UMW and Kamineni form JV for seamless tube mill in AP

It is reported that Malaysian UMW Holdings Berhad and Hyderabad based Kamineni Group have floated a JV to manufacture seamless pipes to cater to the needs of oil and gas exploration and production sector.

The JV, named as United Seamless Tubular Private Limited will be setting up a manufacturing unit at Narkatpally in Nalgonda district of Andhra Pradesh with an investment of INR 565 crore. The plant will have annual capacity of 300,000 tonnes of seamless pipes and would be operational in 2 years.

Mr K Sridhar director of United Seamless Tubular Private Limited, on the sidelines of foundation stone laying ceremony of the project on Friday, told newsmen that “About INR 140 crore will be mobilized through private equity while debt will pool in the rest of the funds.”

Mr Asmat Kamaludin chairman of UMW Holdings said they would invest USD 50 million in the JV. He said that “The oil and gas exploration sector in India is very attractive and we see lot of scope for mutual collaboration.”

With this announcement, the number of seamless tube makers in India is growing in addition to existing players Maharashtra Seamless Limited, Jindal Saw Limited, ISMT and BHEL and the planned venture of Rashtriya Ispat Nigam Limited.

Surana Industries orders for bar and wire rod mill from China

Surana Industries Limited announced that it has signed an agreement supply of a bar and wire rod mill with Beijing Shougang Machinery and Electric Company Limited worth USD 14.58 million for its INR 473 crore integrated steel plant at Raichur in Karnataka. The new mill is expected to be operational by September 2008.

Beijing Shougang Machinery and Electric Company Limited will design, manufacture supply plant and machinery, equipment with auxiliaries, automation and application software for the 200,000 tonne per annum bar and wire rod mill.

Mr Dinesh Surana MD of Surana Industries Limited said "We are very happy to be associated with the Chinese company, who are one of the leading players in the iron and steel industry. Their professional expertise and their vast experience in this field is one of the primary reasons for us to choose the company."

The Raichur plant will have the capacity to produce 128,000 tonne of sponge iron, 225,000 tonne of steel melting shop and 200,000 tonne of rolling mill annually. The plant will have 35 MW captive power plant. The Karnataka government has allotted a total of 300 acres land in Raichur for this project. The integrated steel complex is being set up to manufacture special steels mainly meant for automotive industries.

Jindal Saw moves to SC against stay order for supply of ductile iron pipes in WB

PTI reported that Jindal Saw Limited has approached the Supreme Court against a Calcutta High Court order that restrained it from supplying ductile iron pipes to the West Bengal government on a petition filed by rival Electrosteel Castings Limited.

AS per report, a bench headed by Chief Justice KG Balakrishnan refused to stay the High Court's interim order and directed the matter to be listed for hearing on November 26th 2007.

Kolkata High Court had passed the order on a petition filed by Electrosteel Castings Limited challenging the Tamluk Municipality's decision to award INR 3 crore contract for supply of ductile iron pipes to Jindal Saw Limited. Initially a single judge bench refused to stay the award of the contract and held that any decision would be subject to the final outcome of the petition but on Electrosteel's appeal, a division bench had stayed the contract and restrained the state government from accepting goods from Jindal Saw Limited till the petition is disposed.

According to Jindal Saw Limited “High Court failed to notice that Tamluk Municipality had awarded the contract to both the firms to ensure none of them enjoyed a monopoly. If a review of an administrative decision is permitted it will be substituting its own decision which itself may be fallible.”

Essar sees steel price rise in Q1 of 2008 due to cost pressures

It is reported that Essar Steel has forecast a price increase of USD 25 to USD 30 per tonne in the first quarter of 2008.

Mr J Mehra director of Essar during an interview with CNBC TV18 said that “There is a general perception that as a result of iron ore, coal, petroleum and energy prices going up, there would be a certain amount of push on steel pricing starting from January next year. Across global markets, the indications are that there will be an increase in prices by USD 25 to USD 30 for the first quarter of 2008.”

Mr Mehra however added that “It would not cover fully the rise in input cost. It will partially offset the burden of increase in prices. Companies will obviously have to improve their efficiencies to absorb the balance cost because it may not be possible to pass on the entire cost to customers. Going forward if prices remains as firm as they are, there are speculations that prices may go up much beyond normal expectations, it would certainly have to be passed on and steel prices would certainly go up.”

Jindal Photo plans 600 MW thermal power plant in Orissa

Jindal Photo Limited has informed the BSE that it has received a letter from the ministry of coal contemplating allocation of coal in Orissa jointly with two other parties.

It announced that “Accordingly, the company has decided to set up a power plant. In the first phase, 600 MW shall be set up, which will be expanded over 1,000 MW in the second phase.”

The release added that it is taking necessary steps for implementation of the power project.

Essar Steel applies to BSE and NSE for delisting

Essar Steel Limited announced that it has applied to the BSE and NSE for delisting of shares and its founders will continue to buy shares from the shareholders for 6 months after receiving approval.

The company informed the Bombay Stock Exchange on Friday that the reverse book building process for its delisting has been completed and the discovered price has been arrived at INR 48.

In October 2007, Essar Steel Holdings, the founders of Essar Steel, had set a price of INR 48 a share to buy the shares from shareholders and delist from the stock exchanges. Essar Steel Holdings had earlier made an offer to the shareholders of Essar Steel for acquiring the remaining 12.92% stake, comprising 14.72 crore shares in the company. A minimum of 90% stake is needed to delist the company.

Demand to surge for forgings for nuclear plant s in India

Global forging experts forecast a surge in demands for high quality nuclear forgings in India to USD 1 billion once the Indo US nuclear deal is operational.

UK based forging expert, Mr Peter Britles while speaking on “Nuclear Forging - A Global Overview” said that some 700 to 800 large nuclear forgings weighing 100,000 tonnes would be required in the probable expansion of civilian nuclear plants in the next 20 to 25 years in India.

He said that “To meet this demand of the nuclear industry, India must create at least 1 primary steel based forge master urgently. In China, where civilian nuclear industry is growing fast, there are already 3 large nuclear forging companies and 2 more expected to come up meet its internal demands. India also should be able to meet its own growing demands instead of going to world market. At today's world prices, this quantity of forgings equates to a purchase cost of over USD 1 billion.”

He added that the current world manufacturing capacity of nuclear forgings is less than half of the expected demand.

Marg Constructions buys dredger from China

It is reported that Chennai based Marg Constructions Limited, hoping to cash in on the buoyant dredging market in India, has acquired a cutter suction dredger from China for INR 52 crore for its INR 1,000 crore Karaikal Port project. After 9 months of use in the port, the dredger will be given for hire at other Indian ports.

Mr GRK Reddy MD of Marg said that the new dredger, to be named Marg Cauvery, will have a dredging capacity of 2,000 cubic meters an hour and able to dredge at depths ranging from 5 meter to 25 meter. The dredger is at Chennai port for registration by Indian Registration of Shipping and will be deployed at Karaikal by mid December 2007.

Quoting the National Maritime Development Program of the Shipping Ministry, he said that the value of dredging work at all major ports by 2011-12 will be INR 6,300 crore. This translates into dredging volume of around 500 million cubic meters over 6 to 7 years.

Mr Reddy said that the first phase of Karaikal Port with 2 berths would be operational in December 2008 while the 2 other phases will be completed before 2009. The port will begin with 12 meters draught and increased to 16 meters. It will have an annual capacity to handle 10 million tonnes of cargo and handle vessels up to 100,000 DWT.

Committee submits report on Kolkata and Haldia Port

It is reported that the high powered committee constituted by shipping ministry to look into the problems associated with the container traffic at Kolkata and Haldia has submitted its report to Mr Thiru TR Baalu union minister for shipping, road transportation and highways. The report was presented by Mr PVK Mohan chairman of committee to Mr Baalu.

Mr Baalu said that his ministry will look into the recommendations of the committee and take necessary action at the earliest and ensure that all support facilities and improved infrastructure facilities are in place to meet the growing demands of the trade both at Kolkata and Haldia. He added that also, consultants of international repute will be appointed to prepare a detailed project report and to call for global tender to set up a dedicated container terminal at Diamond Harbor.

The committee has suggested both short term and long term recommendations to cope with the likely growth in container traffic at both these ports.

As part of the short term recommendations for improvement of Kolkata Dock Complex, the high powered committee has recommended induction of at least four mobile harbor cranes preferably one each per berth, augmentation of rubber tired gantry crane, rail mounted gantry cranes and trailers, acquisition of modern tugs for efficient ship handling, uniform tariff structure for all container berths for harmonization and reduction of cost to trade. Other recommendations include providing six gates for the Netaji Subhash Dock container terminal for speedy evacuation of container traffic, introduction of 2 shift system for customs works for avoiding congestion, introducing IT systems for better Yard management, abolishing mandatory 0.3 meters trim for all vessels and introduction of night navigation, nominate additional two berths for containers and use Kidderpore docks.

The committee has also recommended creating more yard space by demolishing the Lybian warehouse and unused residential quarters near NSD gate no 3. The warehouse at No 2 and No 3 NSD are also to be demolished to create more stacking area and facilitate direct delivery. A single window system is to be introduced to enable trade take various permissions from customs, port authorities and CONCOR etc for speedy clearance of import and export cargoes. As part of the long term strategy the committee has recommended for planning a dedicated alternate route from Kidderpore docks to the second Hooghly Bridge for evacuation of containers round the clock.

The recommendations made by the high powered committee for short term improvements at Haldia Dock Complex included operations of lock gate to facilitate at least eight movements per tide to reduce waiting periods and the Haldia port to take up entire container handling on its own to reduce terminal handling charges. Haldia Dock Complex is to deploy additional tugs, give priority to container ships to avoid undue delays and earmark at least 2 berths for container ships with a minimum length of 300 meters in total. The long term recommendations include a second lock gate for Haldia Dock Complex as an immediate priority and at least 1 river jetty of 200 meters length dedicated to container traffic and expediting clearance of the long pending capital dredging proposal to improve draft at Haldia.

Kolkata Port being the major gateway port for the entire North Eastern Region, Nepal and the hinterland of West Bengal, Bihar, Jharkhand, Uttar Pradesh and Orissa, has great significance in the growing economy of India.

Navayuga plans INR 24,000 crore plans for port and power projects

It is reported that Navayuga Group is planning a major expansion into ports and power generation involving investments of around INR 24,000 crore over the next 5 years.

Mr Chinta Visweswar Rao chairman of Navayuga said that out of INR 24,000 crore, INR 5,000 crore will be invested in enhancing cargo handling at the Krishnapatnam port and INR 12,000 crore in setting up power plants with a 3,000 MW cumulative capacity. It intends to spend INR 6,000 crore in developing 2 more ports through so called special purpose vehicles.

Navayuga, which is executing the Krishnapatnam port, said that the first phase costing INR 1,200 crore will be operational by June 2008. It would have an initial cargo handling capacity of 20 million tonnes per annum. Krishnapatnam port plans to enhance the annual cargo handling capacity to around 90 million tonnes by 2011-12 and to 120 million tonnes by 2016-17.

To meet the needs of the industrial units around the Krishnapatnam port, Navayuga, in association with the Andhra Pradesh Industrial Infrastructure Corporation Limited, is setting up a desalination plant at a cost of around INR 1,000 crore. The works for the project, with a capacity of 100 million liters a day, would begin in the next quarter. APIIC would take up to 11% equity at a price yet to be specified, while Navayuga would hold the balance. Mr Rao said that “We are currently in discussions with 2 neighboring states to developing major sea ports and expect to firm up arrangements in the next quarter or so.”

Navayuga group is currently at an advanced stage of finalizing 2 portside power projects of above 1,000 MW each to run on imported coal. Mr Rao also said that “Several domestic and foreign investors are keen to pick up significant stakes in the ports and power projects, though we have not decided yet.”

In November 2006, 3i India, a private equity firm headquartered in the UK, picked up a 10% stake in Navayuga Engineering Co Ltd, the group’s flagship, for INR 200 crore.

Octroi abolished in 7 cities of Gujarat

It is reported that Octroi has been abolished in 7 urban civic bodies of Ahmedabad, Vadodara, Surat, Rajkot, Jamnagar, Bhavnagar and Junagadh in Gujarat.

The abolition of octroi comes after the small traders agitated against the state government for not abolishing the duty almost a year after VAT was implemented in Gujarat. For the past several months, the state government has been dragging its feet over the abolition of the duty as it was a major source of income for the seven corporations.

Gujarat Chamber of Commerce & Industries has decided to felicitate Mr Narendra Modi chief minister of Gujarat for the abolition of octroi.

Indian Railways to change leasing policy to attract wagon builders

Exim News Service reported that Indian Railways is drawing up a liberal wagon leasing policy to introduce new generation aluminum body aimed at attracting global transportation companies. The policy, which is likely to be announced this year itself, aims at enabling wagon manufacturers to invest in general purpose wagons as well as special kind of wagons and allow them to run it themselves.

A senior Indian Railway official said that there are more than 200,000 wagons in India and a majority of them were designed 25 years ago. He explained that India Railways would not invest in the new wagons though the new design has to be approved by it. Railways’ aim is to attract private players to invest in general purpose wagons as well as special wagons. The policy would also allow private players to lease the wagons to customers who have the use for such wagons.

He further added that Indian Railways would also play the role of a third party between the financiers and the users to secure the interests of the former in cases of default. As against the wagons in use, the new wagons are expected to be light weight and smaller in size. And instead of steel, they would be made of aluminum like the ones used in Western countries, which would allow the increase in payload per train.

There is a need for new generation wagons to cater to the growing needs of users such as cement, coal, chemicals, ores and automobile companies in India.

Bangladesh joins Trans Asian Railway network

Exim News Service reported that Bangladesh has joined the Trans Asian Railway network agreement, with Mr Ismat Jahan its representative to the UN, signing the pact. India had signed the agreement 6 months ago.

Trans Asian Railway is proposed to connect Bangladesh’s rail system to the 81,000 kilometer network from Europe to East and South East Asia and India. It is planned to connect capitals, ports and industrial hubs all across 28 Asian countries up to Europe.

Trans Asian Railway incorporates Bangladesh as a key component in the cross border network and as a transit route between India and China.

Finance ministry approves BHPV and BHEL merger

Dr YS Rajasekhara Reddy chief minister of Andhra Pradesh recently announced that union finance ministry has approved the merger of Bharat Heavy Plate & Vessels with BHEL and the matter would come up before the cabinet for its approval during next week.

GE Energy picks up 26% stake in Sayi Power

GE Energy Financial Services announced that it has acquired about 26% stake in Sayi Power Energy Limited, a majority shareholder of power project developer KSK Power Venture Plc, for an undisclosed amount.

Mr Raghuveer Kurada MD (India) of GE Energy said that “The transaction reinforces GE Energy Financial Services’ growth in India’s power market. We will play a strategic role in helping KSK to carry out its growth plans.” He added that KSK’s leadership in mid sized captive power generation and access to dedicated low cost fuel reserves created opportunities for sizeable additional investment in new power projects in India.

KSK Power Venture, which owns downstream energy assets in India, is listed on London Stock Exchange’s Alternate Investment Market. It has 8 projects, either in operation or under construction, representing 875 MW in capacity.

Earlier this year, GE Energy Financial lent USD 17 million to Binani Cement Limited for construction of a 22.3 MW thermal power plant in Rajasthan.

US steel service centers inventories lowest since 1998

US based Metals Service Center Institute in its latest Metals Activity Report said that although steel shipments rose slightly from year ago levels for the first time since August 2006, steel product inventories at US metals service centers continued to decline in October 2007. It added that October 2007 shipments and inventories of both steel and aluminum products continued to decline from year earlier levels in both US and Canada.

Shipments of steel products from US metals service centers totaled 4.7 million tons in October 2007 up by 1.7% YoY from October 2006 but off 2.3% on a seasonally adjusted basis.

At the end of October 2007, US steel product inventories totaled nearly 12.26 million tons down by 27% YoY as against October 2006 and the lowest since March 1998, when inventories totaled 12.25 million tons. At current shipping rates, US steel inventories represented a very low 2.6 month supply.

Canadian steel shipments of 331,700 tons were 1.7% below year earlier totals. Canadian steel inventories during first ten months totaled 1.1 million tonnes down by 19.7% YoY from the 2006 period.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico, and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers.

BHPB bid for Rio – CVRD welcomes the idea

It is reported that Brazilian mining giant and world’s biggest producer of iron ore CVRD sees a possible takeover of rival Rio Tinto by world's biggest miner BHP Billiton as a good thing for the industry that will not threaten CVRD's dominance in the iron ore market.

Mr Roger Agnelli CEO of CVRD told reporters that CVRD would only follow the negotiations from far and that it is now interested in organic production growth rather than acquisitions after buying Canada's Inco last year.

He said “The merger of BHP with Rio Tinto would be positive for the mining industry. It would strengthen all the industry, we are going through a process of concentration. World economic growth meant companies needed every time bigger scale to meet the market's needs. "Even with this merger, CVRD remains the market leader in iron ore, while in nickel it has a good position and growth prospects.”

Analysts have generally ruled out any chance for CVRD's rival bid for Rio Tinto, although some said it could team up with BHP to present a joint bid. But Mr Agnelli's comments seemed to dismiss such theories.

South Korea to start carbon credit exchange in2008

It is reported that with climate change becoming a global issue, Korea is planning to set up its own carbon exchange as early as next year.

The Korea Exchange in a statement said that it has launched a preparation team to establish a carbon exchange where businesses can trade in credits for carbon dioxide and other greenhouse gases. The idea has its roots in the Kyoto Protocol, the international treaty to prevent climate change, which requires countries that exceed their limit for greenhouse gas emissions to buy emissions credits from other nations that haven't reached their limits. Korea isn't on the Kyoto Protocol list of countries obliged to reduce their greenhouse gas emissions, but it will almost certainly be in 2013.

Korea Exchange said that "The government will set the limit for greenhouse gas emissions for businesses, which can then sell carbon credits they have or buy ones they need on the exchange. Financial institutions will also be able to engage in futures trading based on carbon credits.”

It added that like a stock exchange, the carbon exchange will introduce price limits, clearance and settlement systems.

SSINA releases 8 months special steel data for US

US based Specialty Steel Industry of North America has released statistical data on imports, US consumption and import penetration for YTD August 2007 as compared to January to August 2006

Stainless Steel
Imports of total stainless steel in YTD August 2007 were 550,872 tons up by 2% as compared to YTD August 2006, US consumption was 1,545,626 tons an 11% decrease and eight month import penetration was 36%, a 5% point increase.

Alloy tool steel:
Imports in YTD August 2007 were 67,034 tons 4% decrease as compared to YTD August 2006, US consumption and import penetration was not calculable.

Electrical steel
Imports in YTD August 2007 were 76,365 tons 67% increase as compared to YTD August 2006, US consumption was 296,101 tons, reflecting no change and eight month import penetration was 26% a 10% point increase.

SSINA is a Washington DC based trade association representing virtually all continental specialty metals producers. Specialty metals are high technology, high value stainless and other specialty alloy products. Its member companies are AK Steel Corporation, ATI Allegheny Ludlum Corporation, ATI Allvac, Carpenter Technology Corporation, Crucible Specialty Metals, Electralloy, Haynes International Inc, ThyssenKrupp Mexinox SA de CV, North American Stainless, Outokumpu Stainless Inc, Precision Rolled Products Inc, Latrobe Specialty Steel Company, Universal Stainless and Alloy Products and Valbruna Slater Stainless Inc.

MEPS forecast for German HRC price

This year's MEPS German Hot Rolled Coil average price is forecast to be 10% above the 2006 figure. This will be a new record high and the first time the annual value will top EUR 500 per tonne. Over the course of 2008 the figure is predicted to move up another 2.5% to above EUR 520 per tonne.

MEPS said that “The quarterly average Hot Rolled Coil transaction value for fourth quarter business is expected to drop by 4% as compared to the previous period. Negative pressure set in due to weak demand and excessive inventories. Consequently, customers delayed purchasing, forcing mills to reduce prices to generate orders. Imports continue to arrive, which is depressing the market further.”

MEPS added that “Mills are likely to push for rises ahead of the implementation of the new iron ore contract in April 2008 but these are not expected to take hold initially due to reduced demand. Customers are forecast to begin restocking during the first quarter of next year. This should support transaction price advances through the second and third trimesters. However, as a result of continued import pressure and a weaker economic climate, these increases could be only modest. A seasonal downturn is anticipated in the final period as year end de stocking reduces buying activity thus causing prices to fall.”

Acesita Q3 consolidated profits reach BRR 175 million

BNamericas reported that Brazilian specialty steelmaker Acesita made consolidated net profits of BRR 175 million (USD 100 million) for the July to September quarter of 2007 as compared to BRR 152 million in July to September quarter of 2006. However, consolidated net operating revenues slipped to BRR 927million as compared to BRR 964 million in Q3 of 2006, with sales volume dropping by 10.6% to 175,300 tonnes in the 2007 quarter from 196,200 tonnes.

Acesita said that the reduction in shipments was primarily due to lower sales of 300 series stainless steel to the distribution sector, which prioritized inventory reduction during the quarter as a result of a fall in nickel prices. It added that "Despite the good level of economic activity in Brazil in 2007, especially for the stainless and silicon steel segments, the company's performance began to be affected by the unfavorable conditions experienced by the international market as of the end of the first quarter of the year."

In January to September 2007 period, the specialty steel producer saw its consolidated net income rise to BRR 642 million from BRR 390 million year over year, while consolidated net operating revenues expanded to BRR 3.23 billion as compared to BRR 2.50 billion in January to September 2006 period. However, physical sales through September dipped 4.6% to 545,900 tonnes.

Minas Gerais state based Acesita has liquid steel capacity of 900,000 tonnes per year.

Taiwan's export of welded tube up by 10% in October

According to Taiwan Customs, the exports of welding tube in October up by 12%MoM to 19,215 tonnes as compared to September 2007. it added that the export quantity from Taiwan to the USA has stayed at the same level, but the export to China has increased from 3,419 tonnes in September to 5,448 tonnes in October.

Because the coming holiday season in the US and EU markets, China’s sports equipment manufactures are increasing their purchasing for tubes. For US market, the demand for tube has weakened due to subprime mortgage problem, but the anti dumping issue has made some US buyers switched their purchase from China to Taiwan.

Queensland to build railway link support coal transportation

Bloomberg reported that Australia's Queensland government will build a 69 kilometer railway line to transport coal to Abbot Point port from the central part of the state.

Ms Anna Bligh premier of Queensland said that the AUD 27 million initial contracts will be awarded by this year and completed 2010. She added that “It is a green light for the exports of millions of extra ton of Queensland coal.”

Australia’s government figures show insufficient infrastructure to move coal from mines to ports is costing Australia, the world's biggest exporter of the fuel. It risks losing as much as AUD 7.9 billion in export revenue in the next decade if port and rail congestion aren't resolved.

According to government statistics, coal shipments were the biggest contributor to Australian exports in the 12 months ended May, reaching AUD 20.4 billion or 12.9% of the total.

Symmetry Holdings completes acquisition of Novamerican Steel

Symmetry Holdings Inc announced that it has received notice from the minister of Industry that its offer to acquire all of the issued and outstanding shares of Novamerican Steel Inc has been approved by the Minister under the Investment Canada Act as being of net benefit to Canada.

Symmetry has set October 25th 2007 for its Special Meeting of Stockholders to consider and vote upon the proposal to approve the acquisition of Novamerican. On October 5th, 2007, Symmetry first mailed its Notice of Special Meeting and related proxy statement. The close of business on October 2, 2007 was the record date for the determination of stockholders entitled to notice of and to vote at the Special Meeting.

Symmetry is a company formed for the specific purpose of acquiring businesses that are in the basic industries sector On June 21st 2007, Symmetry entered into an Arrangement Agreement with Novamerican, pursuant to which it plans to acquire all of the outstanding common shares of Novamerican by way of a court approved statutory plan of arrangement under the Canada Business Corporation Act.

ArcelorMittal SA lining up BEE partners

It is reported that ArcelorMittal South Africa is negotiating to sell a stake to black investors. The report added that it is not immediately clear how the deal would be structured to the satisfaction of its European parent, which prefers to own a controlling share in the companies in which it invests. If an empowerment deal is done soon, ArcelorMittal SA would be the first steel producer in South Africa to do so.

Mr Rick Reato CEO of ArcelorMittal SA said the group is in the early stages of a black economic empowerment deal, but declined to say how much of the country’s biggest steel producer would be sold to black investors.

Mr Kobus Verster financial director of ArcelorMittal SA that ArcelorMittal is unlikely to reduce its shareholding to allow for an empowerment partner. He added that the firm was looking to move fairly quickly to conclude the deal.

If 26% of ArcelorMittal SA is sold to a BEE partner and all shareholders contributed a proportionate share of their stake to the pool of shares to be sold to the black investor, this would cut the parent group’s stake to less than 52%.

Rio Tinto’s Meas A iron ore mine threatens fauna

ABC News reported that Rio Tinto has been given the all clear to push ahead with its AUD 12 billion iron ore mine near the Pilbara town of Pannawonica despite ongoing environmental concerns.

However, Mr Tim Nicol from the conservation council said that the minister's approval does not recognize the fact the mine could cause the creatures to become extinct.

He said that "We would maintain the concerns that we've had right throughout this process that there's a risk with this project that the extent of mining on the mesa means that there's a serious risk of causing troglafauna's to go extinct. We really haven't seen the information from the EPA or the Minister that would allay our concerns about that."

Mr David Templeman environment minister of Western Australia has approved the project subject to strict conditions, which include ongoing monitoring of the troglobitic fauna, a small spider like creature, found in the soil. The size of the mine site known as Mesa A will also be restricted.

ArcelorMittal warns over impact of French rail strike

Thomson Financial reported that ArcelorMittal is concerned about the impact of the current rail strike in France on freight transport.

In a company statement, Mr Alain Bouchard purchasing director stressed that ArcelorMittal is the largest freight customer of national rail operator SNCF.

A spokeswoman of ArcelorMittal told Agence France Presse that each strike day leads to a two day delay in deliveries. She added that ArcelorMittal has yet to calculate the financial impact of the strike, but it is using alternative means of transport, principally road but also sea and river.

As per report Rail workers went on strike on Tuesday evening in protest at government plans to phase out more favorable pension benefits enjoyed by certain public sector employees.

Magnesium prices are expected to jump in 2008

Purchasing.com reported that magnesium buyers estimate they may pay an average USD 2.50 per short tones on the spot market in 2008, compared with USD 1.60 so far this year. Due to limited supply from major global suppliers, which is expected to boost market prices for the metal used in light metal die castings and, as an alloy with aluminum, in beer and beverage cans.

Market reports said that US Magnesium of Salt Lake City and Dead Sea Magnesium of Beer Sheva, Israel, have stopped booking guaranteed price supply contracts for next year’s deliveries. Due to US Magnesium has committed 9,900 tons of magnesium to General Motors while Dead Sea Magnesium has committed large tonnage to Volkswagen.

Spot market sales for January deliveries are being handled by traders at USD 2.10 as compared with November deliveries averaging USD 1.90 per short tones.

CSN sees Casa de Pedra IPO in H1 of 2008

Reuters reported that Brazilian steelmaker CSN has a long planned initial share offering of its Casa de Pedra iron ore mine may finally happen in the first half of 2008.

Mr Otavio Lazcano CFO of CSN during a conference call said that the IPO plans are under way and must be approved by the company's board of directors.

FMG considering share split

ABC Online reported that Fortescue Metals Group is considering splitting its shares into 10 to make them more affordable. FMG is considering splitting its shares into 10 to make them more affordable for small investors. It will hold a special shareholders meeting next month to vote on an idea to split its shares.

FMG's share price hit a record AUD 64.99 after Mr Andrew Forrest said it had found another 1 billion tonnes of iron ore.

Fortescue is building an AUD 3 billion iron ore mine in the Pilbara. It plans to begin exports by May. The new discovery at its Solomon reserves has prompted questions over whether Fortescue will pressure rival miner Rio Tinto to open up its nearby rail lines so FMG can use them to transport its ore to port.

Indonesian economy to grow 6.4% in 2008-World Bank

Antara reported that the Indonesian economy is expected to grow by 6.4% in 2008 from an estimated 6.3% this year, supported by higher investment and vibrant domestic demand.

Mr Joachim von Amsberg World Bank Country Director for Indonesia said that “We expect economic momentum and high regional growth, combined with higher government investments, to sustain Indonesia’s good economic prospects in the year ahead even though there will be some global slowdown."

Delivering the World Bank’s latest East Asia & Pacific Update, Mr Amsberg said the positive macroeconomic environment created a unique window of opportunity for microeconomic reforms in Indonesia. He added that "Reforms to improve the investment climate will quickly attract additional investments that will lead to new jobs, more vibrant competition and higher incomes that reduce poverty."

Mr William Wallace, the World Bank Indonesia’s lead economist, meanwhile warned of downside risks as the external environment remained unsettled. He said that "On the one hand Indonesia is endowed with high priced commodities that have been translating into trade and growth advantages, on the other, these same high prices, compounded by a slowdown in the US economy, risk feeding into slower world growth and higher inflation."

The World Bank said growth in emerging East Asia is expected to exceed 8% in 2007 for the second year in a row and to moderate only slightly in 2008. It noted that although East Asian exports to the US had already slowed, more buoyant investment and consumption in China and other countries had allowed growth to remain strong and even pick up.

Yilgarn changes name to Brockman Resources

Subiaco based Yilgarn Mining Ltd announced that it will change its name to Brockman Resources Ltd after securing shareholder approval at the company's annual general meeting.

Following receipt of final approvals from ASIC and the Australian Securities Exchange, Yilgarn will finalize the name change with its securities to commence trading on the ASX under the new Code BMR by November 19th 2007.

The release said “The new name and corporate identity reflects the Company's strategic focus as an emerging iron ore company with an initial focus on its 100% owned Marillana Iron Ore Project in the Pilbara region.”

Yilgarn had earlier announced plans to accelerate its iron ore growth strategy earlier this year with the appointment of former senior BHP Billiton Iron Ore executive Mr Wayne Richards as MD.

Mr Sakari voted highest regarded Finnish CEO

According to a survey carried out by investment magazine Arvopaperi and PR agency Pohjoisranta Mr Sakari Tamminen president & CEO of Rautaruukki has been voted the highest regarded Finnish CEO.

The reputation was assessed using Pohjoisranta’s reputation measuring tool and an online survey during September to October 2007. A total of 1,708 persons, mostly private investors, took part in the survey.

Cuban nickel production returning to normal after flooding

Metals Insider reported that Cuban nickel production is normalising after weeks of heavy rain culminating in Tropical Storm Noel.

State media had previously reported that one of Cuba’s nickel processing plants the 12,000 tonnes per year Rene Ramos Latour plant had been closed due to flooding in the wake of Noel. The other two plants on the island Che Guevara and the joint venture Pedro Soto Alba were unaffected.

The most recent reports said that production in the province of Holguin, which has been particularly hard hit by the recent weather patterns, has begun to stabilize. Specifically, the Rene Ramos Latour plant re opened over the weekend after a week’s enforced downtime.

Liberty begins construction of second nickel mine in Canada

Metals Insider reported that Canadian junior Liberty Mines will begin construction imminently of the McWatters nickel mine in Ontario having received all necessary regulatory approvals. The mine will be the Liberty Mines’s second in the region.

McWatters will start generating pre production ore in March or April next year with full production slated for Q3 2008.

Mr Gary Nash president & CEO of Liberty said that “Ore will be treated at the Redstone processing plant. Bringing the McWatters Mine into production is a very important development for Liberty as it provides the ore required for our Redstone Mill to run at its permitted capacity of 1500 tonnes per day.”

Steel demand for rebar will increase sharply in the MEA

It is reported that steel demand for rebar will increase sharply in the Middle East areas in the next 5 to 10 years due to blooming construction projects. Besides, more and more steelmakers are investing in the Middle East.

Market analysts commented that the steel demand growth rate in the idle East area will be much higher than the global steel markets. The average of the steel consumption per capita is as high as 400 kilogram in Gulf Cooperation Council countries in this year.

Gulf countries invest USD 375 billion in telecom infrastructure

Khaleej Times reported that the Gulf Cooperation Council countries are expected to spend up to USD 375 billion on the expansion of telecommunications and related infrastructure over the next decade.

According to research company Proleads, current and active civil engineering and infrastructure projects of all kinds in the GCC countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates have a combined value of USD 1.3 trillion alone.

According to the organizers of the second Middle East International Communications Exhibition and Conference, an estimated 25% of the multi billion dollar GCC infrastructure development budgets will be spent on expanding telecommunications.

Mr Trevor Punt group exhibition director for IIR Middle East, organizers of MECOM 2008, said that "A recent report concluded that the telecommunications and broadband Internet sectors will generate USD 70 billion in annual revenue by 2015 in the ME region.”

The telecommunications sector in the UAE alone is one of the fastest growing markets not only regionally but also internationally. The global communications revolution continues to make inroads into the Middle East as the region's enthusiasm for mobile phones, digital technology, Internet and communication solutions, shows little sign of abating. With new and innovative technologies, the Middle East market is set to become one of the most lucrative in the world with a diverse range of business opportunities and tremendous scope for advanced communications systems.

Samsung secures contract for Saudi fertilizer plant

Khaleej Times reported that South Korea’s Samsung Engineering Co Limited has been awarded a USD 590 million contract by Saudi Arabian mining company Maaden for setting up an ammonia plant in a JV with Saudi Arabian Basic Industries Corporation.

The facility will also comprise a sulphuric acid plant, a phosphoric acid plant and two di ammonium phosphate plants. The project, including the ammonia plant, is due for completion in late 2010.

As per report, Samsung has commissioned Uhde to provide the license and comprehensive engineering and supply services as part of the contract for the engineering and construction of the turnkey ammonia plant. Uhde's scope of services includes the processing of license and basic engineering as well as the supply of special equipment for a single train ammonia plant, which, with a production capacity of 3,300 tonnes per day.

Mr Klaus Schneider chairman of Uhde's executive board said that "This new contract is the logical continuation of our technological leadership in the field of mega size ammonia plants and an indication of the excellent reputation enjoyed by Uhde in the Saudi Arabian industrial sector."

In late 2006 Uhde successfully commissioned an almost identical ammonia plant in Saudi Arabia for Saudi Arabian Fertilizer Company, an affiliate of Sabic.

Iran China trade to reach USD 200 billion in 10 years

Islamic Republic of Iran Broadcasting quoted Mr Manouchehr Mottaki foreign minister of Iran as saying that Iran China commercial transactions would reach USD 200 billion within the next 10 years.

Mr Mottaki told his Chinese counterpart Mr Yan Jiechi that Iran China transactions increased to USD 20 billion from USD 500 million at the beginning of the 1979 Islamic Revolution. He said that China, for the first time, became Iran’s first trade partner last year. He added that Iran and China can cooperate extensively to prevent energy monopoly in Africa.

Earlier, Mr Gholamali Haddad Adel speaker of Majlis or Iranian Parliament said that the independent stance of Iran and China vis a vis the hegemony of certain powers serves international peace and stability. He added that “The US plans to dominate oil and gas resources in the Middle East and control the fate of regional oil rich nations to hold the trump card against countries like China. US know that the Islamic Revolution of Iran created obstacles in the way of materializing their goals in the region.”

Mr Adel expressed satisfaction with the growing ties between Iran and China and said that the two nations have experienced enhancement of ties, which was unprecedented in Iran’s relations with other countries. He also noted that officials of the two nations have a clear understanding of the situation to expand friendly ties in all fields. He hoped that mutual ties will increase more than ever.

Emaar plans to float USD 40 billion listing on LME

Arabian Business reported that Dubai based construction giant Emaar is planning to float on the London Stock Exchange next year in a listing that could value the firm at USD 40 billion. Arabian Business quoted Mr Mohammad Alabbar chairman of Emaar as saying that "Emaar is considering listing on the London Stock Exchange and the estimated timeline is the next 12 months."

Sources close to the Emaar said that the listing would be in the form of a mother company covering the entire Emaar Empire, its Dubai Financial Market listing, its India listing and its 30% stake in an economic city under construction in Saudi Arabia.

Emaar's projects include Burj Dubai, an under construction tower which is already the world's tallest building, and the sprawling Dubai Mall. Outside the United Arab Emirates, it is developing the USD 26 billion King Abdullah Economic City on the Red Sea coast of Saudi Arabia.

US ITC votes to continue AD case on nails from China and UAE

United States International Trade Commission determined that there is a reasonable indication that a U.S. industry is materially injured or threatened with material injury by reason of imports of certain steel nails from China and the United Arab Emirates that are allegedly sold in the United States at less than fair value. All six Commissioners voted in the affirmative.

As a result of the Commission's affirmative determinations, the US Department of Commerce will continue to conduct its antidumping investigations of imports of these products from China and the United Arab Emirates, with its preliminary determinations due on or about November 5th 2007.

The preliminary investigation was instituted by the USITC on May 29th 2007. The list of petitioners include American producers Davis Wire Corp, Gerdau Ameristeel Corp, Maze Nails, Mid Continent Nail Corp, Treasure Coast Fasteners Inc, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

The import of this product from the subject countries during 2006 was USD 563.907 million and from other countries was USD 297.291 million.

China's finished steel output may be overstated

Platts reported that China's finished steel output may be overstated by 100 million tonnes per year as finished steel output cannot be higher than crude production.

National Bureau of Statistics of China announced recently that China’s crude steel production for October 2007 was 42.92 million tonnes and finished steel output 49.08 million tonnes.

The report cited Mr Charles Bradford of Bradford Research in New York as saying that "It is impossible. I get monthly data directly from 75 mills in China; data for pig iron output, crude steel production and finished steel and the finished steel is consistently less than crude."

Mr Bradford speculates that something goes awry between the time data is reported by the Chinese mills to the government and the release of official statistics. He said "It looks like a lot of double counting is going on. For example, a mill ships 5,000 tonnes of hot rolled coils to a re roller, which is then processed into cold rolled coil. The tonnage gets counted twice."

To reconcile the NBS data, Mr Bradford said he takes 90% of the reported crude production to arrive at a finished steel product figure. So, October's 42.92 million tonnes of crude output would mean 38.63 million tonnes of finished steel, which is nearly 11 million tonnes below the government figure of 49.08 million tonnes. He noted that on an annual basis finished output may be overstated by 100 million tons.

Baosteel inks long term FeCr supply contract with Sichuan Mingda

It is reported that currently, Baosteel Holdings has inked long term ferrochrome supply contract with Sichuan Mingda Group in a bid to set up supply chain of ferrochrome alloy. According to the contract, Sichuan Mingda Group will assure ferrochrome supply to Baosteel in the next three years.

Sichuan Mingda Group is ferrochrome producer with competitiveness in market shares, technology and quality. Its annual production capacity is about 50,000 tonnes.

Analysts upbeat about profit outlook of listed mills in Q1 of 2008

It is reported that listed steel mills are suffering a 25% slide on Q3 profit due primarily to escalating cost of iron ore, coke and freight. Steel shares have dropped nearly 30% recently on concerns about sluggish US economy, export slide and intensifying trade frictions, China Securities News learn from market insiders.

However, market analysts expect the cost increment would slow down in the following six months as both domestic iron ore price and freight rates have already soared to a record high.

Leading steelmakers would succeed in pushing up steel prices on back of current strong steel demand at home. Therefore, they are to post better profit outlook in the first quarter of next year. Market insiders are optimistic that steel sector would outperform the overall market in coming months.

(Sourced from MySteel.net)

Xinxing Pipe signs to regroup Sichuan Chuanjian

Xinxing Ductile Iron Pipes Co has announced that it’s signing of a regrouping pact with Sichuan Chuanjian Pipes Co Ltd to increase fund of CNY 100.0089 million in the Sichuan Company with the view of consolidating the southwest market. Xinxing will take 55% shareholding in the Sichuan Company after the regrouping.

Sichuan Chuanjian Pipes Co Ltd is the largest ductile iron flow pipe producer in the West, first established in 1954 and having had a long process of evolvement. Currently, it has 150,000 tonnes centrifugal cast ductile iron pipe and 15,000 tonnes EPC processed ductile iron frame casting capacities annually. By end of August, the Sichuan Company had total assets of CNY 172.5249 million.

The regrouping move will involve fund raise of CNY 100.0089 million by Xinxing and the regrouped Sichuan Chuanjian Pipes Co Ltd will have registered capital added to CNY 111.18 million. Among the raised capital, CNY 61.18 million will be paid in fund for Sichuan Chuanjian and the rest as capital accumulation fund.

Xinxing said its sales department in the southwest and sales channels will be incorporated into Chuanjian after the regrouping. As a result, the southwestern ductile iron pipe market will be consolidated and expanded and Xinxing will also boast sharper competitive edge there.

(Sourced from MySteel.net)

Baosteel considering distributor network for H beams

It is reported that people normally believe that Baosteel is selling its high frequency welded H beams to users directly. But such situation would probably change soon and market distribution will be an important way in the future.

On November 14th 2007 Mr Zhangjun deputy GM and Mr Zhang Jianting assistant to GM of Shanghai Datong steel structure Ltd, under Baosteel Group, came to Shanghai Boyuan Resources Ltd, a famous H beam distributor in Shanghai for discussing marketing skills and strategies. They wish to cultivate more sales exports for High frequency welded H beams.

Mr Cai shusong, Board chairman of Shanghai Boyuan Resources Ltd indicate that the visit by Baosteel is a prelude for thorough cooperation and Boyuan as an influential trader in East China, would play an important role in the sales for Baosteel's H beams.

It is learnt that Shanghai Datong steel structure Ltd is a subsidiary company of Baosteel Group. With a total investment of CNY 100 million, it introduce production line from USA and adopt advanced technologies from Japan. Its capacity stands at No 1 China and No 3 in the world. It is worthy of the pioneer of Chinese high frequency welded H beams and its products are widely used in such classic project as Shanghai Pudong Airport and CCTV new site.

As high frequency welded H beams is a latecomer and it has not been that famous in Chinese market. Hence, BaoSteel's sales have been directly targeting projects for several years. While the sales transformation has showed its strategy of "quality+ scale" and it would help drive up its size further.

(Sourced from MySteel.net)

Baotou Steel exports UIC 54 rails to Iran for the first time

It is reported that Baotou Steel’s GuiLiang plant has exported 3000 tonnes of UIC 54 rails in 25 meters for the first time to Iran in the month of November 2007.

In order to insure the quality of rails, the plant had convened a special meeting for analyzing the difficulties and deciding a plan to achieve desired qualities. The plant officials made a detailed plan starting with ensuring right raw material quality, rolling parameters, straitening procedure, testing & inspection etc. By sticking to the plant the rails were produced as per client’s requirement.

ShouQing produces 320mm thick slab

It is reported that QingHuang Dao ShouQing has succeeded in casting slab in 320mm thickness and 2000mm width.

As per report this is the thickest slab caster in china.

Jinan succeeds in production of X80 plates

It is reported that Jinan Iron & Steel’s plate mill has succeed in rolling API 5CT X80 grade plates for oil and gas pipelines thus making a major breakthrough.

The test results confirmed that the quality parameters match the requirements of X80 grade.

Baotou Steel exports 908,000 tonne sin January to September 2007

It is reported that Baotou Steel has exported 908,000 tonnes of steel products during January to September 2007 period thus averaging 100,000 tonnes per month.

Baotou’s export arm from Baogang International Trading Company exported a total of 876,000 tonnes valued at USD 445 million up by 61% YoY.

Despite imposition of export tax, Baogang Group maintained steel exports at a high level by improving the product mix, focus on value added products and expanding the export markets including South Korea, EU, US and Southeast Asia. It is now developing Brazilian market for HRC.

CMA calls for developing diversified mining market for mining sector

It is reported that during recently held “2007 International Mining Conference” Ms Cui Dewen the vice chairman of China Mining Association, noted that the development of mining capital market is the key measure of constructing a diversified market system. She said that “It would provide a suitable opportunity of capital expansion for the internationalization of mining corporations and the foundation of multinational mining companies.”

Meanwhile, there are more mergers, recombination and cooperation between mining corporations. The structure has been improved and there are more listed companies. The internationalization and general adoption of the market principle has been raised.

Mr Wangmin the undersecretary of The Ministry of Land and Resources of China said that “Multinational mining companies have been accelerating mergers in recent years and have formed leading mining enterprises with much bigger scales in many sectors such as cooper, aluminum, zinc, nickel, etc. They have controlled global high quality resources, reserves, capacities and market shares. It is known that the first 50 multinational mining corporations in the world hold 59.01% of total production value of global mining industry."

The problem for Chinese domestic mining corporations is the lack of effective capital market and it is difficult to recombine in the industry. An analyst pointed out that under the background of globalization of economy, mining enterprises must expand business scales by direct financing.

It is said that nine ministries of China including The Ministry of Land and Resources of China have already founded a united office for the guide and programming of the merger of mining resources.

In the year of 2006, China produced 2.38 billion tonnes of crude coal, 184 million tonnes of crude oil, 280 million tonnes of coke, 588 million tonnes of iron ores, 240 tonnes of gold, 19.17 million tonnes of ten varieties of non-ferrous metals, 54.03 million tonnes of crude salt and 1.24 billion tonnes of cement. Outputs of coal, steel, ten varieties of non-ferrous metals and cement were in the first position in the world. Total value of import and export of mineral products was as high as USD 383.9 billion up by 24% YoY including USD 153.61 billion of export value and USD 230.29 billion of import value.

Taigang inks strategic cooperation pact with CITIC

It is reported that Mr Li Xiaobo GM of Taigang signed strategist cooperation agreement with Citic Group on November 11th 2007.

Shougang bar output crosses annual plan for 2007

It is reported that the total volume of Shougang’ bar amounted to 500,111 tonnes by the end of November 13th 2007 an increase of 99673 tonnes YoY thus achieving the annual plan 500000 tonnes 49 days in advance.

Baosteel ERW double pipe achieves A grade authentication

It is reported that recently, a series of ERW double-pipe such as K55, N80-1, N80-Q as well as P110 successfully passed the A grade authentication.

At present, ERW double pipe products from Baosteel are broadly used in domestic oil fields and some products are sold to foreign countries.

Tangsteel scrap steel purchase volumes hit new high

It is reported that in October 2007, scrap steel purchase and supply volume in Tangsteel amounted to 18,000 tonnes and 17,000 tonnes separately and broke the record settled up in 2000.

Xi Steel production crosses 1.5 million tonne mark

On November 14th, the production of Xigang group reached 1,504,095 tonnes. It is for the first time that Xi Steel has crossed 1.5 million tonnes mark.

According to the production tendency at present, the total production volume of steel of Xi Steel will reach 1.7 million tonnes in 2008 making a solid foundation for next year to realize 2 million tonnes production volume.

General Steel Q3 profit surges

General Steel Holdings Inc has recently reported improved earnings for the third quarter owing to increased production. Its net income surged to USD 8 million in July to September 2007 quarter as against USD 0.18 million in Q3 of 2006. Its quarterly revenues also rose by 636% to USD 345.4 million. Net sales for the quarter increased nearly 420% to USD 504.2 million from USD 97 million in the comparable period last year. Gross margins for the quarter increased to 7.5% from 3.3% in the prior year period.

General Steel Holdings Inc produced and shipped 814,456 tonnes of steel representing a 641% increase as compared to 109,912 tonnes during the third quarter of 2006.

YTD, net income rose to USD 10.4 million from USD 0.52 million in the corresponding period last year.

Construction of a PQF mill underway at TAGMET

It is reported that TMK, one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry, today announces that construction of a new 600 thousand tonnes Premium Quality Finishing continuous pipe rolling mill is underway at its subsidiary TAGMET.

This new mill will make it possible to produce high-performance 73mm to 273mm drill, casing, tubing and line pipes, in accordance with international standards.

The German company SMS Meer a world leader in steelmaking machinery and plants, designed the new mill and is responsible for manufacturing and supplying all the necessary equipment. Commissioning is scheduled for 2008.

Mr Konstantin Semerikov CEO of TMK’s commented that “The main focus of our Strategic Investment Program is to develop and enhance our seamless pipe capacity, particularly OCTG, which we will have increased by more than 60 percent by the year 2010. The introduction of a new PQF mill at TAGMET is an essential step in this direction.”

Belon increases investments in Kuzbass.

It is reported that Belon Group increased investments in the development of coal entities in Kuzbass 1.7 fold to reach RUB 4.7 billion against prior year figures. In the basic projects RUB 3.6 billion were invested; RUB 73 million being spent for the development of motor car park Inskaya.

The investment program is a key point of the strategy stipulating the growth of the output to 13 million tonnes to 14 million tonnes by 2012.

Belon Group involves Listvyazhnaya, Chertinskaya Koksovaya, Novaya-2, Kostromovskaya, Belovskaya mines; Belovpogruztrans, Sibgormontazh. The major holder is a private person 87% and private investors 13%.

UES to resist Gazprom power monopoly

Reuters reported that Russian state controlled utility, Unified Energy System will pursue an aggressive anti monopoly stance against Gazprom and other fuel suppliers to the power sector.

Mr Anatoly Chubais CEO of UES said "It would be a categorical mistake, a detriment not only to the electricity market, but to the whole country, if under the new conditions of a liberalized power sector a new monopoly emerges. I believe the government shares my concerns, addressing an investment conference in Moscow organized by investment bank UBS.”

Mr Chubais said action against a Gazprom hegemony on the power market must be taken before UES is wound up on July 1st 2008. He added that "We are taking steps to prevent the risk of monopolization. We will have to propose measures under anti-monopoly regulation that will address the transparency of fuel supplies to the power sector. We are now working out these measures, and we plan to carry them out before July 2008."

As part of a sector wide reform launched in 2001, UES, Russia's former electricity monopoly, is selling off all of its assets with the aim of attracting investment and opening up the power market to competition for the first time. But Gazprom has emerged as the leading player in the UES shakeup, buying up control of the choicest generating companies, including the main suppliers of power to Moscow and St Petersburg, Russia's two largest cities. Gazprom also plans to merge its electricity assets with the Siberian Coal and Energy Company, known as SUEK, potentially forming a USD 12 billion power holding that would control up to 40% of Russia's fossil fuel based electricity production. The merger is seeking approval from the Federal Anti-monopoly Service.

Industrial output in Russia up by 6.5% YoY in 10 months

Interfax cited Mr Andrei Klepach the head of the Russian ministry's combined macroeconomic forecasting department as saying that industrial output in Russia rose 6.1% in October compared with October 2006 and 6.5% in January to October YoY.

Mr Klepach said "The indicator for October is in the range of the improvement we anticipated. Growth in industrial output will end the year up just over 6% and GDP will rise 7.3% to 7.4%. The official forecast for GDP growth in 2007 is 7.3%.

He said the forecast assumes oil at USD 63 per barrel, but the current high oil prices might raise the average annual price to USD 69 per barrel. That wouldn't necessarily cause the forecast to be revised, but actual GDP growth may nonetheless come in at over 7.3%.

Vietnam and Ukraine ink WTO admission accord

It is reported that Vietnam and Ukraine signed an agreement regarding the latter’s accession to the World Trade Organization in Ha Noi on November 14th 2007.

The signatories were Deputy Minister of Industry and Trade Le Danh Vinh, Chairman of the Vietnamese Sub committee of the Viet Nam Ukraine Inter governmental Committee and Ukrainian Ambassador to Viet Nam Pavlo Sultansky.

Under the agreement, Viet Nam and Ukraine recognize each other’s full market economy status. Ukraine pledges to cut import tariffs on a number of Viet Nam’s products, including many of its major hard currency earners.

Ukraine is also committed to implementing fully and immediately WTO agreements, including the General Agreement on Trade in Services, the Agreement on Technical Barriers to Trade and the Agreement on the Application of Sanitary and Phytosanitary Measures from the moment it joins the WTO.

Viet Nam officially became the 150th member of the WTO on January 11th 2007.