Hooghly Met Coke & Power Co lights up the 1st coke oven

TATA Steel Limited and West Bengal Industrial Development Corporation’s JV Hooghly Met Coke & Power Co Limited has installed its first module of coke ovens which was lighted up today by Dr T Mukherjee deputy MD steel of TATA Steel and Chairman of Hooghly Met Coke & Power Co Limited along with Mr Lakshman Seth honorable MP and Chairman of Haldia Development Authority.

Hooghly Met Coke & Power Co Limited is in its advanced stage of implementing its green field project of setting up a stand alone Coke Ovens Complex along with Power Plant at Haldia in West Bengal. It is designed to manufacture 1.6 million tonnes per annum of high quality, low ash, metallurgical coke along with 120 MW of power generated from the waste heat produced in the process. The project with an investment of over INR 1800 crores was envisaged as an integrated project, comprising of coke ovens and power plant. The ground breaking ceremony for this project was done on February 18th 2006 and the brick laying ceremony was done on October 31st 2006. Other module would be commissioned progressively by the middle of 2008 thereby attaining the rated capacity of 1.6 million tonnes per annum of coke.

Dr Mukherjee said "This is a moment of satisfaction for us that the lighting up of the Coke Oven has taken place in such a short span of time. This commendable job has been possible only through the hard work of the workers of Hooghly Met Coke and the support of Mr. Lakshman Seth and Mr Rajiv Dubey."

Mr Lakshman Seth said "I am really happy by the fast progress made by Met Coke in setting up its first module of Coke Ovens and would like to congratulate everybody who has been involved with it. "

The Heat Recovery Coke Ovens technology adopted is relatively new to the country and is designed to meet the stringent environmental norms. Low ash metallurgical coke produced at Haldia, will be fully dedicated to TATA Steel Ltd for their Jamshedpur Works and the power produced, will be exported to the state grid.

Steel minister confirms re opening of SAIL Kulti works

Mr Ram Vilas Paswan union minister of steel announced in Kolkata that the government would reopen the Kulti Works, the country’s oldest steel unit that was closed in 2003.

Mr Paswan told reporters that "We have decided to reopen Kulti Works. SAIL board has been asked to take a decision in this regard. I will formally announce the reopening of the unit on October 16th 2007.”

Kulti Works, set up in 1870 as Bengal Iron Works Company, became part of Indian Iron and Steel Company in 1936. When IISCO became sick and got referred to the Board for Industrial and Finance Reconstruction, it closed the Kulti plant. The unit used to produce cast iron and spun pipes, which have lost market after the advent of ductile iron pipes.

Moody cuts TATA Steel outlook to negative on refinancing concerns

Thomson Financial reported that Moody's Investors Service has changed its outlook on TATA Steel Ltd to negative from stable, citing concerns surrounding the high refinancing risk, with around USD 3.1 billion of debt maturing in stages during the next five months. The maturing debt represents bridging finance established last year to part fund the acquisition of Corus. Moody’s meanwhile affirmed TATA Steel’s 'Ba1' corporate family rating.

As per report, Moody acknowledges that TATA Steel plans to undertake rights and other equity issuance of around USD 2.2 billion to part refinance the maturing debt, which is fully underwritten by TATA Sons Ltd, which owns 27.6% of TATA Steel. In addition, Moody's said TATA Steel plans to raise long term capital notes, which may include a hybrid instrument.

Moody's said that “However, the negative outlook reflects rising risk that the fund raisings may not be completed in a timely manner to refinance the substantial maturing debt. Under such a scenario, TATA Steel is likely to seek debt refinance, the form and timing of which is uncertain.”

Moody said that “The higher uncertainty that currently characterizes the credit environment may further challenge TATA Steel's refinancing plans. But added it recognizes the banking support TATA Steel enjoys.”

Moody concluded that “The outlook could revert to stable if in the coming weeks TATA Steel appropriately refinances its maturing debt. On the other hand the rating could be lowered if the liquidity challenges are not cleared up in the coming few weeks.”

Indian nickel import likely to increase by 10% in 2007

Reuters reported that India's nickel imports are set to rise by 10% this year, helped by a sharp fall in world prices and rising consumption of stainless steel in the fast growing economy.

The report cited Mr N Mathur president of the Indian Stainless Steel Development Association as saying that “ India, which does not produce the metal, is likely to buy 45,000 tonnes in 2007.” India had imported about 40,000 tonnes of nickel in 2006.

Mr Mathur said India's heavy investment in construction of high rise buildings, heavy machineries and bridges are boosting demand for stainless steel. He added that “The outlook for demand in India is strong with plans underway to build airports, underground and elevated rail lines all of which needs large quantities of stainless steel.”

Mr Mathur also said that “Domestic sales of stainless steel are likely to rise to 550,000 tonnes in the December quarter from an estimated 500,000 tonnes in the current quarter. India's annual stainless steel consumption is expected to expand by about 12% in the coming year from about two million tonnes now.”

The majority of India's consumption is of low nickel content stainless steel, which use 1% to 4% of nickel. He said that “Nearly 75% of stainless steel in India is used for kitchenware, but this will drop to 65% in five years when the share of construction, automobiles and railways rise to about 10% from 4%.Another 12% to 14 percent is used for making industrial machinery and other applications, while the remaining is used for the pipes and tubes industry.”

Kirby India to set up its third plant in Western India

It is reported that Kirby Building Systems India Limited is establishing its third plant of 50,000 tonnes to 75,000 tonnes capacity in the western region with an investment of USD 15 million. The project will be operational from mid 2009.

Mr Praveen K Tondon MD of Kirby India said that it was looking for an appropriate location either in Maharashtra or Gujarat to set up the plant. He added that "We are able to meet 80% of our demand, so opening a third plant is necessary."

Kirby India has also announced capacity expansion at its Haridwar and Hyderabad plants. The expansion envisages increase of capacity from 100,000 tonnes to 200,000 tonnes. Post expansion, the capacities will increase to 125,000 tonnes and 75,000 tonnes at the Hyderabad and Haridwar plants respectively.

Along with its existing 4 production units, 2 in India and 1 each in Kuwait and UAE, Kirby is also setting up a Greenfield plant in Vietnam's Ho Chi Minh City with capacity of 50,000 tonnes, taking total capacity to 400,000 tonnes and revenue to INR 3,000 crore.

Rathi Iron and Steel Limited to set up plants in Rajasthan and Orissa

UNI reported that Rathi Iron and Steel Industries Limited is planning to set up new steel plants in Rajasthan and Orissa.

Ms Aakanksha Rathi director of Rathi Iron and Steel Industries Limited and in charge of its Pithampur plant told UNI that “Keeping in view the boom in construction industry we have to increase steel production to fulfill the demand. In future there would be scope for export of selected products. However at present, the thrust was on meeting the domestic demand.''

Ms Rathi added that “To manufacture steel bars at par with the world's best manufacturing units, the company has technical collaboration with a German company HSE. With this agreement Rathi Steel has become the only group of north India which has license to produce TMT bars through Thermex technique.”

Ms Rathi added that its market share is continuously increasing in Madhya Pradesh and held the largest chunk of the market. She said “In a short span of little over 2 years the company has done remarkably well.”

Steel ministry panel to submit report on steel pricing policy soon

BL reported that concerned over the volatility of primary steel prices in the domestic market and allegations made by the consuming industry against the manufacturers, an independent panel headed by Ms Suchitra Sengupta the Chief Economist of the Joint Plant Committee has been assigned the task of formulating an adoptive model to help the government decide on steel pricing policy.

The committee has been formed as a sub committee of the Steel Price Monitoring Committee under the Ministry of Steel that has representation from the steel makers, steel consumers and the Government. The JPC Chief Economist is the coordinator and there is one representative each from steel consumers and steel manufacturers.

Ms Sengupta told Business Line that “We are examining this point and are trying to submit the report to the Government by the end of this month or in the beginning of October 2007.”

Ms Sengupta said “But in order to be doubly sure we are now using data from the Directorate General of Commercial Intelligence and Statistics before giving the final report. We are taking the total export earnings from all types of steel products for the whole year and dividing it by 12 to derive the monthly figure and then making adjustments for export incentives and freight costs. The same exercise is repeated with domestic earnings and then comparing them.”

Ms Sengupta pointed out the committee has also faced difficulties in obtaining data regarding prices and actual cost of manufacturing from both the primary and secondary steel manufacturers which has lead to adopt this macro model.

MIDC to enter into power trading business

BL reported that Maharashtra Industrial Development Corporation is venturing into power trading and has sought license from the central electricity regulatory commission for trading. The power procured from trading would be primarily distributed to industrial units located inside MIDC areas.

Maharashtra Industrial Development Corporation will obtain an authorization from industries for arranging power through competitive tariff bidding process. Based on the demand from industries, it will invite tenders for purchase of power for short term and long term basis from various available sources.

Sources in the Maharashtra government familiar with the development said the aim of the Maharashtra Industrial Development Corporation is not to earn revenue but to avoid load shedding in the industrials area. It will procure power from producers in the state and across India.

Maharashtra Industrial Development Corporation runs 229 industrial estates spread over 0.15 million acres in Maharashtra. Due to power shortage, it governed industrial areas have one day of compulsory load shedding. Earlier in 2007, it was on the verge of declaring second day of load shedding due to power shortage. Out of the total power demand of 14,500 MW in the state, the demand from the industry is 5,000 MW, from urban areas it is 3,500 MW and 6,000 MW from rural areas.

JSW Bengal steel project may face water supply issue

It is reported that as per the findings of the Assembly Standing Committee on Industry and Commerce, non availability of water for running a major steel and cement plant at Salboni in West Midnapore district of West Bengal will pose a major threat to the steel major.

As per report, the committee members visited Salboni in West Midnapore Raghunathpur in Purulia and Saltor in Bankura on a four day tour to study the areas where major steel plants would come up. The committee held meetings with the district magistrates, elected members of both the Parliament Assembly besides zilla sabhadhipatis and people who would be displaced if the industries were set up in those areas.

Mr Sudip Bandopadhyay chairman of the committee said that the committee members after meeting the office bearers and Mr Probodh Panda MP realized that there was water crisis in the area and Jindal group would have to bring in water from the Subarnarekha river which is at least 70 kilometer away from the site of proposed steel plant of the Jindal group. He said water would have to be brought through pipeline from the river to the site of the proposed steel plant. He said that steel plant needed uninterrupted supply of power.

Global majors interested in partnering Indian railways for loco units in Bihar

BS reported that GE and EMD among the front runners for setting up a diesel locomotive unit in Marhowra in Bihar against the request floated by Indian railways for private partnership proposal for the unit. As per report Bombardier, Alstom and Siemens are planning to bid for the railways’ other upcoming electric locomotive unit in Madhepura in Bihar.

GE and EMD are world leaders in diesel locomotive technology while Bombardier, Alstom and Siemens are known for their electric locomotives.

The request for proposal for this unit is expected in October 2007. The private company would have a 74% stake in the units while the ministry would hold the rest.

Indian locomotives’ capacity is 3,800 horse power while the international standard is 6,000 horse power. Sources said once these units were set up, the ministry would look at manufacturing high capacity locomotives also.

Lanco ropes in Gulftainer to bid Haldia coal and iron ore berths

It is reported that Hyderabad based infrastructure developer Lanco Infratech Ltd has teamed up with the Sharjah based container port operator, Gulftainer Company Ltd to bid for the planned coal and iron ore berths at Paradip port. Lanco and Gulftainer signed an agreement last week to bid jointly for various port and transportation projects both in India and abroad.

The report cited a Lanco Infratech official as saying that “Gulftainer has joined us as the port operator for the coal and iron ore projects. Lanco Infratech is among 17 entities that have submitted initial bids for the project.”

Mr Peter Richards director & GM of Gulftainer said that “There are a couple of projects in India and other countries in which we would be working together. The two entities are assessing projects in West Asia, India and the eastern Mediterranean worth close to USD 1 billion."

These two projects, each with a capacity to handle 10 million tonnes of imported coking coal and iron ore a year will cost about INR 900 crore to build. The bid document required that entities seeking to qualify for the projects should have experienced port operators as their partners.

Gulftainer was set up in the Emirate of Sharjah in the United Arab Emirates primarily to manage and operate the container terminals in Port Khalid and also Khorfakkan on behalf of the Sharjah Port Authority.

NHPC signs credit facility agreement with PFC to fund power projects

National Hydroelectric Power Corporation has signed 3 MoUs with Power Finance Corporation for line of credit facilities aggregating INR 3,000 crore to meet funding requirements for its various projects scheduled for implementation during the 11th Plan period.

The funds would be utilized for
1. 800 MW Parbati Hydroelectric project Stage-II in Himachal Pradesh
2. 132 MW Teesta low Dam Hydroelectric Project Stage-III in West Bengal
3. 120 MW Sewa Hydroelectric project in Jammu and Kashmir

The sanctioned amount would be available for drawl up to six months after commissioning of these projects and would be repayable over 10 years.

Kolkata Port asks Rites to study rail links systems

BL reported that Kolkata Port Trust, in its bid to improve the productivity of its own railway systems within both the Kolkata Dock System and the Haldia dock, has asked Rites Ltd to undertake a thorough study of the systems and suggest necessary measures.

Dr AK Chanda chairman of Kolkata Port Trust said that the study would include rationalization of rail yards, technological up gradation and modernization of the present facilities in both the dock systems.

The rail borne traffic at Kolkata Dock System is at present 2 million tonnes but the Kolkata Dock System has the potential to handle much large volumes of rail borne traffic. Rites Ltd was already engaged in renovation of railway track within the Kolkata Dock System at an estimated cost of about INR 8.5 crore. The volume of rail borne traffic at Haldia is about 15 to 16 million tonnes annually, likely to rise substantially in the coming years as the dock is projected to handle an additional 25 to 30 million tonnes in the next 5 years and the bulk of the projected increase would be rail borne traffic.

The work presupposes doubling of the railway track on the 58 kilometer stretch between Panskura and Haldia. However, the doubling work has so far been completed by Rail Vikas Nigam Ltd only on the 14 kilometer long stretch between Panskura and Rajgoda. The work on the balance 44 kilometer stretch between Rajgoda and Haldia is yet to be taken up because the Rail Board is still to sanction it.

Chennai Port improves coal storage inside port area

BL reported that Chennai Port Trust is rationalizing the system of allocation of coal storage yards inside the port. It will allot the plots on a short term license as against the present system of a monthly license fee. Chennai Port Trust has issued a tender notice asking importers of coal or coke and stevedores of the port to take the plots on short term lease.

Mr K Suresh chairman of Chennai Port Trust said that it gave away a third of the available storage area of close to 0.5 million square meters to the upcoming second container terminal in April 2007. He said “With the area available for storing coal coming down, the authorities had to streamline allocation procedures and make logistics easier for the user.

Mr Suresh said that “The rationalization will ensure free flow of vehicles in and out of the plots and reduce congestion at the port's exit gate. He added that at present, coal is stored at the southern foreshore of the port and the configuration of plots was not done scientifically. This resulted in poor utilization of plots and movement of vehicles in and out of the plots was inefficient.”

Chennai port has been handling thermal coal since 1992 and the volume touched 10 million tonnes in 2001. Thereafter, the coal for Tamil Nadu Electricity Board was shifted to Ennore to make Chennai a clean port. In 2006-07 the port handled 2.18 million tonnes of thermal coal and 1.39 million tonnes of coking coal. There are over 60 importers of coal at the port.

Nalco overcomes power generation problems with coal imports

It is reported that National Aluminium Corporation Limited has overcome a coal shortage that forced the closure of 2 power units at its only aluminum smelter through imports and better local supplies.

A NALCO official said that "We have placed orders for 120,000 tonnes of coal imports, out of which a shipment of about 50,000 tonnes has already arrived. Now we have 10 to 12 days stocks. We are meeting the gap through imports."

He added that coal supplies from Mahanadi Coal Field Ltd's Bharat Mines in Orissa were now at about 12,000 tonnes a day. The official added that NALCO was hopeful supplies from the local mines would improve still further in the coming months, but did not specify quantities. He added that it also no longer needed to buy power from the state grid.

The smelter at Angul in Orissa usually has 7 power units running, each with a capacity of 120 MW. Together they need about 14,000 tonnes of coal per day. An eighth power unit is kept on standby.

Global crude steel production in August up by 5.3% YoY

International Iron and Steel Institute reported that the total crude steel production in August 2007 for the 67 countries is 108.1 million tonnes up by 5.3% YoY as compared to August 2006. The global crude steel production in January to August 2007 is 869.710 million tonne up by 7.5% YoY.

The growth in crude steel production during April 2007 among regions was again led by Asia as usual

In million tonnes
Source IISI

Among the top 20 nations, China as usual stood first with 41.583 million tonne production of crude steel registering tremendous growth of 13.6% YoY as compared to August 2006.

In million tonnes
Source IISI

Billet prices ease in China

It is reported that Chinese billet prices are easing this week after dramatic rise in the past months.

Q235 150 billet is now being concluded at CNY 3600 per tonne in Tangshan down by CNY 100 per tonne from peak level while, 20MnSi material remains at CNY 3800 per tonne. But transactions are quite low and most buyers are adopting wary attitude.

As forecast in previous Mysteel’s daily reports, Q235 150mm billet price in Tangshan market has finally reached CNY 3700 per tonne but now it probably would drop to CNY 3500 to CNY 3400 per tonne if it could not go past CNY 3700 per tonne. The slip of iron ore concentrate prices in North China are probably the major reason behind it.

Mysteel believes that billet prices are closely connected with that of iron ore. However, there seems to be not much room for decrease in billet prices, taking into account high input and robust domestic demand. Export prices have jumped to USD 570 to USD 580 per tonne fob in line with the domestic market trend. But conclusions have been slowing down continuously and export volume is expected to drop further in the remaining days of 2007.

Meanwhile, many believe that the export tariff rate for billet would be raised to 25% from 15% and this new policy probably would be put into force on September 25th 2007. If so, billet exports are anticipated to drop to nearly zero sooner or later. Many traders told Mysteel that their billet export business almost have paused, saying that few buyers are able to accept such high prices.

(Sourced from Mysteel.net)

Reliance Steel & Aluminum to acquire Metalweb plc

Reliance Steel & Aluminum Co announced that it has reached an agreement to acquire the outstanding capital stock of Metalweb plc. The transaction is expected to be finalized within the next 30 days and is subject to certain conditions. Terms were not publicly disclosed.

Metalweb metals service center company was established in 2001 and is headquartered at Birmingham in England and has three additional service centers located in Manchester, London and Oxford in England. It is specializes in the processing and distribution of primarily aluminum products for non structural aerospace components and general engineering parts used in high end industrial applications.

Mr David H Hannah CEO of Reliance Steel & Aluminum Co said that “This transaction will bring an additional global presence to Reliance and its first metals service center in the United Kingdom with a highly skilled and knowledgeable management team that is eager to continue to grow both within the UK and beyond.” He added that the current management is expected to remain in place including Mr Derek Webb MD of Metalweb.

Reliance Steel & Aluminum Co headquartered in Los Angeles is one of the largest metals service center companies in the United States. Through a network of more than 180 locations in 37 states and Belgium, Canada, China and South Korea, the Company provides value added metals processing services and distributes a full line of over 100,000 metal products.

Shagang to acquire stake in Yongxing Steel

Interfax China reported that China’s largest private steel mill Jiangsu Province based Shagang Group intends to restructure Anyang Yongxing Iron and Steel Co Ltd in Henan Province.

The report quoted a Shagang official saying that "The Yongxing Steel restructuring project will further improve Shagang's product diversity and grant Shagang access to Yongxing Steel's new medium plate line currently under construction. The two companies will hopefully come to a formal restructuring agreement by the end of the month."

According to a report published today by Henan local media Jinbao, Shagang will acquire an 80% stake in Yongxing Steel through the restructuring project, which is the first of its kind between privately owned steel mills in China. However, the Shagang official declined to comment on the stake distribution, or provide any further information.

Yongxing Steel a private steel maker in Henan Province has an annual production capacity of 1 million tonnes of semis and 1 million tonnes of pig iron. The restructuring project will also grant Shagang access to other Yongxing Steel projects, including a 3500 millimeter medium and heavy plate line and a 1080 cubic meter blast furnace.

Shagang Group, based in southeastern China, produced a total of 11.41 million tonnes of pig iron, 14.63 million tonnes of steel and 12.72 million tons of steel products in 2006, up by 45% YoY, 40% YoY and 65% YoY.

CSN to invest 9 billions in Brazil over the next four years

The Associated Press cited Mr Benjamin Steinbruch CEO of Companhia Siderurgica Nacional as saying that Companhia Siderurgica Nacional SA plans to invest USD 9 billion over the next four years to expand production in Brazil.

Mr Steinbruch said Companhia Siderurgica Nacional plans to build a 4.5 million tonnes of slab plant in northeastern Brazil and adding that the exact location of the new site has not yet been chosen.

Companhia Siderurgica Nacional also has plans to build two 4.5 million tonnes steel slab plants in the states of Rio de Janeiro and Minas Gerais. The Rio de Janeiro plant will be built at Itaguai at a cost of USD 3.1 billion and the Minas Gerais plant will be constructed near CSN's Casa de Pedra iron ore mine in Congonhas for USD 2.9 billion. Production at the Itaguai slab plant is expected to start by September 2009. The Congonhas plant will start output about a year later.

Mr Steinbruch said that Baosteel would not be a partner in the Itaguai mill because it recently signed a deal with Companhia Vale do Rio Doce to build a steel slab plant in Espirito Santo state. He said our idea today is to move forward alone in our projects. Previously, Baosteel and CSN had negotiated a partnership, with Baosteel taking a 25% stake in the Itaguai project.

Nippon and ArcelorMittal may reach deal in November – Report

Jiji Press citing Mr Akio Mimura president of Nippon Steel Corp said that Nippon Steel expects to reach a final agreement with ArcelorMittal as early as late November 2007 to continue their global strategic alliance and expand joint US production.

Mr Mimura said that the new partnership with ArcelorMittal would be slightly different from that with Arcelor. He added that Nippon Steel will continue the cooperative and rivalry relationship with ArcelorMittal retaining restrictions on regional and technological ties in line with a memorandum the two signed in July 2007.

Nippon Steel provided former Arcelor SA with technology for making high end automotive steel sheets one of its most competitive areas. Following Mittal Steel's acquisition of Arcelor last year, ArcelorMittal took over the partnership with Nippon Steel.

As per report, the two companies will likely maintain cooperation in Europe where ArcelorMittal provides automotive steel sheets to Japanese automakers using Nippon Steel technologies but Nippon Steel and ArcelorMittal are expected to compete in such markets as Brazil, India and China.

AISI expresses serious concerns over China

American Iron and Steel Institute on behalf of its US member companies submitted a written statement that states serious concerns to the interagency Trade Policy Staff Committee about China’s non compliance with the commitments it has made to the World Trade Organization. The comments by AISI highlight the fact that the “US Administration needs to act much more aggressively and should use all possible tools to ensure that China finally complies with its WTO obligations.”

As noted in the AISI submission, Chinese subsidies, currency manipulation, overcapacity and non market behavior are hurting the US manufacturing base as a whole. Thus, there is an urgent need for the US government to
1. Strictly enforce all US fair trade statutes on record.
2. Consider taking WTO action to deal with Chinese subsidies that are prohibited by the WTO.
3. Continue to treat China as a non market economy under US antidumping law.

According to AISI “The Chinese government’s currency manipulation, an export subsidy of the type that is strictly prohibited under Article 3 of the WTO Agreement on Subsidies and Countervailing Measures. In addition, this currency manipulation has played “an important role in the current US trade deficit and the loss of millions US manufacturing jobs since 2001.”

The submission also stresses AISI’s concern about how State owned enterprises play a dominant role in the Chinese steel industry as the submission states a detailed analysis of China’s 20 largest steel groups found that 91% of their production is state owned or controlled. It said that “This results in China’s steel industry being strongly influenced by government policy when it comes to the size of new steel plants, the location of such plans and even the minimum size of blast furnaces to be installed.”

The AISI submission further urges “The US government to address China’s value added tax because it plays such a significant role in our trade imbalance with China and other major trading partners.” The submission states that there is a fundamental disparity caused by international tax rules that unfairly reward countries like China and penalizes the United States. This discrimination continues to be a major contributor to America’s runaway trade deficit, to the significant detriment of manufacturing in the United States. In addition, the AISI statement highlights the need for the Administration to enforce the China-specific safeguard provisions.

As documented in the AISI submission, the serious concerns about China’s failure to comply with its WTO obligations are only heightened by the enormous size of the Chinese steel industry and by the ongoing government ownership, direction and massive subsidies that have led to a dramatic growth of China’s steel industry, to its position as a major net steel exporting nation and to the consequent harm that is occurring to US producers of steel and steel containing products.

Metso to supply mining equipments to ArcelorMittal Kryviy Rih

It is reported that Metso Minerals has signed a EUR 22 million contract with ArcelorMittal to supply minerals processing equipment to Kryviy Rih concentrator plants in Ukraine. The delivery would be completed by the end of 2008.

The order comprises of minerals processing equipment supply, engineering and supervision for their expansion and modernization of the Kryviy Rih concentrator plants.

When modernized, the plants will be capable of processing more than 30 million tonnes of ore to produce 13.5 million tonnes of concentrate annually.

Metso is a global engineering and technology corporation with 2006 net sales of approximately EUR 5 billion. It has more than 26,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.

Danieli acquires W + K Industrie Technik for EUR 5 million

It is reported that Danieli Group has strengthened its presence in Europe through the recently finalized purchase of Dortmund based company W + K Industrie Technik GmbH & Co KG for EUR 5 million. This acquisition will allow Danieli to expand its product range and complete its supply in the field of seam welded and seamless pipe. Taking advantage of the particularly favorable worldwide economic situation, Danieli will thus be able to guarantee its customers the possibility of fitting their plants with personalized finishing lines.

W + K Industrie Technik, as an engineering company, is successfully active in the international industrial business. It designs and builds all over the world turn key spiral pipe mills, components and complete pipe welding lines for HF longitudinal pipe mills, PE pipe outside coating plants as well as sandwich panel Production lines and strip profiling plants. It also played a decisive role in developing the spiral pipe and building component technology.

Danieli Group designs and builds machines and plants for the production of large and medium section welded pipe and sandwich panels and it operates in a market whose estimated average yearly volume of business is about EUR 125 to EUR 150 million. It has its own consolidated technology, employs about 50 people and has a turnover of about EUR 25 million.

WISCO orders pipe mill for Jiangbei Steel Processing

It is reported that WISCO steel group’s Jiangbei Steel Processing and Logistics Co Ltd has placed an order with SMS Meer for the supply of a 26 inch high frequency welded tube plant. The continuous welding line in Wuhan on the Yangtze River will be the largest of its kind in the world. It is scheduled to go into operation at the end of 2008 and will then produce up to 350,000 tonnes of pipes per year.

The pipes to be produced have diameters from 244 mm to 660 mm with wall thickness up to 24 mm. They have a maximum length of 18.5 meters. The plant is additionally designed to produce structurals and square and rectangular hollow sections required in the construction industry in dimensions up to 500 x 500 mm and 600 x 400 mm respectively.

The new plant will produce pipes for the oil and gas industry and for the building sector. Line pipes for pipelines will be produced to API standard in steel grades up to X80. Casings for oil exploration will also be manufactured to API standard in steel grades up to N80.

WISCO will supply the starting material from its own steelworks in Wuhan. The delivered coils are up to 2.13 meters in width and 45 tonnes in weight.

The new welded tube plant is being built by WISCO as part of the North River Project. A new steelworks complex is being established on the outskirts of Wuhan on the north shore of the Yangtze River that will cover the whole added-value chain from hot metal through to finished steel products.

US weekly crude steel production continues to remain lower

American Iron & Steel Industries reported that in the week ending September 15th 2007, US’s raw steel production was 2.088 million net tons while the capability utilization rate was 88.2 %. Production was 2.147 million net tons in the week ending September 15th 2006 while the capability utilization then was 91.2%. The current week production represents 2.7% YoY decrease from the same period in 2006.

Production for the week ending September 8th 2007 is down by 0.1% from the previous week ending September 8th 2007 when production was 2.092 million net tons and the rate of capability utilization was 88.4%.

Adjusted YTD production through September 15th 2007 was 75.168 million net tons at a capability utilization rate of 85.4%. That is a 5% YoY decrease from the 79.191 million net tons during the same period 2006 when the capability utilization rate was 90.1%.

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Ilich to invest EUR 500 million in converters

Interfax reported that Ukraine’s Ilich Iron & Steel Works would invest EUR 400 to EUR 500 million in a converter plant next year.

The reported quoted Mr Volodomyr Boyko CEO of Ilich Iron & Steel Works as saying that the new plant would use 600 cubic meters of gas per hour. He said that "The blast furnace's closure and the launch of the new plant should save us thousands of cubic meters of gas." He added that upgrades have already reduced gas consumption from 210,000 cubic meters to 170,000 cubic meters.

Ilich increased CAPEX by 19.6% YoY in the H1 of 2007 to UAH 677.5 million including UAH 392 million in the second quarter.

Pangang to consolidate steel assets into one listed company

Interfax China reported that China’s Panzhihua Iron and Steel Group Co Ltd intends to streamline its steel assets into its Shenzhen listed subsidiary, Panzhihua New Steel & Vanadium Co Ltd.

Pangang's steel assets are currently split between three listed subsidiaries, namely PSV, Pangang Chongqing Titanium Industry Co Ltd and Pangang Sichuan Changcheng Special Steel Co Ltd, which has led to relatively high costs and low efficiency. According to a Shanghai Securities News report, Pangang plans to transfer all its steel assets to PSV in order to improve competitiveness and will keep in line with guidelines from both the State owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission.

A Chongqing Titanium official said that "The group's scheme to combine all steel assets into one listed company hasn't been entirely nailed down yet. The group in still working on the scheme, and once an initial plan is formulated the three listed subsidiaries will resume trading again. However, we still don't have an exact timetable."

Pangang's listed subsidiaries, PSV, Chongqing Titanium and Changcheng Special Steel, suspended trading on August 13th 2007, due to the asset listing scheme.

Pangang is also in the process of carrying out a 5% cost reduction program for this year, consisting of technical upgrades, as well as increased coordination between raw material supplies, production, transportation and sales.

Ferrexpo to invest in Yeristovskoe mine development

Thomson Financial reported that Ukraine focused resources company Ferrexpo PLC has signed contracts worth USD 46 million for the purchase of 6 new draglines for use in the development of its Yeristovskoe iron ore deposit. The draglines have been procured from Ukraine’s Novo Kramatorsky Mashinostroitelny Zavod Joint Stock Co.

Mr Mike Oppenheimer CEO of Ferrexpo PLC said that it expects the delivery of first equipment components in mid March 2008, enabling stripping operations to begin by September 2008.

He added that “This represents a critical first investment in the development of Yeristovskoe and the implementation of our integrated expansion project at Ferrexpo Poltava Mining.”

CSC develops chromium molybdenum alloy steel plate

YIEH reported that Taiwan’s China Steel Corporation has developed the chromium molybdenum alloy steel plate successfully and will start to take the orders since the fourth quarter.

CSC said that the price for such alloy plate is about 30% higher than the regular steel plates. It added that it is the high value added plate, and it will bring about USD 420 income per year for the company. It also expects their alloy plate can substitute such import source in the future.

Outokumpu moves into a new phase of its strategy for development

Outokumpu has announced that it enters the next phase in its strategy development aiming at delivering a more stable and profitable business model whilst also addressing the most attractive growth opportunities.

Its release said that in this respect the following decisions have been made
1. To increase the share of value added special grades sales a EUR 550 million investments will be made in Avesta, Sweden.
2. To increase the share of sales to end use and project customers, the service center network will be strengthened in China and Italy.
3. The successful Operational Excellence programs will be further expanded, with new targets for 2009 and beyond.

The release added that “As announced in January 2005, Outokumpu's vision is to be the undisputed number one in stainless, with success based on operational excellence. The path to reach the vision was divided into two main phases. Firstly, ensuring the number one position in Europe with building and strengthening operational excellence. Secondly achieving global leadership in stainless by multiplying operational excellence.”

Sedibeng to build 1 million tonnes iron ore mine

miningmx.com citing Mr Clyde Johnson chairman of Sedibeng as saying that Empowerment group Sedibeng Mining is pushing hard to find a way to move millions of tonnes of iron ore to potential customers in South Africa and China.

Mr Johnson said Sedibeng is in talks with project financier Industrial Development Corporation to begin a mine. It has an off take agreement with Chinese company called Rainbow Horizons. He said "We'd like a million tonnes a year mine to start off with and we are in talks with Kumba Iron Ore and the rail and port authorities on getting an allocation for the export market. He added that the mine could potentially produce three million tonnes of iron ore annually.

Mr Johnson said "This deposit has effectively been sterilized by a lack of infrastructure. He said Sedibeng is hopeful it can start transporting iron ore to either Saldanha harbor or to ArcelorMittal's Newcastle plant from around March 2008. There is some mining infrastructure in place at the deposit having been a former seller of material to Kumba. A new-order mining right has been secured.”

Mr Johnson declined to make any comment that it is understood diamond focused Sedibeng might be in off take agreement talks with ArcelorMittal South Africa, the largest domestic steel producer.

Sedibeng has coal assets it operates with Petra. It joined Petra in buying the Koffiefontein and Kimberley underground mines from De Beers. Sedibeng has 26% stakes in the mines.

ADB upgrades China's GDP growth forecast to 11.2%

It is reported that The Asian Development Bank raised its growth forecasts for China as it expects exports, investment and consumer spending to fuel expansion in the world's fourth biggest economy.

The Asian Development Outlook 2007 Update released reported that "The faster than expected growth momentum built up this year is expected to carry into 2008. China's economy grew at a faster-than-expected 11.5% in January to June 2007. It expanded at 11.1% last year. The report forecasts growth of 10.8% for 2008 also an upward revision from the 9.8% projection in March 2007.”

The report says "Further steps to cool the rapid investment expansion are likely and the Government will put more emphasis on improving energy efficiency and on cutting pollution. But top priorities remain the creation of jobs for nearly eight million rural surplus workers migrating to cities each year and on lifting income growth in lagging regions and areas."

It said the 11.5% Gross Domestic Product growth in January to June 2007 its fastest rate since 1994 was led by industry especially in such sectors as steel, electricity, chemicals and oil processing. Strong profitability, buoyant sales and still low lending rates drove investment during the period.

Investment administered by local governments grew by 28.1% in January to June 2007 nearly double the equivalent central government rate, suggesting that efforts by the centre to tighten local investment have not had lasting effects.

The ADB expects China's exports to slow in the second half of the year with the government's decision to impose a tariff on 142 export products. At the same time, the government reduced or abolished in July tax rebates on 2,831 items. Still, the ADB expects China's exports to grow 20% and imports 16% in the second half. This will result in a record full-year trade surplus of USD 300 billion up more than 60% from 2006.

China's record trade surpluses have boosted its foreign currency reserves, which are estimated at USD 1.4 trillion. The government recently created a special fund that will invest some of these reserves abroad.

The ADB said the authorities face the important challenge of making progress with the plan to rebalance the economy, by reducing its reliance on exports and on investment for growth in favor of private consumption. It said such a switch could lessen vulnerability to external shocks and ease environmental strains caused by emphasis on export-and-investment-led heavy industry.

The ADB said the government should channel some of the nation's wealth to households to achieve balanced growth in the economy. It said this could be done through higher wages, improvements in the social safety nets such as raising public spending on education and health and developing the capital market to give its citizens more avenues for consumer finance.

China's coal imports jump by 70% YoY in August 2007

China’s General Administration of Customs data shows that China's coal imports for August jumped by 70.3% YoY to 4.02 million tonnes. It means China the world's largest coal producer has retained its status as a net coal exporter for the second straight month.

The data added for the January to August 2007, China remained a net coal importer. It imported 34.99 million tonnes of coal for the January to August period, up by 51.7% YoY as compared to January to August 2007. Its exports for the January to August fell by 19.8% to 33.53 million tonnes.

China has been trying this year to discourage exports of coal and oil to maximize domestic use of its energy resources.

Benxi Steel made Container Steel Awarded "China Top Brand"

It is reported that Benxi Steel's self developed and produced container steel was lately awarded top place of China Top Brand products by General Administration of Quality Supervision Inspection and Quarantine.

As a high tech and high value added steel product, container steels are used in making containers for laneway, marine and air transportation industries. China is the largest container producer in the world and its container steel is far short of the demand.

Benxi Steel has reformed its 1880mm rolling line and developed 1.6mm container steel with this machine becoming the first maker of container sheet and the only one able to produce both thick and thin gauges of container steel in China.

Benxi Steel's subject product goes up to national standards in technical performance, surface quality etc and meet specific requirements of the major four container manufacturers.

(Sourced from MySteel.net)

Usmanov’s Gazmetall to sell loans - Report

Bloomberg reported that ABN Amro Holding NV and BNP Paribas are selling USD 1 billion of loans for ZAO Gazmetall, as the company refinances existing debt.

The five year loans are Moscow based Gazmetall’s first transaction in the international debt market and commitments from lenders are due in three weeks,

The report cited a person familiar with the situation as saying that the company’s loans will pay an initial interest margin of 100 basis points above the LIBOR.

Usmanov controls Metalloinvest, is a global iron ore major, as well as Urals Steel and the Oskolsk Special Steel plant that annually produce 6 million tonnes of crude steel.

Ryerson announced date for acquisition vote

Ryerson Inc announced that it would hold a special meeting of stockholders on October 17th 2007 for the purpose of voting on a proposal to approve its merger with an affiliate of Platinum Equity.

Ryerson Inc said that the special meeting of stockholders would be held at 8:00 AM local time, at Ryerson's office. Stockholders of record as of the close of business on September 21st 2007 will be entitled to vote at the special meeting.

Ryerson is to be acquired pursuant to a merger in which all outstanding shares of Ryerson common and preferred stock will be converted into the right to receive USD 34.50 per share in cash. Completion of the transaction is subject to the approval of the merger by the Company's stockholders at the special meeting and the satisfaction of the other closing conditions as set forth in the merger agreement.

Ryerson Inc is a leading distributor and processor of metals in North America, with 2006 revenues of USD 5.9 billion. The Company services customers through a network of service centers across the United States and in Canada, Mexico, India and China.

China Merchants Holdings takes 45% stake in Zhanjiang Port

It is reported that China Merchants Holdings Co Ltd is to take 45% stake in Zhanjiang Port Company Ltd for CNY 1.62 billion. The joint venture has registered capital of CNY 3.6 billion with the remaining 55% stake owned by the Zhanjiang local government.

Zhanjiang Port, in southwestern Guangdong province, achieved total cargo throughput of over 50 million tonnes in 2006 approximately 80% of which was iron ore and petroleum.

China Merchants said the investment in Zhanjiang Port is a strategic move to fill its gaps in southwestern China and to complement its strategic network of mainland ports.

China Merchants Holdings Company Ltd said the stake would also enable it to enter the large bulk cargo terminal sector, which is a source of steady income and would thereby strengthen its ports business while creating a new profit driver.

Polish firms eying coalmining in Indonesia

Mr Hazairin Pohan Indonesian Ambassador in Poland recently said that Polish FAMUR International Trade SA firm intends to invest USD 50 million in a coal mining project in Air Laya area in Bukit Asam district in South Sumatra.

Mr Pohan said that Indonesian and Polish officials including Mr Rafal Rost FAMUR International Trade SA president had already discussed the plan, which was held on the sidelines of SIMEX mining equipment and metallurgy international exhibition in Katowice last week.

The Air Laya coalmining project was an open pit but now began to be turned into an underground mine where miners had dug the earth down to 100 meters. Mr Pohan was quoted as saying high calorie coal could expectedly be found 150 meter below the soil.

FAMUR SA has so far engaged in Barito Line project in Central Kalimantan where it has invested USD 1 billion to build a new railway system replacing the 150 year old one. FAMUR has also been preparing a program to develop nickel and copper processing in many places in Indonesia.

As per report, another Polish firm, KOPEX SA has also intended to engage in a coalmine project in South Kalimantan.

Shenua to make liquid fuel from coal in 2008

Xinhua reported that China's largest coal company Shenhua Group would produce China's first barrel of liquid fuel from coal in 2008 using self owned technology known as direct coal liquefaction.

Mr Zhang Yuzhuo who is in charge of Shenhua's coal liquefaction business during China International Coal and Energy New Industry Expo 2007 said that "We have finished 95% of the engineering projects at the first production line in Erdos of north China's Inner Mongolia Autonomous Region. The line will start making liquid products next year in trial operation."

Mr Zhang said the first production line would use 3.45 million tonnes of coal every year to make 1.08 million tonnes of liquid products including diesel oil, plus liquefied petroleum gas and naphtha a volatile, flammable liquid hydrocarbon mixture.

Mr Zhang said on the basis of imported technologies, Shenhua has optimized the production flow, built larger facilities and developed new generation activators to create its own technologies. He said there are no impassable obstacles in developing technologies for converting coal into oil, but the effect of such technologies should be tested with small trial operations because they cost much money and call for sound risk-control abilities."

Listed as a key state project to help deal with China's petroleum security concerns, the massive Erdos coal liquefaction facility began construction in August 2004 with the blessings of China's top leaders. With a budget of 12.3 billion yuan and an annual production capacity of 5 million tons of oil, the project will be completed in two stages. In the first phase, three production lines will be installed.

Report on China Non-ferrous Industry

Rapid demand outstrips the supply of non-ferrous industry due to which China will turn into a net importer of various non-ferrous metals. China being largest producer and consumer of majority of non-ferrous metal remains the growth engine for global non-ferrous industry.

RNCOS "China Non-Ferrous Industry Analysis" report provides extensive research and objective analysis on Chinese non-ferrous Industry. This report helps clients to analyze the opportunities critical to the success of non-ferrous industry in China in future. Detailed data and analysis helps the potential investors navigate through the evolving market of non-ferrous in China.

The report information has been sourced from authentic and credible sources like Books, Newspapers, Trade Journals, and White papers, Industry portals, Government Agencies, Trade associations. Monitoring Industry News and developments, and access to more than 3000 paid databases. Methods like Ratio Analysis, Historical Trend Analysis, Judgmental Forecasting and Cause and Effect Analysis have been used for accurate analysis of the given information.

If you are interested to know more about it please visit Report on China Non-ferrous industry or send a mail at research@steelguru.com