Jharkhand recommends Ankua iron ore mines for TATA Steel

It is reported that Jharkhand government has agreed to give iron ore mines of Ankua region in Jharkhand, estimated to have reserves of about 400 million tonnes to TATA Steel to expand its existing steel plant in Jamshedpur from 5 million tonnes to 10 million tonnes.

The report cited an official source as saying that “At a recent meeting of Jharkhand state mining and geological department, the proposal of TATA Steel for prospecting license of 1,827 hectare land in Ankua mine region has been cleared and it is sent to the central mines ministry for final approval. It is expected the mines proposed for TATA Steel would meet the ore requirement of its Jamshedpur unit.”

It is noted that Jharkhand government was earlier considering offering a mining block of 905 hectare land to the TATA Steel. However, after TATA Steel’s request that it would be inadequate to meet its requirements, the state government approved the company’s revised proposal for a contiguous stretch of 1,827 hectare land in Ankua.

Once centre accords its clearance, TATA Steel could start prospecting on the mines to ascertain its true reserves and quality of ore, before seeking a mining lease later. Under the proposed new mineral policy, the prospecting company would have the first right to get mining lease for the same block.

CCEA approves East and West rail freight corridor

It is reported that Cabinet Committee on Economic Affairs has approved the dedicated multi modal high axle load freight corridor project on the Eastern and Western Corridor at an estimated total cost of INR 28,181 crore.

On the eastern side, the corridor will stretch from Ludhiana to Sonnagar, while on the western side, the corridor will connect Jawaharlal Nehru Port near Mumbai to Tughlakabad Dadri near Delhi. The Eastern Corridor will start from Ludhiana in Punjab and terminate at Sonnagar via Ambala, Sharanpur, Khurja and Allahabad. However, the Eastern Corridor will be extended up to the proposed port near Kolkata.

RITES is conducting a pre feasibility study of Sonnagar to Kolkata portion of the Eastern Corridor and CCEA will be approached for the approval of the extension project after completion of the study.

The project will benefit ports, exporters, importers, shipping lines and container operators on the western corridor and coal companies, steel plants and thermal power stations on the eastern corridor.

Mitsui to double its stake in Indian Steel Corp to 20%

Reuters reported that Mitsui & Co has reached a deal to double its holding to 20% in Indian Steel Corporation, which is expanding its capacity for cold rolled steel and galvanized products.

Mr Arjun Jalani ED of Indian Steel Corporation said that it is planning to more than double capacity to 600,000 tonnes a year at a cost of about INR 9.5 billion.

Mitsui has signed the agreement with Indian Steel Corporation’s partner company Ruchi Group on November 27th 2007 but it did not disclose financial details.

OMDC ready to supply iron ore to upcoming steel plants in Orissa

Orissa Minerals Development Company has announced that it is ready to supply iron ore to the companies, which have signed MoUs with the state government for setting up of steel plants in Orissa.

Mr MS Barpanda CMD of Orissa Minerals Development Company said that he has established contacts with the state government for renewal of the mining leases and setting up of a pelletization plant in Orissa.

He added that notwithstanding the cancellation of leases of 2 major mines by the state government, the production in OMDC has increased in volumes.

OMDC has 6 iron ore and manganese mines in Barbil area of the Keonjhar district on Orissa.

NTPC board approves 3 investments

National Thermal Power Corporation Limited has announced that its board of directors, at its meeting held on November 26th 2007, has transacted the following

1) Given the investment approval for 1000 MW Mauda Thermal Power Project in Maharashtra at an appraised estimated cost of INR 54,592.79 million.

2) Given the investment approval to undertake renovation and modernization works at 645 MW Kawas Gas Power Station in Gujarat at an estimated cost of INR 5974.90 million.

3) Approved the company's equity investment in Bhartiya Rail Bijlee Company Ltd upto INR 11882.60 million or 74% of equity contribution to enable it to implement 4X250 MW Nabinagar Thermal Power Project in Bihar.

CIL resumes E auction of coal

ET reported that Coal India Limited has resumed coal e auctions nearly a year after a court ruling had barred it in December 2006 and hopes to sell about 15 million tonnes of coal through MSTC and Metal Junction Services by March 2008.

A senior CIL official said that "The first lot of coal being auctioned on November 26th 2007 through the electronics route was from CIL subsidiary Eastern Coalfields and was sold on Metal Junction’s electronic auction platform. MSTC is scheduled to jump into the action on November 27th 2007 when it will sell coal extracted from Western Coalfields’ mines.”

He added that "E auction of coal was stopped on December 8th 2006. In the interim, CIL had started selling coal through the e booking mechanism where the price was pre fixed. Under the earlier route, we had offered about 16.4 million tonnes while 13.2 million tonnes were allocated. The new coal distribution policy announced by the government allows CIL to offload 10% of its total production e auction. However, since there are just four more months before the fiscal ends, we hope to end up doing 14 million tonnes by March 2008.”

The new e auction system, notified by the centre is subtly different from the old e auction one. Under the present system CIL will set a reserve price on its own for the coal it will be selling through this route. It has decided to keep the reserve price undisclosed and it will be as close as possible to the notified price. While the earlier system had a floor price decided by CIL. Under this system, precedence will be accorded to the highest bid price in the descending order as long as the offered quantity is available for allocation. However, if two or more buyers bid the same highest price, precedence for allotment will be accorded to the buyer who has placed the bid for the higher quantity.

Talking about schedules, the CIL official said that “Coal from Western Coalfields, Mahanadi Coalfields, Bharat Coking Coal, Central Coalfields, Northern Coalfields and South Eastern Coalfields will all be offered during these months. There will be two broad categories, one will be the mode of transport railways or roadways and the other will be mine specific.”

From next year, CIL will sell 10% of its total production through this mechanism.

TATA Steel may pick 35% stake in Mozambique coal JV

FE reported that TATA Steel Ltd may pick up a 35% stake in its newly formed Mozambique JV for a consideration of AUD 100 million, subject to regulatory approvals. The stake will help TATA Steel get exclusive rights to the coal being mined in the new coal mine and will use it as feedstock for its plants both in India and abroad.

The report added that TATA Steel had signed a MoU with Riversdale Mining Limited in August 2007 to develop a coal mine in the Tete province of Mozambique. The JV will develop a coal mine spanning 24,960 hectares of land in Mozambique.

TATA Steel in a regulatory filing with SEBI said that “In August 2007, TATA Steel Limited and Riversdale Mining Limited entered into a MoU that may lead to TATA Steel acquiring a 35% stake in Riversdale’s coal project in the Tete province of Mozambique, for a sum of AUD 100 million. This project includes premium hard coking coal tenements in the Tete province in Mozambique, which are fully owned by Riversdale through its subsidiary.”

It added that “The tenements together cover an area of 24,960 hectares. TATA Steel expects to supply hard coking coal derived from this project to its Corus facilities in Europe and also to its Indian facilities. Riversdale is presently conducting a scoping study that is likely to be completed in August 2007. Definitive agreements between TATA Steel and Riversdale are expected to be finalized by November 2007 and the transaction is subject to completion of due diligence, board approval of both companies and various regulatory approvals.”

JSL appoints Mr RG Garg as MD & CEO

Jindal Stainless Limited has announced that appointment of Mr RG Garg currently its joint MD as MD & CEO of Jindal Stainless Limited with effect from November 27th 2007.

BSL clarifies on news item on merger move

With reference to the news item appearing in a financial daily titled "Bhushan Steel share up 45%", Bhushan Steel Limited has clarified to BSE that "As on date neither the Company has any plan nor had any conversation with any body in the past regarding diluting the stake.”

The release added that “We ourselves got astonished on seeing the news which has already been denied. There is no substance in the news published on the financial daily."

KEC bags two new TLT orders in Saudi and Namibia

KEC International Limited has announced that it has bagged two contracts in Saudi Arabia and Namibia worth INR 260 crores and INR 140 crores respectively through an international competitive bidding process.

In Saudi Arabia, the contract, to be completed in 22 months, is for the Saudi Arabian Mining Company MA'ADEN. It is a turnkey job of 380 KV double circuit transmission lines of 123 kilometers length connecting Saudi Arabia Electricity Company's substation to MA'ADEN Power Plant Site at Ras Az Zawr.

In Namibia, the Company has been awarded a turnkey job of 350 KV double circuit bipolar HVDC transmission lines of 306 kilometers to Zambezi for NAMPOWER. This project has a completion period of 22 months.

Mr Ramesh Chandak MD of KEC International Limited said "Both these orders are very significant for KEC. The Saudi Arabian contract is from a mining Company which marks an expansion of our client base from the current clientele which largely comprises of utilities. The turnkey job in Namibia along with a tower supply order obtained earlier in South Africa, marks our full fledged entry into the South African Development Council market. With this entry, KEC can now boast of complete geographical coverage of the African continent.”

NMDC plans to go global and focus on value added goods

National Mineral Development Corporation Limited has entered its Golden Jubilee this month with plans to go global and to turn itself from a producer of simple iron ore to a value added products maker that has a diversified focus.

Mr Rana Som CMD of NMDC said that "We must paint a big picture of NMDC and work to get the company grows into it."

NMDC in a press statement said that "NMDC is taking fast strides on diversification into other minerals, value added products and waste management by converting ore into value products like pellets, sponge iron etc.”

The release added that “It is poised for establishment of a steel plant at Nagarnar. Exploration and expansion of business activities are being extended beyond the shores of India, so that NMDC will soon become a global company."

Centre receives 185 applications for 23 coal blocks

BS reported that union government has received 185 applications from various steel, cement, aluminum and iron companies for the 23 coal blocks earmarked for captive mining. With total reserves estimated at around 3 billion tonnes, these blocks are situated in Chattisgarh, Jharkhand, West Bengal, Maharashtra and Madhya Pradesh and applicants include TATA Steel, ACC, Jindal Steel and Power, Ultratech Cement, JSW Steel, JK Cement.

The screening committee of the coal ministry, headed by Mr HC Gupta union coal secretary, would be meeting on December 7th to 8th 2007 and December 17th to 18th 2007 for screening these applications.

The screening committee has representatives from the power, steel and environment and forests ministries, as well as from the state governments of Orissa, Jharkhand, Chattisgarh, West Bengal and Maharashtra.

According to a coal ministry official, the steel sector will be allocated 6 blocks while 9 blocks are meant for the cement sector and remaining blocks will be shared between sponge iron and aluminum firms.

This round of allocation follows the allocation of 15 captive blocks, with estimated reserves of around 3.5 billion tonnes, to 31 power sector companies 2 months ago. 8 out of the 15 blocks were allotted on a sharing basis, while the remaining 7 blocks were given on a stand alone basis.

Rohit Ferro to ink MoU for power plant in Orissa

Rohit Ferro Tech Limited is likely to sign a MoU for setting up a 110 MW coal based power unit at Choudwar in Cuttack district of Orissa with an investment of INR 450 crore. Rohit Ferro Tech is expected to apply for the necessary clearances from the state and central governments after signing the MoU.

The project will require around 150 acres of land and development consultant has prepared the detailed project report while land acquisition process is under way. The consultant, machinery suppliers and designer for the project are likely to be finalized by April 2008 and financial closure is expected to be achieved by the end of December 2008.

Mr SS Patnayak VP marketing & project of Rohit Ferro Tech revealed that it also planned to expand the capacity of its ferroalloy unit in Jajpur district of Orissa from 66 MVA to 99 MVA. Work on the INR 200 crore expansion is expected to commence by the end of December 2007.

GMR Infrastructure to buy Himtel in Nepal

GMR Infrastructure Ltd announced that it's 100% subsidiary GMR Energy Ltd has entered into a share purchase and JV agreement to acquire 80% stake of a Himtal Hydro Power Co (P) Ltd having its registered office at Kathmandu in Nepal.

Himtal have subsisting survey license issued by the department of electricity development of Nepal government for undertaking the feasibility study and EIA for setting up a 250 MW Upper Marsyangdi 2 hydro power project located at Upper Marsyangdi in Nepal.

GMR also informed that the necessary application has been submitted to the Investment Promotion Board, Department of Industries of Government of Nepal, seeking their approval for the same.

6 locations in Rajasthan identified for wind power projects

Mr Vilas Muttemwar union minister of state in the ministry of new & renewable sources said that there is potential for setting up wind power projects at 6 locations in Rajasthan. This indication came after wind resource assessment studies were carried out at 38 locations in Rajasthan.

They have wind power density of 200 watts per square meter or more. Based on this, a gross wind power potential of 5400 MW has been estimated in the state assuming land availability at 1% of potential areas and wind farm land requirement at 12 hectares per MW.

Indian government is promoting setting up of commercial wind power projects in India, including in Rajasthan, by providing fiscal incentives such as concessional import duty on certain components of wind electricity generator, excise duty exemption, 10 years tax holiday on income generated from wind power projects, benefit of accelerated depreciation and loan from Indian Renewable Energy Development Agency. Technical support including detailed wind resource assessment to identify further potential sites is provided by the Centre for Wind Energy Technology. This apart, preferential tariff is being provided for wind power in most of the potential states, including Rajasthan.

Indo Japanese group established for renewable energy

Mr Vilas Muttemwar union minister of state in the ministry of new & renewable sources said that a working group on new & renewable energy has been established under the India Japan Energy Dialogue to coordinate cooperation activities in new and renewable energy.

The first meeting of the working group was held on June 28th 2007 at New Delhi wherein it was decided that both sides will explore ways and means to further cooperation in the field of new and renewable energy.

Indowind to acquire European wind energy company

It is reported that Indowind Energy is planning to acquire a wind energy company in Europe for an estimated cost of around INR 400 crore and that the acquisition is in the final stages.

As per reports, Indowind Energy has raised around INR 100 crore from a recently concluded initial public offering and another USD 100 million through a foreign currency convertible bonds issue.

Indowind Energy is in the process of installing an additional capacity of 9 MW at the wind farm project at Chitradurga district in Karnataka and has acquired 125.23 acres of land in the state for the purpose. It will also use the proceeds to set up a 1,000 MW project in Karnataka, for which it has received approvals from the Power Finance Corporation.

Indian Metals & Ferro Alloys lays stone for power plant

SNS reported that Mr Surya Narayan Patro energy minister of Orissa has laid the foundation stone of the 30 MW expansion of captive power projects of Indian Metals & Ferro Alloys Limited at Choudwar in Orissa.

Mr Subhrakant Panda MD of Indian Metals & Ferro Alloys Limited said that it has committed investments of about INR 750 crore over the next 2 years to expand ferroalloys capacity, build independent power plants and backward integrate into coal mining, which would give the company a further competitive edge.

He added that it was awaiting clearance from the state government to embark upon a mega diversification into alumina aluminum, which would entail an outlay of more than INR 8000 crore.

Reliance Power to raise debt for Sasan project

It is reported that REL’s subsidiary Reliance Power is in talks with banks and institutions to raise debt to the tune of over INR 14,000 crore to fund the Sasan ultra mega power project in Madhya Pradesh.

According to institutional sources, Reliance Power is eyeing a debt equity ratio of up to 90:10 for the INR 16,000 crore pit head based project as against the normative 70:30 debt equity ratio prescribed for power generation projects. It is reported to be looking at a minimum debt equity ratio of 80:20 and is in talks with banks and institutions to explore the option of leveraging even higher debt to fund the project.

Granting developers the leeway to go in for raising higher debt vis a vis the normative 70:30 debt equity ratio prescribed by the Central Electricity Regulatory Commission, was among the concessions being mulled by the Government for the UMPPs, especially in light of the scale of these projects and the funding requirement.

Reliance Power had bagged the 4,000 MW Sasan project after the firm matched the tariff bid of INR 1.19 per unit quoted by the original winner of the project, Lanco Infratech Globeleq Singapore Pte combine. The project was awarded to Reliance Power after an empowered group of ministers declared Lanco’s bid as invalid earlier this year.

REL has an installed capacity of 941 MW of electricity through its power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa. The Sasan and Mundra projects are among 9 UMPPs proposed by the government to increase national power generation capacity by over 70,000 MW in the next 5 years.

NALCO started implementation of 2nd phase expansion project

Dr T Subbarami Reddy union minister of state for mines said that after obtaining government approval on October 26th 2004, National Aluminum Company Limited has started implementation of 2nd phase expansion project of its integrated aluminum complex at a revised estimated cost of INR 5003 crores and is expected to be completed by December 2008.

The present capacity of the project segment and the projected capacity after 2nd phase expansion are as under:

In million tonnes
* In MW

The overall physical progress of the various project segments as on October 2007 is as follows:

Rio Tinto unveils 5 drivers for exceptional growth

Mr Tom Albanese CEO of Rio Tinto and some of his senior management team at its investor seminar unveiled its strategy and growth plans in great details.

As per pre conference release, 5 key value drivers were outlined

1. An exceptional growth strategy in iron ore and a strong pricing outlook, with a conceptual pathway to treble production to over 600 million tonne per annum.

2. Positioned as the world's leading aluminum and bauxite producer with an excellent portfolio of growth projects and a strong market outlook. Anticipated post tax synergies resulting from the Alcan integration have been increased by more than 50% from USD 600 million to USD 940 million per annum.

3. As one of the world's leading copper businesses Rio Tinto has an impressive pipeline of exciting projects with interests in many of the world's largest undeveloped mineralization opportunities. Recent exploration at the La Granja project in Peru has highlighted the potential for doubling forecast production to in excess of 500,000 tonne per annum.

4. An increase in the divestment target from at least USD 10 billion to at least USD 15 billion following a strategic review.

5. A capital management strategy focused on enhancing shareholder returns from cash flow while providing flexibility for ongoing growth. The total 2007 dividend will be increased by 30% with a further annual total increase of no less than 20% in each of the following two years. This reflects the Board's confidence in the business.

Mr Tom Albanese said that "The rise in global mineral demand is a trend that we expect to continue for decades because of fundamental demographic and economic shifts, especially in developing economies like China and India. We believe that the value in Rio Tinto is yet to be fully reflected by the market. We believe we have a better growth pipeline than our competitors, which puts Rio Tinto in a strong position to supply the metal hungry world. We have the people, execution capability and resources to work smarter, faster and better than our competitors. We also believe our track record of delivery is unrivalled and we look forward with confidence to a hugely exciting future."

BHPB bid for Rio - German steelmakers oppose the move

It is reported that German steelmakers urged Brussels on Tuesday to block miner BHP Billiton's planned takeover of rival Rio Tinto that would create a USD 350 billion plus industry giant.

Mr Dieter Ameling president of German Steel Federation said that "This merger between the iron ore market's world number two and three would further raise the pressure on iron ore prices. It would limit the steel industry's access to the raw material. That kind of market dominance doesn't allow practically any leeway during price negotiations.”

He added that "Such a merger is in breach of the public interest since it intensifies the burden on the value creation chain in industrial production and should therefore not be permitted.”

According to the association, were the deal to go through, it would create a duopoly, with a combined BHPB Rio entity controlling 36.8% of the global iron ore market and Brazil's CVRD having 31.5%. The association added that even before negotiations with ore producers for next year's prices begin, double digit percentage rate increases are already in discussion.

German Steel Federation association represents German companies such as ThyssenKrupp and Salzgitter, the two biggest steelmakers in the country, as well as the German operations of global steel industry leader ArcelorMittal.

US Steel import in October up by 13% YoY

Based on preliminary Census Bureau data, the American Iron and Steel Institute reported that the US imported a total of 2,700,000 net tons of steel in October 2007, including 1,913,000 net tons of finished steel up by 13% and down by 6% respectively as compared to September final data.

While overall imports year to date have declined vs. the all time record year of 2006, total and finished steel imports year to date, on an annualized basis, remain up 8% and 10%, respectively, vs. 2005, which itself saw historically high import levels. On an annualized basis, total imports of steel in 2007 would be 34.6 million net ton.

Among the finished steel products showing large increases in October 2007 vs. the prior month were:
1. Heavy structural shapes -Up by 43% MoM
2. Bars cold finished –Up by 40% MoM
3. Cold rolled sheets - Up by 19% MoM
4. Tubular products, including line pipe, standard pipe and structural pipe & tubing -Up by 19% MoM, 16% MoM and 12% MoM respectively.

In October, the three largest suppliers of finished steel from offshore were
1. China - 303,000 net tons down by 9% MoM
2. South Korea -161,000 net tons down by 3% MoM
3. Japan -109,000 net tons up by 15% MoM percent).

Mr Andrew G Sharkey III AISI President and CEO said that “It is a top policy priority to remain vigilant regarding high levels of dumped and subsidized imports, given the ongoing surges we are seeing in specific product categories and from certain countries some of which are repeat offenders.”

Nippon Steel to expand alliance network

JMB quoted Mr Akio Mimura president of Nippon Steel as saying that it is trying to expand the partnership with the domestic and offshore partner in the context of soft alliance network.

The reported added that Nippon Steel tries to seek the profit growth in expansion of offshore upstream and downstream operation through the alliance while the firm improves the supply ability of high grade steel products in Japan.

CVRD considering a pellet plant in Malaysia

BNamericas reported that Brazilian mining and metals group CVRD is evaluating plans for a new pellet plant in Malaysia.

Mr José Carlos Martins executive director of CVRD ferrous minerals told analysts that "We are in discussions to build a palletizing plant in Malaysia to supply the growing needs in the Southeast Asian market.”

CVRD has two under construction pellet facilities in Brazil, including a 7.6 million tonne per year unit at 50% owned pellet producer Samarco due to start up in March. The other plant has a 7 million tonnes capacity and is scheduled to kick off production in June.

Mr Martins said that two other pellet plant projects were submitted to CVRD's board for approval and are expected to begin operations in 2010, including a 7.5 million tonne per year unit in Brazil and a 9 million tonne per year plant in Oman, to supply direct reduction pellets for the local market.

Zinifex to use USD 1.94 billion war chest for acquisitions

Platts reported that Australian miner Zinifex will pursue acquisition options aggressively in a bid to maximize production. Media reports have been speculating in recent months that Zinifex was looking to acquire Australian gold miner Oxiana.

Zinifex said that the initial public offering of its smelter business Nyrstar earlier this year has added significantly to its coffers and given the company substantial capacity to acquire assets.

Mr Peter Mansell chairman of Zinifex in a speech at the company's annual general meeting in Melbourne said that "We have a substantial war chest of more than AUD 2.2 billion which can be deployed to grow our mining business."

Rolled metals acquires Torrington Brass & Steel Co

It is reported that Bensalem's Rolled Metal Products Inc selling stainless steel and aluminum has grown with a purchase of Connecticut based Torrington Brass & Steel Co.

Mr Peter McGuire VP & GM of Rolled Metal explained that Rolled Metal said that “Rolled Metal is buying stainless steel and aluminum coils from mills and slicing them to meet specifications set by customers mostly companies in the auto, appliance and industrial hardware industries. Torrington Brass & Steel is in a similar industry, but they are also doing high carbon steel and copper and brass. We will be able to add that to our product area.”

Mr McGuire said that some clients are coming to Rolled Metal for one product and going to Torrington for another. He said that “In some areas, we were both serving the same customers. With the acquisition of Torrington Brass & Steel we will be better meeting those clients' needs.”

Rolled Metal Products is a service center, stocking and processing stainless steel and aluminum coil and strip. Rolled Metal was founded at Bensalem in Philadelphia in 1988, though the company relocated to Hatboro for several years before returning to Bucks County in 2005

Corus Tubes delivers line pipes for North Sea pipeline ahead of schedule

Corus Tubes rose to the challenge of a recent pipeline project for Apache North Sea by delivering within an extremely tight lead time of just nine weeks in order to meet a lay vessel window of opportunity.

Corus Tubes manufactured and delivered a replacement pipeline for the Forties field, using high frequency induction welded coated line pipe which was laid using the reeling process.

Contracted by Apache to deliver 5.25 kilometer of steel line pipe for use in water depths of approximately 420 feet, the steel line pipe, which is 14 inch in diameter by 16 mm thick, was ordered, manufactured, coated and delivered within nine weeks.

The steel line pipe was manufactured in Corus Tubes' 20 inch mill in Hartlepool, which boasts the world's most powerful induction welding equipment. The pipe was then coated with three layer polypropylene at BSR Pipeline Services, a Corus joint venture operation with Ramco located on the same site as the pipe mills. The pipe was then delivered to Evanton, in the north of Scotland, where it was spooled onto the Apache lay vessel and laid using the reeling method.

Mr Tim Bird business director of Corus Tubes Energy said that "The project with Apache reflects our leading edge capabilities in pipe production and delivery. In the North Sea particularly, where oil and gas oil reserves are reaching maturity and the project life cycle is much shorter, many operators are demanding high quality line pipe which can meet their increased demands of short lead times, cost-effective prices and ultimately reliability and lay ability."

He added that "The success of the project with Apache and the speed at which it was delivered was not only due to our in depth knowledge and capabilities but also the commitment and teamwork from all those involved throughout the supply chain. In particular, our colleagues in Corus Strip Products in South Wales, the 20 mill team in Hartlepool, the commercial energy team in Corby and our joint venture facility, BSR Pipeline Services Limited, without whose co operation the project would not have been completed to such a high standard in such a challenging schedule."

The pipeline, which is located between the Charlie and Bravo platforms in the Forties field is now in place and is ready for tie in, the complete project taking only 95 days from conception to completion.

Wheeling Pitt shareholders approve merger with Esmark

It is reported that after a special shareholders meeting in Pittsburgh 93% of Wheeling Pittsburgh's shareholders voted in favor of a merger with Esmark.

Mr Jim Bouchard CEO of Esmark said that it has been a bitter two and a half year battle after the company began its hostile takeover of Wheeling Pitt.

He told his shareholders that at the beginning of the day, Wheeling Pitt's debt totaled 70%. But now that the merger has taken place, the debt has already been reduced to 40%.

Mr Bouchard said that at the end of the day Wheeling Pitt will no longer trade on the New York Stock Exchange. However Esmark will officially begin trading under the symbol ESMK.

US weekly crude steel production up by 8.3% YoY

American Iron & Steel Industries reported that in the week ending November 24th 2007, US’s raw steel production was 2.044 million net tons while the capability utilization rate was 85.7%. Production was 1.887 million net tons in the week ending November 24th 2006 while the capability utilization then was 81.5%. The current week production represents 8.3% YoY increase from the same period in 2006.

Production for the week ending November 24th 2007 is down by 0.4% from the previous week ending November 17th 2007 when production was 2.054 million net tons and the rate of capability utilization was 86.1%.

Adjusted YTD production through November 24th 2007 was 96.206 million net tons at a capability utilization rate of 86.1%. That is a 3.2% YoY decrease from the 99.456 million net tons during the same period 2006 when the capability utilization rate was 89%.

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Hanjin to set up shipyard at Misamis Oriental

Korean shipbuilding giant Hanjin Heavy Industries and Construction Corp announced that it will construct a USD 2 billion shipyard complex at Misamis Oriental in Northern Mindanao in Philippines.

Mr Ninfa Albania Phividec Industrial Authority Administrator said that “Hanjin's facility will be constructed at the 3,000 hectare Phividec Industrial Estate in towns of Tagoloan and Villanueva in Misamis Oriental.”

The construction of the shipbuilding facility would start in early 2008. The plant would start fabricating ships in 2010. By 2012, the facility is expected to export some USD 1.7 billion worth of shipbuilding parts and vessels.

Dragon Steel to build blast furnace in Taiwan

YIEH reported that Taiwan’s Dragon Steel is planning to construct a blast furnace in the middle of Taiwan. The production of the furnace would be around 2.5 million tonne per year and it is planed to start production in 2010.

The production will achieve 3 million tonne per year in 2010 and the company is looking to reach 5 million tonnes.

It is reported that 1.5 million tonnes of the slab from Dragon will be supplied to Chung Hung Steel. The target market of HRC output from Dragon Steel will be electrical steel processing industries in Southeast Asia.

Transnet H1 revenue up despite constraints

Reuters reported that South African state owned rail and logistics group Transnet posted a 10% rise in H1 of 2007 revenue to ZAR 15.7 billion (USD 2.32 billion). Transnet said that H1 revenue was boosted by increased volume across its divisions, apart from the pipelines unit, which suffered after the energy regulator ruled against a tariff increase.

Transnet said that its iron ore and coal volumes came in below contracted levels primarily due to insufficient supply from the mines. It further added that the coal line was also hit by cable theft and derailments.

Its capital expenditure rose by 59% to ZAR 6.8 billion which is part of the ZAR 78 billion Transnet plans to invest over the next five years.

Transnet, which has previously said it hopes to sell off all non core assets by the end of the 2007/08 financial year said that it is about to complete the disposals and is now a focused freight transport and logistics provider. Transnet said that the disposal of the remaining non core assets including regional airline SA Express, hotel on wheels Luxrail, passenger bus operator Autopax, IT services subsidiary arivia.kom and non essential properties was underway.

Ms Maria Ramos CEO of.Transnet group said that “The new Transnet we have built in the last three and half years is positioned for further growth which is fuelled by volume based revenue increases instead of reliance on price increases. We are confident of achieving our targets at the end of the financial year."

WCI Steel begins to restart its operations after fire disruption

It is reported that production at WCI Steel is slowly ramping up after damage to its blast furnace was repaired and crews started loading the blast furnace with coke, iron ore and limestone Sunday. WCI Steel blast furnace has been down since November 9 when a fire started in the hydraulic rooms on the main deck.

Mr Tim Roberts a spokesman of WCI Steel said that though repairs have been completed, the company will need some time to return to full production.

The furnace is expected to produce molten iron of satisfactory quality. The basic oxygen furnace, which turns the iron into steel and the caster, which produces steel slabs are expected to be restarted later this week. Those operations have been down since the fire.

Mr Roberts said that the company's rolling mill continued operating until this past Wednesday using slabs that had been in inventory. The rolling mill may be restarted on a limited basis next week, but he declined to comment on how much the fire has cost WCI or how much production has been lost.

Nippon to supply YP47 steel for container ships to Hyundai Heavy

It is reported that Nippon Steel's high crack arrest ability type yield stress 47kgf/mm2 high strength steel plate YP47kg steel has been adopted for large container ships built by Korea Hyundai Heavy Industries. This is the first time that YP47kg steel being used for ships for construction by an overseas shipbuilder.

YP47kg steel, combining crack arrest ability with strength, has been developed for increasing in size of container ships by Nippon Steel jointly with Mitsubishi Heavy Industries Ltd.

By using the high arrest ability type steel plate for the hatch side coaming and the upper deck, which are the most important parts for a ship's structural strength, even in the event of brittle fractures occurring in the hull, cracking can be arrested in the parts, thus securing even higher levels in a vessel's structural integrity and safety. These high strength steel plates also contribute to down gauging and down weighting and the resulting greater fuel economy. This steel plate also makes it possible for a container ship to be loaded with more containers.

All such performance of YP47kg steel has been recognized since it was adopted last year for the series of six large container ships carrying 8100 containers each. It has already been used for about 30 container ships within Japan and abroad, including the large order from Hyundai this time.

Nippon Steel said that to respond to the growing demand mainly on the shipbuilding and energy field, it has been making large investments in the plate mill of the Oita Works, while also implementing measures for enhancing the capacity for high grade steel plates.

Dave Steel to build new facility in South Carolina

Dave Steel Co recently announced that the company will locate a new facility at Chesnee in South Carolina with plans to invest up to USD 6 million and create up to 85 new jobs over a five year development plan.

Mr William Lewin vice president of finance for Dave Steel said that “Dave Steel Company plans to use the proposed facility in Chesnee, to expand its current production operations at Asheville in North Carolina for fabrication of steel products for the construction industry.”

Dave Steel has been producing steel products for both industrial and commercial projects since 1929. It provides the high quality fabricated steel for its customers, including sophisticated coatings. The company serves the following industries: pharmaceutical, commercial, power generation, chemical and process, manufacturing and medical.

USA increases stainless long product import

Specialty Steel Industry of North America has reported that US stainless steel bar and rod import for the first 8 months was up by 12% YoY while import for stainless steel wire remain unchanged.

The US consumed 158,500 short tons bar up by 4% YoY and 43,730 short tons rod down by 1% YoY. The consumption for wire was 55,800 short tons down by 2% YoY. Imports of stainless long and flat products in August rose by 2% YoY to 550,870 short tons, while the consumption was 1.54 million short tons.

Sumikin Stainless raises SS tube prices

Japan’s Sumikin Stainless Steel Tube has announced to increase its prices for welded austenitic stainless steel tubes by USD 230 per tonne this month. Prior to this price hike, its price has not risen for five months.

The current new price of welded tubes is around USD 6,490 per tonne. Besides, the company also announced to cut production to adjust stock levels in the market.

Consol Energy to begin temporary sealing of Buchanan Mine

Pittsburgh based Consol Energy Inc said that it plans to temporarily seal its Buchanan Mine until early January 2008, to comply with safety regulations.

Earlier this month, Consol Energy had said it was uncertain when federal safety officials would permit production to restart at the mine near Mavisdale in Virginia, which has been idled more than four months after a series of roof collapses.

Consol Energy said the temporary closure is a safety requirement, as a final step prior to reentry in order to ensure that the mine atmosphere is inert and incapable of supporting combustion.

Northwest Pipe announces management change

Northwest Pipe Company announced that effective January 1st 2008, Mr Gary Stokes senior vice president, sales and marketing of water transmission group, will assume the new role of senior VP of water transmission group as Mr Charles Koenig current senior VP operations of water transmission group has announced his decision to retire in July 2008.

In the next several months, Mr. Koenig will focus his efforts on assisting Mr Stokes in his transition by continuing two key projects; installing two new mills and a project to increase capacity on existing equipment.

Mr Stokes joined Northwest Pipe in 1987 as VP of sales in California Division. In 1988, he became the Director of Marketing for the Company. He was appointed senior VP of sales and marketing in January 2002.

Mr Brian Dunham president & CEO of Northwest Pipe said that "We appreciate all that Chuck Koenig has done for Northwest Pipe over the years. He was a driver of growth in our Water Transmission Group. We are without question a better company today because of his influence. We all thank him for his years of service and leadership and wish him well in retirement. We are pleased that Gary Stokes will expand his leadership role in the company with this new role. He provides the benefit of continuity as well as a fresh perspective as we continue our strategy of growth in the Water Transmission Group."

Northwest Pipe Company manufactures welded steel pipe and other products in three business groups. Its Water Transmission Group is a leading supplier of large diameter, high pressure steel pipe products that are used primarily for water infrastructure in North America.

Xstrata to spend AUD 26 million to develop Ernest Henry Copper mine

It is reported that Swiss based Xstrata Plc will spend AUD 26 million (USD 22 million) on underground mine development work as it seeks to extend the operating life of its Ernest Henry copper and gold mine in Australia.

The investment is part of the company's plans to potentially extend the life of the mine by converting it to an underground site.

Xstrata said the construction of the decline is likely to start in February, with around 75,000 tonnes of copper concentrate expected from underground production during 2011-12.

It added that a further feasibility study to evaluate the viability of full scale underground mining operations will start early 2008 and run parallel with the development of the Stage 1 decline.

Arrow Mines options 2 more nickel copper properties at Ontario

Canadian Arrow Mines Limited announced the completion of an option agreement on two more nickel copper properties located about 40 kilometer south of Dryden at Ontario and in close proximity to its recently acquired Glatz property.

Canadian Arrow said that “The Emmons Occurrence is located about 2.5 kilometers north of the Glatz Occurrence and about 37 kilometer east of Arrow's flagship Kenbridge property. Nickel copper sulphide mineralization exposed on surface is hosted within a differentiated pyroxene gabbro intrusive body that trends from the north and curves to the southeast. Six out of ten shallow exploratory diamond drill holes drilled in 1960 reported significant intersections that included 1.34% Ni and 1.02% Cu over 4.4 million, 0.85% Ni and 0.80% Cu over 3.5 million and 0.54% Ni and 0.65% Cu over 5.2 million.”

Canadian Arrow added that “The Prigg Occurrence is located about 2.5 kilometers east of the Emmons property and occurs in a similar geological setting. Blebby to semi massive sulphides at surface are contained within a gabbro host. The same 1998 reconnaissance program noted above at Emmons also yielded selected surface grab sample assays in excess of 1% Ni and Cu.”

The option agreement for both properties requires payments from the Company of CAD 100,000 and CAD 200,000 shares over a three year period and the Company has to spend CAD 200,000 in exploration expenditures over a four year term. Once the Company exercises the option the vendors will retain a 2% net smelter royalty on these properties. The transaction is subject to regulatory approval.

Canadian Arrow Mines Ltd is an established Canadian exploration and development Company committed to developing and advancing base metal deposits close to existing infrastructure through exploration, development and acquisition.

South Steel orders minimill for Jizan Economic City

Saudi Arabian South Steel Pan Kingdom Invest Co has placed an order with German group SMS’s Concast and SMS Meer for planning, engineering and supply of plant and equipment for its minimill South Steel Factory’s Phase 1 strategic plan of developing a steel cluster at Jizan Economic City.

For this complex, Concast and SMS Meer are supplying a complete minimill comprising a steel plant with an annual production of 1 million tonnes and a connected rolling mill for the production of 500,000 tonnes per annum of rebars.

On the melting side, plant productivity will be guaranteed by a new 140 tonnes AC electric arc furnace, melting 24 heats per day with a charge of 80 %HBI and 20% scrap. EAF features a full platform and EBT design and retains the possibility of running with a 100 % scrap charge. Power input is ensured by a 120 MVA transformer used in conjunction with the Consotech equipment for the chemical power input. The melting unit is also equipped with the latest generation electrode control system and process automation, allowing the best possible operational flexibility to cope with different charge compositions, as well as a constant and reproducible operation of the melting process.

Secondary metallurgy will be managed by a 140 tonnes ladle furnace. LF operation and metallurgical process control will be guaranteed by the Concast process control system.

On the continuous caster to be supplied by Concast, with a radius of 9 meter and five casting strands, 1 million tonnes of billets will be produced each year in the dimensions 130mm and 150mm. Half of the production will then be transferred still hot to the rolling mill for further processing while the remaining amount shall be for sale on the local and regional markets.

The rebar rolling mill will be supplied by SMS Meer, including the walking hearth furnace with several control zones. In each zone it is possible to monitor the fuel to air ratio in order to minimize fuel consumption while achieving high furnace flexibility for all production quantities. The fully automated rolling mill comprises 16 housing less stands in horizontal and vertical arrangement, followed by a 6 stand Monoblock finishing stand for high-speed rolling of bars, a bar quenching system, a cooling bed and all necessary finishing and bundling facilities. The compact design of the “HL” mill housings ensures finished products with close tolerances. The supply range includes the Level 2 automation and all electrical equipment.

The modern mill design also reduces maintenance time and cost. The maximum possible finish-rolling speed to the cooling bed of 41 meter per second for 8mm and 10mm rebars is achieved with the HSD® system, which greatly enhances the mill productivity.

The entire plant concept meets all requirements for efficiency, flexibility and reduced maintenance.

Japanese steel imports in Qatar surge by 200% YoY

Japan External Trade Organization Jetro reported that Japanese exports to Qatar during January to June 2007 have totaled USD817.96 million up by 24.86% YoY as compared to USD 655.1 million in January to June 2006. Whereas Japanese imports from Qatar stood at USD 7.05 billion up by 2.4% YoY.

Japanese exports
1. Machinery and equipment – Up by 24.86% YoY
2. General machinery – Up by 73.22% YoY
3. Semis and steel – Up by 200% YoY
Other major exports were metal and rubber products and textiles.

As a whole, Japanese exports to the GCC region increased by 36% YoY for the first six months of 2007 to USD 9.66 billion. Japan's imports from the GCC were valued at nearly USD 45 billion. UAE remained Japan's largest export market in the region accounting for 35.32% of the exports, Saudi Arabia made up 35% followed by Oman with 11%, Qatar with 8.46% Kuwait with 7.23% and Bahrain with 3.09%.

Alam Steel attains CARES certificate

Alam Steel Limited’s subsidiary Alam Steel Industries has announced that it has obtained the Certificate of Approval from UK Certification Authority for Reinforcing Steels. Mr Ben Bowsher executive director of UK CARES presented the certificate to Mr Shyam Bhatia chairman of Alam Steel Industries.

Mr Bowsher said that “With the vast amount of construction activity in the region it is imperative that the entire steel reinforcement supply chain is certificated. It is not sufficient for consultants to specify CARES certificated rebar alone and have it processed by a non CARES approved processor. Such rebar, processed incorrectly and without the necessary controls, may not comply with the specification and may even be a risk to the concrete structure.”

Mr Vikram Bhatia director of Alam Steel Limited said that “We have always been leaders of innovation within the steel industry and being the first processing factory to be accredited by CARES reinforces that position.”

The certification is awarded for complying with requirements of BS EN ISO 9001 2000 and the relevant CARES quality requirements for rebar processing to BS8666. Alam Steel Industries is entitled to use the CARES mark on all of its reinforcing steel products now that it has achieved CARES certification.

CARES is an accredited UK based product certification body, founded in 1983 that provides an independent 3rd party product certification service to the construction industry. CARES has been accredited by UKAS, an agency of the British Government. CARES is a notified body under the Construction Products Directive, in the areas of reinforcing steel, pre-stressing steel, structural steel and pre-cast concrete products, enabling its approved firms to apply the CE mark to these products, as appropriate.

Iran to build 150 MW power plant in Sri Lanka - Report

Mehr News Agency quoted Mr Parviz Rezaii director of the Asia Pacific Commercial Department of the Trade Promotion Organization of Iran as saying that Iran will build a 150 MW electricity power plant in Sri Lanka.

Mr Rezaii said that the construction of the hydroelectric power plant was discussed by the Sri Lankan ambassador to Tehran and officials of the Export Development Bank of Iran, the Export Guarantee Fund of Iran, the Iran Foreign Investment Company and the Iranian Foreign Ministry.

He further added that the strengthening of Iran Sri Lanka relations depends on the expansion of bilateral trade ties, especially in the fields of technical and engineering services. He said that Iran Sri Lanka trade hit USD 730 million in Iranian calendar year 1385 (March 2006-March 2007).

Dubai to spend AED 80 billion on mass transport system

It is reported that Dubai will spend about AED 80 billion by 2020 on expansion of the road network and development of a mass transport system, including Dubai Metro, buses and marine transport.

Mr Mattar Al Tayer chairman of the board and executive director of TRA said that "The Roads and Transport Authority are working on its strategic transport plan to cope with the expected increase in population from the current 1.4 million to 5.2 million by 2020."

Out of the AED 80.74 billion budget, AED 44.04 billion will be spent on road development comprising some 500 kilometer of new roads and 90 interchanges, AED 24.22 billion being spent on 4 lines of the Dubai Metro, about AED 9.19 billion will be spent on a tram network, AED 2.2 billion on the public transport bus system and AED 1.83 billion is being spent on development of a marine transport system.

Alstom to establish a high speed rail network in Saudi Arab

Saudi Gazette reported that French rail company Alstom Transport has revealed plans to establish a high speed rail network in Saudi Arabia, linking Jeddah and Madina with a journey time of just 90 minutes. The proposed network will be capable of transporting millions of Haj and Umrah pilgrims at speeds of up to 400 kilometer per hour.

Mr Francois Lacote VP of Alstom revealed plans for the 500 seat double decker trains at the French Technology Exhibition in Riyadh. The project, connecting Madina, Makkah and Jeddah is to be presented soon to the Saudi ministry of transport. He added that “We will build it as soon as it is approved by the Saudi ministry of transport.”

Mr Lacote said that a feasibility study had been undertaken to ensure the network could withstand extreme temperatures in Saudi Arabia. He added that “With just a little modification, our technology can cope with the high temperatures in Saudi Arabia. We have been awarded to do a 400 mile railway network project in Morocco and the same model can be applied to Saudi Arabia.”

It is noted that Saudi Arabia is planning to improve public transport with a massive national railway expansion project worth around USD 5 billion. The Saudi Railway Organization said in June 2007 that 6 consortia would compete for the contract to build a 444 kilometer railway linking Madinah and Makkah.

Chinese firms bags Jeddah Islamic Port contract from Tusdeer

Two Chinese companies have won contracts to construct the massive third terminal at Jeddah Islamic Port, Saudi Arabia’s oldest and largest port.

Saudi Trade and Export Development Company signed a deal with China Harbor Engineering Co to build the Red Sea Gate terminal over 22 months, beginning in January 2008. The new terminal will be built based on designs made by the British engineering consultancy Halcrow and is scheduled to begin operating fully in the fourth quarter of 2009. Designed to handle 1.5 million containers annually, it will increase the port’s overall capacity by 45%.

Cranes manufacturer Shanghai Zhenhua Port Machinery will supply the terminal with eight container cranes, 26 ship loaders and un loaders and large steel bridge structures. It will supply equipment in three stages starting mid 2009.

Tusdeer, a subsidiary of Saudi Industrial Services, is building the terminal with Seaport Terminal of Malaysia, which has a 20% stake in the project. The USD 443 million projects will be implemented on a build operate transfer basis and will take three years to complete. The new terminal will be built on reclaimed land along the re export zone at Jeddah Islamic Port and is expected to handle up to two million 20 feet TEU containers a year.

Chinese steel imports into GCC surge

Xinhua quoted Mr Tang Xiaobo analyst of UBS as saying that China has experienced a drastic jump in demand for its steel products in Iran, UAE and Syria as the Gulf countries spent petrol dollars on infrastructure construction.

In the April to October 2007 period, China’s steel exports to Iran rocketed 22 fold to 2.3 million tonnes as compared to April to October 2006 period. UAE increased steel imports by 2.96 times to 1.3 million tonnes and Syria by 6.59 times to 5 million tonnes.

The surge in tonnage correlated with a drop in prices for steel exports to Gulf countries, as demand from the crude exporters was mainly for cheaper steel used in construction, such as reinforced steel bars, long steel and steel wire rods. The new export trend has benefited China's private and smaller steel producers as larger domestic firms have turned away from products with low added value.

MMC and Binladin ink MoU with Chalco for an aluminum smelter

It is reported that MMC International Holdings Limited and Saudi Binladin Group have signed an agreement with Aluminum Corporation of China Limited to develop, own and operate an aluminum smelter at Jazan Economic City. The USD 3 billion smelter will have an annual production capacity of approximately 1 million tonne.

The plant will be developed by Sino Saudi Jazan Aluminum Limited, which will be jointly owned by Chalco with 40%, MMC with 20% and a Saudi consortium including SBG with 40%. This definitive agreement follows the signing of a preliminary MoU on October 4th 2007 to establish the smelter at JEC.

The smelter will be supplied with low cost electricity, which will slash the smelter's production costs and enable it to produce competitively priced aluminum. The plant's requirements for alumina will be supplied by Chalco, which will also guarantee the off take and distribution of the aluminum produced. A power plant with a generation capacity of 1,860 MW, which is estimated to cost USD 2 billion, will be required to satisfy the smelter's power needs.

Mr Amr Al Dabbagh general investment authority governor of Saudi Arabia said that “We are very pleased with the overall progress of JEC, which has commenced construction within one year of its launch. The latest addition of the second aluminum smelter and power plant with an investment close to USD 5 billion will bring the total capital invested in JEC to USD 20 billion. The original investment envisaged for JEC was USD 30 billion over a period of 25 years. We have achieved two thirds of this amount 1 year after the project's launch. This investment by Chalco in a smelter with an integrated power plant is the single largest investment by a Chinese company in Saudi Arabia.”

Mr Feizal CEO of MMC said that “For MMC, this is an attractive investment that meets our risk profile and investment returns. The alumina supply, technology support and product off take are guaranteed with the participation of Chalco. JEC's low power tariffs provide a competitive advantage for aluminum smelters that would otherwise be vulnerable to rising power costs elsewhere in the world.” He added that MMC intends to own at least 50% of this power plant, which will form part of a larger power plant complex that is planned to have an eventual generation capacity of approximately 5,000 MW.

Nippon Paint to invest USD 25 million in Pakistan

Business Recorder reported that Nippon Paint will be investing USD 25 million in Pakistan over the next 3 to 5 years, which will include a manufacturing facility in District Kasur near Lahore.

Mr Samad Zaheer GM of Nippon Paint Pakistan said that "Today marks the beginning of a new era in Pakistan's paint industry. From today, the Japanese technology and quality of Nippon Paint will transform the Pakistan paint industry into something more vibrant and colorful and it is a proud day for Nippon Paint. With a young population and a growing economy, we see huge potential in Pakistan. Our research shows that consumers in Pakistan believe in Nippon Paint and consider us a brand of superior quality. We look forward to introducing Pakistan to a new concept in painting."

Currently, Nippon Paint has already signed agreements with the key paint dealers in Lahore, Sialkot, Faisalabad, Gujrat, and Sargodha districts and plans to quickly spread their presence to north and south regions of Pakistan. Authorized dealers will be equipped with Nippon Paint color creation which is an innovative computerized paint system, which allows the consumer to choose from more than 3,000 color choices and have the selected color available within minutes.

Japan based Nippon Paint enjoys a reputation for innovation and manufacturing functional, environment friendly and aesthetically superior products.

Iranian oil revenues expected to hit USD 60 billion

IRNA quoted Mr Gholam Hossein Nozari oil minister of Iran as saying that Iran's oil revenues are projected to hit USD 60 billion in 2007.

He added that "The government is not allowed to spend even a single penny of the earnings without authorization from the Majlis. The government spends the revenues within the framework of Budget Law for the fiscal year 2007-2008 and the rest is deposited in oil stabilization fund."

Mr Nozari stated that Iran believes there is enough oil in the global market but is capable of pumping more into it if there is agreement by OPEC to do so. He added that "We believe there is enough oil in the market but if statistics and data show there is a need to produce more we are capable of meeting the demand."

Dana to promote its water heater ranges to ME construction sector

It is reported that Dana Water Heaters & Coolers Factory will be focusing on enhancing its brand image and penetration into the Middle East construction sector. It has achieved certification to the Emirates Conformity Assessment System and the Dubai Consumer Laboratory, both of which are mandatory for supply in the UAE.

At the Big 5 this year, Dana will be concentrating on 2 main product lines namely Dana Glasshot glass lined electric water heater and the Dana water chiller. Dana Glasshot has a porcelain enameled glass lined body with magnesium anode for maximum protection against corrosion. Established under the Dana Group of Companies, its water heaters have been supplied to several key projects in the region.

Dana Water Heaters & Coolers Factory manufactures electric water heaters, stainless steel water coolers and water chillers in the Middle East.

China steelmakers to raise prices in Q1

Mr Luo Bingsheng vice chairman of the China Iron & Steel Association said Steelmakers in China has recently expressed that steel prices in China are likely to witness a hike the first quarter of 2008 because of higher raw material costs.

He said “Low cost production in China's steel industry has ended. Raw material costs will keep steel prices at higher levels. From January to October, raw material costs gained 12% for Chinese steelmakers largely because of iron ore.”

Chinese construction steel prices continue to climb up

It is reported that Construction steel price is still leading the rise in domestic steel market. They have been hitting record level again and again, bolstered by strong demand and rising input.

In Shanghai, HRB335 20mm rebar and HRB400mm 20mm rebar prices have jumped to CNY 4270 per tonne and CNY 4370 per tonne respectively. Q235 wire rod is being quoted at CNY 4280 per tonne, hi speed material at CNY 4310 per tonne up by CNY 30 per tonne to CNY 50 per tonne from last week.

Mysteel forecasts if we take HRB335 20mm rebar price as benchmark, it is expected to approach CNY 4500 per tonne on Shanghai market in a month if it exceed CNY 4300 per tonne. We believe the increase would go a long way taken into account the prosperous construction activities in both China. In addition, the rising iron ore price is always pushing up the price. There would be no great drop as long as iron ore price keep going up.

As is known to all that real estate industry is also hot in other countries. Among others, Middle East and Russia are very active since they benefit a lot from exports of high priced energy and resources, mainly crude oils. The robust demand from constructions would certainly drive up rebar and wire rod prices and the trend is likely to maintain for a long period.

Export market is still quiet and there have been less contracts being concluded due to high prices. Some traders even have already suspended their export business, saying the delivered Chinese construction steel cost is much higher than overseas destination market prices.

(Sourced from MySteel.net)

China to further deregulate coal prices in 2008

It is reported that China, the world's largest coal producer and consumer, will further deregulate coal prices and trading in 2008 after launching deregulation earlier this year that allowed producers and end users to negotiate prices freely.

The National Development and Reform Commission in a statement posted on its website said that it expects the deregulated prices to flexibly reflect changes in supply and demand as well as relative costs to the environment, compared with previously state set prices, which changed slowly for decades and lagged behind surging international prices in the past couple of years.

The statements added that earlier this year China ended its position as a net coal exporter and shifted to a net importer, mainly importing from Indonesia, Vietnam, Australia and Mongolia. It added that
”Surging demand and growing imports may lead to higher coal prices in 2008 for yearly contracts, which suppliers and end-users will sign in the first quarter. Government agencies are prohibited from intervening in the price negotiations. Contracted coal prices rose about 10% early this year after the government allowed deregulation.”

The NDRC expects the Chinese coal supply and demand in 2008 to be mostly balanced, but shortages may occur in some regions due to limited transport capacity and seasonal peak power demand.

CISA calls for closing 500 cubic meter and below BFs

Mr Luo Bingsheng vice chairman of China Iron & Steel Association while speaking in “Merger and Acquisition of Iron and Steel Industry and Enterprise Development Seminar” on November 26th 2007 said that outdated capacities of 200 cubic meter and 300 cubic meter blast furnaces should be closed down and low level capacities of 400 cubic meter and 500 cubic meter blast furnaces should also be shut down.

He expressed that “Some small sized blast furnaces expanded scales and capacity, so outdated capacity rose up instead of reduced. Domestic steel enterprises should close down not only outdated capacity, but also low level capacity.”

Chinese SS output expected to reach 9 million tonnes in 2015

It is reported that during the stainless steel industry meeting in China participants expressed that Chinese stainless steel output would reach 9 million tonnes in 2015. Besides, its stainless steel crude steel's production capacity will be 10 million tonnes in 2007 accounting for around 33% of the total production capacity in world.

According to the Chinese Special Steel Association, the government is supporting some stainless steel projects by Baoxing, Shanghai Krupp Stainless and POSCO. Therefore, the cold rolled production capacity increased to 5.5 million tonnes.

On the other side, the Chinese government also encourages the technology renovation of Tisco and Baosteel to increase the HR production capacity.

BaoSteel supplies record volumes of steel to auto sector in 2007

According to Baosteel, taking the demand season for automobiles in September to October, Baosteel managed to boost the sale volume of auto sheet.

During January to October 2007, BaoSteel has sold 2,670,000 tonnes of auto sheets, finishing 89.3% of the year plan and exceeding that of the whole 2006. The sales includes including sale of CR sheets for outer applications for auto and passenger car reaching 392,900 tonnes and 346,900 tonnes achieving 99.5% and 99.1% of the yearly targets respectively.

Meanwhile, the volume of cold rolled auto sheet reached 2.10 million tonnes accounting 85.6% of the year plan with the volume for 2007 may come to 2.56 million tonnes 100,000 tonnes more than the plan. Besides, Baosteel boosted the sale of strategic products of auto sheet, with the sale volume of galvanized products during the first ten months 1.7% more than the year plan.

Till the yearend, Baosteel will focus on: solving the quality problems appointed by Japanese mode automobile consumers, completing the targets and plans for the year, making next year’s plan and so on.

Bahia based iron ore miner to supply iron ore to China

It is reported that China Iron and Steel Association has welcomed a new Brazilian iron ore company's decision export over 10 million tonnes of high grade iron ore annually to China.

The company made this decision at an iron ore mine project introduction conference held in Shanghai, which attracted CISA and representatives from major domestic steelmakers. Local government in Bahia promised to give preferential policies to the project, including the exemption of the 17% tariff on equipments imports.

The company owns mining right of 56 mines in East Brazil's Bahia, covering total area of more than 100,000 hectares. Average grade of the iron ore resources is estimated at 57.8%. The project is to be launched soon.

(Sourced from MySteel.net)

Seamless pipe prices on up ward trend in China

It is reported that due to sharp increase in material cost, the pipe mills in China have raised their domestic prices recently.

Currently, seamless pipe with outside diameter less than 108mm has been quoted at around USD 700 per tonne in Shandong Market. Zhenda mill has offered seamless steel pipe with 219mm outside diameter and 6mm wall thickness at USD 728 per tonne.

Seamless tube makers expect that the pipe price will keep rising since the current stock can not meet the demand.

Ningbo Baoxin Stainless to cut production in December

YIEH reported that China’s Ningbo Baoxin Stainless Steel plans to reduce its production output in December 2007. Ningbo Baoxin Stainless Steel is expected to reduce by 10% to 15% in production to cope with the weak stainless steel market.

In fact, most of the China’s major stainless steel mills have planned to cut production in order to stabilize the market.

State Council called to program mergers of steel enterprises

In” Merger and Acquisition of Iron and Steel Industry and Enterprise Development Seminar “on November 26th 2007 Mr Luo Bingsheng, the executive vice chairman and secretary general of China Iron & Steel Association indicated that CISA has already suggested the State Council to program mergers of steel enterprises and to accelerate the rise of industrial concentration.

Mr Bingsheng advised that the national program should take advantages of four biggest steel groups including Baosteel, Anben Steel, Shougang and Tangsteel and Wisco in aspects such as capital, management, technology etc in order to construct a super sized and international competitive steel group in the world.

He said that “The government should also provide support to the merger of other big sized steel enterprises and close down outdated and low level capacities.”

He added that “Additionally, the national program should regulate the rate of progress of the merger and confirm that crude steel output in first ten largest steel enterprises takes 50% in total output in China by 2010.”

Chinese H beam export to South Korea may be restricted

It is reported that officials from Ministry of Commerce of China and China Iron & Steel Association visited officials from Iron and Steel Association, Ministry of Commerce and Ministry of Industrial Energy in South Korea on November 22nd 2007 in which the hike of Chinese H beam export to South Korea was discussed.

China agreed to carry out quota system for H beam export, but according to data from South Korea Chinese export quantity of H steel to South Korea has already exceeded quota in the whole year of 2007 in September 2007.

South Korea has imported 787,000 tonnes of H beam in first nine months this year up by 15% in YoY among which 656,000 tonnes of H beams came from China accounting for 83% of imports.

H beam manufacturers in South Korea including Hyundai Steel Co threatened to lodge a complaint and experts expect that Chinese H steel export to South Korea would be restricted by the end of the year.

Baosteel, BNG and Hyundai Steel ink cooperation memo

It is reported that Baosteel stainless steel department, BNG and Hyundai Steel have signed a cooperation memo for stainless steel products. They plan to cooperate for stainless steel HR acid products from 2008.

According to the cooperation memo, Baosteel is expected to offer 45,000 tonnes of stainless steel HR acid products to these two companies in 2008.At that time and BNG and Hyundai will become the largest overseas users of Baosteel’stainless steel products.

Jiugang commissions CR SS line

It is reported that the first production line of cold rolled stainless steel in west of china had been put into production at Jiugang’s stainless plant on November 26th 2007.

The project ha s an annual output of 530,000 tonnes of stainless steel plate production capacity and can produce high grade 300 series, 400 series of cold rolled stainless steel strip.

Jiugang stainless steel plant’s CR project is a core group of Jiugang group stainless steel, with the total investment is CNY 2.4 billion. It indicates that Jiugang become the third enterprise has the production system from steel making to complete stainless steel rolling after Taigang and Baogang.

China should establish mechanism of iron ore storage

According to Mr Luo Bingsheng vice chairman of China iron & steel Association expressed on November 26th 2007 that China should establish mechanism of iron ore storage similar with petroleum storage for the maintaining regular supplies and control market speculations, as iron ore is the mail raw material for iron & steel industry, which is a major factor driving Chinese economy.

He also said that “Because the resources environmental constraints increase, the fuel prices rise the steel enterprises are encountering a greater cost pressure. Based on this condition, the recent domestic steel products prices will continue to maintain a concussion ascending trend.”

Shanghai Krupp to purchase 443 SS from JFE

It is reported that Shanghai Krupp has sent a purchase agreement for 443CT hot rolling to JFE of Japan and the details including the related technology are waiting for further discussion.

443 series SS materials are mainly available from few sources including 443CT from JFE and TTS443 from Taigang of China. Their prices stand at CNY 17,500 per tonne to CNY 18,000 per tonne.

443 type non nickel stainless steel, with a high chrome content at 21%, has a comparatively good performance with SUS304 materials in corrosion resistance, forming and high temperature bearing, but the prices are only 65% of that for SUS304. 443 materials are suitable for manufacturing home applicants, automobile parts, kitchen machines, indoor or outer decoration materials of buildings, inter plate for containers, and so on.

POSCO is also producing 445NF materials, which has a similar performance with 443 products.

Pig iron prices stand firm in Shandong

It is reported that Pig iron prices holds stably in Shandong.

1. Current EXW price of steelmaking pig iron at CNY 3400 per tonne to 3450 per tonne

2. Casting pig iron at CNY 3600 per tonne to CNY 3650 per tonne

3. Steelmaking pig iron purchaser price at CNY 3450 per tonne to CNY 3510 per tonne with common delivery

As per report current iron works are executing prior contracts and spot resources are quite tight. Driven by steel and fuel as well as raw material prices, most iron plants refuse price decrease in December, but with price rise room in limits. Moreover, due to tight rail transport, coal shipment cannot be confirmed.

Tanggang achieves semi endless rolling techniques

It is reported that recently, semi endless rolling techniques representing for advanced rolling technology of HR sheet in China, has been put into use in No 1 Rolling Mill, Tanggang Group.

Its 1810 line achieves two segmented semi endless rolling on 4mm HR plate & coil, which brings much precious experience for later other multi segments.

ChTPZ orders large dia meter pipe mill

It is reported that ChTPZ Group’s JSC Chelyabinsk has placed an order with SMS Meer, for the supply of machines and equipment for a new large diameter pipe mill employing the JCOE® process developed by SMS Meer. It is scheduled to go into operation at the Chelyabinsk site in the Southern Urals in Russia in 2009.

With an annual capacity of 600,000 tonnes, the new mill will be the largest that SMS Meer has built to date in Russia. It will be used to produce longitudinal SAW steel pipes with diameters from 508mm to 1,422mm and wall thicknesses up to 45mm in lengths of maximum 18.3 meter and material grades up to K80.

As general contractor, SMS Meer is to supply all the machines and equipment for the new large diameter pipe mill. The pipe mill will be equipped with two JCO® pipe forming presses, one 18.3 meter and one 12.2 meter press. In addition to the two JCO® pipe forming presses, a plate edge milling machine, plate edge crimping press, two tack welding machines, two mechanical expanders, a hydrostatic pipe tester, facing and chamfering machines as well as the equipment for non destructive testing.

Furthermore, SMS Meer is responsible for the punctual delivery of all the components and for the comprehensive quality control. The scope of supply also includes a Level 2 automation system as the link between the computer system to be supplied by the customer and the equipment of the 1st automation level.

During the JCOE® process, the plate milled and crimped at the edges is gradually guided over its whole length onto the forming tool of the JCO® pipe forming press by means of manipulators. This results in an open seam pipe with parallel longitudinal edges offering optimum preconditions for pipe welding.

Ukraine to increase iron ore mining royalty

Ukrainian Journal reported that according to a bill drafted by the Ukrainian finance ministry, Ukraine is seeking to increase payments it charges mining companies for extracting iron ore.

As per report, the payments are expected to increase by 40% to UAH (UDD 0.3) per tonne.

The draft must be approved by Parliament and signed by President Mr Viktor Yushchenko in order to take effect.

Shell not to proceed with MOU with Regal Petroleum

It I reported that Shell has decided not to proceed with a recently signed MoU for exclusive negotiations with Regal Petroleum plc and potential UD 410 million deal regarding Ukraine assets.

Shell in a statement said "Shell recently signed a MOU for exclusive negotiations with Regal Petroleum plc regarding Ukraine assets and we see from the new management's comments that they may have changed their thinking on this transaction.”

Highstat wins tender for 25% stake in Power Machines

RIA Novosti reported that Highstat Limited has won a tender for the acquisition of a blocking stake of 25% plus one share in Power Machines from Russian electricity giant Unified Energy System.

Cyprus registered Highstat Limited, owned by Mr Alexei Mordashov, made the highest bid for the proposed stake, offering RUB 11.8 billion (USD 486 million) or RUB 5.42 per ordinary share, approximately 25% above the market share price. Mr Mordashov already holds 30.4% stake in Power Machines.

Power Machines, Russia's leading heavy machinery manufacture, is currently owned by financial holding Interros, Unified Energy System and German electronics and engineering giant Siemens.

Russian billionaire and BasEl owner Mr Oleg Deripaska withdrew earlier on Tuesday his offer to buy a 25% stake in Power Machines from UES and Mr Mordashov was left as the only bidder.

RUSAL eying tie up with Norilsk – Report

Metals Insider reported that Russian aluminum giant UC RUSAL has agreed with Onexim Group, Norilsk Nickel’s largest shareholder, to buy from it a 25% plus one share interest in the Russian nickel, copper and platinum group metals behemoth.

In return ONEXIM would become an 11% shareholder in the enlarged UC RUSAL with the balance to be paid in cash.

Mr Alexander Bulygin CEO of UC RUSAL commenting on the proposed transaction said “This strategic transaction paves the way to develop the enlarged UC RUSAL into a global, diversified metals, mining and energy group.”

UC RUSAL has created a solid platform to implement its strategy of growth and diversification supported by our strong competitive advantages. Russia is an exceptionally resource rich country and it is entirely appropriate that the country’s industry leader achieves global major status.”

Gazprom and Turkmenistan agree on gas price rises

Itar Tass reported that Russia’s gas giant Gazprom and the leadership of Turkmenistan has agreed on a rise in the price of natural gas for Russia in the first half of 2008 to USD 130 per 1,000 cubic meters and in the second half to USD 150 per 1,000 cubic meters.

As of January 1st 2009 the price of gas for Russia will be calculated on free market economy principles.

Mr Yushchenko calls for coal mining modernization effort

Ukrainian Journal Staff cited Mr Viktor Yushchenko president of Russia as saying that that Ukraine will continue to rely on its coal mining sector in order to meet its long term energy needs but the industry must undertake a massive modernization.

Mr Yushchenko spoke after officials admitted that the recent methane gas explosion at the Zasyadko coal mine has claimed the lives of 100 coal miners

Gazprom re branding its subsidiaries

Interfax cited Mr Ivan Kuzayev head of the subsidiary's PR service as saying that Orenburggazprom a subsidiary company of Gazprom will be renamed Gazprom Extraction Orenburg starting from 2008.

He said all of Gazprom's subsidiaries will undergo re branding starting in 2008. Gazprom will be the first word in each company's new name, the second will indicate the company's activities and the third will indicate the territory in which the company operates.

Nord Steam to get commissioned in second half of 2010

Itar-Tass reported that operations on the Nord Scream gas project are going ahead strictly in accordance with schedule.

Mr Alexei Miller chairman of Gazprom during a ceremony for signing of an agreement on cooperation with the Leningrad region for 2008 declared that Nord Stream gas pipeline is scheduled to be put into operation in the second half of 2010.

Mr Miller said that “The construction of the Nord Stream ground branch will enable to continue the work at sea in due time. Ecological coordination with the Baltic States is going ahead in a working regime, and there are no grounds yet to fear that the scheduled term of commissioning the gas pipeline might be postponed.”

Finland's study of Baltic gas link to take a year

Reuters reported that Finland expects to be ready with its environmental evaluation of the planned Russia to Germany gas pipeline under the Baltic Sea only in late 2008 putting pressure on the link's tight building schedule. The participants this month confirmed the timetable for the project to enter service by the end of 2010, but the environmental impact assessment has taken longer than expected.

Mr Ilkka Kanerva Finnish Foreign Minister said "We are taking very seriously all those environmental consequences. This is our main concern. He said that issue will be ready in one year's time."

The environmental impact assessment is scheduled to be delivered by the company carrying it out to Finnish authorities in April 2008. Public hearings and evaluation will take months after that.

The project is led by Russian gas export monopoly Gazprom and involves German firms BASF and E ON. Earlier this month Dutch state pipeline operator Gasunie became the fourth partner in the EUR 5 billion scheme.

GMZ output up by 4.6% YoY in January to October 2007

Interfax reported that Estar Group’s Kemerovo region based Guryevsk Metallurgical Plant has increased production by 4.6%YoY to 176,365 tonnes in the first ten months of 2007. Production of long steel products rose 8.8% to 174,236 tonnes.