MAN Ferrostal to set up rail and axle plant in Chattisgarh

IANS reported that German engineering major MAN Ferrostaal AG has expressed a keen desire to set up a rail wheels and axle plant in the state of Chattisgarh.

As per report, Mr Michael J Walter CEO of MAN Ferrostaal and Mr John Tremus ED of MAN Ferrostaal recently met Dr Raman Singh chief minister of Chattisgarh at Raipur and expressed interest in setting up rail wheel and axle plant based on latest German technology plant in 150 acre land within a special economic zone in the state of Chattisgarh.

The report cited Mr Gurnad S Sodhi MD of MAN Ferrestaal India as saying that “We are exploring the possibilities for an advanced rail production plant for fast trains. The company is very much interested in Chattisgarh because of availability of raw minerals, mainly iron ore.”

JSL to set up SS slab plant in Russia - Report

Reuters reported that Jindal Stainless Limited is planning to spend USD 100 million building a plant in northwest Russia to produce 400,000 tonnes per year of stainless steel slab.

The report cited Mr Mahendra Agarwal chief representative of JSL in Russia as saying that construction of the plant is expected in the next few weeks. He added that "The land has been offered to us in the Leningrad region. Now everybody is working on the viability of the project and discussing it with equipment suppliers and banks."

Mr Agarwal said that the plant would supply most of its stainless slab to the Russian market to meet fast growing demand from the construction, shipbuilding and kitchenware sectors. He added that "We will give priority to the Russian market. Any surplus quantities will be sent to India. There is enough demand. Demand every year is growing."

He said that JSL would own 100% of the plant and that construction would require USD 100 million and a further USD 315 million in working capital would be invested. He added that Kingisepp, a town near Russia's border with Estonia, has been selected as the location of the proposed plant.

Essar completes buyout of Minnesota Steel

It is reported that Essar Steel has closed a deal to purchase US based Minnesota Steel for an undisclosed amount and will now begin planning for construction of the USD 1.6 billion project which is likely happen by early 2008.

Now Essar controls all of the assets of Minnesota Steel, including the all important permits. This financial close triggers a few things. Now Itasca County can start using more of the bonding money secured in the past years and move forward on crucial infrastructure. They can also officially sign on Anacostia Pacifica, as the shortline railroad operator.

The next part of the financing package will be to secure debt financing. That's the financing that will be used to pay for the construction of the USD 1.6 billion dollar plant near Nashwauk.

When completed the facility would be the first steelmaker on the Minnesota Iron Range, which would produce 2.5 million tonnes slabs per year. The slabs produced here would feed Algoma Steel which Essar bought in April 2007.

TATA Steel eying investments in Brazil – Report

SBB reported that TATA Steel is looking at investment opportunities in Brazil. As per report, Mr Ratan Tata chairman of TATA Sons during his visit to Maranhao in September 2007 met Mr Jackson Lago governor of Maranhao and discussed the possibility of investing in a Greenfield project in the state.

SBB quoted Mr Julio Cesar Teixeira Noronha industry and commerce secretary of Maranhao as saying that “TATA Steel in the next few months is to send a delegation to the Northern Brazilian state of Maranhao in order to evaluate investment opportunities there. Mr Tata promised Mr Lago to send a team in Brazil and we are now producing a presentation to show them all the favorable points that justify such an investment."

SSB said that the government of Maranhao has already informed CVRD and the Brazilian state development bank BNDES about Mr Tata's interest.

Among these points are the existence of good locations to construct a plant and low cost iron ore from Companhia Vale do Rio Doce's Carajas mine as well as nearby ports and railways.

SAIL, NMDC and Indian railway to ink agreement for rail link in Chattisgarh

It is reported that proposal for a rail link in Chattisgarh to ease the movement of iron ore and finished steel for the Steel Authority of India Limited and National Mineral Development Corporation is finally moving forward after decade long discussions.

As per report, both SAIL and NMDC are expected to sign a cost sharing agreement with the Chattisgarh government and the Indian Railways next month to fund the project. Mr RS Pandey union steel secretary said that the Indian Railways would execute the project and the state government will acquire necessary land to build the rail line.

The planned 235 kilometer long Dalli to Rajhara to Jagdalpur rail line project, part of the South East Central Railway, first proposed in 1995, is estimated at more than INR 1,000 crore.

SAIL access to the ore mines in Rowghat, with a reserve of 500 million tonnes, located 80 kilometer from its plant in Bhilai. SAIL’s existing mines at Dalli to Rajhara have reached an exhaustion point and will close down within 4 years and SAIL is seeking fresh allocations to meet its demand.

NMDC, which now largely depends on the Kottavalasa to Kirandul line, connecting its operating mines in Bailadila in the southern part of the state to Visakhapatnam in Andhra Pradesh, will also gain market access in central India. NMDC will have the option of an alternative route to transport iron ore.

NTPC plans coal and power JV with PT Tambang Batubara

It is reported that National Thermal Power Corporation may enter into a power and coal JV with an Indonesian company as part of its initiative to expand global operations and secure coal linkage for its power plants.

As per reports, NTPC in talks with Indonesian mineral company PT Tambang Batubara Bukit Asam Tbk for entering into a JV where NTPC would help the company in its proposed power foray and also jointly mine coal for use by the PSU. NTPC officials have already met PT Tambang Batubara representatives in Indonesia in September 2007.

The report cited a source in the ministry of power as saying that “A delegation from NTPC is expected to visit Indonesia soon to hold final discussions with PT Tambang Batubara for a possible joint venture. If the talks succeed, the two sides could sign a MoU for development of a thermal power plant and a coal mine.”

As per report, NTPC is interested in setting up 2 JV operations with PTBA, 1 for providing engineering support for developing a power plant and another for developing a coal mine that would allow NTPC to bring a portion of the production for use in its power plants.

PTBA is the sole state owned coal mining company in Indonesia and owns 2 of the largest coal mining sites Tanjung Enim and Ombilin. It produces over 10 million tonnes of coal annually, 25% of which is exported to countries such as Malaysia, Taiwan and Japan. PTBA has recently won tender for constructing a power plant and has indicated that it would grow this business.

Domestic pencil ingots prices surge despite low demand

It is reported that steel ingot prices have moved up by over 17% in the spot market over the last month with iron ore prices touching record highs globally. The price of pencil ingots in the spot market is up from INR 19,300 per tonne in September 2007 to INR 22,600 in October 2007.

The firm prices of pencil ingots are being attributed to shortage of sponge iron and scrap and high prices of iron ore.

Pencil ingot price is high although the domestic demand for rebar is reported to be sluggish due to slow down in construction activity. If rebar demand picks up then ingot prices could remain at higher levels for some time.

Usha Martin to spend INR 11 billion on capacity expansion

It is reported that Usha Martin is planning to expand the capacity of its iron and steel plant at Adityapur Industrial Area in Jamshedpur in Jharkhand by setting up second and third rolling mills, taking the rolling capacity from 0.26 million tonnes per annum to 1.26 million tonnes per annum. Steel melting shop will also be expanded by installing a 70 tonnes per day furnace.

The total cost of the expansion project is estimated at INR 11 billion. It will be carried out at the site of its existing plant located on 79 hectares in Adityapur Industrial Area.

Usha Martin is also enhancing sponge iron making capacity from 0.125 million tonnes per annum to 0.625 million tonnes per annum. The capacity of the mini blast furnace will be hiked from 0.2 million tonnes per annum to 0.625 million tonnes per annum. A sinter plant with a capacity of 0.6 million tonnes per annum will be installed.

In addition, the Usha Martin will increase its captive power generation capacity. At present, it generates 25 MW from coal based CPP, 6.0 MW from WHRB boiler of DRI, 9.0 MW from coal based boiler and 3 MW from waste gases produced mini blast furnace.

Environmentalists oppose Monnet power plant in Orissa

According to local environmentalists, the proposed 1,000 MW Monnet power plant at Nisha in Orissa would have a negative impact on the ecological balance in this region.

Participating in a public consultation on environment held at Malibrahman village in Orissa, Mr Prasanna Behera secretary of nature and environment and wildlife society opposed the construction of the thermal power plant saying that the entire ecological balance in the region would be damaged. He said that “The area is environmentally sensitive because of sal plantations over 70 hectares. It is close to the elephant corridor and the Satkosia wildlife sanctuary. The sal forest has been developed by the local population.”

Mr Ranjit Pattanaik, social activist and founder of an NGO called Youth Association of Rural Reconstruction and another local activist Mr Krutarth Singh also voiced the same views.

A section of the villagers, however, have lent their support to the proposed plant with proper environmental and social safeguards and jobs to all the land losers.

The meeting was chaired by the Angul additional district magistrate Mr Bandhu Bilhore and the Pollution Control Board officials, besides Monnet authorities. About 200 people from the locality participated in the consultation held at Malibrahmani School.

Isibars changes name to India Steel Works Limited

Isibars Limited announced that its name has been changed from Isibars Limited to India Steel Works Limited, with the approval from the central government.

A company release said that “The change of name would not result in any change in the business, management or operations of the company.”

Jai Corp to raise INR 21.12 billion

Jai Corporation Limited recently announced that its board has approved to raise up to INR 21.12 billion from investors and founders.

It would raise about INR 6.12 billion by issuing equity shares to investors on a preferential or private placement basis.

The board also approved the issue of redeemable preference shares worth up to INR 15 billion to founders.

BEML registers a new company in Malaysia

Bharat Earth Movers Limited announced that it has started operations in Malaysia to tap the growing demand for mining and construction equipment and spares. BEML has opened a global warehouse for sourcing and supplying of mining and construction equipment and spares to over 43 countries.

BEML has registered a company called BEML (Malaysia) Sdn Bhd based at Johor Bharu in Malaysia. It will act as a regional global distribution centre for stocking, selling of spares and servicing its equipment in the South Asian region and Australia.

BEML already has a subsidiary in Brazil and is in the process of setting up an assembly plant for its mining products.

New Mangalore port posts 14% YoY growth in H1 of 2007-08

BL reported that New Mangalore port has handled 17.98 million tonnes of cargo during April to September 2007 period up by 14% YoY as against 15.77 million tonnes in the April to September 2006 period.

Mr P Tamilvanan chairman of New Mangalore Port Trust has attributed this growth to various factors, including the increased volume of traffic in iron ore, POL, LPG, crude and petroleum products, coal and container cargo. He said that first gearless vessel MV Navios Gemini S had called at the port to load 67,055 tonnes of iron ore to China.

One of the major developments in cargo handling during the period was the increase in the railway bound cargo at the port. During the April to September 2007 period,, the port handled 2.63 million tonnes of railway bound traffic up by 119% YoY as against 1.20 million tonnes.

In April to September 2007 period, the port handled 9,980 TEUs of containers up by 24.36% YoY as against 8,025 TEUs in April to September 2006 period.

NALCO Q2 net profit down by 26% YoY

National Aluminum Company Limited has posted net profit of INR 4,397.30 million for July to September 2007 quarter down by 26.09% YoY as compared with INR 5,950.00 million for the July to September 2006 quarter.

Other highlights of the quarter are
1) Net sales for the quarter fell by 9.26% YoY to INR 13,081.50 million compared with INR 14,416.20 million
2) Total income for the quarter fell by 4.57% YoY to INR 14,725.40 million as compared with INR 15,430.50 million
3) Basic and diluted earnings per share after extraordinary item for the quarter dropped by INR 6.82 as compared with INR 9.32

Quarterly results

INR in million

Nalco is a state run company engaged in manufacturer and export of alumina and aluminum. It is a leading manufacturer of aluminum ingots, sows, billets, wire rods, alloy wire rods, cast strips, rolled products of aluminum metal.

Suzlon Energy subsidiary to be listing at London

Suzlon Energy Limited has announced that it’s wholly owned subsidiary Belgium based Hansen Transmissions International NV is contemplating a possible offering of shares to institutional investors and subsequently a possible listing of shares on the London Stock Exchange. The decision was reviewed, noted and confirmed by its board of directors at its meeting held on October 23rd 2007.

Hansen Transmissions International NV is a leading global gearbox and drive train designer, manufacturer and supplier to the wind turbine and other selected industries.

BILDCO orders for bar mill for Abu Dhabi in UAE

It is reported that Siemens Metals Technologies will supply mechanical equipment, electrical equipment and automation systems for the installation of Abu Dhabi National Company for Building Material BILDCO new 300,000 tonnes per annum bar mill 25 kilometer southeast of Abu Dhabi in United Arab Emirates. Start up is scheduled for the first quarter of 2009.

The scope of supply includes a billet reheating furnace, mill mechanical equipment including cooling bed and electrics & automation. The scope also includes erection supervision and training.

The rolling mill features the installation of 16 of the latest generation of Red Ring stands which are arranged to enable no twist rolling. Bars will be rolled at a maximum speed of 14.5 meters per second and the line is equipped with magnetic braking. The cooling facility includes a 66 meter long cooling bed with automated cutting, counting and bundling systems.

Zamil and Haykala acquire Premiere Casing Services in Egypt

It is reported that Zamil Group of Saudi Arabia and Haykala Investment Managers of Egypt have jointly acquired 100% of Premiere Casing Services (Premiere) through a leveraged buyout transaction. Zamil Group and Haykala have each equally acquired 50% of the company, in a transaction financed by a mix of debt and equity financing.

Premiere is one of the leading oilfield services companies in Egypt, specialized in running steel casing pipes in oil and gas wells. Premiere provides its services to the majority of oil companies in Egypt, and currently commands a significant market share of this particular service.

Both Zamil and Haykala devised plans for vertical and regional growth of the company, especially in the Gulf Region leveraging on the strong presence of Zamil Group in this market and Premiere's long track record in Egypt.

Haykala Investment Managers, an Egyptian private equity company founded in 2005, has successfully raised EGP 347 million in 2006 by closing a unique private equity fund, focusing on turnarounds. Premiere represents the most recent addition to Haykala's investment portfolio, comprising Enjoy and Honeywell. It also ushers Haykala's initial entry into the regional oil and gas industry, where other acquisitions will be targeted.

Headquartered in Saudi Arabia, Zamil Group is a family owned global investment company with diverse interests and capabilities. Zamil's range of products and services is expansive and spans air conditioning manufacturing to steel fabrication and plastics, paints and cranes to heavy process equipment. It is also engaged in shipbuilding and offshore oilfield marine services, port operations and maintenance, petrochemicals and chemicals, industrial investment and general construction.

Al Zamil Steel to set up new facility in Thailand

Arab News reported that Dammam based Al Zamil Steel will build a new factory in Thailand as part of its expansion program targeting the buoyant economies of Southeast Asia and the Far East.

Mr George Kobrossy director general of Al Zamil Steel told Arab News that “Zamil chose to build a new factory in Thailand because it wanted to better serve its many local clients. We have had a very successful sales office here since 2000.”

According to Mr Kobrossy, Al Zamil’s new Thai factory will manufacture Zamil’s MaxSEAM roof system. He pointed out that “It is one of the strongest and most weather tight standing seam roof systems available today.”

Al Zamil Steel has in the past 30 years become one of the world’s leading manufacturers and suppliers of quality pre engineered steel buildings for factories, warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, sports centers, supermarkets, office buildings, car parking sheds and high story buildings.

Iranian decision of not lowering import tax pushes HRC prices up

It is reported that Iran’s industrial department rejected the request raised by domestic HRC buyers to lower import tax.

This decision has resulted in the side effect of a climbing HRC price in the market. It is reported that the latest transaction price of HRC in Iran has goes up to USD 575 to USD 585 CFR South Iran levels.

On the other hand, the domestic steel supply is in short due to the break up of business between foreign traders with local purchasers. This also caused the price increase of hot rolled coils.

Rebar shortage could effect building boom in Saudi Arabia

It is reported that global shortage of steel is the only thing that could hold back Saudi Arabia’s building boom over the next decade.

Mr Saud Al Gusaiyer CEO of Dar al-Arkan one of the largest real estate developer in Saudi Arabia said “At present, we are not worried at all about a shortage of workers and engineers and the cement situation is looking good.”

Mr Gusaiyer said that “By the middle of next year, there will several new cement plants producing at full capacity, taking the kingdom’s cement production from 25 million tonnes a day to more than 48 million. By 2009, that might have reached 55 million tonnes, and over the next three years we expect the need for cement will not exceed 40 million tonnes a day, so there will be oversupply.”

Mr Gusaiyer said steel is set to be the only potential problem. “Saudi Arabia only produces 5% of the steel it uses. Everyone needs it. There is competition both from elsewhere in the region and from the rest of the world. Prices are going to go up, but they may be close to their peak already.”

Mr Gusaiyer concluded that “The construction boom has at least eight years of life left, regardless of whether the oil price remains high. Demand for housing is very strong, with a young population needing homes. Nothing is going to affect that demand.”

Chinese HDG prices continue to weaken

Chinese hot dipped galvanized coil prices have been weakening over the past three weeks and the downward pace seems to be accelerating. Market transactions are reported to quite slow and there is evident oversupply at moment

On shanghai market, 1mm HDG by Anshan Steel is being quoted at CNY 5030 to CNY 5040 per tonnes, down by CNY 20 per tonnes from last trading day. 0.5mm HDG by private producers just remain unchanged at CNY 5500 per tonnes. In Shandong's Boxing market, 0.4 HDG prices see a decrease of CNY 30 per tonnes; 0.5mm and 1mm a dive of CNY 70 per tonnes. While Beijing also witnesses a fall of CNY 30 per tonnes for 1mm HDG.

As forecast in previous daily reports, 1.0mm HDG prices are anticipated to soften again following the peak in September if it could not exceed CNY 5200 per tones in Shanghai market. Now it proves to be true since 1mm HDG price in Shanghai has fallen to CNY 5030 per tonnes from high point of CNY 5100 per tonnes in September. If price could not keep above CNY 5000 per tonnes, it probably would ease back to CNY 4800 per tonnes in the remaining days of the year.

Export prices are weakening accordingly. Average export price for 1mm HDG has dropped by USD 10 per tonnes to USD 670 per tonnes FOB from early October. A North China based steel maker told Mysteel that it is now exporting 1mm and 0.6mm HDG Z140 at USD 760 per tonnes and USD 840 per tonnes CFR FO Antwerp , equivalent to about USD 670 per tonnes FOB and USD 750 per tonnes FOB respectively, supposing average freight rate to be USD 90 per tonnes from China to Europe.

However, another tier one steel producer in North East China is concluding sales to Spain by itself at EUR 560 per tonnes CFR for 1 Z180 and EUR 586 per tonnes CFR for 0.6mm Z180, equivalent to USD 795 per tonnes CFR and USD 832 per tonnes CFR respectively, which translates to USD 705 per tonnes FOB and USD 740 per tonnes FOB Chinese port.

European market is reported to be still slow and there are no signs of improvement yet therefore Chinese HDG export offers are anticipated to remain weak in Q4.

(Sourced from Mysteel.net)

China to provide momentum for nickel consumption in 2008

According to a recent International Nickel Study Group announcement China's demand for nickel and nickel containing products is set to boost global primary nickel consumption by 8.9% to 1.47 million tonnes next year from 1.35 million tonnes this year.

The INSG also predicted that global refined nickel production has risen sharply from 1.36 million tonnes in 2006, to an estimated 1.47 million tonnes this year and 1.57 million tonnes in 2008. Moreover, estimates for global refined nickel production in 2007 and 2008 surpass predicted global consumption.

According to the INSG, global refined nickel consumption will fall to 1.35 million tonnes this year from 1.4 million tonnes last year, following a slump in high nickel content stainless steel production in most parts of the world, and reduced demand for refined nickel and nickel-containing scrap in the second half of this year. European countries contributed significantly to falling global nickel consumption this year, despite growing consumption from China. However, the recovery of stainless steel production around the world, particularly in China, will cause refined nickel consumption to rise in 2008.

According to China's National Bureau of Statistics China produced 81,176 tonnes of refined nickel in the first eight months of this year, up 27.3% from the same period last year.

Analysts from Beijing Antaike a leading consultancy affiliated with the China Nonferrous Metals Industry Association previously told Interfax that China produced 107,700 tonnes of nickel last year, up 13.05%YoY with production set to reach 210,000 tonnes by the end of this year, including 90,000 tonnes of nickel metal from nickel pig iron production.

EU urges China to address yawning trade gap

It is reported that European Union has urged China to address increasing gap in bilateral trade imbalance.

Mr Heinz Zourek Director General for Enterprise and Industry of European Commission said "We are aware that the European Union has become the most important export market for China. However, our exports going to China are smaller in size than our exports going to Switzerland.” In 2006, EU total exports to China were EUR 63.4 billion while those to Switzerland stood at EUR 86.8 billion.

Mr Zourek said “The trade deficit with China has continued to widen, rising by 25% so far this year compared with 2006, a fact the European Union is following with great attention.”

Mr Zourek said that European steel producers complain that they are being hurt by Chinese exports sold below cost. EU's steel imports from China in the first nine months of 2007 are up by 137 % YoY.

He said National Development and Reform Commission hopes to cut steel production capacity by 20% to 400 million tonnes and wants to enhance productivity by closing down outdated facilities. He said that a Chinese delegation is due to attend an EU seminar in Poland this year on restructuring an obsolete steel industry. He concluded that "China considers that they have reached a peak of capacity of production of steel and will do whatever they can to avoid that additional capacity will be created.”

Coke prices in Shanxi on upturn

It is reported that Shanxi Province has seen a CNY 50 per tonnes hike in coke market as notable adjustments emerge in domestic market and market price are still on up trend. At the moment in Shanxi second grade metallurgy coke is mainly offered at CNY 1250 per tonnes first grade coke at CNY 1350 per tonnes.

Due to restraining Chinese policies, domestic coal resources are still in tight supply and some coke producers complain about difficult purchasing, thus some producers cut outputs, decreasing coke resources.

On the other hand, steel price is blessed with an uptrend, plus resources replenishment for winter production in North China, purchasing is expected to be strengthened.

Some coke producers have required users to raise prices. Despite the small margins, coke market may welcome another hike if other producers follow their companions.

(Sourced from MySteel.net)

Valin Steel to export 2.3 million tonnes of steel in 2007

It is reported that Hunan Valin Iron and Steel Group Co Ltd expected to export 2.2 to 2.3 million tonnes of steel in 2007 up by 24% YoY from 1.78 million tonnes in 2006. Its exports would achieve sales revenue of CNY 45.5 billion to CNY 46 billion in 2007 up by about 10 billion over 2006.

Mr Li Xiaowei chairman of Hunan Valin during an interview said that “Chinese government will continue to control steel exports, which will exert greater influence on low end products. However, higher prices of high value added materials in the international market than those in the domestic market might have offset the aftereffect from the higher export duty.”

Coalmine tunnel collapse kills 12 in Shanxi

It is reported that a tunnel in a north China coal mine caved in killing 12 miners and causing five houses above the shaft to collapse. There was no mention of any casualties from the collapse of the homes.

Xinhua reported that workers were repairing and extending the 85 meter tunnel of the Yinying mine under a residential area in Shanxi province on Monday when the cave in occurred.

The cause of the accident was being investigated.

Handan Iron & Steel Q3 net profit down by 4.84% YoY

It is reported that Handan Iron & Steel Co Ltd said that during July to September 2007 quarter it posted a net profit of CNY 274.95 million down by 4.84% YoY from CNY 288.93 million as compared to July to September 2006 quarter.

From January to September 2007 period, the company posted operating revenue of CNY 18.96 billion as compared with CNY 18.57 billion the year before; while net profit for the nine months reached CNY 776.12 million up from CNY 718.19 million a year earlier.

Fushun Xingang 9 month profit up by 111% YoY

It is reported that Fushun Xin Iron and Steel Company Ltd made improvements on major economic indexes. From January to September 2007, the company realized net profit CNY 3.12 billion increasing 111.4% from that of the same period in 2006.It has formed a method of operation by streamlining input, production and sale areas as under.

1. It has set a powerful supply system of raw materials through increasing the iron ore imports while making a selection of the suppliers. During the first three quarters, the purchased iron ore fines has an average iron content of 66.4% up 0.4% with that of the same period in 2006 with the local materials accounting 100%, bringing down the purchasing costs.

2. It arranged the production basing on the plan and adjusted the plan according to the market situation and the market analysis. Meanwhile, the company introduced new technologies and new equipments and kept on developing new products. Now the company has a finished products rate of class three steel and a ratio of qualified materials of 95.8% and 99.8% up from 93.8% and 99.3%.

3. It has divided the market into subsections to increase the sale volume and the profits and arranged the deliveries according to the prices changes in various areas and met the market demand with different specifications

It is also trying to develop the oversea markets and increase the ratio of foreign exchanges in the income. During the first three quarters, the company realized foreign exchanges USD 45.23 million.

Gerdau Acominas sinter plant starts test run

It is reported that Brazil's Gerdau Acominas steel's 198 square meter sintering project jointly built by Minmetals and China Metallurgical Construction Group Corporation was ignited on October 14th 2007.

The project, valued at about CNY 2 billion, thus officially started hot commissioning.

General Steel forecast doubling of Q3 revenues over Q2

It is reported that Chinese General Steel Holdings Inc forecast that its third quarter revenue would more than double as compared to second quarter due the booming Chinese economy.

The maker of hot rolled carbon and silicon steel sheets forecast its revenue between USD 300 million and USD 340 million and net income of USD 7 million to USD 7.5 million.

General Steel Holdings Inc forecast includes a full three month contribution period from its JV with Shaanxi Long Men Iron & Steel Group and Baotou Iron and Steel Group Co. General Steel entered into the venture agreements with the two firms to produce various infrastructures related steel products.

General Steel which debuted on the American Stock Exchange earlier this month still sees full year revenue at USD 751 million and net income of USD16.4 million.

Rusal offers to buy Mr Prokhorov stake in Norilsk - Report

Vedomosti reported that Russian aluminum giant United Company Rusal has offered to buy Mr Mikhail Prokhorov out of Norilsk Nickel. However it is not clear whether UC Rusal is looking at Prokhorov's entire stake in Norilsk Nickel which currently stands at 29%.

Vedomosti, citing unnamed sources close to both companies and two businessmen close to Mr Prokhorov reported that talks on the sale of Mr Prokhorov's stake have been held over the summer between UC Rusal and Onexim, the holding company for Prokhorov's business interests.

Vedomosti said that Mr Prokhorov would be paid partly in cash and part of the payment would be in new UC Rusal shares, making him a shareholder in UC Rusal.

Earlier this year, Mr Prokhorov and Mr Vladimir Potanin announced a separation of all their business interests including Norilsk. Under that deal, Mr Prokhorov was to sell his stake in Norilsk to Mr Potanin. That deal never went through, however, with Onexim recently announcing that Mr Prokhorov now considers Norilsk a strategic asset and has no immediate plans to sell.

Interpipe H1 net profit jumps 40% YoY

Ukrainian steel pipe and wheel producer Interpipe reported a net profit of EUR 134 million up by 40% YoY as compared to EUR 96 million in H1 of 2006 due to strong demand for its steel pipe and railway products in its key export markets. It’s H1 of 2007 sales up by 29% to USD 838 million.

Mr Alexander Kirichko general director of Interpipe in a statement said that “The good situation on the pipe and wheel market in the first half of 2007 and the company's active efforts to promote products on the markets of the Middle East and North Africa, Central Asia and Russia made it possible to overcome the upward trend in prices for metallurgical raw materials and increase the company's profitability by 40% compared to the same period of 2006.”

Interpipe is the ninth largest steel pipe producers in the world. In August, Interpipe’s two facilities have gained pre qualification from the Abu Dhabi National Oil Company and have been approved for inclusion in the Kuwait Oil Company’s approved list of manufacturers for oil and gas pipes produced in accordance with API 5CT.

Ukrainian iron ore exports in 9 months down by 2% YoY

Ukrainian Journal reported that Ukrainian iron ore exports fell by tentatively 2% YoY in January to September 2007 to 14.715 million tonnes.

Iron ore concentrate exports fell 4% YoY to 2.898 million tonnes, while pellet exports went down by 6.8% YoY to 5.102 million tonnes. Sintering ore exports went up by 3% YoY to 6.715 million tonnes.

Russian Coal launches two new sectors

Russian Coal announced that it launched two new sectors at Almaznaya and Gukovskaya mines included into MK Gokovugol as the largest coal producing entity of the Company.

Russian coal in a statement said that the project demanded RUB 300 million in the spending. The sectors are equipped with the modern facilities made at Rostovgormash.

The reserves cover 1.5 million tonnes of the rock. The coal output is assumed to reach 2.3 thousand tonnes which is 30% higher prior developed sectors.

Russian Coal is in operation from 2002. It is ranked as one of fifth largest coal companies in Russia covering the coal mining entities in four regions. In Rostovsky region it involves Obukhovskaya Mine, Sulinantratsit, Almaznaya, Donkoks, Donskoy Antratsit etc.

Yodogawa to supply galvanized steel to Russia

FIS reported that technical seminar Zinc coated and painted roll made in Japan, new kinds of products was recently held in Novosibirsk.

After the seminar Rusteel jointly with representatives of Yodogawa Steel Works visited a number of enterprises processing zinc coated steel, which made it possible to discuss technical issues in detail locally.

During the meetings the parties achieved preliminary agreements on the supply of zinc coated steel made in Japan to the Siberian region.

Hot band spot price rise starts faltering in US, EU and China

SteelBenchmarker reported that the US hot rolled band spot price for October 22nd 2007 dropped by 0.5% to USD 577 per metric tonne, FOB the mill after 4 consecutive rises, The World export HRB price dropped by 0.3% to USD 585 per tonne FOB the port of export for the fourth consecutive time. The Chinese HRB ex works price fell by 0.4% to USD 470 per tonne for the third consecutive time. The Western European HRB price dropped by 0.7% to USD 672 per tonne ex works for the second consecutive time.

USA
USD 577 per metric ton FOB mill or USD 523 per net ton
Down by USD 3 per ton from USD 580 two weeks ago
Down USD 53 per ton from USD 630 on April 9th 2007
Up by USD 17 per ton from USD 560 on August 13th 2007

China
USD 470per metric tonne EXW
Down by USD 2 per tonne from USD 472 two weeks ago
Down by USD 17 per tonne from USD 487 on September 10th 2007
Up by USD 13 per tonne from USD 457 on May 14th 2007
Up by USD 68 per tonne from USD 402 on July 9th 2007

Western Europe
USD 672 per metric tonne EXW or EUR 472 per tonne
Down by USD 5 per tonne from USD 677 two weeks ago (On Euro basis by EUR 8)
Down by USD 24 per tonne from high of USD 696 on June 11th 2007
Up by USD 9 per tonne from the low of USD 660 on March 12th 2007

World Export Price
USD 585 per metric tonne FOB port of export
Up by USD 2 per tonne against USD 583 two weeks ago
Down by USD 11 per tonne from USD 596 on March 26th 2007
Up by USD 35 per tonne from USD 550 on July 23rd 2007

SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar, and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.

Siam Tinplate to add a new line to increase capacity

Sumitomo Corporation, Metal One Corporation and Nippon Steel Corporation have come to an agreement to build up the capacity of Thailand based Siam Tinplate Co Ltd located at Map Ta Phut Industrial Estate of Rayong.

The capital investment is approximately THB 1,400 million to increase its productive capacity to approximately 260,000 tonnes per year form both existing line and new line, scheduled to start commercial operations by July 2009.

The Japanese shareholders in Siam Tinplate account for 71.% controlling stake with Sumitomo having 28.2%, Metal One 18.4%, Nippon Steel 15.6%, Nittetsu Shoji 7.0%, Tomiyasu 2.2% and the Thai side holds 28.5% stake.

In Thailand, under the government initiated slogan, “Kitchen of the World,” industrial concentration as a major stronghold of food can exports has been progressing, with the accompanying growth in tinplate demand now touching the 600,000 tonnes level, the highest of all ASEAN countries. Siam Tinplate, since commencing operations in 1992, has steadily responded to the domestic demand for tinplate in this growing economy. However, now that Thai can makers are showing a strong willingness to make capital investment in the shape of expanded capacity, particularly to increase the production of cans for fish, fruit, vegetables and other foods.

Rio Tinto appoints Alacn executives to board

The boards of Rio Tinto plc and Rio Tinto Limited announced that, following the acquisition of Alcan Inc Mr Yves Fortier, Mr Paul Tellier and Mr Dick Evans have been appointed as directors with effect from October 25th2007.

Mr Yves Fortier currently chairman of the board of Alcan and Mr Paul Tellier currently a non executive director of Alcan become non executive directors of Rio Tinto. Mr Dick Evans the current Alcan chief executive officer becomes an executive director of Rio Tinto and the chief executive of the combined aluminum group, Rio Tinto Alcan based in Montreal and will report directly to Mr Tom Albanese CEO of Rio Tinto.

Mr Paul Skinner chairman of Rio Tinto said that "I am very pleased to welcome Mr Yves, Mr Paul and Mr Dick to the Rio Tinto board. They will play key roles in providing important continuity during the integration of Alcan and bring valuable new perspectives, particularly in relation to Canada, to our board."

Outokumpu to make further EUR 240 million investment

Finnish steelmaker Outokumpu in line with its new strategy phase, announced on September 2007, to increase the share of direct end user and project sales and to expand the value added special products capacity, new investments worth a total of some EUR 240 million over the next five years have been decided.

Outokumpu said that the investments comprise the expansion of the hot rolled plate capacity in Sweden and the US and expanding the service center offering in Germany.

Outokumpu has decided to expand its production capacity and capability in Degerfors in Sweden and New Castle in US by some 100,000 tons. Current equipment will be upgraded and new equipment installed to increase the capacities in Degerfors by some 80,000 tons to 190,000 tons and in New Castle by some 20,000 tons to 70,000 tons. The amount of investments will be some EUR 180 million and EUR 40 million respectively. The investment will spread out to five years with the majority of cash out flows in 2008 and 2009. The new installed capacity is for the most part scheduled to be available in 2010.

Outokumpu will expand the stock and processing capacity of its Willich service center in north-western Germany. With an investment of some EUR 20 million the annual stock and processing capacity in Willich will increase from the current 60,000 tons to some 110,000 tons by 2009. The investment comprises of a new cut to length line and a new slitting line.

Stelco swings to CAD 38 million profit in Q3

Stelco Inc reported that it had net income of CAD 38 million in the third quarter up from a loss of CAD 25 million during the same period of 2006. The gains were due in part to CAD 5 million in savings from workforce reductions and foreign exchange increases of CAD 36 million.

EBITDA* increased to CAD 67 million for the third quarter an improvement of CAD 14 million over the second quarter of 2007.

Its average revenue per ton was CAD 606 million down from last year's CAD 719 million.

Stelco said that its financial improvement in profits was largely driven by a significant improvement in the cost structure resulting from the strategic and operational restructuring initiatives over the past 18 months plus lower input costs, offset by lower selling prices.

US Steel Corp agreed to buy Stelco for CAD 38.50 in cash per common share or USD 1.1 billion in August 2007. The acquisition waits regulatory and shareholder approval and is expected to close by the end of the month.

Platinum announces new team for Ryerson

Ryerson Inc announced that it has taken the initial steps in a comprehensive reorganization to make the company stronger, more nimble and a better service provider for customers.

Its new owner Platinum made following key appointments
1. Mr Robert Archambault was named Interim CEO. Mr Archambault is a partner at Platinum Equity overseeing the Ryerson investment.
2. Mr Stephen Makarewicz was been appointed as president & COO. Mr Makarewicz was previously President of Ryerson South.
3. Mr Terence Rogers was appointed as executive VP and CFO. Mr Rogers was previously VP finance for Ryerson.

Mr Neil Novich former chairman & CEO, Mr Jay Gratz former CFO and Mr Gary Niederpruem former EVP, have left the company.

Mr. Archambault said ‘Our highest priority is to minimize any disruption to our customers, suppliers and business partners. The change in ownership and reorganization gives us an opportunity to build even stronger working relationships with all of our business partners. I have encouraged every Ryerson employee to focus on improving service as our highest priority."
Ryerson, US's leading distributor and processor of metals in North America, was acquired in a take private transaction by Platinum Equity, a buyout firm that specializes in complex operational turnarounds.

POSCO may produce 200 series SS products

YIEH reported that South Korean POSCO is considering producing 200 series stainless steel. Currently South Korea imports around 5,000 tonnes to 10,000 tonnes of 200 series stainless steel products per month.

By producing 200 series, POSCO would ease the pressure of nickel costs and they will possibly supply these products to some domestic pipe makers.

BNG Steel and INI Steel are also producing the low nickel steel while imports are mainly from Taiwan and India.

HR import quota approved under Thailand Japan FTA

Thailand’s Foreign Trade Department has set a quota of 950,000 tonnes of hot rolled steel to be imported from Japan in the first year of the Japan Thailand free trade agreement starting on November 1st 2007. Imports within the quota will carry a zero tariff.

The quota will be allocated to three main users: 440,000 tonnes for the hot rolled coil industry, 230,000 tonnes for making cold-rolled steel used in the electrical and electronics industries and the rest for the automobile industry.

Of the total quota, 230,000 tonnes will go to Siam United Steel, a JV between Siam Cement and Nippon Steel and Thai Cold Rolled Sheet Plc, a JV between Sahaviriya Steel Industries and Japanese steelmakers including NKK and Marubeni.

Last year, Thai coil industry imported 509,812 tonnes of hot rolled steel from Japan, electrical and electronics businesses 155,883 tonnes, and automakers 543,530 tonnes.

Arcelor minority shareholders abandon plan to block merger meeting

Reuters reported that a group of minority shareholders in Arcelor said that they had dropped plans to lodge an injunction to block a meeting needed to complete the steel maker's merger with parent ArcelorMittal

Mr Bruno de Kerviler head of the shareholder group explaining that time was running short and there was little chance of getting an injunction from a Luxembourg court told Reuters "We will not file an injunction.”

Mr Kerviler said that “We still plan legal action on the heart of the case but this will not stop the merger from going through. We would seek damages for what it saw as an unfair exchange ratio.”

The group had previously filed an injunction in Paris in August 2007 to block a shareholder meeting needed to clear the deal.

The shareholder meeting is due to take place on November 5th 2007.

Linde Gas to install annealing furnace at Dongbei Special Steel

Gas World reported that Dongbei Special Steel Group, located in Liaoning province of China has awarded the Gases Division of The Linde Group a contract for the installation of a new annealing furnace for stainless steel wire. The commissioning of the world’s first REBOX® DST furnace in this application is scheduled for September 2008.

The installation will be the world’s first application of oxyfuel technology in stainless steel wire treatment and demonstrates the wide range of applications that can be improved with this technology.

The new annealing furnace for stainless steel wire will combine two of Linde’s leading technologies, DST and REBOX oxyfuel solutions, and the use of oxyfuel will further improve important parameters such as fuel consumption, throughput capacity, and emission levels.

Compared to air fuel solutions, oxyfuel can boost production throughput up to 50%, equally reducing fuel consumption and CO2 emission by 50%.

Founded in 1905 as Dalian Steel, Dongbei Special Steel Group is a leading manufacturer of high added value specialty steel products. In an ambitious program, Dongbei Special Steel Group is investing EUR 800 million in a Greenfield specialty steel plant.

Confab and MMX sign deal for Minas-Rio slurry pipeline

BNamericas reported that Brazilian steel tube and equipment producer Tenaris Confab and local mining and metals company MMX have signed a contract for the supply of pipes for MMX's Minas-Rio iron complex.

Confab said that in September it received, together with Japan's Marubeni-Itochu Steel and Argentina's Siat, a letter of intent from MMX regarding a possible deal for the MMX project.

Under the final contract, Confab will supply some 249 kilometer of welded pipes for a slurry pipeline, among other services in a deal worth USD 170 million including freight and taxes. Deliveries are due to occur between March and December 2008.

Siat and Marubeni-Itochu will provide the remaining pipes for the project, which according to MMX's website is expected to stretch a total of 525 kilometer.

The slurry pipeline will have capacity to transport 26.6 million tonnes per year of pellet feed and will connect Minas-Rio's iron ore mines in Minas Gerais state with the Açu port terminal in Rio de Janeiro state.

Newcastle coal prices fall as China increased exports in September

Power station coal prices at Australia’s Newcastle, the world’s biggest export harbor for the fuel, fell from a record after China exported more than it imported in September.

According to the globalCOAL NEWC Index Coal for immediate delivery at Newcastle declined by 0.2% to USD 75.99 per tonnes in the week ended October 19th 2007. Prices reached an all time high of USD 76.16 in the week ended October 12th 2007.

Mr Rory Simington a senior coal analyst at AME Mineral Economics said “China usually exports more in the second half than in the first half and we have actually seen a little bit of a recovery from China and that may point to some relief. He said international coal prices have risen relative to China`s domestic prices, prompting coal companies in the country to increase their exports instead of selling the commodity domestically. He added that China’s increasing coal-fired power generation, which rose 18% in the first half, may drive coal consumption higher and limit the amount of fuel for sale overseas.

According to China’s, customs data released on October 17th 2007, China coal producer and consumer exported 4.47 million tonnes of coal in September 2007 and imported 3.62 million tonnes. China became a net importer of coal for the first time in January and its exports also exceeded imports in February, July and August 2007.

2 killed in Bulgaria coal mine landslide

It is reported that 2 miners were killed in a landslide at a Bulgarian coal min. The two coal miners were trapped some 300 meters underground and, although rescue teams brought them out, their lives could not be saved. No one else was injured.

Both men had been buried beneath a collapsing section of the Oranovo mine, in the Simitli mining complex in South Western Bulgaria.

The reason for the incident is being investigated.

Gloucester Coal quarterly sale hit by capacity constraints

It is reported that capacity constraints at the Port of Newcastle in New South Wales continue to affect Gloucester Coal Ltd's sales of coking and thermal coal.

Gloucester Coal reported a 2% lift in total coal sales to 497,000 tonnes for the first quarter of fiscal 2008 with a slight bias towards coking coal sales compared to 488,000 tonnes for the previous corresponding period. Production from the company's four pits was 6% lower to 763,000 tonnes, primarily due to a decline in co disposal mining which involves mixing waste rock with tailings.

Gloucester Coal said "Changes in the mix of coal from each of the company's mines reflect the continued optimization of operations through the blending of coal, and a focus on the production of the higher value coking coal during times of port capacity constraints."

However, it said that customer’s off take are still strong and it expects offshore vessel queues to fall in the months ahead. Gloucester Coal said "The capacity allocation system has gradually reduced the queue from previous highs, resulting in a welcome fall in demurrage costs incurred by the company."

Gloucester Coal is focusing on growth opportunities outside the Gloucester Basin and expects to release a significant reserve upgrade in early 2008. Its plan to increase production to 2.8 million tonnes in the 2010 fiscal year is proceeding on schedule.

Ground breaking for a new EAF dust handling complex at Yakon

It is reported that an environmental services firm MAX Environmental Technologies Inc broke ground last week for a new containment and processing complex near the group's operation at Yukon southeast of Pittsburgh.

The USD 4.5 million expansions slated for completion next spring will increase MAX’s capacity and capability for treating, managing and processing hazardous wastes including electric arc furnace dust.

The new plant will receive pneumatic and dump truck deliveries of EAF dust. Charleroi based General Industries is the project’s general contractor.

Mr Bill Spencer president of MAX Environmental stated that “The groundbreaking demonstrates our company’s ongoing strength and flexibility after being in business for 50 years. The CAP complex will enable us to be a single source of waste treatment, storage, and disposal services for steelmakers and other manufacturers throughout the Northeast, Midwest and South.”

EAF dust, also known as K061, is one of the solid byproducts of scrap steel melting and is a toxic waste largely because of its high concentrations of zinc.

RHI 9 months profits dip by 38% YoY

The Austrian refractories company RHI on reported that its group profit decreased by 38.1% YoY o EUR 81.8 million in the first three quarters of 2007.

RHI group said that its profit before income taxes from continuing operations was up by 19.9% YoY to EUR 95 million. Earnings before interest and taxes increased by 25.9% YoY to EUR 122.8 million and revenues were also up by 10.1% YOY to EUR 1.099 billion.

RHI expects the positive sales and earnings trend to continue for the remainder of 2007, despite the weakness of the US dollar remaining a risk factor for the European export industry. Price increases and availability of raw materials remain another factor under consideration. Glass and steel industries in particular continue to drive demand.

The Austrian based company produces non substitutable refractory products needed for all industrial high temperature process

STX Shipbuilding buys 39% stake in Aker

Yonhap reported that South Korean shipbuilder STX Shipbuilding Co has purchased a major stake in a Norwegian shipyard for USD 800 million in an effort to branch out into the European market.

STX Shipbuilding Co in a regulatory filing said that it has bought a 39.2% stake or 44.56 million shares in Aker Yards ASA.

Northwest Pipe reports quarterly results

Northwest Pipe Company announced that it’s July to September 2007 quarter sales were USD 92 million approximately the same as for the third quarter of 2006. Net income, however, was substantially higher at USD 5.1 million for the third quarter of 2007 as compared to USD 4.1 million in July to September 2006 quarter.

Water Transmission
Sales in the Water Transmission Group for the July to September 2007 quarter were USD 63.9 million compared to USD 65.5 million for the July to September 2006 quarter. Its gross profit was USD 14.3 million, or 22.5% YoY of sales as compared to USD 12.7 million, or 19.4% YoY of sales in the July to September 2006 quarter. Mr Brian W Dunham, president and CEO of Northwest Pipe said that ''Sales were a little less than our expectations. Margins, however, were very strong, reflecting a positive mix of projects as well as general improvements in productivity.''

Tubular Products
The Tubular Products Group's sales were USD 25.2 million in the July to September 2007 quarter as compared to USD 22.3 million in July to September 2006 quarter. Its gross profit increased to USD 3.1 million, or 12.2% YoY of sales as compared to USD 2.2 million or 10.1% YoY of sales for the July to September 2006 quarter.

Fabricated Products
Sales in the Fabricated Products Group were USD 2.9 million in the July to September 2007 quarter compared to USD 4.7 million in July to September 2006 quarter and the Group reported a small loss. Mr Dunham said that ''Volume in our propane tank business was dramatically lower and we have not yet added enough pipe fittings work to offset this decrease. We expect to see these results improve in the future.''

Northwest Pipe Company manufactures welded steel pipe and other products in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high pressure steel pipe products that are used primarily for water infrastructure in North America. It is headquartered in Portland, Oregon and has ten manufacturing facilities across the United States and Mexico.

Falconbridge announces change of name to Xstrata Canada

Falconbridge Limited a subsidiary of Xstrata plc announced that effective it has changed its name to Xstrata Canada Corporation.

The outstanding Series 2, Series 3 and Series H preferred shares of the company will continue to be listed on the Toronto Stock Exchange under their current trading symbols FAL.PR.A, FAL.PR.B and FAL.PR.H, respectively.