Forward Bloc lends support to anti POSCO agitation in Orissa

PTI reported that the Forward Bloc has now extended its support to ongoing anti POSCO agitation in Orissa.

As per report, Mr Debabrata Biswas general secretary of Forward Bloc joined a protest rally outside POSCO India’s head quarter at Fortune Tower in Bhuwneshwar, organized by the Jagatsinghpur Zilla Bikash Parishad coinciding with POSCO's crucial meeting in Seoul. As per report, more than 10 organizations and political parties supported the rally. More than 50 activists, including women, courted arrest while trying to break police cordon near the spot.

Mr Biswas criticized the central government and Orissa government's move to hand over Khandadhar iron ore mines to POSCO and warned that it would lead to a massive agitation across the country. He added that ''Encouraging POSCO means selling off the country's sovereignty His party would oppose POSCO tooth and nail as it intended to grab the country's natural resources at throwaway price.”

The report cited Mr Abhiram Nayak a leader of this faction as saying that ''We want our voice to reach Seoul so that the company authorities there can gauge the sentiments of local people."

CPI leader Nityananda Pradhan, who too marched towards the Fortune Tower, said his party had been opposing the project since day one.

Indian iron ore export price on upward trend

China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week.

The change is with respect to prices posted on July 16th 2007

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices and the reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

JSL Q1 net profit up by 63% YoY

India's stainless steel major Jindal Stainless Limited has reported a 63% YoY rise in net profit for the April to June 2007 period on higher sales and cost cutting measures.

JSL has posted a net profit of INR 826 million for April to June 2007 quarter as compared to INR 507.90 million for April to June 2006. Its total income net of excise has increased from INR 8598.2 million for April to June 2006 quarter to INR 12014.9 million for April to June 2007 quarter.

Mr Ratan Jindal vice CMD of Jindal Stainless Limited said that a key factor has been its ability to produce cost effective products and its flexibility to meet market requirements. He added that "During the quarter, we experienced diversified demand for stainless steel from both new and existing customers across key verticals and geographic markets."

JSW moves to SC for iron ore mining lease in Karnataka

ET recently reported that JSW Steel has moved to the Supreme Court seeking grant of mining lease for its plant at Torangallu in Karnataka.

As per report, a bench headed by Mr KG Balakrishnan chief justice has recently deferred hearing on JSW's petition for quashing a Karnataka High Court order directing the centre and the state government to process the renewal of application for grant of lease in a forest area to another mine owner Muneer Enterprises.

JSW Steel said that the High Court directions deprived it from participating in the bidding process for re grant of mining area, which is at present in the occupation of the mine owner. While submitting that the state was duty bound to notify the area for grant of fresh mining lease under the Mineral Concession Rules 1960, it said the High Court had failed to appreciate that it cannot permit the state government to renew the expired mining lease.

JSW Steel said that Dalmia Cements had surrendered mining lease in respect to 331.44 hectares to the state government in June 2001 and the entire lease area had reverted to the state. JSW Steel needs mining leases for its mega steel plant and has proposed to invest INR 100 crore for systematic and scientific mining. Karnataka government while approving its project had promised to allot 110 million tonnes of iron ore mines for its captive steel plant from the Bubbarayanahalli range of Swamimalai reserve forests in Bellary district.

POSCO hopes to acquire land by 2007 end despite all odds

The Telegraph reported that POSCO is planning to complete the acquisition of land for its INR 52,000 crore 12 million tonne integrated steel plant in Orissa by the end of 2007 and to start foundation work in the early part of 2008. POSCO, in a recent filing before the US Securities and Exchange Commission, said that it hopes to get the mining lease for its plant by the end of 2007 and would start work on port construction early 2008 where demarcation and fencing around the proposed site would be done in the next 5 months.

POSCO has also got environment clearance from the centre for its port project in April 2007 and for the steel unit in June 2007.

POSCO appears to be confident in meeting these targets, but the ground realities are different. POSCO is yet to get a possession of the land at Jagatsingpur, which is the site of the proposed plant, though more than two years have elapsed since the MoU was signed with the Orissa government. POSCO’s application for the mining lease is also uncertain as there are some 164 applicants for the Khandadhar mines at Sundergarh district. Orissa has suggested the possibility of invoking the Mines and Minerals Development and Regulation Act to give preference to POSCO, but there are fears over the government getting dragged to the courts, resulting in a further delay in the project. It might also be difficult for POSCO to get a forest clearance.

BHEL bags INR 1,829 crore order for Aravali STPP in Haryana

Bharat Heavy Electricals Limited announced that it has secured a prestigious INR 1,829 crore order for manufacturing and setting up three 500MW thermal power units in Haryana under international bid.

BHEL would design, manufacture, supply, erect and commission 3 steam generators along with associated auxiliaries at Jhajjar in Haryana for the Aravali Super Thermal Power Project. The synchronization and coal firing for first unit would be achieved before the next 36 months.

While Bharat Heavy Electricals Limited Tiruchirapalli unit will manufacture the steam generators, its Ranipet unit will make auxiliaries such as electrostatics, precipitators, fans and air pre heaters. Hyderabad Bharat Heavy Electricals Limited unit will supply coal mills, Bhopal unit motors and Bangalore unit electronics and control systems. Bharat Heavy Electricals Limited northern region team will undertake erection and commissioning of power plant equipments.

The project is a JV between National Thermal Power Corporation, Haryana State Electricity Board and Indraprastha Power Generation Company.

JNPT to award dredging contract by August end

BS reported that Jawaharlal Nehru Port Trust is likely to award the much delayed INR 800 crore dredging contract by August 2007 end as against the September 1st 2007 deadline set by Netherlands based Van Oord, the lowest bidder for the project.

The report cites a source as saying that “Since the cost estimates of the proposed project have gone up, Jawaharlal Nehru Port Trust will have to take multiple approvals from the ministry. However, the port will also have to secure approvals as there is a deadline set by the lowest bidder for the project.”

To be funded from the port’s internal accruals, the project would increase the channel depth from 12 meters to 14.5 meters. Van Oord had emerged as the lowest bidder competing with 3 other international dredging companies namely Boskalis, Jan De Nul and Dredging International. Jawaharlal Nehru Port Trust board has approved the proposal of Van Oord on July 19th 2007.

At present, Jawaharlal Nehru Port Trust handles bigger vessels by making use of tide. When the channel gets dredged, the port will be able to handle 14 meter draught vessels, which can carry 6,000 20 feet containers. In 2006, Jawaharlal Nehru Port Trust was ranked as 28th leading container port of the world.

BHEL assures timely completion of projects in AP

BS reported that Mr AK Puri CMD of Bharat Heavy Electricals Limited recently met Mr Mohammed Ali Shabbir energy minister of Andhra Pradesh and assured him timely completion of all the thermal power projects awarded by Andhra Pradesh Power Generation Corporation.

Mr Puri, following the displeasure expressed by state energy minister over its failure in timely delivery of various components, told Mr Shabbir that the Andhra projects would be given top priority.

Mr Ali, in a press release has expressed satisfaction over the assurance given by Mr Puri for speedy completion of technical works related to the new units of Vijayawada Thermal Power Station and Bhoopalapally among others.

Andhra Pradesh Power Generation Corporation has awarded technical works related to over 2,000MW capacity thermal power units in the state to Bharat Heavy Electricals Limited and some of which have reportedly been delayed by several months.

Karnataka to add 3,000MW by 2012

Mr HD Kumaraswamy chief minister of Karnataka, while inaugurating a national seminar on “Power development in the 11th Plan and beyond” said that Karnataka Power Corporation Limited has been asked to set up thermal stations to generate 3,000MW by 2012 and that detailed project reports are being prepared for thermal power plants with a total capacity of 6,500 MW.

Mr Kumaraswamy, who is also the chairman of Karnataka Power Corporation Limited, said that if new coal blocks were given it would start work on thermal plants to generate 3,000MW immediately.

Karnataka Power Corporation Limited has an installed capacity of 5,000MW and had been allotted projects with a total capacity of about 6,000MW. It is setting up two 500MW units at the Bellary thermal power station, 1,400MW gas based thermal power plant at Bidadi in Bangalore rural district and a hydel project at Mekedatu.

Dayim Punj Lloyd secures major orders in Saudi Arabia

Punj Lloyd announced that its JV subsidiary Dayim Punj Lloyd has secured its first order worth USD 79 million from Saudi Kayan Petrochemical Company in Kingdom of Saudi Arabia.

Under the contract, Dayim Punj Lloyd will construct 8 tanks for DM water, fire & service water, MEG and crude storage and one sphere for mixed butanes storage for offsite and utility of Saudi Kayan Petrochemical Complex at Jubail Industrial city in Kingdom of Saudi Arabia.

The major highlights of the project will be blast overpressure design for 5 tanks, finite element analysis for large bore nozzles for two tanks. Dayim Punj Lloyd will be constructing the largest tank 71 meter diameter x 18 meter high, cone roof carbon steel apart from three tanks of stainless steel 304L, max size 40.5 meter diameter x 18 meter high, cone roof. The work is scheduled to be completed by January 2009.

Dayim Punj Lloyd had signed a letter of intent to build a new 300 kilo tonnes per annum low density polyethylene plant through its subsidiary Simon Carves, in Saudi Arabia for the Saudi Kayan Petrochemical Company in March 2007.

Dayim Punj Lloyd was formed with the 49:51 JV of Punj Lloyd with Prince Khalid Bin Bandar Bin Sultan of Kingdom of Saudi Arabia in May 2006 to identify new business opportunities in Saudi Arabia.

Uttarakhand eying more investments

It is reported that the Uttarakhand government is trying hard to give a fresh impetus to industrialization and invite new proposals for the hilly region. It is seeking proposals from industrial houses to set up small and eco friendly industries in the state’s hills.

As per reports, an action plan has been prepared to promote village industries, agriculture based units and cottage industries and INR 6.25 crore has been earmarked for it. Udyogmitra, a government organization set up to promote industries in the state, would now meet every 3 months and try to give an impetus to industrial growth in the state.

Mr BC Khanduri chief minister of Uttarakhand is also keen to see industrialization on a firm footing and has told bureaucrats to work more on inviting investments in both the hilly and the plain regions. He has told officials to interact frequently with all those setting up units in the state. He has already made a passionate appeal to industrial houses to set up small eco friendly units in the hills and has began interactions with various industrial associations like the Confederation of Indian Industry and PHDCCI.

As per reports, 1633 new proposals worth INR 300 crore had poured into Uttarakhand off late and overall investment in the state stood at INR 26,000 crore and 800 industrial units had started production with an investment of INR 4,000 crore.

Eastern Railway earnings in Q1 up by 27% YoY

Eastern Railway has posted an earning of INR 884.37 crore during April to June 2007 period up by 27% YoY as compared with INR 695.6 crore earned during the corresponding period of the previous year.

Other earnings during April to June 2007 period are
1. Passenger: INR 289.93 crore
2. Goods: INR 546.62 crore
3. Other coaching: INR 37.7 crore
4. Sundry & other: INR 10.12 crore.

Eastern Railway has also succeeded in carrying freight traffic of 10.97 million tonnes during the period, in which coal alone accounted for 7.27 million tonnes and other goods 3.7 million tonnes.

MEPS forecasts global crude steel output in 2007 to go up by 7.5 YoY

According to MEPS’s latest world steel outlook, world crude steel output is now forecast to reach 1.337 billion tonnes in 2007 representing a 7.5% YoY increase on the 2006 figure, blast furnace iron production is forecast to expand by almost 7.9% and direct reduced iron supply by 4.8%.

MEPS, in its report said that the migration of steel production to the Asian continent is reinforced by the fact that 83% of the rise in steelmaking in 2007 will be supplied from this region although mills in the former USSR and South America are also expected to make major contributions.

Volume in million tonnes
Source: MEPS - World Steel Outlook

MEPS forecasts a 2.5% rise in steel manufacturing across the EU 27 in 2007 representing a gain of more than 5 million tonnes. Recent entrants from Eastern Europe are expected to contribute the remaining 1.1 million tonnes. Strong steel production growth is forecast for the remainder of non EU Europe. New capacity installations are pushing output higher in Turkey and many East European states. We forecast growth in 2007 at in excess of 13% in the sub region.

MEPS’ forecast for crude steel output in 2007 in the former USSR has been slightly up rated to just above 125 million tonnes. Crude steel production in the NAFTA region is forecast to decline by 3.3% in 2007 compared to the outturn in 2006. Real demand is sluggish in the United States and Canada.

South American crude steel production in 2007 is increase by 4.2 million tonnes. Consumption is expanding rapidly across most of the region as economic activity improves. African crude steel output in 2007 is expected to be slightly above the figure recorded in 2006.

Steel production in the Middle East is expected to rise in 2007 by 4% YoY. All the expansion will be utilized to meet local requirements. In fact, regional demand is growing faster than output.

Asia continues to be the powerhouse of production for the steel sector around the world. Demand remains extremely strong across most of the region. Steel output gains are being put in place in all the major manufacturing nations. MEPS now envisage total Asian steelmaking in 2007 approaching 750 million tonnes equating to a 142% rise in the past 10 years.

A modest improvement in steel output is envisaged in 2007 in the Oceania region.

BHPB reports records yearly performance

BHP Billiton released its production report for the year ended June 30th 2007.Annual production records achieved for natural gas, alumina, aluminum, copper, nickel, iron ore, manganese ore, and metallurgical coal; all underpinned by strong demand.

The highlights reported are
1. Increased annual production achieved for energy coal, diamonds and manganese alloy.
2. Petroleum production in line with prior year despite no new major project start-ups.
3. Record annual production achieved at North West Shelf, Worsley, Western Australia Iron Ore, GEMCO, Queensland Coal, Hunter Valley Coal & Illawarra Coal Bed Methane in Australia, Mad Dog in USA, Zamzama in Pakistan, Alumar in Brazil, Paranam in Suriname, Hillside, Bayside & Samancor in South Africa, Mozal in Mozambique, Escondida in Chile and Cerrejon Coal in Colombia.
4. Quarterly production records achieved for the Alumar, Yabulu in Australia, Queensland Coal, Cerrejon Coal, New Mexico Coal in USA and Illawarra Coal Bed Methane operations and for natural gas from Bass Strait in Australia

Iron Ore
Records were set for annual production and sales volumes reflecting increased output from the expanded Western Australia Iron Ore operations. Production was higher than the March 2007 quarter due to the continued ramp up of the expanded capacity at Western Australia Iron Ore and resumption of normal production levels following cyclone activities at Western Australia Iron Ore and planned maintenance at Samarco (Brazil) in the previous quarter.

In million tonnes
Change is with the corresponding period of last year

Metallurgical Coal
Strong annual and quarterly performance across the Queensland Coal portfolio followed a light plant shutdown schedule. Records were achieved at Goonyella and Saraji. The ramp up of Poitrel continued (all Australia). Hay Point Coal terminal (Australia) attained record annual and quarterly throughput, partially mitigating the impact of port constraints at third party facilities.

In million tonnes
Change is with the corresponding period of last year

Energy Coal
Production was in line with the year ended June 2006. Increased output from improvement initiatives was offset by extreme weather conditions at Hunter Valley Coal. Production for the June 2007 quarter was higher than the March 2007 quarter due to the impact of a planned longwall move at San Juan (USA) in the previous quarter.

In million tonnes
Change is with the corresponding period of last year

Nickel
Record annual production was driven by strong performances at all operations. All operations achieved near record production and sales.

In 000 tonnes
Change is with the corresponding period of last year

Manganese
Manganese ore - Higher production compared to all prior periods was driven by stronger customer demand.
Manganese Alloy - Production was higher than the year and quarter ended June 2006 due to optimization of the product mix and improved facility availability and utilization. The current quarter’s output was impacted by planned furnace maintenance at TEMCO (Australia).

In 000 tonnes
Change is with the corresponding period of last year

BHP however warned that “Third party infrastructure constraints on the east coast of Australia will continue to adversely impact our coal operations in the near term.”

It added that “Production in South Africa will be lower in 2008 financial year due to the divestment of Koornfontein and potential divestment of Optimum and reduced output from the Douglas underground mine as it approaches shut down in the middle of the 2008 calendar year.”

CSN NAMISA acquires Cia de Fomento Mineral

CSN’s wholly owned mining subsidiary Nacional Minerios SA announced acquisition of Companhia de Fomento Mineral located in the state of Minas Gerais in Brazil with installations close to CSN's most important mining asset Casa de Pedra Mine. With this acquisition, Nacional Minerios SA has consolidated its position in the national and international iron ore markets, with expected sales of 10 million tonnes in 2008 and up to 15 million tonnes in 2009.

The acquisition price may amount up to USD 440 million, out of which USD 100 million was paid upon the execution of the purchase agreement and USD 250 million will be paid on August 1st 2007. The remaining USD 90 million may be paid in four installments within two years upon the fulfillment of certain conditions of the purchase agreement. The financial resources for the acquisition of CFM shall be obtained with funds raised in the financial markets.

Companhia de Fomento Mineral explores various iron ore mines and owns ore processing facilities in the state of Minas Gerais. Companhia de Fomento Mineral sold approximately 3.6 million tonnes of iron ore in 2006, and sold approximately 2.7 million tonnes in the first half of 2007. It is enlarging the production capacity of its facilities and its sales are expected to reach 8 million tonnes of iron ore in 2008. The company expects production to rise to 12 million tonnes in 2010.

Mr Juarez Saliba executive mining officer of CSN said "The acquisition is perfectly aligned with CSN's well publicized strategy and is designed to transform NAMISA into an important player in the global mining sector by 2008."

Mr Saliba added that "The conclusion of the second expansion phase of our Itaguai port installations in February 2008, when we expect to be capable of handling and exporting 30 million tonnes of iron ore per year, combined with the acquisition of CFM's assets and our available iron ore inventories, shall give the CSN Group companies a combined iron ore sales capacity of 30 million tonnes next year, including transfers to our steel plant in Volta Redonda, in turn providing a substantial boost to the CSN's consolidated revenue and EBITDA."

CMC to Acquire Croatian pipe mill Sisak

Commercial Metals Company headquartered at Irving in Texas state of US announced that its Swiss subsidiary Commercial Metals International AG has signed a definitive purchase agreement with the Croatian government to acquire Valjaonica Cijevi Sisak. The purchase agreement is subject to closing conditions, which are expected to be met within the next sixty days.

CMC will pay HRD 37 million for the shares (USD 7 million), assume debt of over HRD 200 million (USD 41 million), invest about USD 40 million in capital expenditures and increase working capital by approximately USD 39 million. CMC also has committed to retaining the employees of Sisak for a period of three years.

Sisak is an electric arc furnace based steel pipe company with a pipe making capacity of about 305,000 tonnes annually.

Mr Hanns Zoellner executive VP & president of CMC's Marketing and Distribution segment said "We appreciate the professional manner in which the Croatian government moved this acquisition to conclusion. Sisak will be our base for growth in the robust and key markets of Central and Eastern Europe. We know that this is a turnaround opportunity and are ready to invest to bring this mill to a high level of profitability. Our commitment to our new employees, our expected capital improvements, our environmental investments, and our community involvement will demonstrate to the Sisak area that our interests are long term and mutual to all our important constituencies."

CVRD and Hydro to develop an alumina refinery in Brazil

Brazilian Companhia Vale do Rio Doce announced that it has signed a MoU with Norwegian aluminum producer Hydro to develop a new alumina refinery in Barcarena in the Brazilian state of Pará. Hydro will hold a 20% stake in the project and will have the right to participate in further expansions.

The new plant is to be developed in 4 stages, each one with 1.85 million tonnes per year of alumina production and with a final total output of 7.4 million tonnes per year. Construction is expected to begin mid 2008, following board approval.

Companhia Vale do Rio Doce will supply the bauxite for the new refinery from its wholly owned Paragominas mine which supplies part of Alunorte bauxite needs through a 244 kilometers long pipeline linking the mine to the refinery.

CVRD release added that “This initiative is consistent with Companhia Vale do Rio Doce's strategic focus on bauxite and alumina. The strategic focus on the upstream of the aluminum production chain is strongly supported by its competitive advantages derived from the development of large reserves of high quality bauxite, world class alumina operations and a highly efficient logistics network.”

Companhia Vale do Rio Doce with 57% and Hydro with 34% are shareholders of the world’s largest alumina refinery Alunorte.

Xstrata Nickel to invest CAD 8.7 million in Thayer Linsey Mine

Xstrata Nickel has announced that it will invest CAD 8.7 million in its Thayer Lindsley mine in Sudbury in order to extend the mine life by over 1 year and enhance productivity at the operation.

The Thayer-Lindsley mine began production in 1991 and produces nickel, copper and precious metals. The mine shaft is 1,585 meters deep. The project will include more than 1,100 meters of lateral development to access ore improved ore pass design, a new truck chute and new mine equipment. Work will be completed by August 2008. As a result of this investment, the mine life at Thayer Lindsley would be extended to the end of 2012.

Mr Mike Romaniuk VP of Xstrata Nickel said that "The investments we are making are in line with Xstrata Nickel's focus on growth and on maximizing the potential of our operations. The investments will result in improved ore handling and more efficient movement of people and equipment at Thayer Lindsley. This project will also provide us access to additional ore and extend the mine life by at least one year."

Xstrata Nickel headquartered at Toronto in Canada is one of Xstrata Group's global commodity businesses, comprising 5 mines and processing facilities in Ontario and Quebec, Canada, a ferronickel mine and processing facility in Bonao, Dominican Republic and a refinery in Kristiansand, Norway. It is the world's fourth largest nickel producer, with annual managed production of more than 110,000 tonnes of refined nickel.

NYMEX to use WSD pricing to launch steel futures

The New York Mercantile Exchange Inc announced that its has signed a licensing agreement with World Steel Dynamics Inc and would introduce a steel futures contract based on WSD's SteelBenchmarkerTM benchmark pricing system on the NYMEX ClearPort® electronic clearing and trading platforms later this year.

The expected contract will be USA hot rolled band steel futures. The contract size will be 20 short tons with a minimum price fluctuation of USD 0.50 per short ton and will be listed for 18 consecutive months. Final settlement day will be the fourth Wednesday of the current contract month.

Mr Richard Schaeffer chairman of NYMEX said "We are very pleased to be the first exchange to offer a steel futures contract to serve the North American market. NYMEX has worked closely with the steel industry for several years to develop a contract which will meet the needs of producers and consumers and serve as a transparent benchmark for the industry."

Mr Peter Marcus MD of WSD said "We see a great market for steel futures contracts in the steel industry. Price volatility has increased in the steel market, and futures contracts will enable end users and producers to lock in prices and margins. NYMEX and World Steel Dynamics have teamed up to provide a new price risk tool, based on the SteelBenchmarkerTM index. The SteelBenchmarkerTM was developed to provide unbiased spot market price opinions and incorporates numerous safeguards to prevent collusion, manipulation or other misuse. We are pleased to partner with the NYMEX, the global leader in physical commodities trading, to introduce steel futures contracts."

SteelBenchmarkerTM is an index developed by World Steel Dynamics. Twice each month, steel mills, traders, distributors and steel users in the United States, Western Europe and those who buy or sell steel internationally, provide their confidential opinions to the SteelBenchmarkerTM system on the spot price for near term delivery to the mid sized buyer.

The release added that NYMEX and WSD will work together to provide marketing and education for these financially settled contracts.

Tenaris files an AD case against Chinese casing import into Canada

Canadian tube producer Tenaris Algoma Tubes has filed a complaint to Canada Border Services Agency for initiating an anti dumping and anti subsidiary investigation into imports of certain seamless carbon or alloy steel oil and gas well casing from China. Canada Border Services Agency is to decide whether to open the investigation before Aug 13th 2007.

Tenaris Algoma Tubes complained that China's export of seamless carbon or alloy steel oil and gas well casing has soared up since 2001 and replaced US as the biggest exporter into Canada in 2005. Chinese exporters have been dumping low priced seamless carbon or alloy steel oil and gas well casing supported by various subsidiary from Chinese government.

The named products import from China totaled 68,700 tonnes and USD 100 million in 2006. The subject goods are classified under the following Harmonized System classification numbers
7304290011
7304290019
7304290021
7304290029.

(Sourced from MySteel.net)

Baosteel inks strategic alliance agreement with Baotou

Xinhua News Agency reported that China's largest steel maker Baosteel Group has signed a strategic alliance framework agreement with Inner Mongolia's Baotou Iron and Steel Co Ltd.

Under the agreement, the two sides will study how to implement a capital tie up, including a timetable for restructuring and merging their assets. According to the report, Baosteel will also assist Baotou Iron and Steel to optimize its product structure.

The report citing Mr Xu Lejiang chairman of Baosteel as saying that Baosteel is expected to set a steel output target of 50 million tonnes to 80 million tonnes by 2010 via strategic cooperation.

Earlier, other media reports said that Baosteel has held talks with Baotou Iron and Steel on acquiring a stake. Previous reports also said that Baosteel would seek to expand its output capacity by launching more mergers and acquisitions in coming years.

ConsMin could become another Billiton – Mr Gilbertson

According to Mr Brian Gilbertson chairman of Pallinghurst Resources & former CEO of BHP Billiton, Consolidated Minerals could be another Billiton in making. Mr Gilbertson has foreshadowed Russia's emergence as a hugely important player in global commodity markets.

Mr Gilbertson said that Like ConsMin, Billiton was once an unloved asset. He added that "But from that small base we built a serious global footprint for Billiton and I think for this one we can do the same."

Pallinghurst said it planned to aggressively grow ConsMin's nickel and manganese operations and Mr Gilbertson has indicated that iron ore and coal assets owned by AMCI could be housed within the company.

Mr Gilbertson said that ConsMin would not be the only miner set to rival the likes of BHP Billiton and Rio Tinto. He said that "I think you can write it down that Russia is going to be a hugely important player in the world commodity business for decades and decades to come."

With no current mining assets, Pallinghurst is backed by Korean steel producer POSCO, US based private coal producer AMCI, US energy investor Natural Gas Partners and Anglo South African bank Investec. It has launched a fresh USD 752 million all cash takeover bid for ConsMin, a manganese and nickel miner countering a rival offer from Territory Resources Ltd.

Acerinox forecasts week SS market in Q3

Spanish stainless steel giant Acerinox warned that apparent consumption of stainless steel is likely to be soft in the third quarter due to the sharp slide in nickel prices although it reported a 4.6% YoY rise in melt shop stainless production to 1.314 million tonnes in the first half of this year.

Acerinox said that “The nickel price correction, while necessary in view of the untenable price levels of the previous months, has slowed down purchases from stockiest, who await a new stabilization of the nickel prices and consequently of the alloy surcharges.”

Acerinox said that “In the short term, it will affect the apparent consumption for the third quarter, because the stockiest will try to sell off their inventories before placing new orders.”

Acerinox added that once prices do stabilize at lower levels, it expects a fast recovery in stainless consumption based on current inventory levels and more competitive prices thanks to lower nickel input costs.

Acerinox’s operations comprise the Campo de Gibraltar plant in Spain, Columbus Stainless in South Africa and North American Stainless in the US.

SDI Q2 net earning down by 3% YoY

Indiana based Steel Dynamics Inc has announced the results for second quarter of 2007, in which earnings fell due partly to higher costs and taxes.

Steel Dynamics Inc has posted net earnings of USD 93.9 million during the Q2 of 2007 down by 3% YoY as compared with USD 96.9 million a year ago. Its revenues rose by 11% YoY to USD 911.2 million. Steel Dynamics said that higher priced scrap purchased late in the Q1 of 2007 and melted in the Q2 of 2007 has resulted in higher Q2 costs.

Mr Keith Busse chairman & CEO of Steel Dynamics Inc said that "Second quarter operating income was relatively flat compared with the first quarter due to lower shipping volumes for flat rolled and bar steels."

For Q3 of 2007, Steel Dynamics expects selling prices will remain stable or improve somewhat and demand for flat rolled steel will improve.

Valin Tube and Wire awaits CSRC approval for share placement

Interfax China reported that Hunan Valin Steel Tube and Wire Co Ltd has recently obtained China’s ministry of commerce approval to issue a maximum of 520 million new shares but is still awaiting approval from the China Securities Regulatory Commission. According to a previous company announcement, Valin Tube and Wire intends to issue the new shares at a price of no less than CNY 4.47 per share (USD 0.59).

The report added that the two largest company shareholders, Valin Steel Group and Mittal Steel Company NV have pledged to purchase 50.67% and 49.33% of the new shares respectively in cash. Valin Steel Group currently holds 665.08 shares or a 30% stake in Valin Tube and Wire while Mittal holds a 29.19% stake.

Valin Tube and Wire intends to use funds raised through the share issuance to purchase a 12.27% stake in Hunan Valin Xiangtan Iron and Steel Co Ltd, a 6.23% stake in Hunan Valin Lianyuan Iron and Steel Co Ltd and a 10.55% stake in Valin Liangang Steel Sheet Co Ltd currently held by Valin Steel Group. Valin Tube and Wire will also use funds raised through the share issuance to boost Xiangtan Steel's registered capital by CNY 625.48 million (USD 82.69 million) in order to fund the second phase of the company's steel plate project, which will increase Valin Tube and Wire's stake in Xiangtan Steel to approximately 95%.

As per report, Valin Tube and Wire later intends to sell the 10.55% stake in Valin Steel Sheet to Lianyuan Steel and invest a further CNY 165.61 million (USD 21.89 million) derived from the share issuance, both transforming Valin Steel Sheet into a wholly owned Lianyuan Steel subsidiary and increasing Valin Tube and Wire's stake in Lianyuan Steel to approximately 95%. Both the new share issuance and stake acquisition is part of Valin Tube and Wire's plan to list all Valin Steel Group assets.

EU puts AD duty on ferrosilicon from China and Egypt

YIEH reported that European Union has approved its anti dumping duty to ferrosilicon imports from China and Egypt.

EU will impose 33.7% anti dumping duty to Lanzhou Good Land Ferroalloy and other China’s companies will have 36.1%.

EU will also apply 23.1% anti dumping duty for Egyptian producer EFACO, 12.6% for KIMA and other Egyptian firms will have 23.1%.

Experts feel that the price of ferrosilicon will be increased due to shrinking supply if EU committee starts to impose the duty.

LME approves Incheon Port as new delivery points for metals

The London Metal Exchange announced that it has approved South Korea’s Incheon Port as a new delivery point for copper, nickel, aluminum and aluminum alloy.

LME in a statement said that deliveries to Incheon, some 40 kilometers west of Seoul, would begin after the approval of the first warehouse in the location or in 90 days.

LME in a separate statement also said that it has approved Gwangyang also in South Korea, as a delivery point for certain plastics contracts, effective from August 24th 2007. It also plans to list a new warehouse in the port. Gwangyang has been used since 2003 as a delivery point for aluminum, copper, nickel and tin.

11 miners trapped in flooded coal mine in Luliang city

It is reported that 11 miners were trapped when rainstorm triggered floods rushed into Makulue colliery in Xingxian County of Luliang city on Sunday.

An official with the Shanxi province city government said that it is still unclear whether the 11 trapped are still alive. The official added that 2 water pumps have drained water in the shaft and workers are busy installing 4 mud pumps.

A total of 1,792 coal miners died in 1,066 mishaps in China, the world's top coal producer and consumer, during the H1 of 2007. In 2006, coalmine accidents killed 4,746 people in China in 2006 with an average of 13 deaths per day.

CVRD to rehabilitate families in Mozambique

It is reported that Brazilian Companhia Vale do Rio Doce plans to spend USD 30 million to resettle 1,200 families occupying a mining site in Mozambique, clearing the way for development of the project.

Mr Andre Vasconcelos a CVRD official was quoted by Noticias, a daily newspaper in Mozambique, as saying that "We have our teams working in the district of Inhangoma to demarcate the areas where the local population would be resettled in a process to be concluded before the end of the year." He added that some of the money would be used to provide housing, sanitation, schools and water supply for the families now living at the Moatize mine development in the Northern Province of Tete.

Mozambique has granted iron ore miner CVRD a concessionary license to develop the Moatize coalfields at a cost of USD 1.5 billion. The Moatize mine, extensively damaged during Mozambique's civil war in the 1970s and 1980s, is believed to hold about 2.4 billion tonnes of coal reserves making it one of the largest untapped deposits in the southern hemisphere.

A CVRD led consortium has said that it expects to begin production in 2010, with estimated annual output of about 12 million tonnes of coal.

Territory rails first iron ore shipment from Frances Creek to Darwin

Territory Resources has announced that the first trainload of iron ore was railed from its Frances Creek mine in the Northern Territory. It said that following the commencement of production in June 2007 the first train carrying an initial 2300 tonnes of high grade lump has been railed from Frances Creek to Darwin ahead of the first shipment expected in the September quarter.

Mr Michael Kiernan chairman of Territory Resources Ltd said the railing of ore to Darwin was a significant event for Territory and its shareholders. He said “This is a great milestone for the company as we have moved from developer to producer in just over two years and is the result of the hard work and dedication of the Territory team.”

Mr Kiernan added that “We have now established Territory Resources as an Australian digger and deliverer of high grade iron ore. The location and proximity of infrastructure is a major advantage for Frances Creek which is close to the railway will utilize the recently completed bulk ship loading facilities at Darwin and is close to the key Chinese market.”

The 100% owned 1.5 million tonnes per annum Frances Creek project is located north of the regional town of Pine Creek on the Stuart Highway 190 kilometer south of Darwin with the existing Alice Springs to Darwin rail line running within 15 kilometers of the project. Over the next 2 years it is targeted to increase production to 3 million tonnes per annum. Over the next two years it is targeted to increase production to 3 million tones per annum.

Marketing and shipping of the ore will be coordinated by Hong Kong based Noble Group Limited as Territory Resources has entered into a life of mine marketing and off take agreement with Noble.

Cost of building materials in UAE set to increase

Gulfnews reported that UAE builders would have to pay more for building materials as import costs from top supplier China have increased and sea freight rates are rising.

China, which supplies an estimated one third of materials such as timber and steel to the country, has cut the rebate it provides to its construction material exporters. At the same time, freight rates for containers from East Asia to Dubai have risen about 85% since May 2007.

Mr Rizwan Sajan chairman of building materials company Danube said that "We are expecting 12% to 15% increase in shipment costs between now and September." Mr Sajan said the Chinese government has reduced the subsidy it provides to timber exporters from 11% to 5% since the beginning of July 2007.

Chinese steel exporters no longer enjoy 8% price support since April and factory owners of sanitary wares and hardware have seen their subsidy being cut from 13% to 8%.

Mr Mohammad Fakhouri GM of construction firm Oger Dubai said that rising costs were a concern for all builders in the UAE.

Ausmelt signs dust emissions regulation pact with EPA

The South Australian Environment Protection Authority has made Ausmelt sign regulations to ensure that its old pig iron ore facility in Whyalla will release no dust emissions when it reopens.

Mr Brian Roderick from the Environment Protection Authority said that the material is similar to that at Zinifex's Port Pirie smelter, where dust emissions have been shown to reduce IQ levels in children. He added that "It is a fine dust and at Port Pirie the dust has been shown to contain soluble lead which has been shown to affect the children in Port Pirie. We were concerned about this so that we have put fairly stringent regulations upon Ausmelt that they release no dust."

Ausmelt wants to use the site to smelt zinc oxide from Zinifex's Tasmanian operations.

Arch Coal Q2 profit dips by 46% YoY

St Louis based US coal major Arch Coal Inc announced lower second quarter earnings and cut its full year forecasts for profits and production. Arch said high inventory levels and weak pricing have pushed its expected earnings.

Arch Coal said that its second quarter profit dropped 46% YoY on income of USD 37.5 million down from USD 69.6 million in April to June 2006. The latest quarter included an USD 8.1 million pretax gain on the sale of Arch‘s Mingo Logan Ben Creen complex. Its coal sales dropped six per cent to USD 598.7 million in the second quarter down from USD 627.5 million in April to June 2006 as it cut back production volumes because of softness in the market.

Mr Steven Leer chairman & CEO of Arc Coal said “While this reduction is expected to affect our results in 2007, we believe it is the right decision for our shareholders over the long term.”

Although it expects a better supply and demand balance this year, electricity companies are still sitting on large stockpiles of coal and pricing remains weak. As a result, Arch plans to cut production. The company expects sales volumes of 125 million tonnes to 130 million tonnes in 2007. Previous forecasts were for sales of 130 million tonnes to 135 million tonnes.

Arch Coal supplies fuel for about 6% of the electricity generated in the US.

Nickel prices recover on LME last week

The nickel price has rebounded to USD 35,000 per tonne on the LME last Friday, after keeping at USD 32,000 per tonne to USD 33,000 per tonne for two weeks.

Some traders are optimistic about the future market. However, the rebound of price seems like to be infirm due to the current high stock levels. Nickel stocks raised by some 1,000 tons from last week.

Some stainless steel mills have cut production capacity in order to steady the market and that move made the stocks of nickel to keep at a high level.

Murchison Metals raises AUD 113 million via placement

It is reported that Australian iron ore explorer Murchison Metals Limited has raised AUD 113 million through a placement of 20 million shares at AUD 5.65 per share to fund growth opportunities and for working capital.

BBY Ltd, RBC Capital Markets and Merrill Lynch were the managers of the capital raising exercise made to a range of Australian and international institutions and which was significantly oversubscribed.

Murchison Metals struck a deal with Japan's Mitsubishi Corp in June 2007 to invest AUD 3 billion in a new iron ore project in the Midwest region of Western Australia. Under that deal, Mitsubishi will acquire 50% of Murchison's Midwest iron ore assets, including a half share in its flagship Jack Hills project and the companies will jointly pursue other iron ore development opportunities in the region. They would also establish a 50”50 infrastructure business to develop rail and port infrastructure for the Midwest.

The Jack Hills project involves about 380 million tons of high-grade iron ore deposits and planned production of 25 million tons annually of high-grade iron ore. The venture is expected to annually produce and export to Japan and other countries a total of 26 million tons of iron ore, equivalent to about 20 percent of Japan's annual iron ore imports.

Masteel made a record production after repairing BF

It is reported that Ma’anshan Iron and Steel Co Ltd, one of the biggest industrial enterprises at Anhui Province in China completed the 111 days repair of the 2500 cubic meters of Number 1 blast furnace in Ma’anshan Steel Plant.

The reported added that the blast furnace after repairing produces 111,515 tonnes of qualified molten iron had been produced in 1 month, which created a new record in the Ma’anshan Steel history.

AK Steel announces August 2007 surcharges for electrical steel

AK Steel has advised its customers that a USD 225 per ton surcharge will be added to invoices for electrical steel products shipped in August 2007.

AK Steel’s surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the June 2007 purchase cost used to determine the August 2007 surcharges.

AK Steel headquartered at Middletown in Ohio produces flat rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.