India imposes AD duty on ductile iron pipes from China

It is reported that India's Ministry of Commerce & Industry announced final determination against Chinese ductile iron pipes on August 23rd 2007 after an anti dumping investigation.

As per report, ductile pipes made by Xinxing Ductile Iron Pipes Company Ltd will be imposed an anti dumping duty of USD 127.4 per tonnes that made by other producers USD 139.79 per tonnes.

Xinxing Ductile Iron Pipes Company Ltd said in an announcement that it exports annually 12,000 tonnes of ductile iron pipes to India and during last three years exports to India was merely 1.5% of its total dales volume.

(Sourced from MySteel.net)

TATA Steel may go for more acquisitions

It is reported that TATA Steel after acquiring Corus would go for more acquisition as and when make sense. Mr Ratan Tata chairman of TATA Steel while responding to a shareholder's question at the company's 100th Annual General Meeting, said that "Both TATA Steel and Corus will undertake acquisitions as and when make sense."

Mr Ratan Tata said that the combined entity now have 26 million tonne steel making capacity, 6th largest in the world. He added that the work on its proposed 6 million tonne integrated Greenfield steel plant at Kalinganagar in Orissa is progressing well and orders for some equipment have already been placed. TATA Steel also has plans to set up greenfield projects in Chhattisgarh and Jharkhand for which it has already signed MoUs with the respective governments and initiated dialogues with authorities concerned for allotment of new mines, land acquisition and rehabilitation packages.

He added that the apprehensions in the market post Corus acquisition that its financial performance would be impacted had been proved unfounded and the share prices has gone up by 20% YoY for the past 10 years.

Mr Ratan Tata said that after the successful acquisition of Corus, there were certain challenges that TATA Steel must face. One of them was the successful integration of operating strategies of Corus and TATA Steel. He said that TAT Steel, along with Corus, would look at enhancing its product range to combat competition from plastics and aluminium.

On the steel industry’s future, Mr Ratan told shareholders that despite the gloom forecast by some, the future looked firm. He added that however, much would depend on China in terms of its consumption and also on how the economies of both China and the US fare.

Indian government modifies policy for lignite block allocation

Dr Dasari Narayana Rao union minister of state for coal informed parliament that union government has reviewed the policy regarding necessity of obtaining no objection certificate from Neyveli Lignite Corporation for allocation of lignite blocks.

Dr Rao informed that it has been decided that henceforth lignite blocks would be identified in consultation with it and would be placed in the list of blocks identified for allocation.

Dr Rao added that these could then be circulated to state governments or central ministries or advertised for allocation through screening committee as the case may be.

He added that once this exercise is carried out there would be no need for the state government companies to obtain no objection certificate from Neyveli Lignite Corporation separately.

JSL picks Saatchi & Saatchi as creative agency

agencyfaqs reported that Jindal Stainless Limited has finally taken a decision on the creative pitch that it called in September 2006 and its choice has alighted on Saatchi & Saatchi Delhi. But the decision on the media agency is still pending.

The agencies that participated in the creative pitch included Leo Burnett, Lowe, O&M, Saatchi & Saatchi and M&C Saatchi. The first round of presentations for the creative pitch took place in the first week of September 2006, followed by a second round in October 2006. The agencies were given a brief to come up with a corporate campaign on the lines of TATA Steel and SAIL.

The report cited Mr Nitin Gulve VP marketing of JSL as saying that “The media mix has not been decided yet. Soon we will have a workshop with Saatchi & Saatchi to decide the way forward. The creative and the line of thought will be established then. However, at the moment, we are looking at establishing the brand image of the company and creating top of the mind recall.”

Mr Sanjib Dey executive VP and branch head of Saatchi & Saatchi Delhi said “Jindal Stainless has numerous business plans lined up. Even in a category such as this, distinct visibility is a prerequisite. Saatchi & Saatchi will help Jindal Stainless adopt and then display a distinct corporate image.”

Rupee appreciation hits Q1 iron ore exports - FIMI

PTI reported that Rupee appreciation has hit the iron ore exports hard, which registered a 9.09% decline in the first quarter of 2007-08.

The report cited Mr RK Sharma secretary general of Federation of Indian Mineral Industries told PTI that “The iron ore exports fell by 9.09% to about 22 million tonnes in April to June quarter of 2007-08 as compared to about 24 million tonnes during April to June 2006-07. The export realization has gone down by nearly 9% to 10% due to rupee appreciation and overseas market may not be so lucrative if exporters can fetch a good price in the country.”

Mr Rahul N Baldota president of Federation of Indian Mineral Industries while speaking at a two day conference on Marketing of Indian Iron Ore said that “The country has enough resources, approximately 25 billion tonnes, to meet the domestic needs as well as exports that could last up to 80 years, at the present rate of mining and supply and demand.”

Mr Baldota said that out of the 172 million tonnes of iron ore produced in India domestic steel plants consumed only about 58 million tonnes and rest was exported. He added that local plants uses high grade iron ore and only low-grade ore was exported to China, which is a major buyer importing about 80 million tonnes of Indian iron ore.

Indian Railways freight earnings up by 8.76% YoY in 4 months

Indian Railways has posted freight earnings of INR14297.74 crore during April to July 2007 up by 8.76% YoY as against INR 13145.87 crore during April to July 2006. It has recorded a loading of 247.05 million tonnes during April to July 2007 up by 5.93% YoY as against 233.21 million tonnes during April to July 2006.

Indian railways production of rolling stock and wheels etc during July 2007 is as under

PGCIL set to enter into Middle East and Africa

It is reported that Power Grid Corporation of India Limited is planning to enter the Middle East and African markets through power transmission projects and is set to submit bids for almost 10 projects in these regions.

At present, PGCIL's international presence is limited to only a few projects in Afghanistan, Nepal and Bhutan. PGCIL's Afghanistan project financed by the central government is scheduled for completion by 2009. It will enable Afghanistan to import power from generating stations located in Uzbekistan to Kabul. It entails construction of a 202 kilometer long 220kV double circuit transmission line from Pul e Kumri to Kabul and new substation in Kabul.

Indian Railway to set up 3 locomotive manufacturing units in Bihar

BL recently reported that Indian Railways is setting up its 3 locomotive manufacturing units in Bihar on a public private partnership model and will offer 74% equity to private players in the proposed ventures.

The 3 facilities are
1. A diesel locomotive manufacturing unit at Marora
2. An electric locomotive unit at Madhepura
3. A rail coach factory at Chhapra

The locomotives, to be manufactured in the units, will be equipped with state of the art technology, capable of hauling longer and heavier trains. The new coach factory will also provide high capacity coaches.

Sandvik bags contract to build ship unloaders at Ennore Port

BS reported that Sandvik Asia Limited has bagged a contract worth INR 56.5 crore from Chettinad International Coal Terminal Private Limited for design, supply, erection and commissioning of 2 ship unloaders. Sandvik will design, supply, erect and commission 2 grab type gantry ship unloaders.

The unloaders, with an outreach of 30 meters and track gauge of 20 meter, will each be capable of unloading coal at the rate of 1,750 tonnes per hour from ships up to 80,000 DWT. The machines are scheduled for commissioning by February 2009.

Mr Hakan Kingstedt MD & president of Sandvik Asia Limited said that “This is another important contract for the surface mining segment at Sandvik. We foresee fast paced growth in this segment in India and Sandvik will lead the market in this segment.”

Chettinad International Coal Terminal Private Limited is setting up a terminal at the Ennore Port near Chennai on build, operate and transfer basis for handling 8 million tonnes per year of thermal coal imported for power plants operating near Chennai. The terminal will include a jetty with ship unloading facilities, a stockyard system and related conveyor systems.

Experts call for container ports development on hub and feeder strategy

BL reported that Dr G Raghuram professor at IIM Ahmedabad while presenting the theme paper at a logistics seminar focused on containerization organized by the CII pointed out that India is likely to handle 21 million TEU containers by 2015-16 and suggested developing ports on a hub and feeder strategy.

While the feeder ports with relatively lower draft of up to 12 meter draft would handle feeder vessels and serve the hub ports, the hub ports should have at least 16 meter draft.

On the West coast, Jawaharlal Nehru Port could be taken up as hub port given that investments are lined up for JN Port. However, he pointed out that Mundra is better placed in terms of draft and evacuation since JN Port does not have the draft or the evacuation capability for future growth.

On the eastern coast, Visakhapatnam is the most viable port for hub operations as it has natural water depth of 20 meters within a nautical mile. It is in the centre of the India’s eastern coast and can even service Bangladesh and Myanmar.

Dr Raghuram said that the sea drift there is such that maintenance dredging requirements are less while Chennai has the commercial advantage with more investments lined up. He further added that Vallarpadam and Vizhinjam are possibilities from the South, but may not work on commercial criteria.

Haryana to strengthen power transmission network

It is reported that Dakshin Haryana Bijli Vitran Nigam and the Haryana Vidyut Prasaran Nigam are planning to strengthen the power distribution and transmission system in Bhiwani district at a cost of INR 145 crore.

As per report, Haryana Vidyut Prasaran Nigam will construct a 220kV substation at Isharwal and two 132 kV substations at Haluwas. Dakshin Haryana Bijli Vitran Nigam will construct 15 substations of 33KV at Siswala, Budhera, Mandola, Pichopa, Pataudi, Kakroli, Chhapar, Singhani, Kari Dharni, Baralu, Alampur, Bapora, Hasan, Kheri Battar and Chahar Kalan areas in the district.

To strengthen the power distribution system in the district, Dakshin Haryana Bijli Vitran Nigam is also planning to rehabilitate 48 lengthier and overloaded feeders by dividing each feeder into 2 or 3 feeders of proper load and length at a cost of INR 6 crore. To ensure regular and uninterrupted power supply during fixed hours to the agriculture sector and the domestic sector in rural area of the district, domestic and agriculture load of 61 feeders of 11 kV will be segregated at a cost of INR 38 crore. The work had already been allocated to the contractors and was likely to be completed by end of 2007.

Dakshin Haryana Bijli Vitran Nigam is also planning to set up 3,000 new distribution transformers in the district and augment capacity of 400 existing transformers of different capacity. In addition, it will construct 488 kilometers long distribution lines and set up 586 distribution transformers under the Rajiv Gandhi Gramin Vidyutikaran Yojna.

GIPCL to expand its lignite based power plant

It is reported that Gujarat Industries Power Corporation Limited is planning to expand its lignite based power plant with an investment of INR 1,300 crore by installing two units of 250MW each. The project will be financed by debt and internal accruals at the ratio of 70:30.

For the proposed expansion project, Gujarat Industries had invited technical bids for the EPC contractor, for which the last date for submission of the bids was August 16th 2007. The additional units of 250MW will use the eco friendly circulating fluidized bed combustion steam generators technology. It has option to up the installed capacity by 20% taking advantage of the new facility.

Gujarat Industries already has two 125MW units of lignite fired power plants in Nani Naroli. Bharat Heavy Electricals Limited is executing 2 more units, both of which are to be completed by 2008.

POSCO and Nissan Motors to build steel facility in Kawasaki

It is reported that South Korean POSCO and Japanese Nissan Motor Co will build a processing plant at Kawasaki in Japan to make automotive and stainless steel. The factory, to be completed next May, will have capacity of 120,000 tones and will secure procurement of steel for Nissan Motors as its existing major suppliers Nippon Steel Corp. and JFE Holdings Inc had problems keeping up with strong demand because of growing consumption of auto grade steel in China.

The planned Japanese factory is part of a JV POS YPC established in September 2006 in which POSCO holds a 69% stake with the balance held by Nissan Trading Co, a wholly owned unit of Nissan Motors.

This would be POSCO’s 3rd facility in Japan and would use hot rolled steel from POSCO's South Korean plants. POSCO had announced in December 2006 that it would spend about USD 400 million by 2010 to increase the number of processing plants overseas to 40 from 14.

Nissan's initiative with POSCO comes as Japan's passenger car ownership rate has started to decline for the first time in more than three decades. Japanese households owned an average of 1.107 cars as of March 31st 2007 as compared with 1.112 a year earlier as per data from the Automobile Inspection & Registration Information Association. Japan is the world's third largest auto market behind the US and China.

Nissan Motors, which has a plant in Yokosuka south of Kawasaki, has been revamping its line up and introducing new models this year in a bid to stem a decline in sales in Japan. Its domestic vehicle sales, including mini cars dropped by 9% in the first seven months of 2007 to 452,027, according to the Japan Automobile Dealers Association.

SSAB inaugurates plate service center at Kunshan in China

SSAB announced that it has inaugurated a new plate center for warehouse and wear parts processing in China, the first for SSAB in the Asia Pacific region. SSAB held a grand ceremony for the inauguration of SSAB Swedish Steel (China) Co Ltd in Kunshan.

Approximately CNY 100 million was invested in the new Kunshan Plate Center. The new Plate Center is located at the Kunshan New & Hi-Tech Industrial Development Zone. It will be operated by SSAB’s Heavy Plate Division, which is based in the Swedish town of Oxelösund. The Plate Center occupies a total of 50,000 square meters out of which 35,000 square meters comprises a stockyard. It holds approximately 20,000 tonnes of steel plate, which is close to the capacity at the central stockyard in Oxelösund.

The new Kunshan Plate Center has high precision, Messer numerically controlled plasma cutters and oxygen fuel flame cutting machines and can produce wear parts with a wide range of thickness. Since Submerged Cutting technology is employed, the heat affected zone is narrower, the loss of hardness for the whole component can be effectively prevented and the distortion of the cut part can be reduced.

Mr Olof Faxander president & CEO of SSAB Swedish Steel Group presided over the inauguration and ribbon cutting ceremony. Mr Faxander in his address at the ceremony said “With the fast development of the Chinese economy, there has been rapid growth in demand for our products. The investment in a new Plate Center in China shows our commitment to this market. Meanwhile, this is also one of the important steps for SSAB Swedish Steel Group’s global expansion strategy.”

Mr Faxander said “The establishment of the new Plate Center is aimed at providing Chinese customers who do not possess processing capability with a streamlined component processing service at a reasonable price and first-class quality and eliminating the inconvenience of looking for a third-party to produce wear parts.”

Chinese plate export price rally further

It is reported that hot rolled steel plate prices in China are steadily going up and the upward trend seems to quite sticky. In Shanghai market, Q235 20mm plate from tier one steel makers was selling at CNY 4650 to CNY 4750 per tonne up by CNY 50 per tonne than last trading day; those from tier two steel mills at CNY 4430 per tonne. Common carbon 40mm plate prices have jumped to CNY 4850 per tonne.

The common carbon steel plate is actually in short supply as steel makers are diverting more to high end plate production, like pipe line steel and ship plates. Thus the decrease in common carbon plate supply is bolstering the swift rise in prices. The strong demand in both domestic and overseas market is also contributing the jack up.

Export prices have also seen great increases in the last weeks. Now common carbon plate from tier two steel makers are prevailing at USD 670 to USD 700 per tonne on FOB basis and those from tier one producers are well above USD 700 per tonne FOB basis.

Traders say that activities are not low since importers have not been ready to accept such a quick increase in prices. A Europe based trader told Mysteel "Many people in Europe are very unsure about the rumor about anti-dumping for Chinese plates. It seems to us actions are under preparation by EUROFER and European Comity and many customers are not ready to place orders and to take the future risk. At the same time, rumor goes that Chinese government probably would increase steel export tax rate in the near future, which is also adding the uncertainties.”

(Sourced from MySteel.net)

Rio raises USD 40 billion loan for Alcan acquisition

Rio Tinto announced that it has successfully completed the sub underwriting phase of the syndication of its USD 40 billion term loan and revolving credit facilities. As per Rio release this is the largest ever loan facility raised by a UK corporate and the fourth largest worldwide.

Structure of the USD 40 billion facilities

In USD billions

The syndication received very strong support despite recent volatility in the global credit markets and was more than one third oversubscribed. The Facilities were initially underwritten by The Royal Bank of Scotland, Deutsche Bank, Credit Suisse and Société Générale.

The Facilities will be used to finance the acquisition of all the outstanding common shares of Alcan Inc for a total consideration of USD 101 per common share representing a total equity consideration of approximately USD 38.1 billion and an enterprise value of approximately USD 44.0 billion.

Mr Guy Elliott CFO of Rio Tinto said "This extremely positive response underlines the strength of Rio Tinto's existing asset base, the attractiveness of the Alcan transaction and the solid credit profile of the enlarged Rio Tinto Group. This bodes well for our future refinancing plans in the debt capital markets."

CVRD puts Brazilian pig iron makers on notice

Companhia Vale do Rio Doce, reaffirming its commitment to the sustainable development of the regions where it is present and to the compliance with environmental and labor legislation by its clients, announced the followings

1) On August 28th 2007, CVRD sent letters to a group of pig iron producers in the Brazilian states of Pará, Maranhão and Minas Gerais, informing decisions concerning iron ore supply

2) Siderúrgica Ibérica do Pará SA (Ibérica) and Siderúrgica Marabá SA (Simara) have been informed that, as of September 1st 2007, they will have 30 days to prove their compliance with the environmental and labor legislation. In case this fails to happen, such companies will have their iron ore supply interrupted

3) Companhia Siderúrgica do Pará (Cosipar) and Usina Siderúrgica de Marabá SA (Usimar), which had already been informed of the suspension of their commercial contracts, have also been informed of the 30 day period to confirm the compliance with environmental and labor laws

4) It should be pointed out that Brazil's Ibama environmental protection agency, following inspections conducted this year on pig iron mills in the states of Pará and Maranhão, has sent to the environmental bodies in the states mentioned above, as well as the Federal and State Prosecutors' Offices, a report on environmental liabilities in these pig iron mills. During this month of August, CVRD was informed that Ibama filed civil suits against the companies cited in the items 2 and 3 above about the same matter

5) Pig iron mills Siderúrgica do Maranhão SA (Simasa), Siderúrgica Marabá SA (Simara), Viena Siderúrgica do Maranhão SA (Viena), Itasider Usina Siderúrgica Itaminas SA and Ferro Gusa do Maranhão Ltda (Fergumar) have been included in a list released by Brazil's Labor Ministry, published on the ministry's official website. The list brings the names of companies facing suits for buying charcoal coming from charcoal producers, which use slave type labor. These companies will also have a 30 day period to prove their compliance to the labor authorities. If they fail to confirm their compliance, they will have their supply suspended

6) Acting in accord with the principles of sustainable development to which the company is committed, CVRD requires its clients and suppliers to comply with the environmental and labor legislation in force

Colakoglu Metalurji orders a compact hot strip mill

It is reported that Colakoglu Metalurji AS of Turkey has awarded to SMS Demag an order to construct a compact hot strip mill. The order comprises the supply of the mechanical, electrical and automation systems. The works will go into operation in fall 2009.

The new works will be built at Gebze close to Istanbul. The mill is designed for an annual capacity of 3 million tonnes of hot strip in the gages 1.2mm to 25.4 mm and widths from 800 to 1,650 mm. The product range extends from low carbon steel grades to high strength low alloy steels, pipe grades and multiphase steels.

With a length of only 330 meter, the hot strip mill is distinguished by its highly compact construction. Its essential components are a four high roughing stand with edger, a mandrel-less coilbox, seven CVC plus® four high finishing stands, a laminar strip cooling and two fully hydraulic coilers. The finishing mill is equipped with all of the technology packages and components required for the economical production of high quality hot strip. These include the CVC plus® system with integrated work roll bending, roll gap lubrication, inter stand cooling and hydraulic loopers, along with the process models and control systems optimized for these facilities.

Chinese coke exports in July sunk due to strong domestic demand

It is reported that China’s coke export volume shrank further in July 2007. China Customs statistics showed that Chinese coke exports in July 2007 was 976,900 tonnes down 325,800 tonnes or 25% MoM yet up by 33,300 tonnes of 4% YoY.

However, exports in January to June 2007 amounted to 9.023 million tonnes up by 1.507 million tonnes or 20.1% over that in 2006.

The export was made to 41 destinations and the details are as under

In tonnes

Due to the effect of additional export duty, supported by the robust domestic demand, Chinese coke price surged in July 2007. As a result, resources were mainly consumed in home market, owing to rising ocean freight rate and tight vessel supply. Export price stays firm at USD 250 per tonnes to USD 260 per tonnes FOB.

(Sourced from MySteel.net)

Mechel paid USD 186.5 million for Bratsk Ferroalloy Plant - Report

Interfax citing informed sources reported that Mechel paid USD 186.5 million for the Bratsk Ferroalloy Plant.

Mechel in a recent press release announced that it bought 100% of the plant, which had been owned by the ICT group prior to the transaction. Mechel did not say how much it paid for the plant.

Bratsk Ferroalloy Plant is the largest enterprise in Eastern Siberia producing high grade ferrosilicon. The plant was founded on the basis of the crystalline silicon workshop of Bratsk Aluminium Smelter in 2003 and has advantageous geographical position and operates within stable markets. The plant’s ferrosilicon output totals 84,000 tonnes annually and comprises a 13% market share of Russia’s total output. The plant’s share in the Russian ferrosilicon domestic supplies market amounted to 16% in 2006 and increased to 20% in the first quarter of 2007. The plant’s revenues for 2006 on a Russian Accounting Standards basis amounted to RUB 1.3 billion (USD 51.0 million) and net profit was approximately RUB 151.0 million (USD 6 million). The plant’s net assets on a Russian Accounting Standards basis amounted to about RUB 4.2 billion (USD 165 million) as of the end of 2006.

The ICT Group was established back in 1991. Following the sale in 2005 of top Russian silver miner Polymetal, shipbuilder Baltiisky Zavod and the Interterminal logistics company, the group's largest assets are the Titran transportation engineering plant in Tikhvin, Tikhvin ferroalloy Plant, Nomos Bank, the Bratsk Ferroalloys Plant and NISK, a real estate management firm.

CSC holds domestic prices for Q4 of 2007

It is reported that China Steel Corporation held the domestic pricing meeting of the 4th quarter of 2007 and announced a minor price adjustment.

China Steel Corporation maintains the price level of third quarter for most steel products in the fourth quarter in order to look after the competitiveness of local steel downstream industries in the global market. The increase of CSC's domestic steel prices of Steel Plates and Electrical Sheets is to respond to the recent short supply and strong demand worldwide, thus the price level of the fourth quarter having an average price increase by only 0.48%.

Change is in TWD

CSC forecast that the steel supply in Asia is going to be tight with firm prices due to following reasons
1. Rerolling mills' production constraint caused by high slab price.
2. Increasing cost for steel export from China induced by government policy to reduce export.
3. A series of mill maintenance of Asian major mills. Further, it might also lead major steel mills in the US and Japan to markup their prices for the 4th quarter delivery.

Evraz NTMK launches 2nd rail wheel test line

Evraz announced that it’s Nizhniy Tagil Iron and Steel Works has signed an official statement on the successful completion of a 72 hour test of rail wheel product test line.

The line provides for a fully automated 70 second testing of a 400 kilogram all rolled wheel for internal defects. The unit makes it possible to single out and separate all the faulty items automatically.

The second stage of the reconstruction of the enterprise’s wheel production line included assembling seven new machines such as the ultrasound quality control unit designed and developed for the company by the Fraunhofer society for applied research (Germany). The line is also fitted with a fluorescent magnetic particle control unit produced by Introtest of Russia. The new facility is also equipped with a device meant for strengthening the wheels with special beads, made by Wheelabrator Group of Canada.

This is expected to remove the remaining surface pressure and prevent possible fractures. All the data on the setting parameters and the results of control are stored in a special electronic archive for the whole life period of a wheel.

This is NTMK’s second railroad wheel product test line; the first one was launched in 2004.

CMC chairman Mr Rabin to retire

Commercial Metals Company revealed that Mr Stanley Rabin chairman of its board of directors would retire at the end of the company's 2008 fiscal year on August 31st 2008. Mr Rabin has been engaged as Chairman of the company since 1999.

Mr Rabin has a 37 years association with the company during which time he had held a number of executive positions including that of president since 1978 and CEO from 1979 through 2006. Mr Rabin has been a director of Commercial Metals since 1979 and is indicated to relinquish the position upon retirement.

Mr Rabin while commenting on his decision to retire observed that "It is appropriate and timely for your Company to continue with its succession plan and I am delighted that we have in place an outstanding management team. Shareholder value has grown dramatically. Moreover, CMC has an extraordinary track record through many and varied economic and business cycles, including 30 consecutive years of profitability and record results over the past several years. And the Company's future is bright."

Mr Anthony Massaro lead director described Mr Rabin an invaluable leader on CMC's management team for over three decades. Mr Massaro said "His role in keeping CMC's domestic strategic objectives on target while simultaneously exploring global opportunities has positioned the Company for even more success in the future. Stan will be leaving a strong management team in place to build on his accomplishments."

Bolivia and Venezuela evaluating JV for balance 50% of El Mutún

BNamericas reported that the governments of Bolivia and Venezuela are evaluating the creation of a JV to mine 50% of the El Mutún iron ore deposit in Bolivia's Santa Cruz department.

A spokesperson from Bolivia's mining ministry told BNamericas that "The issue is under review to look at feasibility and consider the benefits by taking into account Venezuela's experience in mining.” The spokes man added that another aspect that must be analyzed before a contract can be considered is gas supply, which is a complicated issue.

Mr Eduardo Garmendía president of Venezuela's mining and metallurgical industry association AIMM said "We as a country and as an industry are interested in the project because it is an additional source of raw material. Such a development contract would involve participation by Venezuela's metallurgical sector, which could provide steel making equipment for El Mutún. This factor also catches our attention.” Mr Hugo Chávez president of Venezuela had offered to help develop Bolivia's iron industry using his country's experience in the sector in August.

Mr Walter Chávez president of the El Mutún steel company ESEM said that “Iin order to develop the other 50% that hasn't been awarded, it is necessary to hold a bidding process. But as a business deal between governments, a bi national steel company could be created and Russian and Chinese companies have already expressed interest in the project.”

India's Jindal Steel & Power signed a contract with the Bolivian government through ESEM to mine and industrialize half of the El Mutún iron ore deposit, which will require a USD 2.1 billion investment over eight years. Jindal had won the contract in a bidding process in mid 2006. JSPL project includes industrial development of 50% of the deposit and the installation of a steel plant to produce 1.7 million tonnes of sponge iron and 1.4 million tonnes of rolled steel bound for domestic and foreign markets.

Gerdau Ameristeel announces revised financing for Chaparral Steel

Gerdau Ameristeel Corporation announced that its previously announced financing commitment from JP Morgan Securities Inc to fund the pending acquisition of Chaparral Steel Company has been replaced with a firm commitment from ABN AMRO Bank NV, HSBC and JP Morgan Securities Inc as Joint Lead Arrangers.

The release added that the new financing commitment, which is being syndicated internationally, is fully committed, provides additional flexibility and is on terms that are expected to be at least as favorable as those contemplated by the original financing commitment.

Gerdau has agreed to pay USD 86 per share or a total of USD 4.22 billion for Chaparral. The consummation of the acquisition of Chaparral remains subject to other customary conditions, including adoption of the Agreement and Plan of Merger by Chaparral's stockholders.

CSC to buy shares of Yodogawa Steel

Taiwanese China Steel Corporation has decided to purchase 2 million shares of Japanese Yodogawa Steel Works Ltd for a total purchasing value of TWD 349 million.

Japan Yodogawa Steel is the parent company of the Taiwan Sysco. Both of them are the major customers of CSC's hot roll steel products, they have very good business relationship with each other.

In the future, Yodogawa will also purchase the market share from CSC. Therefore, they can improve their cooperation and extend their market in South East Asia and whole world together.

Asean steel makers urged to remain competitive

It is reported that Asean steel manufacturers still have certain advantages over their counterparts in China despite the latter having gained a prominent penetration into the regional market in view of the Asean-China free trade agreement.

Mr Ong Keng Yong secretary general of Asean while speaking on the sidelines of the 8th MISIF Conference said that “Chinese products are very good and they compete quite well against our own Asean iron and steel products. Our own products would always be slightly pricier because we do not produce the kind of volume seen in China and adding that there were stills other ways to compete."

He however added that “We are close to our consumers for the iron and steel products and they would preferred our own Asean products.” Mr Ong said it was vital to reduce the existing cross border transaction cost to ensure lower pricing of the steel and iron products, which subsequently allows Asean products to better compete with that of China’s.

He also advocated producing more specialized items for the construction industry and consumers in the region. He added that “These can be fabricated in the factory instead of being individually fabricated at the construction site. These are the kinds of services that we can offer to make them better received to our customers.”

Rebar prices to increase in New Zealand

It is reported of falling New Zealand dollar and high world scrap prices have driven up reinforcing steel and wire prices in New Zealand and Pacific Steel Group has advised its customers that it will increase reinforcing steel and wire prices by between 6% to 8% from October 1st 2007.

Mr John Beveridge GM of Pacific Steel Group said that “While we try to protect our customers from the impact of exchange rates, this latest fall in the New Zealand dollar has been too great for us to absorb. He said that all steel prices in New Zealand are likely to rise sharply over the next few months and we expect continued volatility. But our October price increase will lock in prices for our domestic customers until the end of 2007, which provides some certainty over the next few months.

The fall in the New Zealand dollar from over USD 80c to around US 70c during the past month and the continued rising price of world scrap metal are driving up reinforcing steel and wire prices. Scrap metal, the main component of reinforcing steel and wire, is traded in US dollars. Scrap metal prices have hit historic highs over the past four months, meaning finished goods prices have also continued to rise.

Pacific Steel Group, which operates one of the world’s most environmentally friendly steel mills and is New Zealand’s only manufacturer of reinforcing steel and wire, under the Seismic and Wiremark brands respectively.

Japanese NIMS develops 1,500MPA alloy steel

Japanese official research organization for metals and other materials, National Institute for Materials Science announced that it developed low alloyed steel with 1,500 mega pascal of tension strength and better performance against impact strength.

As per report, National Institute for Materials Science succeeded to develop the material by using original heat treatment technology.

The new steel paves the way for making high tensile steel bar with flexibility as wood. They expect the technology could enable to make super high tensile steel bolt and shaft with 2,000 mega pascal strength.

Greif Q3 profit surges by 27% YoY

Industrial packaging maker Greif Inc has announced that it’s fiscal third quarter profit rose 27% on stronger sales of industrial packaging and services sales.

For the quarter ended July 31st 2007 Greif earned USD 48.8 million as compared with USD 38.3 million for the same quarter in 2006. Excluding restructuring charges and timberland gains, it posted an adjusted profit of USD 53.2 million as compared with an adjusted USD 42.8 million for the year ago quarter.

Its revenue rose by 27% YoY to USD 874.2 million from USD 690.5 million in the 2006 period.

Greif credited the sales increase to higher industrial packaging and services sales, which were driven by generally higher volumes, especially steel and plastic drums.

US Steel marks 1st year of mercury switch recovery program

It is reported that United States Steel Corporation recently marked the one year anniversary of its participation in the national mercury reduction program known as the National Vehicle Mercury Switch Recovery Program.

US Steel has been part of the program since it was launched on August 11th 2006. The company began implementing its plan for participation in the NVMSRP in March 2007 and has asked all of its shredded scrap suppliers to register with End of Life Vehicle Services and to develop their own compliance programs. Supplier audits to ensure compliance are currently being conducted.

The purpose of the NVMSRP is to prevent mercury pollution by removing mercury switches from automobiles and trucks before the vehicles are shredded and recycled into new steel. US Steel supports the program and is participating fully in it as a member of the American Iron and Steel Institute. Other parties to the agreement include the AISI, the Steel Manufacturers Association, auto manufacturers, vehicle dismantlers and shredders, environmental organizations and the US Environmental Protection Agency.

Macarthur Coal denies job cuts due to profit slide

Macarthur Coal announced that redundancies at one of its central Queensland mines are not linked to a hefty downturn in profits. Macarthur reported an after tax profit of AUD 66 million for the last financial year down from AUD 150 million the previous year.

The report cited Mr Ian McAleese a spokesman of Macarthur Coal as saying that the job cuts have nothing to do with a lower than expected bottom line. He added that "That is not the case. The job losses are basically linked to Macarthur Coal moving from using a contract miner to becoming an owner operator."

The last of 136 employees who have been sacked at the Coppabella coalmine are expected to finish work soon.

US scrap prices firming up

YIEH reported that the domestic and export prices for American scrap have risen sharply and the price of No 1 variety is at USD 360 to 365 per ton on CFR basis.

American automobile scrap domestic price increased by USD 9 per long ton in August 2007. In addition, the average price of American scrap increased by USD 13.34 per long ton than last week reaching to USD 254.17 per long ton.

Regarding Asian market, scrap price of Japan's three largest region keep steady in the fourth week of August 2007. Japan's H2 scrap quoted at C&F USD 370 per tonnes to Taiwan. As price is very higher, buyers are out of market for the moment.