Mittal Steel’s rehabilitation package for Orissa may include land

It is reported that Mittal Steel India, which is in the process of readying its rehabilitation and resettlement package for its 12 million tonne Orissa project, will consider issue of shares and land for land as part of its compensation to land losers.

Mr Sanak Mishra CEO of Mittal Steel India said that “The Orissa government’s R&R policy includes issue of shares as a means of compensation and if the people want it, we will do it. But that will happen at the implementation stage and we have to see the legal standpoint and the mechanism.” Mr Mishra said that if the Orissa government wants to incorporate something, we will look into it.

Mr Mishra said that “There are also other physical issues being considered like alternative land for the displaced people. We will, however, have to assess how much land is required.”

The Orissa government’s policy mentions convertible preference share as a compensation option. It says that at the option of the displaced family and subject to the provisions of relevant laws in force, the project authority could issue convertible preference shares or secured bonds up to a maximum of 50% out of one time cash assistance. The Orissa rehabilitation guidelines do mention provisions for homestead land or house building assistance or assistance for self-relocation.

Mittal Steel hopes to finalize the draft R&R package and make presentations to the Orissa government by month end. After finalizing the scheme in consultation with the state government, Mittal Steel plans to embark on a communication program with the land owners.

Mr Singh takes over as new ED for SAIL SSP

Steel Authority of India Limited’s Salem Steel Plant announced that Mr BB Singh has assumed charge as executive director of Salem Steel Plant on November 10th 2007.

Mr Singh a graduate in Mechanical Engineering from Government Engineering College Rewa in 1973 has joined Steel Authority of India Limited’s Rourkela Steel Plant in 1974 as Management Trainee. With rich experience in mechanical, refractories, steel melting and human resources, he rose to the position of General Manager in 2003 and later became General Manager In-charge (Steel) in 2007.

Ispat Industries announces November prices of HR Coils

Ispat Industries announced the following ex plant Dolvi prevailing prices of Hot rolled Coils valid from November 1st 2007.

(INR per kilogram)
(Thickness/width in mm)

Note
1. Freight, Excise Duty currently at 16.48% and other applicable statutory levies & duties, as applicable on the date of despatch shall be in addition to the above.
2. Details of prices for material in other qualities & dimensions can be obtained from the under mentioned contact details.
3. Above prices are for general information and should not be taken as sale offer. These prices may be changed by IIL without prior notice.

Centre proposes 100% FDI in titanium mining

It is reported that union government is proposing to allow 100% foreign direct investment in mining and mineral separation of titanium bearing minerals and ores. The proposal is also applicable to the value addition and integrated activities subject to regulations. The proposal has been finalized by the department of industrial policy and promotion and is likely to be presented to the union cabinet soon.

A government official said that “The companies will be allowed 100% FDI for mineral separation only if the value addition facilities are set up within India, along with the transfer of technology. Companies also have to follow the disposal of tailing during the mineral separation in accordance with the regulations framed by the Atomic Energy Regulatory Board. The current FDI is permitted with the condition that they should bring in a central or state public sector undertaking, which should hold the other 26% with the prior approval of the government.”

As per the existing FDI rules, up to 74% is permitted in pure value addition and integrated activities. The present policy is governed by the beach sand minerals policy of the department of atomic energy since limonite, the titanium bearing mineral, was included as an atomic mineral. This is permitted provided the level of value addition is maximum as per the prevailing international levels of value addition to the products of mining.

JSW Steel bags Commendation Certificate award

It is reported that JSW Steel Limited’s Vijayanagar Works at Toranagal in Bellary district of Karnataka has bagged “Commendation Certificate” for significant achievement for the third time in a row at the 15th Quality Summit organized by Confederation of Indian Industries Institute of Quality held recently at Bangalore.

BSE unveils Power Index

The Bombay Stock Exchange announced that it has launched a new index to track the performance of companies in the power and energy sector. Christened BSE Power index, the new index comprises companies that are into the business of generation, transmission and distribution of electricity.

Firms providing power infrastructure and manufacturers of equipments required for power generation will also be a part of this index, said a communication from the BSE. As on the launch date, the index comprises 14 scrips and it represents about 90% market capitalization of the BSE listed power sector companies.

BHEL, Reliance Energy and NTPC are some of the stocks that will have maximum weightage on this index.

Balasore Alloys Q2 net profit up by 337% YoY

Balasore Alloys Limited has posted a net profit of INR 6.91 crore during the July to September 2007 quarter up by 337.3% YoY as against INR 1.58 crore during July to September 2006 quarter. Net sales income stood at INR 100.77 crore up by 39.6% YoY as against INR 72.15 crore while, profit before tax during the period under review was INR 11.49 crore up by 284.2% YoY as against INR 2.99 crore.

Indo Nepal railway link to be upgraded to boost trade

It is reported that Eastern Railway is upgrading links between frontier town Jogbani and Kolkata with improved services expected from March 2008. Jogbani, located in Arariya district of Bihar, is the nearest Indian railhead for Nepal. Currently, it is connected to Katihar town in Bihar through meter gauge tracks.

A broad gauge link up to Jogbani will boost Nepal's trade with India, slashing transport costs. At present, Nepali traders send out export items and bring in raw materials by truck and container. The meter gauge track is mostly used to bring in salt and coal. India has also responded positively to the Nepali request for a warehouse.

Eastern Railway authorities, who held a meeting with traders at Biratnagar in eastern Nepal this week, said that work to upgrade the track to broad gauge has begun and the first direct train services between Jogbani and Kolkata are likely from March 2008. Morang Trade Association, an umbrella body of traders in eastern Nepal, had been urging the Indian government to upgrade the track for nearly 3 decades.

The construction of a warehouse at the Jogbani station instead of Bathnaha town in India would benefit both Indian and Nepali traders since a transit agreement between the 2 countries allow the latter to travel only up to the nearest railhead on the Indo Nepal border. India plans to build the warehouse at Jogbani by 2017.

Bharati Shipyard net profit up by 103% YoY in Q2

Bharati Shipyard Ltd has made a net profit of INR 25.75 crore during July to September 2007 quarter up by 103% YoY as compared to INR 12.65 crore in the July to September 2006 quarter.

Bharati Shipyard in a release said that its net sales for the July to September 2007 quarter up by 96.12% YoY INR 148.03 crore as compared to INR 75.48 crore in July to September 2006 quarter.

Cochi Port Trust plans to become e port

Cochin Port Trust has embarked on a comprehensive enterprise resource planning implementation program in its effort to implement a fully integrated port information system using a SAP based ERP.

The program, to be christened as ‘e thuramukham’, will help it to improve its business processes and work practices, closely monitor the performance in all areas of operations and management and provide improved levels of operations and efficient service delivery to its internal and external customers.

Mr N Ramachandran chairman of Cochin Port Trust has launched the program at a function attended by the representatives of the trade unions and employees. The project based on SAP platform is customized for the port by TATA Consultancy Services and will be completed in 10 months. He added that by the implementation of ‘e thuramugham’, it will become the first major port in India to work on a fully integrated computerized system. The port is integrating its operational, financial, estate and human resource systems through this project, which will have real time interface with customs, port users, banks and the port community system of the Indian Ports Association.

The system will provide a single window facility to the trade for filing applications, receiving service bills, payments and enquiries. The port is using satellite imaging system for monitoring the geographical aspects of the port. The project will meet the expectations of global standards of service to the shipping and export or import community.

The scope of this project is quite comprehensive to meet the business objectives and imperatives considering the increase in traffic and the round the clock operations. Moreover, the expectations of the port users for accurate and quick settlement and cargo clearance also necessitated for the need for external integration of port’s system.

VRL Logistics to demerge wind power business

BS reported that Hubli based VRL Logistics Ltd is demerging its wind power business to focus on its core activity, goods and passenger transport. The company is in the process of setting up a separate company for managing the windmill business.

Mr Vijay Sankeshwar chairman and MD of VRL Logistics said that “We are set for a rapid growth in the logistics business and have found that the windmill business is not our core activity. In order to concentrate on our logistics business, we are demerging the windmill business and setting up a new entity for managing it. This will help us provide complete logistics services to our customers.”

Mr Sankeshwar told Business Standard that during 2007-08, the company is looking at a turnover of INR 45 crore from the sale of wind energy. He added that VRL Logistics is looking at a growth of 18% to 20% in its turnover to over INR 500 crore for the year ending March 2008. The company, which was to go in for an initial public offer has, however, postponed its plans to the next fiscal as it wants to first demerge its windmill business. The company intends to raise INR 250 to INR 300 crore.

Mr Sankeshwar said the company was also open to partnerships in its logistics business. The company has given a mandate to Edelweiss Capital Ltd, an investment bank and brokerage house, to prepare a business plan.

VRL Logistics forayed into the wind energy business in 2006 and has set up a 42 MW windmill at an investment of INR 250 crore, about 80 kilometers from Hubli in North Karnataka. At present, there are 200 fans running at the mill and the power is supplied to the state power grid. However, after the demerger, VRL aims to grow the business further with an addition of new fans every year.

Sembawang secures INR 1770 crore EPC contract in Singapore

Punj Lloyd Limited announced that its subsidiary Sembawang Engineers & Constructors Private Limited has been awarded a major turnkey contract worth INR 1770 crore for engineering, procurement and construction work at the new mega aromatics plant on Jurong Island in Singapore by Jurong Aromatics Corporation Private Limited.

Under the terms of the contract, Sembawang will be responsible for the engineering, procurement and construction of all the ancillary facilities, including the intermediary and finished product tankage, receiving and exporting jetties, power and steam co generation plant, waste water treatment unit as well as other utilities and infrastructure which are necessary to provide support to the main conversion units.

Work on the JAG Complex will start in 2008 and is slated for completion in 2011. Upon completion, the JAG acuity will have a capacity of around 1.5 million tonnes of aromatics, comprising 800,000 tonnes of para xylene, 200,000 tonnes of ortho xylene, and 450,000 tonnes of benzane, as well as about 2.5 million tonnes of petroleum products.

Mr Alwyn Bowden president and CEO of Sembawang E&C said that "We are delighted by this award and to be involved in the engineering and construction of this aromatics facility which will be one of the largest privately owned petrochemical projects in Singapore and the region. Being selected for this project by an international consortium like JAC is testament to our expertise and capabilities in delivering world-class EPC work on sophisticated industrial plants and infrastructure projects."

With this, the order backlog for the Punj Lloyd group on consolidated basis ha gone up to INR 18,622 crore. This is the total value of unexecuted orders as of September 30th 2007 end new order, received till date.

ONGC Videsh targets 2 more oil blocks in Sudan

BS reported that ONGC Videsh, the overseas arm of ONGC, is in talks to acquire stakes in 2 oil blocks in Sudan, where it has its largest overseas oil production. ONGC Videsh already has stakes in 3 oil and gas blocks in Sudan. If it manages to buy a share in the 2 Sudan blocks, its presence in the total number of blocks will go up to 45.

Mr Awad Ahmed al Jaz energy minister, on the sidelines of the India Africa Hydrocarbon Conference said that “OVL is close to joining in a fourth block. It is also applying for a fifth and possibly a six property.”

OVL is seeking a 30% stake from Malaysian company Petronas in Block 8 in Blue Nile Basin, northeast of Sudan’s Melut Basin. Petronas Carigali Overseas has a 77% interest in the block, while the remaining equity is shared between Sudan’s national oil company Sudapet, which owns 15% stake and High Tech Group with an 8% stake.

Mr RS Butola MD of ONGC Videsh said that it had also shown interest in an unallocated 32.5% stake in Block B, where French oil company Total is the operator. Total has 31% to 32% stake in the block that also has White Nile as a partner. However, 32.5% in the block is yet to be allocated to any company.

India currently gets 3.2 million tonnes of crude annually from ONGC Videsh’s 25% equity in GNOP in Sudan. India has been encouraging oil companies to take equity stake in oil fields abroad to reduce import dependence and attain energy security.

Pratibha bags INR 70.70 crore water pump designing contract

Pratibha Industries Limited has informed the BSE that it has secured an INR 70.70 crore contract for design and construction of storm water pumping station at Irla in Andheri West in Mumbai from the Municipal Corporation of Greater Mumbai.

The project involves design and construction of storm water pumping station, including supply, delivery, erection, commissioning of mechanical, electrical, instrumentation and automation works and comprehensive operation.

The project is in JV with Grundfos Pumps Private Limited of Chennai and Keum Jung Industrial Company Limited of Seoul and is to be executed in 12 months.

BHPB bid for Rio - Citigroup to give USD 70 billion to BHPB

Financial Times reported that BHP Billiton has arranged a USD 70 billion financing package through Citigroup to strengthen its USD 140 billion takeover approach for rival miner Rio Tinto Group.

The report cited market sources as saying that BHPB’s arrangement of debt facilities through Citigroup pointed to the group getting ready to launch a hostile bid for Rio. It also cited a person close to the company as saying that BHPB is still trying to get Rio to meet their management to discuss a friendly deal.

The report also cited sources close to Rio Tinto as saying that it is open to a takeover at the right price. Rio sources reportedly said "There is no natural aggression or antipathy towards BHP, they are business partners in many parts of the world."

BHP Billiton, the world's biggest miner, offered to buy Rio Tinto Group in a deal but Rio turned down the initial offer of three BHP shares for every Rio share saying that it is too low. A combination of the two companies would create a USD 380 billion mining giant that would dominate the iron ore, copper, coal and aluminum markets.

Iron ore price negotiations – StanChart raises forecast to 50%

According to a metal analyst at Standard Chartered, the contract prices of iron ore are set to rise by 50% in 2008. It added that with upcoming annual iron ore price negotiation most steel analysts have generally revised upwards their forecast for iron ore prices in 2008.

One of the main reasons is based on continuing strong Chinese demand. Indian export prices of iron ore to China has raised by almost 50% from a year ago and little improvement has been seen in China’s domestic iron ore production. Moreover, it was commented by CVRD, the shortage of iron ore in 2007 will continue into 2008.

Stimulated by facts, Morgan Stanley, Macquarie Bank and Merrill Lynch have also lifted their forecast for increase in contract iron ore price to 50%. Next year is believed to be a cost increase for the steel industry.

Dongkuk Steel puts Vietnam investment on hold

It is reported that South Korea's No 3 steelmaker, Dongkuk Steel Mill Co has put on hold a plan to invest in Vietnam due to the lack of infra structure and difficulty of obtaining energy supplies.

Dongkuk in a filing to the Korea Exchange said that “We have conducted a feasibility study on investing in Vietnam, including the opening of a local unit. But we decided to hold off entering the country because of infrastructure and the difficulty in raising natural gas.”

In July, a Vietnamese newspaper reported that Dongkuk Steel was seeking to build a 1 billion steel factory in central Quang Ngai Province's Dung Quat Economic Zone.

BHPB bid for Rio - Chinese bank builds stake in Rio

FT reported that an arm of the Chinese state has taken a secret stake in Rio Tinto. As per report the stake is bought in the past week by China Development Bank, which is backed by the Communist government in China.

As per report, the stake is believed to be less than 1%.

It is the first time a Chinese state backed group has taken a direct stake in a global miner and fuelling speculation that China may intervene in the bid battle.

In order to maintain growth, China needs to ensure it has ready access to resources such as iron ore. Armed with a huge trade surplus and vast foreign exchange reserves, China has in recent months been investing in resource rich countries in Africa, sparking a race for the world's resources. The country has earmarked up to USD 300 billion for this purpose.

ThyssenKrupp Anlagenservice to reline Salzgitter BF

Oberhausen based ThyssenKrupp Anlagenservice GmbH has been commissioned as general contractor for lining the blast furnace C of Salzgitter Flachstahl GmbH in the spring of 2008. During the six week shutdown from April to May 2008, around 130 mechanics will be employed in Salzgitter.

The job comprises the clearing of the blast furnace including the draining of the iron sump, mechanical work such as the dismantling and reinstallation of over 1,000 cooling elements and the complete skirt, shipments, the dismantling and reinstallation of the hot blast distribution system including expansion joints, the refractory lining of the blast furnace and the hot-blast distribution system as well as the part revamping of the casting shop with slag spout.

ThyssenKrupp Anlagenservice GmbH specializes in all kinds of machinery and plant engineering jobs. The range includes maintenance and repair work as well as the engineering, manufacture and installation of complex machinery and plant including their commissioning. All these capabilities cover such areas as mechanical and electrical engineering, media supplies and automation. The Company also specializes in steel and steel bridge construction, crane engineering and steel and rolling mill plant, in the construction of new plant and in complex clean up projects.

Exports to account only 20% of 2008 sales of Usiminas

It is reported that Brazilian flat steelmaker Usiminas foresees exports accounting for 20% of total sales in 2008.

Mr Paulo Penido Pinto Marques CFO and investor relations director of Usiminas told analysts that “The 2008 export forecast sits below Usiminas' average export rate of 30% an important change considering 2007 has seen exporters in Brazil and other Latin American countries hit by the ever weaker US dollar. Overall sales in 2008 are expected to reach some 8 million tonnes to 8.1 million tonnes.”

Mr Marques informed that “Due to strong demand from the Brazilian market, Usiminas acquired 110,000 tonnes of slabs in the January to September 2007 period, with purchases for the entire year expected to total 180,000 tonnes. In heavy plates, the steelmaker aims to import 125,000 tonnes in 2007, of which 99,000 tonnes was imported in January to September 2007.”

Mr Marques said that Usiminas is carrying out investments of USD 8.4 billion through 2015, including expansions and upgrades at its steel mills in Minas Gerais and São Paulo states, in addition to plans for a new slab project, which could be built in southeast Brazil. He said that "We are carrying out studies to optimize the Ipatinga mill. The previous plans included an expansion at the plant by 2.2 million tonnes per year to 7 million tonnes per year, which could be revised to reach 8 million tonnes per year.

Mr Marques further added that the board of Usiminas has approved plans to secure resources for the future investments, including a debenture issue of BRR 400 million to BRR 500 million (up to USD 286 million), euro bonds worth USD 300 million to USD 400 million and a loan with IDB for up to USD 400 million.

Siemens to extend cooling system POSCO’s No 2 plate mill

Siemens Metals Technologies announced that it has received an order for the supply of an extension to the existing Mulpic system installed on the 4.9 meter wide plate mill at POSCO’s No 2 Plate Mill in Pohang. This project is the second phase of the conversion of the existing cooling system.

The scope of supply includes all engineering and supply of the key components and basic automation. POSCO’s Plate Mill No 3 in Pohang is already equipped with a Mulpic system and the Mulpic technology was selected by Posco to replace an existing cooling system on their No 2 Plate Mill following their experience of the system on their No 3 Plate Mill.

The new cooling system is part of a wider investment by POSCO aimed at increasing the output of their No 2 Plate Mill and producing a greater quantity of high value added plate products mainly for the ship building industry.

The Mulpic plate cooling system allows modern production techniques such as precipitation strengthening and grain refinement to be used during the production process. Advanced actuators are an integral part of the machine. These ensure uniform properties along the plate length and across the plate width and minimize the need for further processing.

With a crude steel output exceeding 30 million tons in 2006, POSCO operates two integrated production facilities at Pohang and Gwangyang.

Raw material demand to drive investment - Leighton Holdings

ABC news reported that Australian construction giant Leighton Holdings is predicting further strong investment in Australia's infrastructure.

The report quoted Mr David Mortimer chairman of Leighton Holdings during the company's annual general meeting as saying that demand for Australia's raw materials is forecast to remain at high levels for the foreseeable future, particularly from China.

Mr Mortimer said that is just one factor underpinning the development of infrastructure projects. He added that "Ageing infrastructure, a growing population, a resources boom and issues such as the recent drought, continue to support the long term outlook for infrastructure investment in Australia."

Sidenor 9 months profits up by 37% YoY

Greece's metals company Sidenor Group announced that its January to September 2007 period turnover amounted to EUR 1,078 up by 19% YoY. Its EBITDA reached EUR 185 million up by 16% YoY as compared to January to September 2006 period. Finally increased by 37% were the consolidated net after tax and minorities profit and was formed at EUR 87 million over EUR 64 million in 2006.

Sidenor said that the increase in the turnover and the profitability in the nine month period of 2007 resulted from
1. The high demand for steel products, especially during the first half of 2007
2. The further enhancement of SIDENOR sales in the Balkan markets, specifically in the branded SD steel products,
3. The ongoing improvement of productivity and production capacity of all SIDENOR Group's plants, resulting from the investments already carried out,
4. The further enhancement of the sales of the heavy plates products, as well as the special steel products of STOMANA INDUSTRY in the EU countries
5. The increase in the profitability of subsidiary CORINTH PIPEWORKS, resulting from the increased price levels of the projects in process, as well as the increased demand in the international energy markets for high quality steel pipes and the constant pursuit for increased productivity and more efficient use of the company’ s production units.

Statoil cancels UO pipe purchasing

YIEH reported that since the Norwegian Government has adjusted its related energy policy and the natural gas pipeline expansion projects have been stopped temporarily.

Therefore, Statoil ASA has announced to cancel the entire UO pipe purchasing plan. The company had announced to invite public bidding for 750,000 tons of UO pipes in this July.

Statoil is an integrated international oil company, owned by the Norwegian state.

ISRI releases updated 2007 Scrap Specifications Circular

The Institute of Scrap Recycling Industries Inc announced that it has updated the 2007 Scrap Specifications Circular with revisions to three nonferrous specifications and the addition of a new specification. The new specifications will become effective on November 19th 2007.

The Institute of Scrap Recycling Industries Inc's board of directors approved recommendations from the Nonferrous Division to revise following specifications last month during their October governance meeting in Boston.
1. Zorba - Shredded nonferrous scrap, predominantly aluminum
2. Ebony - Composition or red brass
3. Eland - High grade low lead bronze brass solids

A new specification named Zurik for nonferrous sensor sorted scrap predominantly consisting of stainless was also approved.

First published in 1919, ISRI's Scrap Specifications have become the universal language for scrap buyers and sellers in domestic and international trades.

Outotec's ferrochrome process won Cleantech Finland® competition

Outotec announced that it has won the Cleantech Finland® award for developing new ferrochrome production technology that promotes sustainable development. By winning the Cleantech Finland® competition in process category Outotec has been qualified for the European Business Awards for the Environment 2008 competition.

Mr Tapani Järvinen president and CEO of Outotec said that "Ferrochrome is an essential alloy in the production of stainless steel. Outotec's ferrochrome production method innovatively utilizes the gas generated in the process as a gaseous fuel in the plant area. The process itself is a closed system, which considerably reduces the energy consumption and carbon dioxide emissions to the environment. The technology is very topical now when the energy price and metals prices are high and environmental requirements are becoming tighter", gave the Finnish jury as reasons for the selection.”

He added that “The ferrochrome process, developed originally at Outokumpu Oyj's Tornio Works and Outotec Oyj's research center in Pori, Finland, is continuously being developed. When the technology is sold to a new customer, the process will be tailored to meet the specific needs of each customer.”

Mr Järvinen explain that "The Cleantech Finland® award is a pleasant distinction to Outotec's ferrochrome technology which is competitive because of its cleanness and energy-efficiency. It has been estimated that, thanks to our technology, the cumulative carbon dioxide emissions of Outokumpu Tornio Works have been reduced by six million tonnes and of the ferrochrome plants in South Africa by five million tonnes respectively. Furthermore, the process significantly reduces the consumption of electric energy when compared to conventional processes. Our technology has been a success in the global market, and today it is used to produce approximately 35% of the world's ferrochrome."

European Union organizes the European Business Awards for the Environment competition every other year for companies pioneering in environmentally friendly policies, products and processes and whose business activities promote the principles of sustainable development. The Finnish national competition, Cleantech Finland®, is coordinated by the Finnish National Fund for Research and Development Sitra.

Nemetschek and ArcelorMittal partner to enhance steel structures solutions

It is reported in an effort to stimulate the use of steel in the construction industry, ArcelorMittal and Nemetschek have signed an agreement through which Nemetschek will implement part of ArcelorMittal's design software into its program suites for modeling, designing and detailing structures. The companies stated that they also will share technology on design, cost estimation and Eurocodes regulations.

Mr Bruno Theret head of global marketing BCS at ArcelorMittal said that "Transfer of know how promotes the best use of steel at the largest number of clients, architects, designers, and steel contractors worldwide. The international network of both companies ArcelorMittal and Nemetschek is a guarantee for reciprocal promotion and increased visibility. This partnership will enable Nemetschek's clients to have access to ArcelorMittal solutions and niche products. It should also increase the use of steel in construction and generate added value for the whole steel branch."

According to Mr Ernst Homolka CFO and spokesman of the Nemetschek AG Board "This cooperation is an example of how industry leaders can push technology innovations in a specific market such as construction. It will support the expansion of both companies into new regions and international markets."

Japanese FTC probes price fixing of molten scrap

Platts reported that Japan's Fair Trade Commission is investigating possible price fixing of molten scrap metal by four companies.

A Japan's Fair Trade Commission official said that the four companies are believed to be fixing prices to be submitted to molten scrap metal buy tenders issued by local municipalities. The companies are Nippon Mining & Metal subsidiaries Nikko Shoji and Nikko Environmental Services, Mitsubishi Material's subsidiary Material Eco Refine and Dowa's subsidiary Eco System Japan.

The official said the four companies are said to have shared price ideas and fixed offers at certain levels, which resulted in losses of opportunities for other companies to win the tenders. The price fixing mechanism seems to have been functioning since 2003. He added scrap metal market is a niche market yet with limited indications for measuring supply and demand. The market is expected to grow, however and fair business rules need to be set.

Municipalities issue tenders to sell molten metal collected from incineration plants. The material is mostly ash but contains some gold, copper, and other rare metals.

Japan's Fair Trade Commission conducted an on site investigation of four companies. A Nippon Mining & Metal spokesman commented that his group is ready to cooperate with the investigation.

Abbott Point coal terminal gathers momentum

According to Queensland Premier Ms Anna Bligh, the Abbott Point coal terminal near Bowen in the state's north could become critical to Queensland's coal export market. She added that the stage two of the port's expansion was officially opened, taking its export capacity from 15 million tonnes to 21 million tonnes.

The State Government has put AUD 116 million towards the project.

Ms Bligh said that stage three of the expansion will double the port's export capacity, but that depends on building a link to central Bowen Basin mines. She added that "We are very close to a final decision on the northern missing link. I'm very optimistic about its future. We are in the process of doing final approvals and considerations and I look forward to an announcement as soon as I possibly can."

Sumitomo Metal Industries to build zinc recycling plant

Platts reported that Japanese steelmaker Sumitomo Metal Industries has started construction of a second zinc recycling plant at its Kashima works in Ibaraki prefecture near Tokyo. The plant recovers reduced direct iron and crude zinc oxide from dust.

The construction of the plant started on November 6th 2007 and it is expected to be operational by June 2009. The plant will have the capacity to process 200,000 tonnes per year of dust and recover 110,000 tonnes per year of reduced direct iron and 5,500 tonnes per year of crude zinc oxide. It has the same capacity and design as the first plant that started operating in 1975.

It added that the second plant will be operated by a local metal recycler Kashima Senko, while Sumitomo will continue to operate the first plant.

Corinth net profit in 9 months up by 144% YoY

Greek pipe manufacturer Corinth Pipeworks announced that its January to September 2007 period turnover reached to EUR 282.4 million up by 13.8 % YoY as compared to EUR 248.1 million in 2006.

Corinth said that its EBITDA margin reached 17.5% on Group turnover as compared to 12.3% in 2006. Substantial increase by 141% YoY marked earnings before tax, which amounted to EUR 33.7 million as compared to EUR 14 million in 2006, while earnings after tax and minorities marked a 144% YoY increase and reached EUR 29.4 million as compared to EUR 12.1 million in 2006. Its turnover reached EUR 255.6 million as compared to EUR 245.8 million in 2006. EBITDA amounted to EUR 40.5 million as compared to EUR 30.1 million while earnings before tax reached EUR 26 million, marking an increase of 67% over 2006.

Corinth added that the increase of sales turnover and the high profitability are mainly attributed to
1. The increased price levels of the projects in process as well as the increased demand in the international energy markets for high quality steel pipes
2. The constant pursuit for increased productivity and more efficient use of the company’s production units

Australasian Resources to focus on iron ore

Australasian Resources Ltd advises it has made an in principle decision to focus on the development of iron ore projects. This follows the recent announcement that CITIC Pacific Ltd has concluded agreements with Mineralogy and Australasian's major shareholder, Professor Clive Palmer to acquire another iron ore project at Balmoral in the Pilbara region of Western Australia.

Following Professor Clive Palmer's confirmation of his willingness to do so, Australasian has commenced negotiations with Professor Palmer in order to acquire additional iron ore assets adjacent to its current Balmoral South Iron Ore Project.

To enable the Australasian to focus on its iron ore strategy, Australasian proposes to spin off its nickel and other assets into a separate listed entity. Details of the structure of the spin off and timing have yet to be determined, however it is envisaged that shareholders would have an opportunity to become investors in the spin-off entity either on an entitlements or priority allocation basis. Tricom Equities Ltd has been appointed to advise the Company on this transaction.

Golden West Resources announces exploration results at Wiluna West

Golden West Resources announced a significant exploration results which confirm the potential for a substantial uplift in the resource at its flagship Wiluna West iron ore project.

Highlights of the Wiluna West Iron Project
1. Resource upgrade imminent following significant drill intercepts at the Wiluna West Iron Ore Project
2. High grade outcropping hematite identified over a 1.1 kilometer strike length in Southern area.
3. Golden West on track to attain target high grade resource of 100 million tonnes.

Results from RC drilling at six deposits within C Unit have confirmed wide zones of high grade hematite, including intercepts of 83m grading 64.82% Fe and 32m at 65.1% Fe from the C4 deposit, 10m at 66.05% Fe from the C2 deposit and 18m at 65.39% Fe from the C5 deposit. These results will be incorporated into a new interim resource estimate currently being prepared by international mining consultants Snowdens and expected to be released by the middle of November.

The new estimate is expected to significantly boost the initial inferred mineral resource of 50 million tonnes grading 61% Fe at the Joyners Find, Bowerbird, C4 and C3 deposits that was announced in April 2007.

Gerdau Ameristeel closes offering of 126.5 million common shares

Gerdau Ameristeel Corporation announced the completion of its offering of 126.5 million common shares, including the full exercise of the over allotment option.

Gerdau SA purchased approximately 84.1 million of the common shares including approximately 10.9 million common shares issued to Gerdau SA concurrently with the closing of the over allotment option from Gerdau Ameristeel in the offering. After giving effect to the offering, Gerdau SA owns approximately 66.5% or 287.4 million common shares of Gerdau Ameristeel and intends to hold these common shares for investment purposes only.

Approximately 42.4 million common shares including approximately 5.5 million common shares issued to the underwriters pursuant to the exercise of the over allotment option have been purchased by an underwriting syndicate described below for distribution to the public.

The common shares were sold in the United States and Canada at a price of USD 12.25 per share for total gross proceeds of approximately USD 1.55 billion. The net proceeds of the offering will be used to repay a portion of the loans incurred by Gerdau Ameristeel for its previously announced acquisition of Chaparral Steel Company, which closed on September 14th 2007.

JP Morgan Securities Inc, CIBC World Markets Corp, ABN AMRO Rothschild LLC and HSBC Securities (USA) Inc are acting as joint book-running managers and Bank of America Securities LLC and BMO Capital Markets are acting as co managers of the offering..

Straits Asia acquires more coal assets in Sebuku Island

Straits Asia Resources announced that it has entered into sale and purchase agreements to acquire mining, exploration and off take rights to two coal mining areas to the north of its existing operations on Sebuku Island. The acquisition is subject to final due diligence and the consideration payable is USD 25 million cash on completion.

Straits Asia said that an additional contingent payment of approximately USD 114 million will be made upon satisfaction of additional conditions which include obtaining relevant Indonesian government approval to re classify certain areas within the mining concession, and obtaining relevant approvals to commence mining activities within the area.

Herald hopeful of getting permit for new Indonesian zinc mine

Metals Insider Australian junior Herald Resources believes that progress is being made on approving the key forestry permit that has held up its 80% owned Dairi zinc lead mine project in Indonesia. The Indonesian authorities have previously said that a full presidential decree will be needed before the permit can be issued.

Herald said that it and its JV partner Indonesia’s Antam met with the Indonesian minister of state, who is charged with overseeing the approval process and said that “As a result of the meeting the company believes that progress is being made on both the presidential decree and the forestry approval.”

A sign of Herald’s growing optimism is its simultaneous announcement it intends to raise AUD 100 million via a capital raising to finance bringing Dairi into production.

Dairi is now running significantly behind schedule. It was due to come into production by the end of this year but construction on the key part of the mine site has yet to start because of the lack of a permit. At full production Dairi should be able to produce around 125,000 tonnes per year of contained zinc, making it one of the biggest single medium term additions to zinc mine supply.

Romania intends to purchase coal from the US

Nine o’clock reported that Romania, alongside Ukraine and Russia, is among the countries that intend to purchase coal from the US.

Mr Michael McQuillen executive president of Alpha Natural Resources said that the price of coal reached a historical low compared with the price of oil and therefore it is estimated that several energy users will turn towards coal at the expense of oil. One tone of coal from the United States of America costs around USD 47.

Mr Dan Rosati named Pittsburgh 2007 CFO of the year

Tube City IMS Corporation, a provider of products and services to steel mills and foundries throughout the United States, Canada and Europe, announced that Mr Dan Rosati CFO, senior vice president & treasurer was named Pittsburgh Business Times "2007 CFO of the Year" in the Large Private Company category for the Pittsburgh region.

Mr Rosati was one of five finalists in the Large Private Company category and was selected by a panel of distinguished judges. The award was presented to Mr. Rosati by the Pittsburgh Business Times at its annual awards ceremony held at the Omni William Penn Hotel on November 7 attended by 350 people.

Mr Rosati said that "I am deeply honored and humbled to receive this honor, but this award truly belongs to all of the 2,600 dedicated and hardworking teammates at Tube City IMS. I am pleased to accept it on their behalf."

The award is given to financial professionals for outstanding performance in their roles as corporate financial stewards in five separate categories.

Tube City IMS Corporation, through its Tube City and IMS Divisions, is a leading provider of outsourced steel services, including raw materials purchasing and sales worldwide, scrap management, scrap optimization, and slag processing and metal recovery services to integrated steel mills, mini mills and foundries. Tube City IMS has operations at 68 plants throughout the US, Canada, Europe and Asia. The Company is headquartered at Glassport in Panama.

TSML and Kawasaki sign USD 30 million agreements

It is reported that an agreement was signed between Tuwairqi Steel Mills Limited of Al Tuwairqi Group of Saudi Arabia and the Kawasaki Gas Turbines Asia for the supply and erection of a Power Generating Unit at TSML site Bin Qasim. The contract was signed by Mr Zaigham Adil Rizvi on behalf of Tuwairqi Steel Mills Limited and Mr Yuji Tanaka MD of Kawasaki Gas Turbines Asia on behalf of Kawasaki Heavy Industries.

The power generating unit of four gas turbines of 6.5 MW capacity each would be sufficient to cater the power requirement of Phase I of Iron Making Plant of 1.28 million tonnes per annum capacity. The power generating unit costing USD 30 million with combined cycle solution will be of the capacity or around 35 MW.

Kobe Steel of Japan is the original manufacturer and technology supplies of Iron Marking Plant. On completion of Phase I in the next 15 months at a cost around USD 197 million, the Tuwairqi Steel Mills will commence production of 1.28 million tonnes of iron annually. The production capacity of the plant can be expanded to 1.5 million tons per annum in near future.

Allegheny SS to be used on Qatar airport roof

It is reported that steel made by Allegheny Technologies Inc will be used in the world's largest stainless steel roof.

Allegheny Technologies supplied 3.5 million pounds of its proprietary alloy to be used in the roof of the New Doha International Airport in Qatar.

Allegheny Technologies said the alloy is an economic stainless steel that offers better corrosion resistance and strength.

Iran and Pakistan finalize contract for IPI without India

Iranian media reported that Iran and Pakistan have reached a deal to build a pipeline to transport natural gas between the two countries and a contract is likely to be signed within a month without the third partner India, which is yet to settle transit fee issues with Pakistan.

Mr Hojatollah Ganimifard Iran's deputy minister in charge of the project was quoted as saying by the Iranian oil ministry's news service Shana that "The content of the Peace Pipeline contract has been finalized and all the points prepared by the two sides' legal experts have been re-read and agreed by the two sides. The remaining points which are technical issues must be studied within a month to make the contract ready for the simultaneous signing by the heads of the two countries.”

Talks on the USD 7.4 billion project to supply gas to India through a 2,600 kilometers pipeline began in 1994 but were stalled by tensions between India and Pakistan. Talks resumed early in 2004 along with peace moves between India and Pakistan but dragged because of New Delhi's opposition to periodic price reviews.

Bridge collapse in Dubai kills 7

It is reported that 7 workers were killed and 24 injured when an under construction bridge collapsed in Dubai Marina, a new city coming up in UAE. An official at the Indian Consulate told that all the deceased and injured were Indians.

A worker said "We were placing steel fabrication when the bridge collapsed. There was a loud noise. All of us rushed to see what had happened.”

Lt Gen Dhahi Khalfan Tamim chief of police of Dubai blamed the collapse of the bridge on the crane driver and poor site supervision. After inspecting the accident site in Sufooh area, he said that "My tentative assumption is that the bridge collapsed because a crane driver had tried to lift a 1.5 tonne load of steel onto the bridge. The load, however, hit against the bridge columns causing it to collapse."

Mr Mattar Al Tayer chairman of the board of the Roads and Transport Authority told Dubai TV the accident was caused by human error when steel rods were wrongly loaded.

Qatar Navigation plans expansion in Dubai

A senior official at Qatar Navigation announced that the company will expand its logistics business in Dubai in order to keep pace with the emirate's growth and to serve its own marine transport operations in the region.

He indicated that the Doha-based firm operates a logistics centre in Jebel Ali but plans to build a facility in the upcoming Dubai Logistics City. He said the rapid growth of Dubai's logistics industry is also increasing competition among companies in the sector.

Qatar Navigation is involved in a range of shipping activities, including ship handling and feeder services. Its current fleet includes four feeder ships of 300 TEU capacity each.

Oil pipeline set ablaze in Iraq

Xinhua cited a provincial police source as saying that Iraqi insurgents blew up a roadside bomb under an oil pipeline in the central province of Salahudin recently setting up a huge fire.

The source told Xinhua that the pipeline, which carries oil from the northern oil fields of Kirkuk to Beiji refinery, went into flames before midday in the Fatha area near the town of Beiji 200 kilometer north of Baghdad.

Fire engines rushed to scene to put out the fire and prevented an escalation of the damage. He said thick black smoke billowed high into the sky, as intense heat from the fire prevented fire fighters from approaching the blaze.

Siemens to supply 2nd 5 meter plate Mill to Shagang

Siemens Metals Technologies has announced that it has signed a second 5 meter wide plate mill contract with Shagang Wide Plate Mills Co Ltd Zhangjiagang in China. The plate mill will be a copy of Shagang's existing 5 meter wide plate mill which went into production in January 2007. When the new mill starts production in 2009 Shagang will become the first plate producer in the world to operate two 5 meter wide mills on one integrated site.

The mill stand will have a rolling load capability of up to 10,000 tonnes and will incorporate hydraulic gauge control and heavy work roll bending. An attached edger will ensure accurate width control and high plate yield. On the exit of the mill stand a Mulpic system will be installed to provide the accelerated cooling necessary for the production of high strength plate. A fully hydraulic 9 roll leveller will be installed ahead of the cooling beds to optimize plate flatness. The plant layout for the new mill will incorporate two shear lines, which will enable a production of 1.8 million metric tons p.a. to be achieved. Production will focus on plate for the shipbuilding, line pipe and construction industries in China.

The Siemens scope of supply includes the design of the mechanical equipment, plus supply of key mechanical components and quality supervision of Chinese manufactured equipment. In addition, Siemens will supply the motors and drives for the key process equipment, including the mill stand, and the Level 1 and Level 2 automation for the complete mill line. Siemens will also be responsible for supervision of equipment installation and commissioning.

Shagang Wide plate Mill Co Ltd is part of the Jiangsu Shagang Group which currently produces 16 million tonnes of steel per annum, making it one of China’s leading steel producers. The investment is part of the Jiangsu Shagang Group’s policy of increasing production of high valued added flat products.

Chinese HDG producers gather for responding to EU AD case

The China Iron & Steel Association held a meeting in Beijing November 8th 2007, gathering over 20 domestic HDG producers to respond to EU investigation against China-origin HDG import, attended by Anshan Steel, Wuhan Steel, Benxi Steel, Handan Steel, Panzhihua Steel, Baosteel, Baotou Steel, Changshu Xingdao, Yieh Phui, Changshu Huaye, Fujian Kaijing etc.

The meeting attendee enterprises noted to prepare sufficiently for actively responding to the EU antidumping investigation. Meanwhile, they also expressed willingness to enhance self-discipline and protect healthy development of the HDG industry.

The European Confederation of Iron and Steel Industries filed antidumping applications against China's hot dipping galvanized steel sheet and cold rolled stainless steel sheet and strip shortly before.

Chinese export of HDG increased in 2007 to meet robust demand from EU nations and also for being favored by the European customers for good quality and competitive price.

(Sourced from MySteel.net)

Chinese tube makers to respond to US findings of subsidy

It is reported that, in response to the recent preliminary findings by US department of commerce regarding subsidization on Chinese steel tubes, the representative counselor of Chinese steel enterprises said China will make active response and expect good results in the final decision, which will take place in March 2008.

Officer with China Society for World Trade Organization Studies Zhou Shijian told China Business News that evidences held by the US in the petition mainly include China's export rebates, CNY exchange rate and the local governments' support or subsidy, but in fact, China's export rebate is in accordance with the international trade theory, moreover, the nation has canceled the refund on majority pipe products with regularity effects already emerged. The export growth is reportedly on the decrease from September 2007.

Observing the world steel industry development, US received direct subsidy of USD 130 billion during its industrialization stage, so did other developed countries, China Iron & Steel Association revealed. The association noted the developed and developing countries should not view the same thing in the same period. It suggested some types of subsidies that are lucrative to world economy development and harmonious evolvement should not be blindly constrained. For instance, China's compensation for eliminating backward steel capacities and protecting the environment are meant to encouraging the enterprises to conserve energy.

A source close to China Iron & Steel Association said that “Traditional pipe producers and large exporters have not expand the shipment greatly, but participation of a host of small ones caused surge on the export volume, yet this does not mean the export price is lower than the cost. China's pipe export price remains some CNY 100 per tonnes higher at domestic sales price.”

The association strongly disapproves the antidumping and anti subsidy activities brought up by individual countries and states this is incompatible to lodge the two complaints simultaneously as antidumping measures are for market economy country while anti subsidy ones are for non market economies.

CCCMC, representing the traders' benefit, also noted China's growth in steel output and export is purely boosted by China economic development and the importer countries' demand for domestic growth.

US Department of Commerce determined November 6th 2007 in its preliminary finding that the Chinese government has been providing improper subsidies on Chinese circular welded steel pipe exports to the US and will impose tariffs on involved exports to offset the unfair advantage of subsidies. The preliminary finding says US found Chinese pipe was subsidized by an average rate of 16.59%%; individual rates ranged from a high of 264.98% down to zero for one company. And it's regarded 13% to 17% duty may be imposed on most Chinese steel makers once definitive determine is made.

(Sourced from MySteel.net)

EU AD threat to stir China medium Plate market –Analysts

It is reported that EUROFER, the European steel producers' association, which has filed the first two of four anti dumping complaints with the European Commission on October 29th 2007 covering cold rolled stainless coil and HDG imports from China now plans to file another two AD cases against imports of China origin wire rod and steel plate within weeks.

In fact, CR stainless coil and HDG account for far less share out of the country's total steel export than wire rod and medium plate. The Customs statistics show that wire rod/bar, HRC and medium plate rank the top three steel products China sent to other countries in the first three quarters, representing 27.2%, 15.4% and 12.5% of the total steel export respectively.

South Korea was always the biggest importer of China's medium plate in the past, however, European Union has already risen to the top slot since second quarter of this year. In contrast, shipment of medium plate to South Korea has declined gradually from June 2007.

As a result, EU took up 27.9% of China's medium plate export in the first three quarters, compared with 27.4% shipped to South Korea in the same period. When combined, more than half of China's medium plate has been sent to above two regions.

Market analysts caution that if China's medium plate exports to EU slumps, the exporters would divert the shipment to domestic market and weigh on the market prices. Other emerging markets also have great potential as the economy has steadily steamed ahead in Southeast Asia countries including Singapore, Vietnam, Indian and China Taiwan and Middle East such as UAE and Saudi Arab.

20 billion tonnes coalfield discovered in Inner Mongolia

It is reported that an extra coalfield with 20 billion tons reservoir is discovered at west Ordos in Mongolia.

It is introduced that the discovery of extra coalfield took over half a year by 2000 geological workers from Inner Mongolia, Shanxi and Shanaxi provinces.

The newly discovered coalfield has high quality steam coal with high heat and low ash & sulfur. Meanwhile, experts release that the discovery of 20 billion tonnes coalfield only a primary success.

According to information possessed, the coalfield has a large extension and resource amount is expected to double.

China's construction steel price hits new records

Despite the upcoming winter and low temperature, China's construction steel market has maintained an uptrend since National Day holiday except for some slight adjustments in Northeast and South China.

According to statistics from Mysteel, 20mm second grade rebar price averaged CNY 4116 per tonnes on November 8th 2007, a new record in the history, up CNY 182 per tonnes from that before National Day holiday and CNY 45 per ton higher than previous record set in Feb of 2004. Construction steel price in major cities such as Shanghai, Hangzhou and Guangzhou all hit or break previous records.

This year has witnessed quickest economy growth in China in recent decade, with GDP gaining 11.5%YoY in the first three quarters. In the meanwhile investment increased by CNY 1.64 trillion or 26.4% to CNY 7.82 trillion. Surging investment triggered the expansion of construction steel consumption. Moreover, rising consumption level, excess liquidity of capital, rocketing prices for resource and energy products all imply a possible inflation in China. CPI growth rate has far exceeded that in previous years. Against such a backdrop, the hike of construction steel price seems reasonable.

As winter steps near, temperature will drop, leading to a dead season for construction steel market. But statistics in recent years show the influence of the season is weakening. In some cases price presents stronger uptrend in winter than in other seasons.

The first is production cost. Hauled by China, prices for resource products such as iron ore and oil have experienced astonishing upswings. High cost is the dominant factor pushing construction steel price at a high level.

The second is increasing sanction of resource. International iron ore supply becomes tight due to swift growth of China and other countries. China's iron ore import volume fell in this year but price climbed, indicating a short supply. Slowing iron ore supply inevitably restricts construction steel output.

The third is would-be freight rate hike, spurred by soaring prices for crude oil and oil products worldwide. Freight rate for Bayuquan/Tianjin to Shanghai/Guangzhou has gained 40% to 60% over that in early this year. As National Development and Reform Commission pulls up oil products prices, freight rate will rise further. Even some resources flow into southern regions from Northeast and North China in the future, it will not impact notably owing to high arrival cost.

The fourth is midseason in South China. In Shanghai large scale rebars is still in scant supply, signifying some projects are still under construction. In the meanwhile social stock in South China remains at a low level. Limited fresh resources can not influence the market remarkably.

China's construction steel has long served domestic market whilst export market affects little. Though construction steel exports increased during last year and the first half of this year, export volume merely accounts for 5% of total output. Currently market rumor circulates that export rebate on all steel products will be removed next year and export tariffs on long products will be raised further.

In current situation, even export tariff on construction steel is pulled up it will lead to mild influence, thus construction steel market can still maintain firm operation in the future.

(Sourced from MySteel.net)

China to restructure coal industry by forming giant groups

According to a recent government document China plans to restructure its coal industry by forming six to eight coal groups with each boasting a production capacity of 100 million tonnes by 2010 through mergers and acquisitions. Mr Pu Hongjiu VC of the China National Coal Association said that with the average output remaining low, China's coal companies need regrouping to make better use of their resources.

The document jointly issued by five ministries including the National Development and Reform Commission the country will also have another eight to ten coal groups with a production capacity of 50 million tonnes each. It added that these giant groups are expected to contribute more than half of China's coal output of 2.6 billion tonnes in 2010.

The move comes in the wake of a nationwide campaign to close small coal mines, which account for one third of China's total production but two thirds of the deaths resulting from colliery accidents. In 2006, accidents in small coal mines claimed 3,431 lives.

Mr Huang Qing directorate secretary with Shenhua Group, which produced 203 million tonnes of raw coal last year to become China's first coal company to pass the 200 million tonnes milestone said large companies will have more resources by acquiring small ones. China second largest coal producer, China National Coal Group, produced 90.6 million tonnes of coal last year.

Lianzhong to stop offering 201 HR SS temporarily in November

YIEH reported that China’s Lianzhong Stainless Steel will temporarily stop selling 201 hot rolled stainless in November due to the slow domestic market.

According to an official from the company, Lisco is used to sell more than 10,000 tonnes of 201 HR every month but only to cut down the sales this month. However, the company also lowers the supply of 201 cold rolled stainless steel to traders.

Recently the market for 200 series stainless in China remains weak with falling prices. Most traders still look down the market but some look forward to see improvement with such supply control strategies.

Zijin Mining signs MoU to buy 20% of Philippine mining project

It is reported that Zijin Mining Group Co Ltd has entered into a MoU with Lepanto Consolidated Mining Co of the Philippines under which the Chinese firm will acquire a 20% stake in Far Southeast Gold Resources Inc for USD 70 million.

Baotou enters into the list of China's technology famous 500

It is reported that at the just ended second session of the Chinese brands Festival, the Chinese Research Institute of Brand announced the first "China Science and Technology famous 500. Baotou Steel is the only selected enterprise

Baotou Steel is one of China's major iron and steel industrial bases and the largest production base of rare earth research and development, with Baotou Steel shares and Baotou Steel Rare Earth two listed companies and is about to create an annual output of steel 10 million tons of capacity. After many years of development, Baotou Steel has become the strongest enterprise in technology, brand recognition.

It is known that in addition to Baotou steel, the domestic iron and steel enterprises selected in China Science and Technology famous 500 enterprises have Baosteel, Ansteel, Wugang, Magang and Tianjin Steel Tube group Co Ltd.

Pu Steel Luo Jing project begin to work officially

It is reported that Pugang Luo Jing project of BaoSteel worked on November 8th officially, it represented that Pu Steel had been constructed and can gradually produce billet. Initially expected to produce billet 100,000 tonnes, more than half of the production will be provided to Baosteel Group.

As per report rolling project also be constructed methodically, the equipments are expected to finished in early next year in April will be tested and in August to produce materials.

Hongcheng Stainless Steel invests a branch in South Korea

It is reported that Hongcheng Stainless Steel invests a branch in South Korea, the first stage of the project would process 10,000 tonnes per year stainless steel and Hongcheng plans to put into production by the end of 2008.

Qinggang increases wire rod prices

It is reported that Qinggang has increased the prices for wire rods by CNY 30 per tonne.

Q2356.5mm EXW price is CNY 4,140 per tonnes
High speed EXW price is CNY 4,150 per tonnes

Anyang Steel adjusts prices on November 9th 2007

It is reported that Anyang Steel adjusts prices of some steel products on November 9th 2007.

1.Raise reinforcing bar price up by CNY 59 per tonnes and now the EXW price of 18mm to 25mm HRB335 rebar is CNY 3,931 per tonnes, while the price of 28mm to 32mm HRB335 rebar is CNY 3,978 per tonnes.

2. Raise round steel price up by CNY 35 per tonnes and now the EXW price of Φ18mm to 25mm Q235 round steel is CNY 4,013 per tonnes.

3. Raise prices of angle steel and channel steel up by CNY 35 per tonnes and now the EXW price of 50*5mm Q235A/B is CNY 3,931 per tonnes, while the EXW price of 6.3-10# Q235A/B is CNY 3,826 per tonnes.

All prices above include 17% VAT and are carried out since November 9th 2007.

Pangang vanadium titanium magnetite smelting technology achieves new breakthrough

It is reported that in October in Pangang’s new steel vanadium ironworks, the average daily output of pig iron reached 3,276 tonnes produced by No 3 BF and the utilization quotient of BF reached 2.73

Pangang has made new breakthrough in using ordinary blast furnace to smelt vanadium-titanium magnetite.

Taiyuan holds the 10th World Stainless Steel Conference

It is reported that two day 10th world stainless steel conference was held in Tanyuan On October 5th 2007. It is the first time that China holds world stainless steel conference.

The conference was sponsored by Taiyuan iron & steel Co Ltd and British Commodity Research Center. 259 representatives from 23 countries and regions all over the world discussed the development of stainless steel together.

Russian coal exports in 9 months up by 9.5% YoY

The Federal Customs Service said that Russian coal exports in January to September 2007 increased by 9.5% YoY to 71.449 million tonnes in terms of volume and by 25.1% YoY to USD 3.835 billion in terms of value. Exports to non CIS countries grew by 6.8% YoY to 63.024 million tonnes and exports to the CIS were up by 34.5% YoY to 8.424 million tonnes. In value terms, exports to the non CIS rose by 20.1% YoY to USD 3.249 billion and exports to the CIS grew by 60% YoY to USD 585.7 million.

Russian coal imports fell 11.6% to 16.955 million tonnes in the nine months. Russia imported nearly all of this coal 16.919 million tonnes from the CIS. The imports grew 8.4% by cost to USD 288 million.

Mr Igor Gribanovsky director commercial of Siberian Coal Energy Company said that both the growth in coal exports and the reduction in imports were the result of a drop in demand within Russia due to the relatively warm winter at the start of this year. Mr Gribanovsky said that “There is only one reason due to the warm winter and a drop in demand in Russia in the electricity and housing sectors a drop in domestic sales and imports occurred. Producers were forced to search for sales outside Russia. All coal imported to Russia comes from Kazakhstan and is used for power stations in the Urals region. He added that exports and domestic sales are expected to increase before the end of the year due to a rise in demand in Russia.”

He also added that "Due to the low level of hydro reserves a reduction in electricity production at hydropower plants, a sharp increase in demand has been seen on the domestic market since August 2007. As a result, we expect a considerable correction in the share of supplies at the end of the last four months of the year."

SUEK is Russia's largest coal producer. The company accounts for about 31% of coal supplies to the domestic market and about 25% of Russian coal exports.

PG Generatsia to supply equipments for NLMK converter

FIS reported that Siemens-VAI, which is carrying out works on the reconstruction of the oxygen converter unit of NLMK, has awarded another contract to PG Generatsia for supply of some equipment.

PG Generatsia already supplied special nitrogen storage equipment to the combine in early 2007. Thus, the new contract will become the second agreement concluded by the industrial group with Siemens-VAI, which provide additional proof of the high quality of the equipment manufactured by Generatsia.

Norilsk Nickel recognized as the best public company in Russia

FIS reported that the company has become the laureate of the first prize of Thomson Extel Survey Focus Russia 2007.

In the course of the survey conducted among the participants of the international financial market by Thomson Extel and the Interfax information group, investors and analysts called Norilsk Nickel the best public company in metallurgy and mining industry of Russia.

Neft posts 9.4% rise in RAS net profit in Q3 2007

RIA Novosti reported that Gazprom Neft unconsolidated net profit calculated to Russian Accounting Standards grew 9.4%YoY in July to September 2007 to RUB 19.33 billion (USD 773 million).

Gazprom Neft, which is the oil producing arm of Russian energy giant Gazprom said its net profit in the reporting period, declined 19.95%QoQ due to an increase in the production cost of oil and petroleum products, and growth of export duties.

Gazprom Neft said its unconsolidated net profit totaled RUB 54.94 billion (about USD 2.2 billion) in January to September 2007

NLMK adds Chinese language to its website

FIS reported that in addition to Russian and English versions of the NLMK official website the users can use the Chinese version of the site.

Opening of the new section will significantly enlarge the permanent audience of the site, including those from the Southeast Asia showing stable interest to the information on NLMK.