RSP witnessed an all time best August production performance

SNS reported that SAIL’s Rourkela Steel Plant has continued its production momentum during the current fiscal with yet another impressive performance during the month of August 2007.

RSP witnessed an all time best August performance in several production departments including sinter production of 2,79,514 tonnes up by 107% YoY, hot metal output of 1,78,643 tonnes up by 105% YoY, total crude steel production of 1,66,780 tonnes up by 103% YoY and total saleable steel production of 1,94,508 tonnes up by 137% YoY.

Similarly, the best ever August production was also achieved in total hot rolled coils at 1,51,294 tonnes, hot rolled coils for sale at 79,830 tonnes, plates at 43,786 tonnes, hot rolled plates at 28,999 tonnes and silicon steel at 7,153 tonnes, registering more than 100% fulfillment of the annual performance plan for these finished products for the month of August.

Simultaneously, RSP dispatched 1,74,183 tonnes steel, besides being the best for any month of August, was also nearly 24% higher in comparison to August 2005.

Based on its August 2007 performance, RSP had its all time best production levels for the April to August period in major areas like sinter with 1.398 million tonnes, hot metal with 0.874 million tonnes, total saleable steel with 0.813 million tonnes as well as dispatch of steel with 0.768 million tonnes. All time best April to August performance was also achieved in finished products like hot rolled coils for sale with 2,97,868 tonnes, hot rolled plates with 1,30,082 tonnes and CRNO steel with 32273 tonnes.

RSP has been pursuing the objective of higher capacity utilization to bring down the cost of production and will help it improve its profitability as well.

Kalyani Group takes over RSB Consult GmbH for undisclosed amount

It is reported that Kalyani Group has adopted Germany’s wind turbine manufacturer RSB Consult GmbH for an undisclosed amount to escalate its presence in the fast developing wind power segment.

Mr BN Kalyani chairman of Kalyani said that “We are already present in the wind energy sector, both as a wind farm operator as well as a supplier of components. Kalyani therefore is ideally positioned to further enhance its role in this sector as a wind turbine manufacturer.”

At first, Kalyani will concentrate on European and Indian market and by next 3 years, it plans to spread out to other key markets like the US and China.

The annual size of the wind energy segment business is around 20,000 MW internationally and 2,000 MW in India. Worldwide long term expansion rates are likely to be 16% and by 2010, the universal market would be 30,000 MW.

RSB is a well established design and consulting firm with experience in the wind industry and clients all through the world. It was established in 2003 and presently has continuous design capability from components to turbine systems and is processing wind industry projects crosswise Europe plus in China, Japan and India.

The Kalyani Group was established in mid 1960s. It is a top industrial multinational with interests in formations, automotive constituents, engineering quality steel and many others. The annual turnover of Kalyani group is USD 2.1 billion and the market capitalization of its listed entities exceeds USD 5 billion.

NMDC rejects JSW Steel's request on Kumaraswamy mines

It is reported that India's miner National Mineral Development Corporation Limited has shot down a request by JSW Steel to ensure adequate supply of iron ore from Kumaraswamy mines in Karnataka for meeting its growing production requirement, saying a merchant mining company cannot do so for only one customer.

A top steel ministry official said that "As regards the request for JSW Steel dedicating Kumaraswamy mines to meet its requirement, NMDC has made it clear that a merchant mining company like NMDC cannot dedicate its entire production from the mine to one customer. This is obviously to maintain flexibility of operations to meet the requirement of various customers."

The official added that "Kudremukh Iron Ore Company Limited consequent to closure of its mine is heavily dependent on the mining giant. Moreover, companies like VISL, SJK, KISCO, SISCOL and Lanco were also dependent on it for meeting at least part of their requirement and they have been continuing with NMDC since long when the domestic demand in the Donimalai mines was low."

Mr Vinod Naval executive director commercial of JSW Steel said that his company had sought ore linkage from NMDC's Kumaraswamy mines. He pointed out that currently JSW was getting 2.5 million tonnes from it and was asking for more than 4 million tonnes.

NMDC has also expressed inability to ensure adequate ore for the steel company from its Donimalai mines saying the needs of the existing domestic and international customers were being met from the said site.

Indian steelmakers raised HRC prices

It is reported that rising input costs have led major Indian steel producers like TATA and Ispat to raise prices of hot rolled coils by INR 500 to INR 900.

An Ispat official said that "We have hiked prices by about INR 800 to INR 900 for HR coils owing to rising input costs."

Similarly, a TATA Steel spokesman said that the world's cheapest steelmaker has increased spot prices of HR coils by INR 500 to INR 900. However, a top JSW Steel official said that it would decide on raising prices on September 4th 2007.

Though reports say that other producers such as Essar and SAIL too have increased prices, their spokespersons did not confirm the same.

SAIL panel to probe Bokaro plant fire

Steel Authority of India Limited has constituted a committee to probe into the fire incident in a mill in its Bokaro plant.

SAIL in a press release said that "SAIL has set up a high powered committee to conduct an inquiry into the incident to recommend measures to avoid recurrence of similar nature at any of its plants."

The release added that the fire fighting teams aided by 11 fire tenders were able to extinguish fire and the cold rolled mill will be made operational by September 4th 2007.

Indian iron ore export prices reach USD 140 mark

China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on September 3rd 2007.

The change is with respect to prices posted on August 27th 2007.

The movement of CCCM released prices over last one year indicates an increase of 100% in FOB prices and 94% in CIF prices. The price increase since January for both FOB is 89% and CIF deliveries is about 82%

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

PGCIL to raise funds for expanding transmission network

Power Grid Corporation India Limited announced its plans to invest INR 55,000 crore in the next five years to expand the national grid capacity to transmit 37,000 MW of electricity by 2012.

To part finance these projects, PGCIL is hoping to rise up to INR 3,000 crore from its IPO. The issue, which opens on September 10, would mop up INR 2,525 crore at the lower end and INR 2,984 crore at the upper end. PGCIL would issue 57.39 crore equity shares of INR 10 each at a price to be determined by 100% book building route. It would constitute 13.64% of the fully diluted post issue capital of the company.

Mr RP Singh CMD of PGCIL told reporters "The price band for the issue has been fixed between INR 44 and INR 52 per equity share. The proceeds would be used to part finance 15 projects that entail a total investment of INR 12,280 crore. These projects are to be funded in a debt-equity ratio of 70:30. The equity is to be funded by a combination of internal accruals and proceeds from the fresh issue.”

PGCIL owns and operates 61,875 circuit kilometers of transmission lines and the proposed 15 projects would enhance its transmission system by 13,022 circuit kilometers. PGCIL currently has inter-regional electricity transfer capacity of around 14,000 MW and plans to scale it up to 37,000 MW.

SCI to extend date for Panamax bid submission date - Report

BL reported that Shipping Corporation of India has decided to extend the last date for bid submission for acquisition of four Panamax size bulk carriers due to requests from prospective shipbuilders.

The report cited a source as saying that “The bidders requested for about two three more weeks for due diligence. Thus taking their concern into account, SCI would extend the date for submitting bids by a few days.”

This tender for four vessels is a part of the block acquisition of 12 vessels for which SCI had received a Cabinet approval recently. Friday was the last date for the shipyards to submit their technical qualification bids for the tender, through which SCI aims to acquire 75,000 DWT bulk carriers. The vessels to be procured have to be designed as single hull Panamax size bulk carriers that can be used for unrestricted ocean going service worldwide.

And from the 12 vessels, SCI has already placed orders for six with the Hyundai Heavy Industries for acquiring four Aframax crude oil tankers and two long range-II size product tankers at a cost of USD 426.64 million.

New Mangalore Port posts 124% YoY in rail cargo

BL reported that the New Mangalore Port Trust has posted 124% growth in handling Railway-bound cargo during the current fiscal while total cargo handled also grew 15.90%. The port handled 1.95 million tonnes of Railway traffic till Friday against 0.8 million tonnes during the corresponding previous period.

Mr P Tamilvanan chairman of New Mangalore Port Trust attributed the growth in Railway cargo to factors such as addition of various facilities at the port and the commissioning of the Hassan to Mangalore Railway line for freight traffic and the subsequent reduction of freight charges to various hinterland destinations.

The travel distance between Hassan and Mangalore has come down to 260 kilometer after the commissioning of the railway line for freight traffic on May 5th 2006. This has helped in bringing down the freight charges from INR 727 a tonnes to INR 229.

Added to this, the port took steps to renovate all the five Railway lines at the marshalling yard and laid platforms and installed high power tower lights. Kudremukh Iron Ore Company also added four Railway lines at the marshalling yard.

These factors helped in the smooth handling of Railway traffic at the port leading to an impressive growth in this segment. The port handled a total traffic of 14.14 million tonnes during the period recording a growth of 15.90%.

JCB to invest INR 300 crore for expansion at Ballabgarh unit

It is reported that construction and agriculture equipment manufacturer JCB Group is investing INR 300 crore for expansion and modernization of its existing plant at Ballabgarh in Haryana.

An official spokesperson said that the expansion work is being carried out on 16.74 acres of land, adjacent to JCB India's existing plant at Ballabgarh, previously owned by the Haryana Urban development Authority.

Mr BS Hooda CM of Haryana during his trip to Europe had met Mr Anthony Bamford Chairman of JCB at Rocester UK where a request was made to the CM for additional land near the existing factory. The foundation stone of the expansion project at Ballabgarh was laid by Mr Hooda on the August 14th 2007, in the presence of Mr Matthew Taylor CEO of JCB Group and Mr Alan Blake head of manufacturing of JCB's.

Mr Hooda said the expansion work, which is expected to be completed by the end of 2008 would help to create employment opportunities at JCB and supporting ancillaries in and around the factory.

BHEL to set up coal gasified thermal plant at Vijaywada in AP

BS reported that Andhra Pradesh government has agreed to adopt the first of its kind coal gasification combined cycle gas power project technology offered by the Bharat Heavy Electricals Limited.

Following the government’s favorable response, BHEL and Andhra Pradesh Power Generation Corporation would sign a MoU to set up a 125MW coal gasification combined cycle power plant at the Vijayawada thermal power station shortly. The new technology would reduce the pollution levels in power plants.

UP government allows R ADAG to set up power project in Noida

TNN recently reported that the Utter Pradesh government is willing to let R ADAG set up a power plant in Noida over 500 acres of land if it wants to do so after it recently rejected R ADAG’s proposal for setting up a 2,500 acre multi product special economic zone in Noida.

Senior state government official said R-ADAG had been allotted 500 acres by the previous state government and this was to form part of the 2,500 acre SEZ. As these 500 acres is available with R-ADAG, the present state government has indicated that if the group wants it can set up a power plant in this area.

If the proposed 1000MW power plant gets underway, it will potentially help address the power crisis in western Uttar Pradesh to a great extent. R ADAG’s Reliance Natural Resources is developing a 3,500MW gas based power in the adjoining Dadri district with an investment of about INR 10,000 crore. In addition Reliance Energy is setting up a 600MW coal based power project in Shahjahanpur. The three projects together can potentially make Uttar Pradesh a power surplus state.

Enercon setting up 4 windmill power projects

ProjectsToday reported Enercon India is setting up four windmills, two in Madhya Pradesh and one each in Gujarat and Tamil Nadu.

Apart from the 50MW windmill coming up at Indore in Madhya Pradesh it has also set up a 5 MW power project at Jotur in Dhar district. According to a company official about 20 % work is complete on the Indore project and a PPA signed with MPEB. The project will be completed by March 2008. Around this time, the company expects to complete its 90MW Jamnagar windmill. About 50% of civil work on the 48MW Tamil Nadu project is complete.

Maharashtra requested supply of coal on tapering basis

Dr Dasari Narayana Rao, union minister of state for coal said that Maharashtra State Power Generation Company Limited has requested supply of coal on tapering basis for their future expansion projects till their coal blocks come into production. These expansion projects include Bhusawal-3, Parli-3, Paras-3, Koradi-1, Chandrapur-1 and Koradi-2.

Dr Rao added that the request from the government of Maharashtra was for supply of coal from Western Coalfields Limited area. The standing linkage committee on power has approved letter of assurance to Mahagenco on tapering basis on cost plus basis from Coal India Limited or specifically linked company, to the tune of maximum quantity of 2 million tones per annum keeping in view actual requirement/shortfall from the captive mines of Mahagenco.

However, the commercial arrangements in this regard would be worked out between the consumer and CIL or specifically linked company for supply of coal on short term tapering basis. In addition, Mahagenco has also been granted letter of assurance to the tune of about 10 million tones during 2006 for their power projects.

GMR Group undertakes a significant restructuring program

GMR Infrastructure has informed BSE that GMR Group has announced a significant reorganization plan aimed at accelerating its ongoing institution building focus and providing a greater impetus for its growth.

The change is a move by the GMR Group to capture the attractive opportunities emerging in the infrastructure sector, both in India and abroad. Two thirds of the USD 475 billion earmarked by India, for infrastructure development over the next 5 years will be in GMR Group's areas of focus, addition to international opportunities that unfold as several governments across the world seek the expertise of private developers to upgrade their infrastructure projects.

Over the past few years, GMR Group formalized a family governance model, robust process platforms and nurtured a high performance organization culture based on a strong emphasis on distinct values and beliefs.

Details of the organizational change are:

Mr GM Rao CMD of GMR Group assumes role of chairman. He will move away from routine operations and focus on Group level strategy. He will be involved only in key Group level decisions, driving important external relations, mentoring senior leaders and championing key organization building initiatives. He will also focus on mega projects such as Delhi international airport. He will also oversee the functions of the management assurance group, corporate relations and the GMR Varalakshmi foundation.

Individual business or corporate chairman to take charge of respective businesses and functions. In the new roles, each chairman will be responsible for a portfolio of businesses or functions. Their primary responsibility will be to set the vision, guide the CEOs or functional heads to lead the Group's growth into new businesses. Mr K Balasubramanian chairman of the Agri business will be member of the GMR Holding Board, support initiatives on strategic reviews, Foundation projects and other institution building measures.

New roles of business chairmen effective October 1st 2007:

Mr B Srinivas MD of Delhi International Airports Private Limited will now be chairman urban infrastructure and highways including the SEZ business.

Mr BVN Rao director of GMR Group will now be chairman of energy and agri of the group.

Mr GBS Raju CFO of GMR Group will now be chairman corporate, responsible for HR, finance, corporate strategic planning, central procurement and corporate communications. He will also be responsible for the international business division such as Sabiha Gokcen airport project in Istanbul in Turkey.

Mr Kiran Grandhi MD of the new Hyderabad international airport will now be chairman airports, responsible for Delhi international airport, GMR Hyderabad international airport and airport business development.

Professional CEOs to drive in individual businesses:

They will be responsible for leading the businesses and delivering annual operating plans, mentoring heads of departments and their deputies. While CEOs for Delhi international airport, roads and agri business have been appointed, CEOs for the energy sector and GHIAL will be identified shortly.

GMR holding board to comprise of group chairman, business chairman, corporate chairman & up to two external advisors:

The board will be the apex decision making body for the group, it will focus and drive strategic initiatives, approve business and annual operating plans besides developing a pool of leaders for the future.

GMR Group has an asset base of over INR 3,600 crore with additional investments in the short to medium term for ongoing projects in the range of INR 14,000 crore. It is also building a portfolio of high quality assets that include two airports, a brownfield expansion at New Delhi and a Greenfield airport at Hyderabad. Recently, the company won the bid for the brownfield airport modernization of Sabiha Gokcen International Airport at Istanbul in Turkey.

GMR Group also has 8 Greenfield power plants, 3 in operations and 5 under development and 6 road projects of which 3 are annuity and 3 toll based. Recently the Group also signed a MoU with the Tamil Nadu Industrial Development Corporation for developing a 3300 acre multi product ecologically efficient SEZ in Krishnagiri district.

NLMK net profit up by 12.8% YoY in H1

Novolipetsk Steel has announced its consolidated results for the January to June 2007 period. Its sales revenue increased by 42% to USD 3.6 billion in January to June 2007 with gross profits rising by 52% to USD 1.7 billion.

Operating income increased by 50% YoY to USD 1.38 billion, while earnings before income, taxes, depreciation and amortization grew by 59% YoY in the reporting period to USD 1.57 billion.

NLMK’s key financials for H1 of 2007

(In million USD)

Mr Galina Aglyamova VP Finance & CFO of NLMK said that “NLMK has demonstrated strong financial results in H1 2007. The EBITDA margin stood at 44%, five percentage points higher than in H1 2006. Operating income surged 50% on a year on year basis. The company’s sound performance was driven by the favorable pricing environment in our core markets, asset consolidation and a well balanced sales structure. We believe NLMK Group should demonstrate strong financial results and strengthen its position among world’s most profitable steelmaking companies in the remainder 2007. At present, we observe signs of deterioration in steel market conditions that may result in possible price weakness towards the end of the year. However, NLMK’s diversified sales structure, strong balance sheet and stable cash flow should enable us to reduce these risks and secure the company’s operational stability.”

Zinifex completes transfer of zinc smelting and alloying business to Nyrstar

Zinifex announced that it had completed the transfer of its zinc and lead smelting and alloying assets to Nyrstar thereby formally launching the JV with Umicore and creating the world’s largest zinc metal producer.

Incorporated in Belgium and headquartered in London, Nyrstar has wholly owned operations in Australia, Belgium, France the Netherlands and the USA and joint ventures in Australia, China and France as well as a 24.9% interest in Padaeng Industry Public Company Limited in Thailand.

Nyrstar’s shareholders, Umicore and Zinifex, have contributed approximately 40% and 60% respectively of the relative value of Nyrstar’s assets.

Nyrstar is however structured on an equal ownership basis, with Zinifex and Umicore each owning 50% of the shares in Nyrstar and having equal voting rights, with an appropriate equalisation arrangement to be implemented at a future point.

The formation of Nyrstar marks another significant milestone in the transformation of Zinifex to a fully fledged mining company. It is the intention of both Zinifex and Umicore to undertake an initial public offering of shares in Nyrstar at an appropriate time.

Mr Paul Fowler CEO of Nyrstar commenting on the launch of Nyrstar said that “Today marks the birth of Nyrstar, the world’s largest zinc producer. With a global presence, sophisticated operations and high quality products, we are well positioned to benefit from increased economies of scale and synergies across our asset base. As the largest producer of zinc in the world, we expect to play a leading role in the development of the industry, including helping to consolidate the currently fragmented zinc industry.”

MR Julien De Wilde chairman of Nyrstar said that “The creation of Nyrstar builds on the long heritage of zinc production in Belgium and combines it with high quality assets from Australia and around the world. Our very experienced and skilled team, combined with our extensive asset base, means that we are in an excellent position to realise the potential of the global zinc market.”

Metal One to invest in new steel mill in Pakistan

It is reported that Japan's Metal One Corp a subsidiary of Mitsubishi Corp will have a 26% in Aisha Steel Mills a JV firm being set up in Pakistan to meet growing demand.

Mr Hasib Rehman CEO of Aisha Steel Mills said that Pakistani firms Universal Metal Corp and Arif Habib Ltd will have a 49% and 25% stake respectively in the venture being established in Karachi at a cost of USD 100 million.” He added that the plant is expected to be completed in two years and it will have an initial capacity of 220,000 tonnes per annum. The steel mills will cater to the growing demand of cold rolled coils in the country and cater to the automotive and engineering industries as well as value added products for the home appliances sector. The capacity of the mills will be later increased to 350,000 tonnes.

Aisha Steel Mills would be the second Pakistani firm to manufacture CRCs after the state-run Pakistan Steel Mills.

Xstrata join hands with Fonds Restor-Action Nunavik

Xstrata Nickel announced that it join forces with the Fonds Restor Action Nunavik towards the common purpose of the cleanup and restoration of mining exploration sites in Northern Quebec abandoned by exploration or mining companies no longer in existence.

Xstrata Nickel will contribute CAD 250,000 to the Fonds Restor Action Nunavik through a financial contribution and by providing accommodation, transportation and disposal of dangerous materials.

Xstrata Nickel’s Raglan Mine voluntarily undertakes safe and environmentally sound decontamination activities in the region surrounding its property every summer and is an active participant in the annual Cruise North Arctic Clean Up Mission during which employees of the company roll up their sleeves and work alongside Inuit and others with a passion for the North as they remove waste materials that threaten to harm the fragile ecosystem.

Mr Ian Pearce CEO of Xstrata Nickel said that "This partnership between government, industry and the Inuit communities will help restore the Canadian Artic, a region where we operate our Raglan mine. I would like to commend the leaders of the Inuit community, the Government of Quebec and fellow members of the mining industry for their concrete actions to remediate selected sites. Our company and our employees have a sense of obligation toward the local environment and take great pride in helping to remediate these abandoned mining exploration sites."

Norilsk closes deal for USD 3.5 billion loan

Reuter reported that Norilsk Nickel has closed two syndicated loans worth USD 3.5 billion for its acquisition of Canada's LionOre Mining International.

Norilsk said that the loans were part of a USD 6 billion finance package arranged by BNP Paribas and Societe Generale and signed June 22nd 2007. The first syndicated loan for USD 2 billion was a five year pre export finance facility and the second a USD 1.5 billion three year dual tranche unsecured term loans and revolving credit facility.

Norilsk acquired LionOre the world's 10th largest nickel miner for CAD 6.8 billion after outbidding Xstrata. The acquisition will allow Norilsk to become the first company to produce in excess of 300,000 tonnes per year of nickel a metal used in stainless steel and to spread geographically through LionOre assets in Australia, South Africa and Botswana.

Gindalbie Metals - Completion of USD 39 million share placement to Ansteel

Western Australian iron ore company Gindalbie Metals Limited has announced that it has completed the allotment of 65 million shares at an issue price of 60 cents each to Angang Group Hong Kong Limited following the receipt of AUD 39 million in respect of the share placement to Ansteel announced on June 4th 2007.

The placement is within the limit set out in the ASX Listing Rules and will be issued immediately under the Company's 15% placement capacity. The placement shares will rank pari passu with the Company's existing ordinary shares from the date of allotment.
Following allotment of the shares Gindalbie will have 508,728,850 shares on issue with Ansteel becoming its second largest shareholder with a 12.78% interest. Ansteel is Gindalbie's 50% JV Partner in the Karara Magnetite and Mungada Hematite Projects in Western Australia's Mid West region.

The proceeds of the share placement will be used primarily to further develop the Karara and Mungada Projects. Gindalbie and Ansteel recently released positive Bankable Feasibility Studies for both Projects.

Mr Garret Dixon MD of Gindalbie's commenting on the completion of the share placement that "This investment by Ansteel represents a very strong endorsement of Gindalbie's assets, management team and business strategies as an emerging international iron ore company, complementing the existing joint venture relationship between our organizations."

He added that "The funds raised will further strengthen our balance sheet and will contribute towards the successful implementation of these significant new iron ore projects. On behalf of the Board, I would like to welcome Ansteel as a new shareholder in Gindalbie further enhancing an already strong and very productive working relationship forged over the past 18 months."

Moody assigns B3 rating to Ukraine Zaporizhstal

Moody's Investors Service announced that it has affirmed the 'B3' corporate family rating of VAT Zaporizhstal citing the Ukrainian steel producer's stable but below industry average operational and financial results in 2006 and first half of 2007 underpinned by continued benign market conditions. The ratings agency has a stable outlook on the ratings.

Moody's said that in addition to the use of less efficient production technology, the low profitability may be partly attributed to the lack of transparency in the transfer pricing to related, but unconsolidated companies including trading partners responsible for the majority of export sales and purchases of raw materials.

Yusco lifts stainless prices for September

It is reported that Taiwan's largest stainless producer Yieh United Steel Corp is adding its export price for September 2007. The rise in prices is mostly stimulated by price hike in China’s stainless steel mills. The new price for exporting was increased by USD 50 to USD 100 per tonnes.

Yusco said that while for domestic market, the prices will remain the same level as Augusts 2007 and the production cut of September is as same as that of August.

Steel firms face increasing challenge to meet demand

Khaleej Times reported the Middle East regional steel manufacturers have an increasing challenge to meet the demand created by the construction boom in the region and need to invest in training their human resources to enhance the technical advancement in quality and operational efficiency, observed an expert.

Mr Yasir Barlas MD of Global Business Solutions during an interview said that the Middle East region's demand for finished steel products was 37.6 million tonnes in 2005, compared to production of 15.3 million tonnes. This represents a significant imbalance between demand and supply and creates an opportunity for indigenous producers as long as they are able to compete with international players in delivery and quality. He added that "The increase in petroleum prices has led to a boom in the construction industry with an unprecedented growth in the consumption of steel products."

Mr Yasir pointed out that because of the high demand for steel, particularly, reinforcing bars, there is a strong desire by the regional steel manufacturers to enhance their current capacity to meet the increased demand. Furthermore with more and more rebar manufacturers coming online there is tough competition between the players to be more productive. He stressed that "In order to achieve this, the Middle East producers need to enhance their technical advancement in quality and operational efficiency. It is also important that their engineers understand the fundamentals of the rolling process to avoid production loss."

However he pointed out that steel making is a very lucrative but a cyclical business worldwide and an economic downturn can reduce the margins making it hard for inefficient producers to survive.

Global Business Solutions a leading provider of technical training and assistance and management services to the steel industry in the MENA region, joined hands with Roll Designs International of the United States, to tap the opportunity to help the industry. Recently, they organized the second Annual Rolling School in Dubai, to offer training which has benefited employees of more than 130 companies from 40 different countries in the last 19 years. The training program was sponsored by the Al Tuwairqi Group of Companies from Saudi Arabia, which has steel plants in five countries with an annual production of 3 million tonnes per year and expects production to reach 10 million tonnes per year by 2015.

Mr George Matyas president and founder of Roll Designs International and senior technical advisor to the Al Tuwairqi Group said that "In our technical program we offer the best of class and comprehensive training in productivity enhancement of rolling mills. The uniqueness of this offering is that our instructors have over 30 years of experience in rolling mill pass design and on the floor operating practices. With our in depth knowledge and expertise we are able to maximize our client's return on assets. Our training program is optimized to have the most efficient number of instructor to student ratio. We are in talks with two big groups in steel from Egypt and Turkey to do an exclusive workshop for their employees.”

AK Steel announced October 2007 surcharges for electrical steel

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

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

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

Eramet group results for H1 of 2007

French metals and mining company Eramet announced that its H1 2007 profit is more than doubled driven by a favorable market environment and exceptionally high nickel prices.

Eramet said that during the H1 of 2007 its operating profits from ongoing operations up by 123.5% to EUR 581 million for the group and 260% to EUR 437 million at Eramet Nickel. Group net profits up by 124% to EUR 271 million and operating margins rose to 32% from 17%.

(In million EUR)

Looking ahead, Eramet forecast that operating profits from ongoing operations to be significantly higher than in 2006, despite the sharp downturn in the nickel market observed since the start of the second half. It added that it does not expect Eramet Nickel to reach its deliveries target of 55,000 tonnes for the full year, given a strong falloff in demand for the metal at present. It expects nickel prices to remain volatile going forward.

It is also aiming for a fast rate of growth in its main business lines, notably mining and metallurgy, with a focus on expansion in China, Indonesia and Canada.

Maanshan to issue short term debentures worth USD 265 million

Interfax China reported that Maanshan Iron and Steel Company Ltd the Shanghai-listed arm of Maanshan Iron and Steel Group plans to issue 1 year debentures worth a total of CNY 2 billion (USD 264.67 million) on August 31st 2007.

Magnitogorsky Plays Part with USD 117 million auto plant

The Committee for Economic Development, Industrial Policy and Trade said in a statement that Magnitogorsky Metal Plant will invest RUB 3 billion (USD 116.8 million) into a new production complex in St Petersburg. It will invest into a service center and a plant for the production of standard metal details.

Mr Rafkat Takhautdinov VP for strategic development at Magnitogorsky Metal Plant was cited in the statement as saying that “Realization of this project is in accordance with the company’s strategy. About three billion rubles will be invested into construction of the plant. Due to begin operations in 2010, the site will have an initial processing capacity of 125,000 tons of metal a year. In the long term production volume could increase to 300,000 tons a year.”

Mr Sergei Fiveisky deputy chairman of the committee for economic development industrial policy and trade said that “To base this project in St. Petersburg is logical given the investment projects planned by world automotive giants like Toyota, Nissan, General Motors and Suzuki. It will help to create a cluster of car components and details producers in the city. He added that besides being a modern production complex, this plant will create additional jobs and provide additional revenue for the local budget.”

Magnitogorsky Metal Plant is one of the largest ferrous metallurgy enterprises in Russia occupying 20% of the national market.

Steel Dynamics updates Q3 earnings guidance

Steel Dynamics Inc has announced that it is adjusting its earnings guidance for the third quarter of 2007 based on better information that is now available regarding required purchase accounting adjustments related to the July 2nd 2007 acquisition of The Techs.

Mr Keith Busse chairman and CEO of Steel Dynamics said that “At the time of our July guidance, we suggested that we would update our estimates by the end of August 2007 if necessary for certain purchase accounting charges related to The Techs acquisition. The company is still in the process of determining final purchase price allocations for The Techs acquisition and the resulting impact on our third quarter earnings. However, based on current estimates we believe third quarter earnings could be in an updated range of USD 1.02 to USD 1.07 per diluted share.”

Mr Busse commenting on current steel industry conditions that “In our July 23rd 2007 news release and during the subsequent conference call we discussed steel market conditions and offered our views on the third quarter. We have no significant changes in our assessment to report at this time. Flat-rolled steel market conditions are improving, resulting in steady order activity and moderately increasing selling values. Structural and bar steels continue to experience solid bookings and pricing strength. He added that order rates for fabricated building products remain strong. Lower steel scrap costs for the third quarter, as we mentioned previously, will have a positive impact on the quarter’s results due to our favorable scrap inventory position, and we expect the moderate increases in scrap pricing seen recently not to seriously impact our profit margins in the near term.”

Mr Busse said “Taking a longer view, we remain optimistic that 2007 will be another record-setting year for Steel Dynamics in steel shipments, revenues, and earnings. We continue to benefit from our diversified product mix, new product offerings, added production capacity, low cost-structure, effective scrap procurement programs, and continued commercial acceptance of our steel products. He added that with the addition of the Techs for the second half of the year, we will significantly increase our market share in value added hot-dipped galvanized steel products. We continue to make investments to support our future growth, with a recently announced caster project at the structural mill expected to bring our annual steel production capacity to 6.7 million tons by 2009, plus the capability of The Techs facilities to process an additional 1 million tons of flat-roll steel.

JFE Steel raises prices of stainless steel 400 series

YIEH reported that Japanese JFE Steel has announced to increase price on stainless steel 400 series by 20,000 per million tonnes.

JFE said the main reason of that is to cover the higher raw material costs. The move is expected to have a knock on effect as other producers follow suit. Besides, it is planning to focus more on domestic auto, electronic and building sectors in the near future by reason of strong demand for stainless steel 400 series.

Macarthur says rail capacity to curb 2008 Australian coal sales

Bloomberg reported that Macarthur Coal Ltd, Rio Tinto and rival Australian coal exporters may only meet 85% of shipping orders out of the Australia’s second largest coal port next year because of a lack of rail capacity.

Macarthur said that companies may only export 57.4 million tonnes of coal from Dalrymple Bay terminal in Queensland State in 2008. It added that “Despite expansion of the port to 68 million tonnes per year from January 2008, rail capacity will restrict exports. Producers are therefore likely to be restricted to 85% of contract entitlement.”

According to analyst coking coal prices may have their first gain in three years in 2008 because of rising demand from Asian steelmakers and infrastructure congestion in Australia.

Ms Nicole Hollows CEO & MD of Macarthur Coal said that “Macarthur doesn’t expect to get its full export quota till fiscal 2012 when expansions in both port and rail would be completed and operating at full capacity.”

DTEK increase coal extraction during H1 by 1.1% YoY

Journal Staff reported that Companies of Donetsk based Donbas Fuel Energy Company increased coal extraction during January to June 2007 by 1.1% YoY to 7.59 million tonnes.

Donbas Fuel Energy said that due to the growth in demand for power generating coal, the volumes of its extraction over the January to June 2007 grew by 5.8% YoY or by 351,000 tonnes, to 6.424 million tonnes, while coking coal extraction fell by 18.9% YoY or by 271,400 tonnes, to 1.166 million tonnes.

Carpenter Technology appoints Mr Mitchell as new senior vice president

Carpenter Technology Corporation announced the appointment of a distinguished attorney Oliver C Mitchell Jr as its new senior vice president general counsel and secretary. The appointment is effective from August 27th 2007.

Mr Mitchell brings to Carpenter a long history of service in the private and public sectors. He most recently was Counsel to The Margolis Law Firm, LLC of New Jersey and New York where he advised individuals and corporations on a number of issues including labor, employment, compliance, regulatory and litigation matters. Mr Mitchel also worked as an assistant general counsel at Ford Motor Company, where he was responsible for all commercial, consumers, Superfund, dealer, employment and other non product litigation matters.

Mitchell has held a number of non legal posts as part of his public service. He was appointed by the then Governor of Massachusetts, William F Weld, to the Board of Directors of the Massachusetts Bay Transportation Authority. Later he was appointed by Michigan Governors John Engler and by Jennifer Granholm, his successor in office, to the Board of Directors of the Michigan State Appellate Defender Commission, where he later was elected Chairman. He is a member of the Board of Trustees of the National Judicial College at Reno in Nevada.

Effective September 4th 2007, Mr Mitchell will serve as senior vice president general counsel and secretary, reporting to Mr Anne Stevens chairman, president & CEO of Carpenter Technology Corporation.

Carpenter Technology based at Wyomissing in Panama produces and distributes specialty alloys, including stainless steels, titanium alloys, superalloys and various engineered products.

Shanxi to invest over CNY 70 billion in energy saving

China Knowledge reported that Mid-west China's Shanxi province targets saving 33.9 million tonnes of coal equivalent energy by investing more than CNY 70 billion in major energy saving projects and to promote energy saving of industrial enterprises in the next three years.

The Shanxi province is estimated to save 7.2 million tonnes of coal equivalents this year and its goals for 2008, 2009 and 2010 are 9.5 million, 11.2 million and 13.2 million tonnes of coal equivalent respectively 700 major energy saving projects will be launched in the next three years with a total investment of CNY 36 billion which are expected to save 13.6 million tonnes of coal equivalents. Additionally it will invest CNY 36.9 billion in constructing 224 planned energy-saving programs. The total investment of two schemes exceeds CNY 70 billion.

Meanwhile it will also close down low productivity plants in sectors like steal, coking and cement production in a bid to save energy of 9.28 million tons of coal equivalents. Renowned as the "Coal Warehouse of China", Shanxi province has a verifiable coal reserve of over 261 million tonnes.

Loan could help revive Ormet Mill in Hannibal

It is reported that State representative Mr Jennifer Garrison said that the Development Financing Advisory Council recommended a USD 2.5 million loan to support economic development by Artco Group International at Hannibal in Monroe County.

The company wants to purchase and renovate an existing facility and acquire new machinery and equipment to open a new thick plate steel rolling mill at the closed Ormet Corporation rolling mill.

Mr Garrison said this USD 8.5 million project would create 45 jobs at the site within the first three years of the project’s initial operation.

The 166 Direct Loan provides an interest rate of 1 percent for the first two years of the loan and 3% for the remaining eight years of the 10 year term. The funds will be used for the purchase of machinery and equipment.

The loan approval is pending with the Ohio Controlling Board.