ArcelorMittal to invest USD 20 billion for 2 steel plants in India

It is reported that ArcelorMittal has pledged an investment of about USD 20 billion for building two 12 million tonne steel plants in India, where the demand for the commodity is growing rapidly.

Mr LN Mittal CEO of ArcelorMittal told FT that it would spend USD 35 billion on capacity expansion of steel plants across the world. He added that "Of the USD 35 billion, USD 20 billion will go on two steel plants in India, in the states of Jharkhand and Orissa. If all goes according to plan, each plant will be making 12 million tonnes of steel a year by around 2015."

Mr Mittal believes that 2 plants in India make sense as the demand for steel is growing fast in the country. He told that by 2020, India could be consuming 200 million tonnes of steel a year.

Indian sponge iron makers hike prices amid tight supply conditions

BS reported that Indian sponge iron producers have increased prices for the second time within a fortnight by INR 400 or 3% to INR 14,200 a tonne following a shortage of raw materials and a rising demand from domestic steel mills. In the first increase in September 2007, domestic sponge iron manufacturers raised prices by INR 300 a tonne as a result of a scarcity in raw materials.

Mr Amitabh Mudgal vice president marketing and corporate affairs of Monnet Ispat said that “Supply is very tight as sponge iron producers are utilizing only 70% to 80% of the capacity on non availability of iron ore, the only raw material. The demand for sponge iron also rose because of a tight supply of shredded scrap."

An industry source added that iron ore stocks at mines were lying in abundance but admitted that problems in transporting them had caused a scarcity in the mineral. He added that “There are no rakes available. Though the mining activity is not subdued, supplies have been affected badly because of transportation.” In the last fortnight, the transportation cost has gone up by INR 200 a tonne in the domestic market.

Prices of iron ore too are moving up and have reached the highest levels of USD 150 CIF Chinese port putting pressure on domestic prices.

International prices of shredded scrap and HMS have also surged during the last fortnight.

Anti POSCO block road and clash with Pro faction

SNS reported that tension prevailed at the Balitutha area in Orissa following a clash between the anti and the pro POSCO activists. The violent incident took place when some people raised a protest on the visit of the district collector to the Jatadhari river mouth, where 6 persons were injured.

Mr PK Meherda district collector was at the river mouth to study the cause of water logging and clogging of the mouth, which has resulted in inundation of several areas and many villages have been waterlogged due to non release of rainwater of the Hansua River through the Jatadahri River mouth.

Anti POSCO activists blocked the road at Balithutha and other points leading to the Jatadhari river mouth. Hundreds of anti POSCO activist sat dharna at Balithutha for preventing the entry of district collector.

Mr Abhaya Shaoo anti POSCO leader said that district collector is coming to POSCO site to motivate public opinion for POSCO steel project and not to study about the non release of rain water as was being claimed.

The road blockade later led to a clash between the anti and the pro POSCO activists.

Gremach Infrastructure acquires stakes in Mozambique coalmines

Gremach Infrastructure Equipments & Projects Limited announced that it has acquired 75% controlling stake in 11 coalmine licenses from Osho Mozambique Coal Mining Limitada in Mozambique over an aggregate area of 13,520 hectares in the Karoo basin in Moatize. Gremach Infrastructure is planning to start prospecting of the area in October 2007, which will be completed by mid 2008.

The two license no 1165L and 1100L have been renamed as GRE Mine no 1 and 2. Expected reserves in these mines are more than 200 million tonnes.

Mr Rishi Raj Agarwal MD of Gremach Infrastructure said that the move to acquire a controlling stake in Osho Mozambique Coal Mining was in line with its aim to own raw material assets, which would be later used for coal production. He said “These 11 licenses are very close to existing Companhia Vale do Rio Doce mines and few of them are having common boundary with CVRD licenses where hard prime coking coal has already been found. "Mozambique is strategically located for Indian coal needs; freight from the African country is less than half of what is paid to ship the mineral from Australia.”

Gremach Infrastructure, a company that provides construction equipment on rent, has a coking unit called Austral Coke & Projects.

Many Indian companies are pitching for coalmining licenses in Mozambique. TATA Steel acquired 35% stake in Australian firm Riversdale Mining Ltd's coal project in Mozambique for USD 85 million.

Severstal eying opportunities in India

It is reported that Severstal is planning to tap opportunities in India, keeping in view its growing economy and a huge market.

Mr Alexei Mordashov CEO of Severstal said that "India has huge opportunities which we would like to explore. We are still in the process of looking at it."

Severstal has also evinced keen interest in China in view of its market and growing sophistication of steel demand. Mr Mordashov said that "To be more effective, we will concentrate our efforts in China on supplying high quality niches and may be, if we decide to invest in China, we could follow this strategy."

India to skip IPI gas pipeline meet in Iran

PTI reported that India is skipping crucial tri nation talks on the USD 7.4 billion Iran Pakistan India gas pipeline beginning at Tehran in Iran due to unresolved issue of transit fee with Pakistan.

The report cited a top union petroleum ministry official as saying that “We have communicated to Mr H Ghanimifard Iran’s petroleum ministry’s special representative and Mr Farrakh Qayyum Pakistan’s petroleum secretary that we will not be attending the trilateral meeting unless bilateral issues are resolved with Pakistan.”

Mr S Sundareshan India’s additional secretary in ministry of petroleum and natural gas said that “As we have stated in the past, the bilateral issues between India and Pakistan, including inter alia the transit fee for the passage of gas through Pakistan, need to be resolved first. We feel that a bilateral meeting between India and Pakistan should precede the proposed trilateral meeting.”

Iran had called a meeting of technical experts and lawyers from the 3 countries during September 24th to September 26th 2007 to exchange views on the gas supply contract that India and Pakistan. Officials of the 3 countries were to then discuss the issue on September 27th 2007.

Iran, meanwhile has expressed impatience with India over finalizing of the multi billion dollar gas pipeline deal via Pakistan, warning that it could go ahead with Pakistan alone if India procrastinated.

REL two transmission projects cleared

It is reported that Indian government has cleared Reliance Energy's INR 3,500 crore two transmission line projects, for which Power Grid Corporation of India Limited had selected private partner for the projects through the international competitive bidding process in 2006. The agreement is likely to be signed by end September 2007 or early October 2007. The projects are scheduled to be commissioned by March 2010.
1. Western region system strengthening II
2. Parbati Koldam hydro projects in Himachal Pradesh

The transmission lines of Parbati and Koldam projects had been delayed for almost 2 years now, while the 4,000 MW WRSS II has been delayed for 10 months. For Parbati Koldam, PGCIL had invited bids in November 2004 and final letter of selection was issued in December 2005. REL and PGCIL had floated a 74:26 JV for the INR 1,500 crore projects. Reliance Energy Transmission, a subsidiary of REL, had bagged the INR 2,000 crore WRSS II project.

These projects were delayed due to issues raised by the public private partnership appraisal committee. Now issues regarding buyout and transfer of the projects are resolved as REL accepted public private partnership appraisal committee's suggestions and has agreed to abide by its suggestions.

Mr Bishnoi honored with Excellence Award

Mr PK Bishnoi CMD of Rashtriya Ispat Nigam Limited has been presented “Excellence Award” by the Delhi Telugu Academy for his significant contribution to the steel industry.

Mr Bishnoi received the award from Mr K Rosaiah minister of finance, government of Andhra Pradesh and Mr P Lakshmayya minister of major irrigation, government of Andhra Pradesh at the 19th annual cultural festival & awards function of Delhi Telugu Academy held at Hyderabad.

PFC invites bids for Tilaiya UMPP in Jharkhand

The nodal agency for ultra mega power plants Power Finance Corporation has invited preliminary bids from prospective developers for setting up a 4,000 MW project at Tilaiya in Jharkhand.

PFC's wholly owned subsidiary Jharkhand Integrated Power Limited invited proposals for establishing the project on build, own and operate basis. The bidding will be a two stage process
1. Request for Qualification
2. Request for Proposal.
Bidders can procure request for qualification documents till November 5th 2007 and submit these preliminary bidding papers by November 12th 2007.

Coal for the project will be sourced from allocated mines at North Karanpura coalfields. The power plant and development of mine entails an investment of an estimated INR 20,000 crore.

Work resumes after heavy rainfall at Vizag Port

It is reported that heavy rains as well as the agitation taken up by the Maoists have marginally affected the movement of iron ore for the past few days on the Kirandul to Kothavalasa line between Kirandul and Jadalpur in Visakhapatnam Port. The cargo handling has also been badly hit at the port and normalcy was being restored only on September 24th 2007.

According to the sources, the Vizag port handles 0.18 million tonnes of throughput, but during the past 4 days the throughput had dropped to 70,000 tonnes to 80,000 tonnes. Fertilizer handling was particularly affected and five vessels had to be kept waiting. Oil tankers also could not be berthed.

The problem was also compounded to an extent by the agitation taken up by the Maoists and the movement of iron ore on the Kothavalasa to Kirandul line was partially affected. Iron ore is brought to the Vizag port from the Bailadilla mines through the KK line.

Nagreeka eyes power project in Maharashtra

BS reported that Kolkata based Nagreeka Capital Infrastructure Limited is planning to set up a 150 MW power plant in Maharashtra and will also develop an IT SEZ with a township at Kolkata.

Mr Sushil Patwari vice CMD of Nagreeka Capital Infrastructure Limited said that “We are at an advanced stage of the negotiations regarding the site and the total estimated investment would be around INR 600 crore. We are looking for 25 acre plot in a close proximity of Kolkata.”


Nagreeka Capital Infrastructure Limited has a turn over of INR 300 crore at present and the total number of shares amounted to 1.2 crore. With a paid up capital of INR 6.31 capital and reserves of INR 46.72 crore the book value of the share would be INR 42.03.

Bihar threatens to scrap NTPC and BHEL agreements

PTI reported that Bihar government, faced with acute shortage of power, has threatened to scrap the JV with NTPC and BHEL if they fail to complete the renovation and maintenance work of the Barauni and Kanti thermal power plants on time.

Mr Nitish Kumar chief minister of Bihar held a meeting to assess the power situation, wherein the matter relating to alleged inordinate delay being made by these central agencies was discussed.

He said that he would meet Dr Manmohan Singh in the first week of October over the power crisis of the state, while Mr AK Choudhary chief secretary of the state would meet Mr RV Shahi union power secretary on September 28th 2007.

DVC to invest INR 100 crore in IIT Kharagpur energy park

BS reported that Damodar Valley Corporation would invest INR 100 crore towards setting up the energy park in Kharagpur over the next 5 years.

Mr Sanjeev Goenka chairman of board of governors of the IIT said that the project is a part of the Indian Institute of Technology Kharapur's initiative to set up R&D parks for IT, biotechnology and energy sectors at Kharagpur.

IIT would invest a total of about INR 300 crore in upgrading the infrastructure at the institute, which would include increasing the classroom strength and hostel facilities. IIT Kharagpur will invest another INR 50 crore in setting up a facility for fabrication of semi conductors. Over the 11th plan period nearly 3,000 rooms and 6 labs would be added at the institute campus.

CISA worried about tougher benchmark iron ore talks

It is reported that the new round of benchmark iron ore price talks would initiate after the week long Chinese national holiday this year, different from in past years when it often started from end of November 2007 and will be shortened to one month from several months in duration.

Mr Luo Bingsheng deputy director of CISA for the first time noted to public that the 2008 fiscal iron ore price is facing upward pressure though the global ocean trading of iron ore will stand in balance at large. For China, the negotiation could be tougher.

According to Mr Liu Yongshun, chief of Chinese negotiation delegation and CEO with Hong Kong Asia Pacific Resource Company Ltd, this year's ore trading will still tip in favor of sellers, as domestic ore mines maybe hard to suffice steel makers' development, plus the exchange rate change, China is likely to step up reliance on imports.

In view of increasing import and the top three iron ore miners monopolizing the market with holding over 70% of resource, the consumers would stand at the inferior position. Meanwhile, a host of investment banks have revised upward their forecast. UBS has increased the estimate up to 25% rise Macquire looks for 17.5% or higher increase while Citi group caps their forecast in the range of 10% to 20%. Some analysts have even forecasted increase of 30% to 40%.

(Sourced from Mysteel.net)

NLMK commissions pickling line

NLMK announced that it has commissioned a new high tech pushing type pickling line for hot rolled grain oriented and carbon steel with capacity of over 300,000 tonnes per year at its production site in Lipetsk.

NLMK said that its installation would allow two obsolete lines to be retired, thus decreasing operating expenses and improving product quality. As a result, the company’s wastewater discharge into Voronezh River will be reduced by 800 tonnes per year.

The new equipment has been supplied by the Austrian company Andritz and comprises a chemical block for the regeneration and reuse of hydrochloric acid. Ferruginous wastes produced will be directed to sinter production.

This project, implemented within the framework of the NLMK’s Technical Upgrading Program is worth over RUB 2 billion. Total investments into the 2nd Phase of the Technical Upgrading Program will amount to over USD 4.0 billion.

Thermal coal prices surge ahead of Japanese negotiations

Reuters reported that Benchmark Australian spot thermal coal traded above USD 67 a tonne recently amid final negotiations between Japanese utilities and Australian producers for 2008 contracts.

Major Australian producer said "Spot prices are taking cue from negotiations between Japanese utilities and Australian producers, which are now being discussed at between USD 69 to USD 71 a tonne."

Other industry sources said market sentiment had changed significantly in the past week, following a bull run in the coal swaps market which saw delivered coal prices into the Amsterdam-Rotterdam-Antwerp breaching USD 100 a tonne.

Coal traders said prices were also prodded higher on expectations of a supply squeeze worsening in the fourth quarter following news of Australia's Newcastle port cutting fourth quarter export allocations by at least 1.7 million tonnes.

The move by Korean utilities to already secure 2008 term contracts in anticipation of a worsening supply shortage next year has also boosted spot prices. Australian producers, including Rio Tinto and Peabody this month concluded negotiations with Korean utilities such as Korea East West Power Co and Korea Southern Power Co for 2008 term contracts at about USD 66 a tonne.

US steel import in August dip by 22% MoM

Based on preliminary Census Bureau data, the American Iron and Steel Institute has announced that the US imported a total of 2,558,000 net tons of steel in August 2007, including 2,034,000 net tons of finished steel down by 22% and 18% respectively against July final data.

Large increases in August 2007 against August 2006 were standard rails up by 127%, heavy structural shapes up by 26%, cold finished bars up by 17% and tin plate up by 16%.

The imports from various countries is as under

In ‘000 net tons

While overall imports YTD 2007 have declined against the all time record year of 2006, total and finished steel imports YTD in 2007, on an annualized basis remain up by 11% and 13% respectively against 2005 which itself saw historically high import levels. On an annualized basis, total imports of steel in 2007 would be 35.5 million net tons.

Mr Andrew G Sharkey III president & CEO of AISI said that, “The overall import trend continues to be of concern. For efficient, market based US producers of steel and steel containing products, rules based free trade remains key.”

Newcastle cuts coal Q4 export quota by 2.2 million tonnes

It is reported that Australia's Newcastle port will cut 2.2 million tonnes from producers' total shipping allocations in the fourth quarter to reduce vessel queues. The two coal terminals operated by Port Waratah Coal Services Ltd would reduce exporter’s loading limits for a second time in six months,

Mr Graham Davidson GM of Port Waratah Coal Services told Reuters that "The decision was made based on several issues, including underperformance at the port and a derailment of the rail transport system last week."

Mr Davidson said that exporters would be asked to make voluntary cuts, failing which the reductions will be imposed based on their current allocations.

The terminals will manage an estimated 84.5 million tonnes of coal this year, less than its capacity of 90.5 million tonnes. In March 2007, coal producers had their export quota cut by 3.3 million tonnes. The capacity balancing system was reinstated this year after being voted out in 2006. Last year, Port Waratah had a throughput of 79.8 million tonnes.

Celtic Resources rejects Severstal bid

It is reported that Irish prospector, Celtic Resources has rejected a 220 pence a share takeover offer from Russian miner and steelmaker Severstal.

Celtic Resources in a statement said that "The board unanimously rejected this approach as it considered this price significantly undervalued the company and its prospects. Celtic shareholders are strongly urged to take no action in respect of their shareholdings."

The offer price is below Monday's closing price of 228.5 pence and values the company, which said last week it had received a takeover bid at EUR 123 million.

Severstal had no immediate comment.

Severstal bought 22% of Celtic's shares last month and has since raised its stake to 26.6%.

Salzgitter and Dillinger JV Europipe bags pipeline order

Thomson Financial reported that Salzgitter AG and Dillinger Huette’s JV Europipe has won the contract to supply 75% of the steel for a planned Baltic Sea pipeline. As per report, the contract is worth several hundred million euros.

The first phase of the pipeline construction will require about 1.1 million tonnes of steel and Europipe will supply 75% while the remaining steel will come from OMK.

As per report, the contract will be announced in late October.

OMK's Vyksa to supply 25% pipes for Nord Stream project

Vyksa Steel Works the flagship enterprise of Russian pipe and metals holding United Metallurgical Company in a released said that it have won a tender to supply pipes for the first strand of the 1,200 kilometer Nord Stream gas pipeline being built from Russia to Germany by Nord Stream AG.

The other participants in the tender include Nippon Steel, Sumitomo, JFE and Severstal's Izhora Pipe Works.

Vyksa would provide the necessary capacities for manufacture and delivery of the required pipes in 2008 and 2009. Nord Stream secures the pipes for the first line at the current price level. At the same time, the expected development of the steel market was taken into account to also provide for security on the contractors' side.

Ms Irina Vasilyeva spokeswoman for Nord Stream AG said that “Judging by similar projects, the cost of pipes accounts for around 40% of a pipeline project's budget. In this case, the cost of steel, which has trebled in the last three years, would be of key significance when calculating the final cost of the contract. The cost of the contract generally meets our expectations. The committee of Nord Stream shareholders approved these costs at a meeting.”

For the second pipeline, there will be a completely new pipe supply tender. The number of technically qualified pipe mills is expected to increase.

Worthington announces cost cutting plan for Dietrich Metal

Worthington Industries announced that it would begin implementing a consolidation plan at five of its Dietrich Metal Framing locations impacting approximately 165 employees. Worthington Industries expects the consolidation plan to result in USD 9 million in annual savings and be fully implemented by the end of the year. One time restructuring charges, estimated to be USD 15 million in the aggregate for the five facilities would be incurred over the next few quarters until the plan is completed.

The facilities included in the consolidation plan are East Chicago in Indiana, Rock Hill in South Carolina; Phoenix in Arizona, Wildwood in Florida and the downsizing of operations at Montreal in Canada. The Rock Hill facility also houses a Worthington steel processing operation, which will continue to operate. Annual net sales generated by these operations total approximately USD 125 million and the majority of those sales are expected to be handled by nearby Dietrich locations.

Mr John P McConnell chairman & CEO of Worthington Industries said that "Today's action is a result of our focus on asset utilization to ensure that our businesses are maximizing profitability. Although the consolidation will reduce Dietrich's footprint, we have chosen locations in close proximity to other Dietrich facilities to maintain our customer service. We continue to have the largest reach to markets through our national distribution network."

Dietrich Metal Framing is the largest manufacturer of steel framing products in the United States. Dietrich's 2,000 employees in 26 facilities, use state of the art equipment and in-house metallurgic labs to ensure superior product performances and competitive prices. Dietrich Metal Framing, founded in 1959, is a Worthington Industries Company.

US Steel announces distribution network for standard and line pipes

United States Steel Corporation announced its new distribution network for standard and line pipe sales in the United States resulting from its acquisition of Lone Star Technologies Inc and its related companies on June 14th 2007.

Similar to its strategy with Oil Country Tubular Goods, US Steel will market its Standard and Line Pipe products in North America through a selective, authorized distribution network of 16 national and 13 regional distributors. These distributors will be responsible for selling Seamless and Electric Resistance Welded products into Standard and Line Pipe applications.

The following companies have been named to the list of authorized standard and line pipe distributors

Seamless and ERW
1. Consolidated Pipe & Supply - National
2. Edgen Murray - National
3. Ferguson Enterprises Inc - National
4. La Barge Pipe & Steel - National
5. McJunkin Corporation - National
6. Red Man Pipe & Supply - National
7. Texas Pipe & Supply - National
8. Wilson Supply - National
9. Allegheny Pipe & Supply Company - Regional
10. BBL Co - Regional
11. Charles D Sheehy Inc - Regional
12. Chicago Tube & Iron - Regional
13. City Pipe & Supply - Regional
14. Commercial Pipe & Supply Corp - Regional
15. The Ideal Supply Company - Regional
16. Louis P. Canuso Inc - Regional
17. Petroleum Pipe and Supply Company Inc - Regional
18. Youngstown Pipe & Supply - Regional

Seamless only
1. Dixie Pipe Sales - National
2. Kelly Pipe Company - National
3. Pipe Distributor Inc - National
4. Marmon/Keystone - National
5. Mattsco Supply Company - National
6. Tubular Steel - National
7. State Pipe & Supply Company - Regional

ERW only
1. Pipe Exchange - National
2. Tex-Isle Supply - National
3. Columbia Pipe & Supply Co - Regional
4. Ken Miller Supply Inc - Rregional

ThyssenKrupp Waupaca in Tennessee starts expansion

It is reported that ThyssenKrupp Waupaca held a ground breaking ceremony on Monday for the USD 162 million expansion of its iron castings foundry at Etowah in Tennessee State of US.

The Etowah facility began operations in 2001. The expansion will add a new state of the art ductile iron production line housed in a separate building, expected to be fully operational in 2009. The automated line, which will include up to 50 robots for material handling, will nearly double the facility's existing size of 272,000 square feet.

ThyssenKrupp Waupaca part of Germany's ThyssenKrupp Group claims to be the largest non captive iron foundry in the world and produces gray and ductile iron castings. The unit's headquarters and four manufacturing facilities are located in Wisconsin. Additional plants are located at Tell City in Indiana and Etowah in Tennessee. Ductile iron castings are used for the production of brake calipers, brake supports and automotive chassis components, such as steering knuckles and differential cases for gear boxes. The Etowah plant also manufactures gray iron castings, primarily used for rotors and brake drums in cars and heavy trucks.

Coal and iron ore shipping rate rise to record levels

It is reported that Coal and iron ore shipping rates may extend gains to records this week on rising demand to transport raw materials across the Pacific and the Atlantic amid a limited supply of vessels.

According to data on the London based Baltic Exchange the Baltic Dry Index, an overall measure of commodity shipping costs on different routes and ship sizes, advanced 3.9% to 8,956 on September 21st 2007 setting a record for a second day. This year, the measure has broken records for a total of 83 days.

London based shipbroker Galbraith's Ltd said in its report that “There seemed to be no stopping the market as it rocketed in both the eastern and western regions last week. The Baltic Dry Index is threatening to break through the 9,000 barrier.”

The rates have been boosted by rising demand for raw materials led by China coupled with congestion in some of the major ports including world's biggest coal export harbor Australia's Newcastle. The North American grain export season is helping boost charter rates, which are typically strongest in the fourth quarter.

(Sourced from MySteel.net)

IFC increases investment in Simandou iron ore project

It is reported that World Bank’s IFC is increasing its investment in Rio Tinto’s Simandou iron ore project in Guinea to continue funding exploration and feasibility studies and to support its environmentally and socially sustainable development.

IFC has approved an additional USD 30 million investment in Rio Tinto’s Guinean project company Simfer SA to maintain the 5% shareholding it acquired in 2006.

Mr Somit Varma director of IFC for Oil, Gas, Mining, and Chemicals said that “By increasing our investment in the project, IFC is continuing a close relationship with Rio Tinto to benefit Guinea and its people. The Simandou project has the potential to make a large, positive contribution to the country’s economy for many years and the infrastructure associated with the project will help attract further private sector investment to the region.”

Mr Mike Harris MD of Rio Tinto Iron Ore Atlantic said that “IFC has considerable expertise and experience in projects like Simandou, particularly in maximizing the development benefit for local communities. Working with IFC will enable us to increase jobs, improve infrastructure and have a positive impact on the economy of surrounding areas.”

IFC has been working with Rio Tinto on biodiversity, conservation, community development, and supply chain linkages between the project and local entrepreneurs. IFC’s involvement will support Rio Tinto and the Guinean government in conducting feasibility studies, environmental and social assessments, and ore transportation evaluations. IFC, the World Bank, and the government, have also conducted a broader study on best practice community development standards in the country’s mining sector. The study will be published soon, and the recommendations will be implemented shortly thereafter.

BHPB may invest in Indonesian coking coalmines – Report

Bloomberg reported that BHP Billiton Ltd might spend USD 300 million for developing coking coalmines in Indonesia because of increased demand from steelmakers in Asia.

Mr Simon Sembiring director general of coal and mineral resources at the Indonesian energy ministry said that BHP’s local subsidiaries PT Lahai Coal and PT Maruwai Coal expect to produce 5 million tonnes of coking coal between them annually by 2009 form projects on Borneo Island.

Mr Sembiring said the Haju block is expected to produce 1 million tonnes of coking coal in January to June of 2008 and may cost USD 66 million to develop adding that the Lampunut block will start production in 2009. He added that two areas in Central Kalimantan province have a reserve of as much as 100 million tonnes.

Mr Indra Diannanjaya, the president director of both Lahai and Maruwai, declined to confirm the spending figure by saying that feasibility studies on the projects had been completed.

Danieli to supply SS slab caster to ThyssenKrupp AST

It is reported that Danieli will supply ThyssenKrupp Stahl Acciai Speciali Terni with a new 950,000 tonnes per year stainless steel slab caster.

Danieli, which aims to complete the turnkey project from old caster shutdown to the first heat of the new one in 90 days, said that only the existing ladle turret, casting floor equipment and caster steel structures will be reused.

The caster will produce slab covering the complete range of stainless steel grades, including austenitic, ferritic and martensitic grades; ranging in size from 800mm to 1600mm in width and 5,000mm to 11,000mm in length. Cold slab thickness will be 215mm.

US weekly crude steel production down by 2.1% YoY

American Iron & Steel Industries reported that in the week ending September 22nd 2007, US’s raw steel production was 2.101 million net tons while the capability utilization rate was 88.8 %. Production was 2.147 million net tons in the week ending September 22nd 2006 while the capability utilization then was 91.2%. The current week production represents 2.1% YoY decrease from the same period in 2006.

Production for the week ending September 22nd 2007 is up by 0.6% from the previous week ending September 15th 2007 when production was 2.088 million net tons and the rate of capability utilization was 88.2%.

Adjusted YTD production through September 22nd 2007 was 77.269 million net tons at a capability utilization rate of 85.5%. That is a 5% YoY decrease from the 81.338 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.

Shenhua Energy's IPO on Shanghai approved

It is Shenhua Energy Co Ltd’s proposal for listing on Shanghai Stock Exchange has been approved by China Securities Regulatory Commission.

China Shenhua Energy Co Ltd has already listed on Hong Kong Stock Exchange and now it seeks to raise a maximum of CNY 1.8 billion funds from its domestic share offering. The shares will be the CNY denominated A shares, which can only trade among domestic investors. The company plans to raise as much as CNY 70 billion by issuing 1.8 billion shares which will exceed the total proceeds of CNY 58 billion from China Construction Bank Shanghai IPO.

China Shenhua Energy Co Ltd said the proceeds would be used to upgrade technology and facilities as well as to expand its production capacity.

China International Capital Corp and China Galaxy Securities Company are the major underwriters of this issue.

Banks disagree on revised terms for QASCO financing deal - Report

MeSteel recently reported that banks involved in the USD1.3 billion financing deal for Qatar Steel Company are struggling to agree terms with the sponsor and financial adviser.

The report cited sources close to the deal as saying that Ernst & Young, the financial adviser to Qasco, began contacting potential lead arrangers with revised terms from September 17th 2007 and several banks are now expected to reject the new terms.

As per report “Among the changes are spreads that now reach more than 75 basis points over the London interbank offered rate during the life of the project. Previously the debt was prices at 60 basis points. The original financing for the project in 2005 was arranged at 80 to 100 basis points. The present refinancing is expected to use only eight lead arrangers.”

Banks in the mandated lead arranger group now want a degree of flexibility in the financing structure, allowing them to vary the pricing on the deal during the syndication process according to demand in the market.

Corus Scunthrope supplying SBQ plates to Odense shipyard

It is reported that steel plates made at Corus’s Scunthorpe works is being used to build the world's largest fleet of cargo ships under a deal with Danish AP Moller Maersk Group.

As part of the multi million pound deal the Odense Steel Shipyard in Denmark is building eight identical container ships, six of which have now been completed.

Mr Alexander Peterson Odense's purchasing manager said "We believe Corus is a world leader in the industry and our faith in the company is indicated by the long standing partnership we have won with them. He added that it is vital we can trust our suppliers to provide us with the best quality products and service at a competitive price."

Ms Neil Stewart sales manager of shipbuilding of Corus said "Corus, and in particular the Scunthorpe Plate Mill can be proud to be associated with the Elly Maersk and her sister ships. Odense has and will continue to be one of four major customers and we look forward to working with them in the future. He added that Odense is one of the most advanced ship builders in Europe and its latest ships are world leaders in their class."

Chongqing plans to incorporate 12 steel mills

Southwest China based century old steel producer Chongqing Iron & Steel Co Ltd, further plans to incorporate the 12 regional steel mills of the city and raise its capacity to some 6.3 million tonnes per year, following the construction work in Changshou anticipated to complete by 2009, which represents two phases of it's relocation move.

Originally built in Wuhan as Hanyang Iron Works by famous governor Mr Zhang Zhidong in 1890, the plant had been moved to Dadukou of Chongqing 1938 and is heading for Changshou now.

When Mr Donglin board chairman was appointed last year, the group was seriously loss making, losing over CNY 140 million within three months. Last June, Mr Dong visited municipal leaders and asked for approval of Chongqing Steel's relocation project. This March, the municipality authorized green light officially out of environment protection concern.

Mr Dong disclosed that Chongqing Steel aims to upgrade structure and innovate technology along with the relocation activity. The 1780mm HR strip lines and 4100mm wide and thick plate mills, the keynote construction items in first phase, have reportedly found the contractors to start construction next year and come on stream 2009. When constructions in Changshou, i.e. relocation of existing capacitates of 3.5 million tonnes complete, it will further incorporate 12 local steel mills by eliminating their backward techniques and binding the capacities to the new steelmaker in Changshou.

(Sourced from MySteel.net)

SS demand weakening in Europe

YIEH reported that after continuously price rising since last year, the demand for stainless steel products is falling and the prices are gradually becoming weaker in Europe. Because the nickel price falls sharply and the demand keeps weaker, the stainless steel market changes its conditions from June 2007.

French based stainless steel plate processor and distributor Jacquet Metals reported that before June 2007, its profit grew up to EUR 37.7 million that doubled the profit in the same period in 2006. However, all companies in Europe meet the same conditions. Nickel fall draws steel companies profit downgrade. Although the nickel price rises up from last two weeks, the demand and price are still obscure.

Worthington Industries quarterly net dip by 53% YoY

Worthington Industries Inc announced results for the June to August 2007 quarter. Its June to August 2007 quarter net sales were USD 759.0 million down by 3% YoY as compared to USD 778.7 million for the first quarter of fiscal 2007. First quarter net earnings of USD 20.2 million fell by 53% YoY from first quarter 2007 net earnings of USD 43.2 million.

First Quarter 2008 Highlights
1. Quarterly net sales and operating income in the Pressure Cylinders segment represented a first quarter record of USD 136.6 million and USD 18.0 million, respectively.
2. Cash dividends received from joint ventures totaled USD 14.7 million for the quarter.
3. Cash provided by operating activities was USD 74.8 million for the first quarter of fiscal 2008. Capital expenditures were USD 16.5 million for the same period.
4. Dividends paid to shareholders totaled USD 14.5 million for the quarter. At quarter end, the dividend yielded a 3.2% annualized return.
5. During the first quarter, the company repurchased 4.2 million common shares, reducing total outstanding shares to 81.0 million at quarter end.
6. The ratio of total debt to capitalization was 27.9% at quarter end, unchanged from the year ago time period.

In the Steel Processing segment, quarterly net sales fell by 11% or USD 45.1 million to USD 355.9 million from USD 401.0 million in the comparable quarter of fiscal 2007. The decline in net sales was the result of lower average pricing down by 2%, due to a greater mix of tolling business, and lower volumes down by 9% relative to the prior year. Operating income decreased because of the combination of lower volumes and a narrower spread between selling prices and material costs compared to the first quarter of fiscal 2007.

In the Metal Framing segment, net sales decreased by 7%, or USD 14.3 million, to USD 198.1 million from USD 212.3 million in the comparable quarter of fiscal 2007. Average selling prices fell by 12%, more than offsetting an overall volume increase of 5%. Product mix worsened in the quarter as volumes increased in lower margin product lines and decreased significantly in higher margin lines, many of which serve the residential housing sector. The much narrower spread between lower selling prices and higher material costs resulted in an operating loss for the quarter.

In the Pressure Cylinders segment, net sales increased by 12%, or USD 15.1 million, to USD 136.6 million from USD 121.5 million in the comparable quarter of fiscal 2007. Increased volumes across most product lines in North America and Europe led to an increase in operating income from the prior year.

Rio Tinto trials automated train driving

It is reported that Rio Tinto Ltd is undertaking trials of automated train driving technology at its Pilbara iron ore mining operations in Western Australia. A project team is currently studying the application of automated train operation technology in a heavy haul capacity.

Mr Sid Hay acting GM railways of Pilbara Iron said that the study is part of the company’s continual business improvement process. He said that "The automated train operations project is one of a number of initiatives that the business is considering to help it reach its annual export target of 320 million tonnes of iron ore and beyond into the future. While the project will automate certain significant aspects of our rail operations such as train driving, we do not expect that there will be any reduction in staff numbers. In fact, we need to recruit additional people into our rail operations to support our future plans."

Rio Tinto expects to make a final decision on the ATO project later this year and if the technology gets the go ahead, it will take up to five years to implement across the company's rail network.

Rio Tinto Iron Ore operates one of the largest privately owned heavy haul railways in the world. The Pilbara rail network comprises 1,300 kilometers of rail track. The project is the first application of its kind in Australia as the automated train operation technology has previously been used only on passenger services

Ausmelt Whyalla plant nearing reopening

It is reported that owners of Whyalla's pig iron plant are set to begin hiring staff as momentum on resurrecting the South Australian facility increases. It has been more than four years since the plant was mothballed Ausmelt wants to reopen it to smelt zinc oxide from Zinifex's Tasmanian operations.

Mr David Sherrington zinc manager of Ausmelt Whyalla said that the jobs would soon be advertised for the plant, which he hopes will be operating by the end of the year. He said that all development requirements have been met, including Environment Protection Authority concerns about zinc dust.

Mr David added that "Dust emissions should not be a problem we have been very proactive in terms of managing the containment of dust and preventing any dust emissions and in terms of the modifications that we've put into the facility, a large part of the capital cost relates to environmental controls of which dust containment is one of them"

Mr Clutterbuck appointed as president and CEO of Lakeside Steel

Lakeside Steel Corporation announced the appointed of Mr Tim Clutterbuck as President and Chief Executive Officer of the Company effective October 1st 2007.

Mr Clutterbuck is a steel executive with 27 years of industry experience. He was a senior executive with Ryerson Canada. He has also served in various roles, including vice president and General Manager at Atlas Specialty Steels.

Mr Vic Alboini chairman of Lakeside said that “Tim Clutterbuck joins Lakeside with an excellent track record as a strong and motivated leader with very good communication and analytical skills. We are very confident that Tim will be a substantial contributor to Lakeside moving to the next level.

Mr Sam Di Michele who was hired as president & CRO will remain with the Company as a restructuring advisor until completion of his one year contract on March 4th 2008 together with his business partner Olga Budimirovic, who will also become a restructuring advisor.

Turkish economy growth in Q2 lowest since 2002

Turkish Statistical Institute recently revealed that Turkey's economy lost momentum in the three months through July 2007 expanding at its slowest pace since the first quarter of 2002 as high interest rates squeezed consumer spending. Economic growth slowed to 3.9% from a revised 6.9% in the previous three months.

Mr Durmuş Yılmaz governor of Central Bank of Turkey the Central Bank raised interest rates 4.25% points to 17.5%, the highest level in Europe 2006 as it struggled to try and bring inflation down to a 4% target agreed with the International Monetary Fund. Those increases successfully curbed domestic demand and the bank is considering cutting rates in the last quarter.

Inflation has fallen from a high of 70% at the start of 2002 to a 37 year low of 6.9% in July 2007. Record levels of exports and government spending ahead of July 2007 elections helped sustain the According to the median estimate of 12 economists surveyed by Bloomberg economy's 22nd consecutive quarter of growth. While private consumption spending contracted an annual 0.3% in the quarter exports grew 12.7%.

The economy this quarter had been expected to increase by 4%. Exports have expanded an annual average of 24% every month this year. They rose to a record USD 9.1 billion in May 2007 as European economies, the destination of almost 60% of Turkish sales abroad, drew in products such as cars and refrigerators. Growth in the three months through June 2007 was also helped by government spending on water supplies and roads in the run-up to elections. Non-interest government spending increased 26% in January to June 2007 from the same period in 2006.

Siemens opens new wind turbine blade facility in the US

Siemens Power Generation has opened its new wind turbine blade factory at Fort Madison in Iowa State of US on September 21st 2007. The factory is expected to produce approximately 600 wind turbine blades per year, which will be shipped to wind farms in the US. It’s the company’s first manufacturing plant for wind turbine components in the US for which the total investment is more than EUR 20 million.

Siemens established the 311,000 square foot turbine blade manufacturing facility in Fort Madison to better meet the strong demand for clean wind energy in the US. Blades for the company’s 2.3 W wind turbines are manufactured at the new site. The first 148 foot long, 12 ton blades were delivered to a customer site in Texas in August 2007. So far, the company has hired 220 employees in Fort Madison a number that is expected to grow to 260 people by the end of the year.

Since the acquisition of Bonus Energy in 2004, Siemens has made significant strides to grow its presence in the wind energy industry in the US. In 2006, Siemens ranked second in market share in the U.S. with an installed capacity of 570 MW. The company expects to greatly exceed this number in 2007. So far this year, Siemens has already received wind turbine orders totaling more than 550 MW in the US. Altogether, these projects have the potential to provide clean power to nearly 140,000 homes.
The Power Generation Group of Siemens AG is one of the premier companies in the international power generation sector. According to US GAAP in fiscal 2006, it posted sales amounting to more than EUR 10 billion and received new orders totaling EUR 12.5 billion, Group profit amounted to EUR 782 million.

POSCO remains Sustainable Excellent Corporation for third year

POSCO has announced that it has been recognized as an excellent corporation in the 2007 SAM Dow Jones Sustainability Indexes becoming a global sustainable leading corporation for 3 consecutive years.

According to the 2007 SAM Dow Jones Sustainability Report released recently, POSCO has been acclaimed as an excellent corporation in the steel sector from the valuation of sustainability, where more than 2500 global firms were reviewed by Dow Jones and Sustainable Asset Management.

The result of review from SAM Dow Jones shows that POSCO has achieved outstanding performances in a variety of sectors including economy, environment, and society. POSCO has received the highest scores in terms of sound corporate governance and appropriate risk management as well as excellent management performance. In addition, it has been highly reviewed in the environment related section such as commercialization of environment friendly FINEX, superior system of environment management and reaction ability for climate change.

During the last years, as steel makers included in DJSI, Dofasco and Arcelor were selected in 2005 when POSCO was first entered into the steel sector and POSCO was only recognized in 2006. This year’s result is very meaningful for POSCO since it has won this award for 3 consecutive years.

US Steel donates land for housing development

Birmingham Business Journal reported that US Steel Corp has donated a parcel of land in the Wylam area to Habitat for Humanity and the city of Birmingham for construction of a 38 home development.

US Steel Corp in a release said that Ground is expected to be broken this week, with construction slated to begin in January 2008. Habitat will build the affordable homes and the city will provide the infrastructure.

Mr Charles T Moore president & CEO of Habitat said that "Our vision of this development has been in the works for two years now. It's exciting to finally see some dirt moving. This revitalization will jump start a new beginning in Wylam."