JSW Steel posted a record 32% growth in crude steel in August 2007

JSW Steel Limited has announced that it has posted the highest ever crude steel production with 32% growth in August 2007 excepting galvanized product. It could achieve significant volume growth as the hot metal furnace re commissioned on July 23rd 2007 after capital repairs has been working at full capacity since then.

The break up of product wise production is as below:

1) The production of crude steel is 0.288 million tonnes in August 2007 as same as in August 2006.

2) The production of HR coils is 0.237 million tonnes in August 2007 up by 32% YoY over August 2006, while the production of HR plates is 0.022 million tonnes up by 15% YoY over August 2006.

3) The production of galvanized is at 0.064 million tonnes in August 2007 down by 6% YoY over August 2006, while the production of pre painted GI is at 0.008 million tonnes in August 2007 up by 95% YoY 0ver August 2006.

JSW Steel has also shown 21% growth in volumes sequentially in crude steel, 11% growth in HR coils and 19% growth in HR plate products.

It is noted that the input costs, particularly iron ore, coal, coke and ferro alloys prices have shot up in the last few weeks besides surge in freight cost several global steel companies, considering the raise in input costs and demand pick up post monsoon in Asia and summer holidays in Europe, have announced price hikes.

NTPC signs MoU with SAIL, RINL, CIL & NMDC to form SPV

National Thermal Power Corporation Ltd has announced that the Company has signed a MoU on August 31st 2007 with Steel Authority of India Limited, Rashtriya Ispat Nigam Ltd, Coal India Ltd and National Mineral Development Corporation Ltd for formation of a Special Purpose Vehicle for securing thermal coal from outside India.

NTPC said that “The companies will cooperate to create a country specific joint venture company and or project which may also involve equity participation."

Indian Railway revenue earning up by 14.49% during August 11th to August 20th 2007

It is reported that the total approximate earnings of Indian Railways on originating basis during the August 11th to August 20th 2007 period is INR 1707.94 crore up by 14.49% YoY as compared to INR 1491.75 crore during August 11th to August 20th 2006 period.

The details of other earnings during August 11th to August 20th 2007 are:

1) Total goods earnings: INR 1169.03 up by 17.16% YoY as against INR 997.81 crore
2) Total passenger revenue earnings: INR 487.49 crore up by 13.12% YoY as compared to INR 430.96 crore
3) Revenue earnings from other coaching: INR 38.82 crore as against INR 50.41 crore
4) The total sundry earnings: INR 12.60 crore up by 0.24% YoY as against INR 12.57 crore

The total approximate number of passengers booked during 11th August to 20th August 2007 was 181.08 million up by 9.12% YoY as compared to 165.94 million during the August 11th to August 20th 2006. In the suburban and non suburban sectors, the number of passengers booked during August 11th to August 20th 2007 was 104.46 million and 76.62 million compared to 92.90 million and 73.04 million during the August 11th to August 20th 2006, registering an increase of 12.44% YoY and 4.90% YoY respectively.

Steel Strips August wheel rims production up by 21% YoY

Steel Strips Wheels Ltd has announced that it has achieved highest ever production of 0.46 million wheel rims during the month of August 2007 up by 21.05% YoY as compared to 0.38 million in August 2006.

It has also achieved highest ever sales of 0.46 million wheel rims during the month of August 2007 up by 22.87% YoY as compared to 0.37 million wheel rims during August 2006.

Jindal Steel to set up plant in Himachal

IANS reported that Jindal Steel is planning to set up INR 30 billion plant in Himachal Pradesh's Sirmaur district and is in the process of buying land for it. The plant is expected to give jobs to 2,000 people.

Though state government had cleared the project 2 years ago, Jindal Steel has only now identified 300 acres of land in Amboya near Poanta Sahib in Himachal. Mr Sanjeev Sharma project executive of Jindal Steel said that “We have identified land at Amboya and are in the process of buying it.”

Mr Kala Sharma panchayat chief of Amboya said that “We have held many rounds of talks with Jindal group officials for the selling of our farmland. At least one family member of those selling the land has been assured a job by the company. We have also been assured that a quarter of the land price will be paid in advance, while the remaining will be paid by the end of this year.”

It is noted that the state government had decided to develop the Amboya region into an industrial area a year ago. Once Jindal Steel starts work in Amboya region, the state government hopes other units will follow suit and open shop in the industrially backward region.

French CMA CGM eying stake in Adani Logistics

BL reported that France’s number 1 container operator CMA CGM is planning to acquire 26% stake in Mundra Port & SEZ Limited’s subsidiary Adani Logistics. As per report, CMA CGM declined to comment however, inquiries reveal that negotiations are in progress and the possibility of CMA CGM acquiring the terminal, subject to approval of the authorities concerned cannot be ruled out altogether.

With the acquisition, CMA CGM will control connectivity to and from the port, which is critical for the smooth running of a container terminal and operation of shipping services.

Mundra port’s existing container terminal is currently operated by Dubai Port World and a second terminal is under construction, which will be operated by Mundra Port & SEZ Limited.

CIL encouraging setting up of coal washeries by private players

Dr Dasari Narayana Rao union minister of state for coal informed upper house of Indian parliament that Coal India Limited has been encouraging power sector and other coal consumers and private entrepreneurs to set up coal washeries on build own operate basis for supply of washed coal to the linked consumers.

Dr Rao said that to encourage setting up coal washeries by consumers and private entrepreneurs, CIL has been providing land and other infrastructure facilities on lease and chargeable basis subject to its availability.

Dr Rao added that CIL has also decided in principle to set up washeries with the state of the art technologies on build and operate basis where Coal India Limited and its subsidiary companies will provide the capital funding and other infrastructure facilities. Private entrepreneurs having core competence in the field will construct and operate the washeries.

Further, it has been decided that all new opencast projects of more than 2.50 million tones capacity, which are not linked to pit head power stations should be designed with an integrated washery. The need of the consumers for improved and consistent quality of coal will be satisfied to a large extent through supply of washed coal.

India’s existing non coking coal washing capacity is 103 tonnes per year and it is expected that additional 149 tonnes per year additional washing capacity would be added in 11th Plan.

Indian port sector to attract INR 57,452 crores investment in 11th plan

According to a report titled "Financing Plan for Ports" prepared by a task force comprising of officials from major ports, shipping ministry, power ministry, finance ministry and Planning Commission, a total investment of INR 57,452 crore is required in major ports during 2007-12 and the investments would go towards upgradation and construction of berths, deepening of channels and procuring, replacing and upgrading equipment at the ports.

The projections of likely investments are as under
1. Berth development - INR 32,875 crore
2. Capital dredging - INR 5812 crore
3. Improving road and rail connectivity to the ports - INR 2955 crore
4. Equipment to increase the efficiency - INR 3,604 crore
5. Other activities like creating various infrastructures within ports, ship & container repair facilities, breakwaters and shipbuilding facilities –INR 12,207 crore

From the total investment for berth development, INR 11,502 crore would be towards container terminals, INR 10,314 crore towards berths for petroleum oil and lubricants and INR 11,059 crore towards other cargo berths.

From the total investment requirement of INR 57,452 crore, the task force has estimates that INR 38,079 crore would be mobilized through public private partnership projects, INR 2,174 crore through extra budgetary resources market borrowings, INR 14,175 crore from internal resources and INR 3,024 crore through government grants.

Over and above the existing capacity of about 456 million tonnes in major ports, the ports need to add a 546 million tonne capacity by 2012, thus taking the total capacity to 1,002 million tonnes.

PFC grants financial assistance for power projects in NE

Mr Sushilkumar Shinde union power minister said that Power Finance Corporation has sanctioned loan amount of INR 165.48 crore for Lakwa Waste Heat Recovery Project (1x37.2 MW) of Assam Power Generation Corporation Limited in December 2006. Out of this an amount of INR 40.45 crore has been disbursed upto July 31st 2007.

Another loan proposal for 100 MW Namrup gas based combined cycle power project, phase-I of Assam Power Generation Corporation Limited has been received by PFC. The financial sanction and disbursement depends upon the detailed appraisal and request received from the concerned state.

Rewas Ports to float a global tender for dredging contract

It is reported that the Reliance controlled Rewas Ports Limited will soon float a global tender to invite bids for INR 1,800 crore dredging contract. Mr KV Natarajan president of Rewas Ports Limited said that “We will be inviting bids for dredging soon.”

The 27 kilometers channel linking the port will have draught of 14.5 meters. Rewas port will have 10 berths with a capacity to handle 2.6 million TEUs in the first phase and a total investment in the project is about INR 5,114 crore. The work at the port would begin from January 2008 with the project being completed by October 2010.

Mr Natarajan also said that the port would have a debt equity ratio of 2:1 and ICICI Bank has been approached for financing the project. He added that “The port will have the facility to handle all type of cargo. There will be a lot of project cargo for SEZs coming up in Navi Mumbai. It will also have break bulk berths which would facilitate movement of coal for upcoming projects like TATA Power plant in that area. Liquid cargo would also be handled at the port. It will have car carriers too.”

NTPC and BARC to develop robotic based boiler tube inspection system

Mr Sushilkumar Shinde union power minister of India informed Lok Sabha recently that NTPC Ltd has signed MoU with Bhabha Atomic Research Centre on July 26th 2007 for collaborative research to Develop and Deliver Automated Boiler Tube Inspection System for Coal Based Thermal Power Plants.

This is a project to develop a prototype crawler for Automated Boiler Tube Inspection in Coal Based Power Station. NTPC Ltd will supply inspection probes and BARC will develop the technology and assemble the prototype Automated Boiler Tube Inspection System in their robotic lab at BARC. The prototype will be tested in one of the power stations of NTPC Ltd.

Preliminary estimated cost of this collaboration research project is INR 170 million and total time envisaged for completion of this project is 26 months.

ABG Shipyard delivers support vessel to Vroon BV

ABG Shipyard Limited announced that it has delivered a highly impressive new diving support vessel called Vos Satisfaction to the Netherlands based owner Vroon BV. It is the first vessel to be delivered to Vroon BV. Besides, ABG Shipyard Limited is building another 2 vessels for the Vroon group.

Vos Satisfaction, 61 meter long diving support vessel with 4 point mooring system, is able to carry out diving, rescue, offshore supply, transport pipes, fresh water, diesel oil, stores, materials and equipment, move men and materials between platforms and shore, external fire fighting and other related duties. The vessel is to supply, support the floating production offloading storage vessels, offshore oil and gas field on a twenty four hour per day basis.

WB to commission unit V of Santaldih power plant by 2007 end

ProjectsToday reported that West Bengal Power Development Corporation is expected to commission unit V with 250MW of Santaldih coal based power plant by December end 2007. Mr D Mukherjee DMG civil works of West Bengal Power Development Corporation said that that work is underway in full swing.

Development Consultant Private Limited is consultant and Simplex Infrastructures and BHEL are contractors for the INR 1,300 crore project.

On completion of the unit, West Bengal Power Development Corporation plans to take up unit VI with a similar capacity for implementation. The necessary environmental clearance from the ministry of environment and forests has been secured for the expansion.

21 MW Baramura gas power project in Tripura gets approved

It is reported that central government has approved setting up of a 21MW gas based Baramura power project in Tripura on August 22nd 2007. The project, which comes under North Eastern Council plan, will be implemented by the Tripura state electricity corporation and is estimated to cost INR 81.20 crore.

North Eastern Council would release 90% of the total project cost in phases as grant in aid, while Tripura government would provide the remaining 10% as loan from its own resources.

Manipur and Mizoram would also benefit from the project that would be implemented during the 11th five year plan.

MMK reports 47% YoY rise in H1 profit

Russian integrated steel making companies company Magnitogorsk Iron and Steel Works announced the results of its consolidated financial statements for the January to June 2007 period according to US GAAP.

MMK said that it has reported a 47% YoY increase in profits for the January to June 2007 period due to strong metal prices and a 44% YoY rise in sales. During the period it produces 6.48 million tonnes of steel and sold 5.95 million tonnes of steel products up by 9.4% YoY and 10.6% YoY respectively. It added that the average price of its steel products raised to USD 578 a tonnes in H1 of 2007 up by 26.8% YoY.

Financial results for the January to June 2007 period

1. The revenue of MMK Group in the first half of 2007 increased by 43.88% YoY as H1 of 2006 and amounted to USD 4000 million.
2. The income from operating activities came to USD 1,077 million or 26.93% of the revenue. The growth compared to H1 of 2006 amounted to 56.09%.
3. The consolidated net income of the company for the H1 of 2007 increased by 47.28% as compared to same period last year and amounted to USD 866 million. The net income accounted for 21.65 % of the revenue.
4. EBITDA for the H1 of 2007 came to USD 1 205 million or 30.13% of the revenue. Compared with the H1 of 2006 EBIDTA of the company grew by USD 420 million or 53.50%.

Income statement of MMK group

(In USD million)

AK Steel shifts its headquarters to West Chester

AK Steel Corporation announced that it has moved its corporate headquarters into a new, high technology office building in West Chester of Ohio. It had announced in February 2007 that it would move its headquarters from nearby Middletown in Ohio.

The new 136,000 square foot headquarters building is located at 9227 Centre Pointe Drive in the Union Centre area of West Chester and will provide office space for approximately 300 corporate employees who were previously housed in Middletown. However, all headquarters telephone and fax numbers will remain unchanged.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "We are excited to begin the next phase of AK Steel's growth and development in a new headquarters building that will help increase the quality, productivity and efficiency of our staff functions. The move to our new headquarters ensures that AK Steel's corporate team is better equipped than ever to service our domestic and international customers and support our manufacturing plants."

Followings are among the features of AK Steel's new headquarters:

1. State of the art technology, including advanced computing and communications capabilities that are necessary to improve the company's competitiveness.
2. More convenient face to face interaction with customers, suppliers and other important constituents.
3. Located in the heart of the southwest Ohio's growing metroplex, the new headquarters location is exceptional. It is located just off the Union Centre exit of Interstate 75, within an approximate 1 hour drive of 2 international airports, Cincinnati and Dayton.
4. The abundant amenities and services available in the West Chester and northern Cincinnati area will assist the company in attracting and retaining top professionals.

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

Japan H beam export was 21,724 tonnes in July

YIEH reported that Japan export of H beam in July totaled 21,724 tonnes down by 32.3% MoM but increases by 50.9% YoY.

The report added that export to South Korea amounted to 12,456 tonnes increasing by 47.2% YoY. The export price on average is at FOB JPY 82,000 per tonnes increasing by JPY 2,000 per tonnes from last month. And the export price to China is at FOB JPY 144,000 per tonnes. At the same time, Japan imported 5,760 tonnes of H beam in July. And there are 4,652 tonnes from China and 1,108 tonnes from South Korea respectively.

Gindalbie Metals plans USD 1.8 billion project developments with Anshan Steel

It is reported that Perth based Gindalbie Metals and its Chinese JV partner Anshan Iron & Steel are planning to undergo USD 1.8 billion development of their Karara magnetite and Mungada hematite projects in Western Australia's mid west region and an agreement for the twin projects could be signed this week.

Bankable feasibility studies in both the USD 1.7 billion Karara magnetite project and the USD 108 million Mungada project have confirmed robust economics.

The smaller Mungada project will be the first to roll, with its forecast annual output of 3 million tonnes a year of hematite iron ore to be shipped to Anshan Steel's operations in China from the first quarter of 2009, subject to environmental approvals and completion of financing. In the first stage of Mungada's development, the high grade hematite iron ore will be produced at Karara and transported to Geraldton port by road and rail. The plan is for rail only once the adjacent Karara magnetite project is commissioned in early 2010.

The decision to use road or rail transport in the first 15 months of production meant they could generate early cash flows in the lead up to the commissioning of the magnetite project. The feasibility study estimated the hematite project would generate free cash flow of USD 184 million from its initial reserve base.

Officials of Gindalbie said that "While the hematite business will commence at an initial rate of 3 million tonnes a year, our view is that there is enormous potential to grow this business rapidly with ongoing exploration. Anshan Steel had expressed its desire to expand production from Karara to meet its own growth requirements at its new steel making facilities in China. We therefore view the bankable feasibility studies as very much a base case for what we envisage will in time become a much larger project."

The feasibility study into the bigger magnetite project forecast initial free cash flow of USD 9.3 billion from the first 25 years of operations. The study envisaged a 20 million tonnes a year mining operation that would yield 8 million tonnes a year of magnetite concentrates grading 68.2% iron. That latter grade compares with the 61.5% iron grade of the direct shipping hematite iron ore at Mungada.

Two new contracts for Tenova Strip Processing in Bulgaria

Tenova Strip Processing Business Unit has announced that it has recently been awarded two contracts by the Bulgarian company Intertrust Holding of Botanize, Sofia. These acquisitions are part of a Cold Mill Complex, a strategic project for Tenova Strip Processing which also involves other Tenova Business Units. The commissioning includes the design of the plant’s global lay-out and the definition of the production cycles. The automation of both lines will be supplied through Presind, the Tenova internal department dedicated to Strip Processing Lines automation.

The first order is for a Push-Pull Pickling line with acid regeneration plant. The pickling line will have a production capacity of 400,000 tonnes per year while the acid regeneration plant will provide capacity of 2,500 liters per hour. The facility is scheduled to begin operations in the fall of 2008. The technology of acid regeneration, a field in which Tenova possesses full in-house know-how after the acquisition of Key Technologies permits the construction of lines with extremely low environmental impact. Tenova is in fact one of the few competitors able to offer integrated solutions of pickling and acid regeneration plants.

The second order is for a Hot Dip Galvanizing line. The 250,000 tonne per year line is equipped for the future installation of an additional galvanizing dip tank for the production of an aluminum-zinc alloy that enhances metal resistance to corrosion in countries with hot climates. The project has been granted together with the Italian office of Tenova LOI Italimpianti which will be responsible for the design and supply of the thermic section.

Worthington Industries warns of losses for steel framing unit

US steel service center and processing group Worthington Industries announced that the market conditions in its steel framing segment have not improved as expected, with both volumes and selling prices remaining weaker than anticipated.

Worthington’s steel framing segment during April to June 2007 quarter posted an 11%YoY decline in sales to USD 195.6 million. Volumes during the period fell by 8% and sales prices declined by 3%. Worthington reacted by shuffling its management and embarking on a cost cutting campaign that includes unspecified facilities closures.

Worthington said that the anticipated loss in its steel framing segment for the April to June 2007 quarter combined with continued weakness in the automotive sector and normal seasonal cyclicality, would result in earnings in the first quarter of its 2008 fiscal year. It said that “It is unlikely that the segment will return to profitability in the current quarter.” It added that increased competition, attractive pricing for alternative building materials and the general slowdown in the US residential construction industry.

Worthington Industry’s steel framing segment accounted for about 25% of the Worthington's fiscal 2006 sales.

Retech to use USD 20 million loan to export metals processing equipment to Baoshan

Thermal processing equipment manufacturer Retech LLC announced that it will use a USD 20 million working capital loan guarantee from the export import bank of the US to export its metals processing equipment to Baoshan Iron & Steel Corporation Limited of Shanghai in China. The working capital guarantee was approved last week by EXIM's board of directors.

Retech Systems will manufacture an electron beam furnace, a plasma arc melting furnace and a plasma welder for 3 Baoshan contracts. The equipment will be used to produce titanium ingots, which will be used to manufacture products for a wide range of industries. It will receive advance and milestone payments from Baoshan during the equipment manufacturing period.

United Commercial Bank of San Francisco, the guaranteed lender is providing the loan facility to support 3 export contracts of Retech Systems with Baoshan.

The EXIM guaranteed loan facility from United Commercial Bank will be used primarily to enable Retech to issue standby letters of credit to Baoshan as prepayment guarantees. The loan facility will also be used by Retech Systems for other working capital needs related to the Baoshan contracts.

Retech Systems is considered a market leader in sales of large scale electron beam and plasma systems. Export sales to 16 countries account for more than 50% of the company's total sales volume. It recently expanded its workforce to 100 workers, most of who are employed at its manufacturing plant in Ukiah in Northern California.

Tisco secures nickel pig iron from MCC

YIEH reported a subsidiary company of China Metallurgical Construction Group Co has singed a long term agreement with China’s biggest stainless steelmaker Taiyuan Iron & Steel to supply nickel pig iron.

As per report China Metallurgical Construction Group Co’s trading arm, International Economic & Trading Co has started to supply nickel pig iron from to Tisco this month.

China Metallurgical Construction Group Co owns many production facilities and claims of resources including iron ores, copper, gold, nickel, cobalt, zinc, lead and aluminum etc.

Pakistan introduces new mechanism for sales tax payment by steel units

Dawn reported that Pakistani federal board of revenue has worked out a mechanism for payment of sales tax by steel melters and re rolling mills operating on self generation basis through a sales tax general order No 5 issued on September 1st 2007.

As per report, the new system is evolved in consultation with all Pakistan steel melters association and Pakistan steel re rolling mills association. According to the new system, steel melters producing electricity with the help of gas generators shall calculate their sales tax liability on the basis of the gas bill for the relevant tax period.

Re rolling mills operating on self generated electricity shall discharge their tax liability on the basis of monthly sales tax payable through sales tax return. The registered persons shall deduct sales tax paid on diesel consumed from the payable amount as above provided the taxpayer holds valid sales tax invoice. In case a rolling mill operating on self generation basis remains closed for 7 or more days consecutively during a tax period, the registered person shall inform on telephone or fax to the respective collector of sales tax and the representative of the association prior to the closure of the mill.

A survey report shall accordingly be prepared by the monitoring committee comprising of the sales tax officer nominated by the concerned collector of sales tax and representatives of Pakistan steel re rolling mills association. The tax liability of the said mill shall be determined on the basis of the agreed formula for the number of days the mill remains in operation during the month.

Canada's Lakeside Steel to seek a public listing

According to a statement from Northern Financial Corporation the lead investor in a group that controls 48% of Lakeside, Canadian steel pipe and tubing manufacturer Lakeside Steel plans to rise between CAD 10 and CAD 50 million from an initial public offering of common shares.

Lakeside owns three steel pipe and tube fabricating facilities located on 92 acres of land at Welland in Ontario. The total production capacity is 200,000 tonnes. Lakeside's tubular steel products are primarily used in the oil and gas sector, with additional customers in the mining, automotive and metals fabricating sectors.

Since 2005, Lakeside has focused on achieving better pricing for volume steel purchases, the negotiation of discounts with suppliers and the reduction of outsourced services. As Lakeside completes its restructuring, the company's objective is to reach breakeven profitability over the next 12 month period.

Mr Vic Alboini chairman of Lakeside said that "All publicly-held Canadian steel companies have been sold to international or North American purchasers, including the recently announced sale of Stelco to US Steel. The timing is therefore right for Lakeside to go public and provide investors with an opportunity to invest in a Canadian steel company. Lakeside's twin objectives are to grow its organic business profitably and to carry out mergers and acquisitions of identified companies in steel-related or building products sectors."

Angang receives approval for share issue

Angang Steel Co has announced that share placement plan was conditionally approved by the securities regulator.

Angang Steel Co in a statement to the Shenzhen Stock Exchange said that trade in the company's CNY denominated stock which was suspended in Shenzhen pending a review of the plan will resume as of August 29th 2007.

Chinese steelmakers watching Baosteel, CVRD project in Brazil

BNamericas reported that more Chinese steelmakers could follow the path of compatriot Baosteel if that company succeeds in plans to build a steel mill in Brazil.

The report cited Mr Charles Tang president of the Brazil-China chamber of commerce and industry during an event in São Paulo promoted by London based business conference organizer International Business Communications as saying that "If Baosteel is successful others will come... There is no iron ore in China."

Rio de Janeiro based CVRD and Baosteel plan to build a 5 million tonnes per year steel slab mill in southeast Brazil's Espírito Santo state due to start operations in 2011. CVRD will have an initial 20% stake in the USD 3.6 billion project, while the Chinese company will hold the balance. Studies are underway for a possible expansion to 10 million tonnes per year.

Earlier the companies had plans to build a steel plant in northeast Brazil's Maranhão state capital São Luís but the state wanted the mill at Bacabeira 50 kilometer away. CVRD and Baosteel then looked to Espírito Santo for an alternative site.

UAE ranks top in ME in per capita steel consumption

It is reported that UAE has the highest per capita steel consumption in the Middle East compared with the Middle East average of just 67 kilograms. A steel industry expert said that "This means that the UAE alone consumes nearly 24 times more steel than the Middle East average primarily because of the booming real estate and huge investments in infrastructure developments taking place here."

Mr Abu Bucker Husain COO of Al Ghurair Iron and Steel a part of the Majid Saif Al Ghurair Group told The Business Weekly that steel sector is faring very well and oil price increase has created a lot of disposable wealth for investment in the region and Foreign Institutional Investors are also investing in the real estate market.

Standard & Poor estimates USD 1 trillion worth of projects underway or planned in the region leading to consistently high demand projections for steel.

Mr Husain added that in Dubai today with the ongoing Metro project, the new world's largest international airport coming up at Jebel Ali, the mega projects and the themed parks all will need steel, and right now there are not too many companies making steel in the UAE. The demand for steel will continue to be robust. Although there are about 15 companies in the steel industry in the UAE who make steel there are only four major players Emirates Steel Industry, Euro Gulf, Qasco and AGIS.

Mr Husain said that "We are in the final stages of completing our civil work and our erection team is already here to fix the equipment and machineries, all imported mainly from India. By the end of this year we will have our first plant ready and by January next year we will have the cold rolling line ready and by February or March our commercial production from the plant will begin."

He added that similar to most other industries in UAE, steel industry also has high dependency on foreign skilled labor. Mr Husain said that "With the increased cost of living in the UAE, there is the risk of migrant workers returning to their own countries due to the explosive growth and appreciating currency there. This can change if the government announces incentives to promote industries."

Speaking about the outlook for the steel sector Mr Husain said that according to The International Iron and Steel Institute during 2006 the use of steel increased due to global economic growth and rapid development in countries with high growth rates, such as India and China. He said that "It is estimated that demand for finished steel products in the Middle East grew from 34.7 million tonnes in 2005 to 37.6 million tonnes in 2006 and will escalate further to 40.7 million metric tons in 2007. This is 8.9% growth in Middle East as compared to 5.9% forecasted growth worldwide. Between the construction boom, cheap and reliable gas and energy, geographical positioning of UAE and the promotion of industries by Abu Dhabi government steel industry has some very good years to come.

The UAE consumes about 5 million tonnes of long products, which include billets, wire bars, wire gauge and rebars. Out of the five million tons only one million ton is domestically produced and the remaining four million tons is being imported. It consumes about 1.6 million tonnes of flat products which is also used in construction, air conditioners and automobile sector. Currently, there is no production of flat steel products within the UAE.

Shagang denies talks with Baosteel for merger

China's largest privately owned steelmaker Shagang based in east China's Jiangsu Province denied on September 2nd 2007 Oriental Morning Post reported that Baosteel had held talks for a purchase. There was report the other day that China's largest steelmaker Baosteel had been discussing with Shagang to buy shares and Goldman Sachs also planed to invest CNY 6.6 billion to take a 10% stake.

The report cited a well informed source that Baosteel will take a larger percentage shareholding than Goldman Sachs yet won't take control. Shagang will maintain nongovernmental property and the two big producers may combine the report form in future.

Baosteel posted No 6 among 2006 Fortune listed top steelmakers, while Shagang is a leading private mill located in Zhajianggang with total assets topping CNY 51 billion at present. In 2006, Shagang produced 14.63 million tonnes steel. If combined, Shagang and Baosteel will boast second largest output of some 37.16 million tonnes per year.

(Sourced from MySteel.net)

Guangdong hopes to import more coal from South Korea and Russia

Interfax China reported that Guangzhou based South China Coal Trading Center is currently in talks with South Korea and Russia regarding the possibility of importing more raw coal from those countries in order to address the diminishing supply of coal in Guangdong Province.

Inprom gets prepared for entering the Siberian market

According to estimates of INPROM OJSC, monthly average consumption of metal in the distribution market of the Siberia’s Novosibirsk region totals about 35,000 to 40,000 tonnes.

Novosibirsk is developing an extended network of branches in Russia's key regions to succeed in highly competitive market. It said that the opening of a branch in Novosibirsk is a planned action in the development of a branch network.

Search for 6 men trapped in Utah coal mine indefinitely suspended

AP reported that Utah federal officials have indefinitely suspended efforts to find miners Mr Kerry Allred, Mr Don Erickson, Mr Luis Hernandez, Mr Carlos Payan, Mr Brandon Phillips and Mr Manuel Sanchez that have not been seen since August 6th 2007 when a thunderous mountain shudder caused ribs in the Crandall Canyon Mine to implode trapping them for nearly a month inside a coal mine after a robotic camera failed to provide any useful information.

Mr Allyn Davis a regional director for the mine safety and health administration told the families that the robotic camera was successfully dropped down the fourth of seven holes bored into the mountain, but that it quickly became stuck in the mud as it moved over piles of debris. He added that officials also could not retrieve the camera and had to leave it stuck about 15 meters from the surface.

Mr King spokesman for all six families said that "They did not rule out the possibility of an eighth hole, but Mr Davis really did not give any indication that they were seriously considering it. Not unless somebody came forward with new information. He added that the steadfast families had a difficult time with the news, there were tears.

It isn't known whether they survived. Three rescuers working underground were killed in a second collapse August 16th 2007, another disaster that has foreclosed a separate way to reach the miners. Federal safety officials have drilled a series of vertical bore holes into the mine in hopes of locating the 6 but at each spot have found no signs of life and oxygen levels too low to sustain life.

Boehler-Uddeholm H1 net income up by 32% YoY

Austrian special steel company Boehler-Uddeholm AG announced that it’s January to June 2007 net income grew by 32% YoY due to sustained strong demand and continued high prices.

Boehlerr-Uddeholm said that its January to June 2007 Earnings before interest and taxes increased by 32% YoY to EUR 229.1 million as compared with the January to June 2006. Earnings before tax increased by 32% from EUR 161.1 million to EUR 213.1 million. Sales increased by 18% to EUR 1.82 billion. Order intake was up by 31% to EUR 1.76 billion in the first half of 2007.

Boehler-Uddeholm in a release said that it had pursued an ambitious investment program in the first half of 2007, including investments in its plants in Brazil, China and Austria. It added that high level demand is expected from customers in the fields of energy production, oil field service, aircraft and machinery construction. Developments in raw material prices, energy costs and exchange rate fluctuations may however still affect results.

Boehler- Uddeholm which was taken over by its Austrian competitor voestalpine earlier this year predicts equally positive results for the full year.

Coal mine collapse kills two, injures one in Xinjiang

According to China’s local media two miners were killed and another injured in a coal mine cave in Northwest China's Xinjiang Uygur Autonomous Region.

As per report the collapse took place at the shaft of a coal mine affiliated to Hutubi County Water Supply and Heating Company at about 7:20 PM on Sunday when 13 miners were working inside the coal mine. One miner was crushed to death by the fallen debris on the spot, two others were seriously injured. One of the seriously injured died shortly after he was pulled out. Other workers escaped unhurt. The sources added that the other seriously injured one remains in hospital but has been out of danger.

The coal mine only has an annual production capacity of 30,000 tonnes. Cause of the collapse is under investigation.