 tonnes up by 115% from last month.

Taiwan's import of wire rods has totaled 276,490 tonnes during January to May 2007.

Ugitech USA's new ESR furnace to start in July 2007

It is reported that Schmolz + Bickenbach Group’s UGITECH USA’s new 4000 tonnes per year electro slag remelting furnace installation from is nearing completion and depending on its performance a second furnace may be built next year.

The ESR furnace whose start up is envisaged for early July 2007 will allow Ugitech to produce steels for previously inaccessible parts of the high technology medical, aerospace and automotive markets where ultra refined, ultra fine stainless wire is required.

Ugitech said that the first furnace would be somewhat of a pilot unit. Its steel will need certification and a client base needs to be developed. Depending on its performance and the success of preliminary sales, it will decide by the end of the year whether or not to install a second unit.

ArcelorMittal Kryvy Rih to increase domestic sales in 2007

It is reported that ArcelorMittal's Mittal Steel Kryvy Rih intends to increase its domestic sales to 24% of the plant's total production in 2007 as compared to 20.4% in 2006.

Mittal Steel Kryvy Rih announced plans in February to increase steel production by 7.8% in 2007 compared to the previous year, and to boost finished steel and cast iron production by 4.9% and 5.7% respectively. It also intends to raise sinter output by 3.7% to 11.813 million tonnes while production of iron ore concentrate is projected to grow by 6% to 8.25 million tonnes and coke output is seen up 28.8% to 3.47 million tonnes in 2007. Ore extraction is expected to reach 22.480 million tonnes up by 11.3%.

Mittal Steel Kryvy Rih increased its overall output in 2006 by producing 6.8 million tonnes of cast iron 7.6 million tonnes of steel and 6.9 million tonnes of finished steel.

The shareholders' meeting of Mittal Steel Kryvy Rih decided on June 14th 2007 to rename the company to ArcelorMittal Kryviy Rih, as part of ArcelorMittal strategy for its units in the Commonwealth of Indemendent States.

Lisco's SS production ramped up to 600,000 tonnes

YIEH reported that China's Lianzhong Stainless Steel Corp has reached 600,000 production ability in its 800,000 tonnes per year melt shop at Quangzhou in southern China.

A senior official of Lisco said that "The plant will ramp up to its full production capacity of 800,000 tons in middle of third quarter of 2007."

The plant in southern Guangdong province was commissioned in February 2007.

Lisco belongs to E United group, the largest stainless steel and coated steel producer in Taiwan.

BHPB iron ore chief to meet workers at Whaleback mine

It is reported that BHP Billiton miners who voiced safety concerns on the ABC's 7:30 will have a chance to have their concerns addressed by the company's global head of iron ore. As per report, Mr Ian Ashby President & COO WA of BHP Billiton Iron Ore will visit the Mount Whaleback mine near Newman to speak to the workers.

Mr Michael Buzzard BHP spokesman said that the most appropriate way for workplace issues to be resolved is on site. He said "Mr Ian will also be talking one on one with the people who appeared on the 7:30 Report so we get a better understanding of their concerns and most importantly identify unsafe practices if they're happening and stop them."

More than 200 workers signed a petition saying they are being intimidated and victimized after signing Australian workplace agreements. BHP Billiton workers said they feared a serious accident would happen because people are too scared to notify management of any safety concerns.

Mittal Steel Temirtau miners allege hostile working conditions

According to a report in The Sunday Times, ArcelorMittal’s Mittal Steel Temirtau has been accused of ignoring safety in its mines in Kazakhstan. The report cites some coalminers as claiming that Mittal Steel Temirtau is endangering their lives by using dangerous, outdated equipment and by cutting corners.

The report added that the allegations were made by miners and widows of some of those who have died at Mittal Steel Temirtau's mines in Kazakhstan.

The report cites Mr Sergei a Lenina miner as saying that "We are being treated by Mittal's people as little more than slave labor. Conditions are far worse than they were in Soviet times.” Some other miners said that some of the machinery and equipment dated back to the 1970s.

The allegation was countered by ArcelorMittal, which said that health and safety was a top priority. A spokeswoman for ArcelorMittal said that USD 260 million had been invested in the mines from 1996 to last year and a further USD 63 million was planned for this year as it has pledged to install more methane detectors and that new personal gas detectors and masks are on order. It said that its investment is already paying off with no fatalities being reported this year and injuries have dropped by 30%.

Mr David Sadler ArcelorMittal’s head of Africa and Asia mining said that “Investment in and development of health and safety are priority areas for ArcelorMittal in the world and especially in Kazakhstan. We have been making significant investment and are seeing good progress in the modernization of our mines and this is delivering real results.”

AS per report, more than 90 have died in the mines since 2004. Last September 41 miners were killed in a gas explosion at the Lenina mine and two years earlier 13 workers were killed in an explosion at the nearby Shakhtinskaya mine. The Lenina blast triggered a strike by the miners, which was settled when Mittal Steel agreed to safety improvements and substantial pay rises.

China Special Steel to shift to nickel contained steels

Shanghai Securities News citing Mr Dong Shutong Board chairman of China Special Steel Holdings Co Ltd reported that the company would focus on processing nickel contained products in future instead of nickel free bearing steels

Mr Dong Shutong said that its company started to make nickel contained stainless steel base material this January 2007 and has produced about 39,000 tonnes in the first quarter of 2007. He added that they will end production of nickel free bearing steel and shift to nickel products entirely with the intention to make nickel contained bearing steel also.

Mr Shutong said that bearing steel and spring steel are the major sources of the income last year and predicted this year some 90% of the income will come from nickel contained stainless base material.

China Special Steel Holdings Co Ltd is specialized in special steel production and sales. In 2006 it earned returns of CNY 90.27 million down by 26% YoY. It is looking for a land in Henan for an expansion project, which will involve CNY 1 billion investments funded mainly by convertible bond and operating cash

(Sourced form MySteel.net)

Mrs Usha Mittal gets strategic hold in Mittal Steel

It is reported that the shareholders of Mittal Steel have overwhelmingly supported the proposal to designate Mrs Usha Mittal to this position to run the company in the absence of the company directors at an annual general meeting held in Amsterdam recently. The decision to nominate Mrs Mittal appears to be a move to take care of unforeseen exigencies.

The board had proposed to designate Mrs Usha Mittal as the person referred to in Article 23 of Articles of Association of the company. According to the article of association, such a person is “temporarily responsible for the management of the company in case all members of the board of directors are prevented from acting or are permanently absent.

The company had said in its proposal that Mrs Mittal has more than 15 years experience in steel and related industries and was a director of the company from its inception until March 16th 2001.

Mittal Steel said in a regulatory filing that “The resolution was approved by 97% of the votes cast by shareholders.”

The shareholders also ratified the board’s decision to appoint Mr LN Mittal as CEO with effect from November 2006.

South Korea import of scrap in January to April up by 21.7% YoY

According to statistics from South Korea Customs the import of scrap for January to April 2007 was around 2.07 million tonnes up by 21.7% compared to the same period last year.

Among them 1.17 million tonnes was from Japan up by 19.8% compared to last year in which US provided 492,000 tonnes and 260,000 tonnes was imported from Russia.

South Korean import of scrap in April 2007 was 631,000 tonnes showing an increase of 34.9% over April 2006.

Environmental group blames Mittal Steel USA over air quality in Cleveland - Report

Wall Street Journal reported that an environmental watchdog group in Cleveland claimed that Mittal Steel is illegally operating a blast furnace in Cleveland and polluting the air

The report added that Ohio Citizen Action, a Cleveland nonprofit organization, filed papers with the Chicago office of the Environmental Protection Agency. It claimed "Mittal Steel has been running one of their blast furnaces at 145% of its scrubber capacity."

As per report, Mittal Steel has denied the allegation.

POSCO to build SS CR mill in Vietnam

YIEH reported that POSCO plans to build a cold rolling mill in Vietnam with annual capacity of 200,000 tons per year in order to expand overseas stainless steel sales and satisfy the demand in Southeast Asian market.

Currently POSCO annual capacity output is 2.6 million tonnes at mills in South Korea and China. Most of products are HR stainless steel. Therefore, POSCO would like to expand China’s stainless steel CR products from 38% to 60%.

German Industrial production down by 2.3% MoM

It is reported that Germany’s headline industrial production is down by a sharp 2.3% MoM in April defying analysts’ expectations for a modest MoM gain and giving a warning with these figures. But these figures are usually revised and sometimes substantially so by the German ministry of economy and technology.

The preliminary report pinpoints two areas of weakness in April manufacturing where output dropped by 2.3% and construction where output dropped by 2.9%. The latter followed a very weak February when construction output dropped by 7.4%.

The figures taken together with the 1.2% MoM drop in April new orders have raised some eyebrows as to whether Germany’s strong industrial run is losing momentum.

Stroitransgaz to construction water supply system in Saudi Arabia

Interfax reported Russian Stroitransgaz and the Saudi Water and Electricity Minister signed a contract in Riyadh this week, under which Stroitransgaz will participate in the construction of the Shukeik water supply system in Saudi Arabia. The ordering party is the State Saline Water Conversion Corporation.

The total length of the water supply system consisting of six pipes up to 60 inches in diameter is about 900 km. Sea water will be desalinated at a new desalinating plant, currently being built in Shukeik and then pumped to the Asir and Jizan provinces.

The USD 1 billion project is designed for three years. Stroitransgaz will provide technical assistance to its project partner, Aziz Co Ltd.