November, 29 2007
TATA Steel announces new organization structure
TATA Steel has announced a new organization structure effective from January 1st 2008. The release said that “TATA Steel Group comprises of 2 entities, namely, TATA Steel including TATA Steel Thailand & NatSteel Asia and Corus Group Limited. In order to realize this ambition, a new organization is announced on November 28th 2007, which is effective from January 1st 2008.
1) Mr Ratan Tata chairman of TATA Steel will continue to chair the strategy and integration committee
2) Mr Jim Leng, Mr B Muthuraman, Mr Philippe Varin, Dr Tridibesh Mukherjee, Mr Rauke Henstra, Mr Hemant Nerurkar, Mr Koushik Chatterjee and Mr Jean Sebastien Jacques are members of this committee
The release added that “A group centre is created for functions that are to be performed with a common approach across the TATA Steel Group. These functions are technology & integration, finance, strategy, corporate relations & communications and global minerals. The executives responsible for these functions will report to the MD of TATA Steel and the CEO of Corus.”
1. Dr Tridibesh Mukherjee is appointed as group director of technology & integration
2. Mr Koushik Chatterjee is appointed as group CFO
3. Mr Jean Sebastien Jacques is appointed as group director, strategy
4. Mr Manzer Hussain is appointed as group director, communication
5. Mr Arun D Baijal is appointed as group director of global minerals
Both TATA Steel and Corus entities will have executive committees chaired by Mr B Muthuraman MD and Mr Philippe Varin CEO respectively.
Massey Energy signs agreement with Essar Mineral Resources
Massey Energy Company announced that it has entered into an agreement with Essar Mineral Resources Ltd, a member of Essar Group of India, to jointly evaluate and develop select business opportunities on a project by project basis.
The initial focus of the new partnership will be the development of coal reserves, coke ovens and a coal preparation plant to support an electric power plant to be constructed in India by Essar.
In the non binding MoU signed by both companies, Massey and Essar also agreed to evaluate selected mining projects in India and to evaluate the development of coke oven projects in India and elsewhere. The strategic partnership is not limited to India or to coal and the companies agreed to establish a JV to pursue any future projects selected for development.
Mr Don L Blankenship chairman & CEO of Massey said that "The potential for synergies between the two companies is readily apparent. Essar is looking to dramatically increase its steel production and energy generation in the coming years. Massey has some of the best metallurgical and steam coal reserves in North America and the expertise to develop modern, cost effective coal mining and processing operations overseas to fuel the expansion. We have been developing a relationship with Essar for some time and are optimistic about the potential to work and grow profitably together."
Mr J Mehra CEO & Director of Essar Steel Holdings Limited said that "Our companies have the technical expertise and marketplace knowledge that will allow us to expand and leverage mutual opportunities in India and around the world. Essar Minerals looks forward to a successful and long term partnership with Massey Energy."
JSPL seeking RDSO approval for rails for Indian Railway
Live Mint reported that Jindal Steel & Power Limited plans to pitch for its rail sales to Indian railways after commissioning a new degasser at its plant and is seeking approval from the Lucknow based Research Design & Standards Organization for the new quality of rails.
JSPL has been trying to sell rails to Indian railways for last 4 years to 5 years but could not succeed due to the issue of hydrogen content earlier as hydrogen gas is believed to increase the likelihood of the metal cracking, which poses high accident risks. The report cited an official of RDSO as saying that hydrogen is as like having a fissure in a bone. He said “If hydrogen is present, if forms a bubble and tends to crack when force is applied to the metal.”
But with the commissioning of new degasser, JSPL can control the hydrogen content in steel making a probably meet the standards set by RDSO for supply of rails to Indian Railways.
Mr Vikrant Gujral vice chairman & CEO of JSPL said that the new rails will start rolling out from its Chattisgarh plant in the first week of December 2008.
In 2003, JSPL, with sales of more than INR 3,000 crore, set up a steel mill in Raigarh to produce heavy beams and rails. It installed a tank degasser, which allows for hydrogen checks while steel is still in a liquid stage and meets European railway standards known as UIC 60.
JSPL’s rail mill is capable of producing 120 meter rails, which are the longest size and need less welding fixes and demand for them is expected to rise with the construction of high freight corridors and other infrastructure projects.
At present, Indian Railway buys all of its rail steel from SAIL, whose Bhilai Steel Plant produces 880,000 tonnes of finished rails a year and supplies 700,000 to 800,000 tonnes to Indian Railways every year.
India a golden child for SA coal exports
Mr Donovan Raj shipping coordinator of Richards Bay Coal Terminal in South Africa recently said that its coal sales to India this year may be rise by another 2 million tonnes from 7.3 million tonnes it exported to India during January to October 2007 period, up by 72% YoY. He said that "India is the golden child at the moment."
Mr Kuseni Dlamini CEO of RBCT aid that it’s shipping potential will expand to 91 million tonnes per year by the first half of 2009 from 72 million tons now. He added that "That is a market the world is looking at."
Orissa Sponge to set up 1 MTPA integrated steel plant
BL reported that Orissa Sponge Iron & Steel is planning to set up a 1 million tonnes per annum integrated steel plant and is believed to have received environmental clearance for its iron ore mines.
As per reports, Sponge Iron & Steel’s estimated reserves of iron ore is 130 million tonnes worth over INR 750 billion and that it has also obtained coal mining lease in Orissa worth over INR 100 billion.
Orissa government sources confirmed that Orissa Sponge obtained the crucial minister of environment & forest okay in September 2007 and the estimated ore reserves was in the range between 100 million tonnes and 150 million tonnes.
Steel plant in Orissa closed for pollution
SNS reported that the district administration of Kurunti in Orissa has closed a steel plant for polluting the environment, bad performance and noncompliance with the conditions. It has also and stopped all the activities of trial production for an indefinite period.
As per report, the district administration has taken this decision on the recommendation of the Angul division of the State Pollution Control Board. Mr Anupam Behera regional officer of State Pollution Control Board Angul division said that it was closed for bad performance and spreading of suspended particles which are very harmful for the environment. He added that the plant did not comply with the orders despite repeated reminders.
According to district administration sources, the plant was served a show cause notice for not taking steps like emergency care, improvement of the condition of road inside the campus, better house-keeping, improved drainage system and others. But the industry neither took steps for improving the conditions, nor submitted due reports demanded by the Pollution Control Board.
Sources said that the industry released suspended particles which are harmful for human health and the environment. Apart from this, the plant has not taken steps for plantation, despite repeated orders by the district administration.
Critical coal stock levels at 29 power plants to push up imports
It is reported that the Indian government is banking on a contingency plan aimed at improving the situation at critical power stations by redistributing coal supplies from domestic sources as the dwindling coal stock position at key thermal power stations is worsening.
As on November 22nd 2007, the coal stock position at 29 thermal stations across India, with a total installed capacity of 29,137 MW, had been declared as critical, where coal stocks in these plants was expected to last less than 7 days. Of these, the coal stock position at 18 stations has been termed as super critical, with stocks expected to last less than 4 days.
Thermal stations are normally expected to hold coal stocks of between 15 and 30 days, depending on the location of the project. While pithead stations should hold stocks of 15 days or more, stations located away from the mine are expected to hold coal stocks for 21 to 30 days.
According to government officials, the shortages are on account of a lower coal production by Coal India Limited between April and September 2007, mainly with excessive monsoon rains throwing production schedule out of gear.
Meanwhile, the power ministry and the infrastructure constraints review committee in the cabinet secretariat have asked generation major NTPC Limited to import coal through the western coast to ease the port congestion at Haldia and Paradip ports and to overcome constraints in transportation by Indian Railways from these ports on the eastern coast. Also, all state electricity boards and generation utilities have been asked to expedite coal imports.
Sterlite may buy additional 26% stake in Hindustan Zinc
It is reported that Vedanta Group’s subsidiary Sterlite Industries India may raise its stake in Hindustan Zinc by another 29% from the current 65% stake in order to strengthen its control.
Mr Dhanpal Jhaveri spokesman of Vedanta said that “It has indicated our intention to buy the stake but have yet to decide a date.’’ He added that Sterlite is awaiting details from mediators on purchasing a stake in Bharat Aluminum. Sterlite, 68% owned by Vedanta, bought 51% of Bharat Aluminum in 2001.
Mr Sanjay Makhija VP at Mumbai based Fortune Financial Services said that “Sterlite may not have to pay a huge premium as zinc prices have fallen sharply in the recent months."
Mr Rath resigns from SAIL board
Steel Authority of India Limited has announced that consequent upon his posting as secretary to the department of school education & literacy in the ministry of human resource, Mr Arun Kumar Rath former special secretary and financial adviser to the ministry of steel has resigned from the board of SAIL.
REL to meet its coal demand through acquisitions in Indonesia
It is reported that Reliance Energy Limited has finalized its coal supply strategy for its upcoming power plants and mapped out a comprehensive plan which includes acquisition of some mid sized coal companies.
As per report, REL has short listed 8 companies in Indonesia for this plan. The acquisition targets include EnerCorp and Beraucoal which are on the block. While it is looking at an assured supply off take with PT Adaro, the other short listed companies include PT Tekno Orbit Persada, PT TransPacific, PT Barasentosa, PT Batudara and PT Indoprivate coal. The deals are likely to be firmed up within the next few months.
The report cited a source close to the development as saying that “The idea is to acquire a company which has Greenfield discovered coal blocks that could come into production in another four years. This would be in line with its plans to develop the power plants that are expected to go into production by 2010-11. Also, buying into some of the existing coal producing companies would ensure coal supplies which can be traded till the time Reliance is ready to begin consumption.”
Reliance Energy is currently working on 2 power projects in Krishnapatnam ultra mega power project and the thermal power project at Shahpur for which imported coal would be used.
Jaiprakash Associates denies eying Bina Power
With reference to the news item appearing in a leading financial daily titled "Jaypee group eyes Bina Power", Jaiprakash Associates Limited has clarified to BSE that "In an expanding organization like ours, exploring new business opportunities is a continuous process. As a sequel to this effort, we keep examining various proposals including the one referred.”
The release added that the stock exchanges will be informed if and as soon as the proposal gets crystallized.
CIL’s BCCL to restore supplies to 13 units in Jharkhand
Ranchi Express reported that, a couple of months after Coal India Limited’s subsidiary Bharat Coking Coal Limited had declared about 18 hard coke units in Dhanbad of Jharkhand as non existent thus discontinuing supplies of coal to them, ha snow said that 13 of them are fine by it and that coal supplies to them would be resumed forthwith.
An earlier verification drive, after terming 18 hard coke units as non existent had recommended suspension of coal supplies to them. BCCL’s latest survey however, retracts upon the earlier non existent charge and has suggested that they be supplied with coking coal under the linkage quota system.
Meanwhile, a fresh verification drive of hard coke plants is going on. During the survey it was found that 13 of the 18 hard coke units, contrary to an earlier finding were actually existent.
Orissa government formulates anti ore smuggling rule
Mr Padmanav Behera steel and mines minister of Orissa admitted that the state government is aware of iron ore smuggling via Joda in Keonjhar and has formed a task force.
The task force is headed by the district collector and officers from the mines department and raids are being conducted regularly.
Mr Behera said that the state government has formulated the Orissa minerals, prevention of theft, smuggling and illegal mining and regulation of possession, storage, trading and transportation rules 2007.
SC dismisses Mitsubishi's plea on ST on DMRC coaches
India’s Supreme Court has dismissed a petition filed by Japanese firm Mitsubishi Corp seeking to restrain the Karnataka government from taking any coercive action for non payment of sales tax on high tech train cars it supplied to Delhi Metro Rail Corporation.
A bench headed by Chief Justice Mr SH Kapadia has declined to quash the high court's interim order that refused to stay the Karnataka government's demand notice asking the consortium headed by Mitsubishi to pay 50% of sales tax to the tune of INR 25 crore for assessment year 2005-06. Earlier, Supreme Court in another petition had restrained Karnataka from taking any coercive steps against the consortium for non payment of sales tax of INR 24 crore for assessment years 2003-05.
The consortium comprising of Mitsubishi Corporation, Rotem Company and Mitsubishi Electric Corporation had challenged the Karnataka High Court order holding that the train sets supplied by the consortium to DMRC was an inter state sale and liable to be taxed under the Karnataka Sales Tax Act of 1957. The High Court had held that the consortium was liable to pay sales tax to the state even though the company was importing components and was only assembling the train cars in Bangalore in collaboration with Bharat Earth Movers Limited.
While stating that the Karnataka government was not entitled to collect sales tax, Mr Vanita Bhargava and Mr Atul Shankar Mathur counsel of Mitsubishi stated that the movement of goods from Bangalore to Delhi was incidental and not an incident of sale that had taken place at Delhi between the consortium and DMRC.
Foundation stone laid for biomass power plant in Assam
It is reported that Mr Tarun Gogoi chief minister of Assam has laid the foundation stone of the first biomass power plant at Bangtahi village in Morigaon district of Assam, the first such plant in the north east.
The 10 MW plant will be set up by a West Bengal based private company at an estimated cost of INR 55 crore and will be operational in 18 to 20 months. Once complete, it will sell the power generated to the Assam government at INR 3.50 per unit, while the cost to be incurred by the plant will be INR 2 per unit.
The company is also setting up a similar 10 MW plant in Bankura district of West Bengal, which is expected to generate power by January 2008.
TATA Steel adventure foundation enters Limca Book
It is reported that Indian Women’s Thar Desert Expedition led by Ms Bachendri Pal, was successfully completed by the 12 member all women team in a month’s time. This is first Indian women’s desert safari sponsored by TATA Steel and has found a mention in the 2008 edition of Limca Book of World Records in the adventure section.
The enterprising team started from Bhuj on January 18th 2007 and reached Wagah Border on February 18th 2007, covering as distance of over 2,000 kilometers in just 1 month’s time. This extraordinary zeal and adventurous spirit exhibited by the women has won them the much deserved laurel.
Ms Bachendri Pal chief of adventure program at TATA Steel said that “This was one of the most arduous expeditions journey into the unknown for us. It began with learning to ride camels. The BSF people were amazed at our 60 kilometer a day journey on camels. A mention in the Limca Book of World Record is something to be proud of and it will surely promote the spirit of adventure among women. This achievement that comes in the Centenary year of TATA Steel will encourage more people to come forward and encourage them to take up such daring tasks. We are thankful to TATA Steel for allowing us to take on the challenge and for providing us with all the required support all along.”
This expedition was organized by TATA Steel with the objective to add to the spirit of adventure and enterprise at the beginning of 2007 and also ushering in the 100 years celebration of TATA Steel. Ms Pal added that “What better way than to celebrate 100 years of TATA Steel. This feather in the cap by the adventure team at TATA Steel has definitely made the Centenary celebrations of the company a memorable one.”
Delhi to Noida metro rail to be completed by June 2009
ProjectsToday quoted Mr Jitendra Tyagi chief project manager of DMRC as saying that around 40% work on the Delhi to Noida Metro rail project is complete and full completion is expected by June 2009.
He added that Gammon India has been appointed as civil contractor for the project that will cover a distance of 7 kilometer in Noida sector 15, 16, 18, Botanical Garden, Golf Course and sector 32 City Centre.
The Noida sector 62 Greater Noida corridors will connect the Delhi Noida Metro line at sector 32 and provide a large number of people in both Noida and Greater Noida access to the fast expanding Delhi Metro rail network.
HPCL to invest USD 2.5 billion for Vizag unit expansion
Mr Dinsha Patel union minister of state for petroleum & natural gas said that Hindustan Petroleum Corporation is planning to invest USD 2.5 billion in expanding its Visakhapatnam refinery capacity to 16 million tonnes by the end of 12th Plan.
Mr Patel said that public sector fuel retailers like Indian Oil, Bharat Petroleum and Hindustan Petroleum lost INR 26,363 crore during April to September 2007 period on sale of petrol, diesel, domestic LPG and public distribution system kerosene at prices below cost
He added that the companies lost INR 2,638 crore on petrol, INR 9,919 crore on diesel, INR 8,206 crore on public distribution system kerosene and INR 5,608 crore on domestic LPG.
CCEA clears Krishna water supply project phase II
It is reported that Cabinet Committee on Economic Affairs has approved the INR 817.62 crore Krishna Drinking Water Supply project phase II under the Jawaharlal Nehru National Urban Renewal Mission. The project is expected to be completed by November 2007.
Mr P Chidambaram union finance minister said that "The expenditure incurred up to March 2006 on the project is INR 211.12 crore. Therefore, the cost for reimbursement under JNNURM will be INR 606.50 crore." He added that CCEA approved release of an additional central assistance to the extent of INR 212.27 crore as the centre's share.
Mr Chidambaram said that the project would augment an additional 90 million gallons a day of treated water to Hyderabad and its surrounding municipalities to bridge the gap between demand and supply. He added that "It would facilitate increase in present 80 liters per capita daily to 150 liters per capita daily as per the norms in surrounding municipalities."
He further added that the project would also help in taking care of water requirements of projects like Hyderabad International Airport, FAB City, hardware sector, textiles and IT sectors along with other industrial sector.
Adhunik shareholders approve debentures to Clearwater Capital
Adhunik Metaliks announced that its shareholders in AGM held on November 27th 2007 has approved the resolution pertaining to the issue of unsecured fully convertible debentures of the face value of INR 122.64 each for cash at par aggregating to a maximum of INR 1,010 million to Clearwater Capital Partners.
In addition, shareholders approved the issue of warrants convertible into shares to the promoter group. As per the scheme, a maximum of 11,110,249 warrants convertible into equity shares of INR 10 each are proposed to be issued. Warrant holders shall have the option of subscribing to one share of INR 10 each per warrant at a price of INR 118 a share of face value of INR 10 each at any time within 18 months from the date of allotment of warrants.
Shareholders also approved the resolution for increase in the authorized share capital from INR 1 billion to INR 1.25 billion to allow issue of further securities from time to time to institutional investors for raising capital for the company’s future expansion and business growth and acquisition plans.
The shareholding pattern, post allotment to Clearwater & warrant to promoters will undergo a change with promoter holding coming down from 64% to 62.92%and the holding of institutional investors will go up from 16.24% to 20.78%.
BHPB bid for Rio –BHPB confident of its logic
BHP Billiton said that most investors and many customers see the logic in its offer for Rio Tinto Group and that it is unlikely to be matched by any rival.
Mr Marius Kloppers CEO of BHPB in a speech to shareholders in Adelaide said that “The bottom line here is simple. These two companies are worth more together than apart. It is not a question of us needing them or them needing us. The proposed combination would cut costs and deliver more raw materials faster to customers to feed surging demand from China and India.”
Mr Kloppers added that “We have got a proposition on the table which is compelling. We do not think that anybody else has got the ability to replicate that. “We remain hopeful and confident that Rio Tinto will engage with us on this important proposal.''
He said that BHPB has met with about half of both companies' shareholders and most see the logic to the deal. He said Different people have different views. We have engaged in open dialogue with our customers. Many already see the logic of our proposal and the benefits of more product to the market more quickly. We have got a track record over many years and many products that say what we seek is transparency in prices, for the market to set the price and we are happy to take the price. For the customer the security of supply is the best we can do.”
On the other hand Rio said that the offer undervalues it and is increasing dividends and selling assets to repel the bid.
Hot band prices movement in last fortnight
SteelBenchmarker reported that the US hot rolled band spot price for November 26th 2007 surged by 1.5% to USD 595 per ton on FOB basis after 2 consecutive rises, world export HRB price dropped by 0.3% to USD 581 per tonne FOB the port of export for the second consecutive time, Chinese HRB ex works price up by 2.7% to USD 494 per tonne for the second consecutive time and the Western European HRB price up by 0.1% to USD 678 per tonne ex works for the second consecutive time.
USA
USD 595 per ton FOB
Up by USD 9 per ton from USD 586 two weeks ago
Down by USD 35 per ton from the recent high of USD 630 on April 9th 2007
Up by USD 35 per ton from the recent low of USD 560 on August 13th 2007
China
USD 499 per tonne ex works
Up by USD 13 per tonne from USD 486 two weeks ago
Up by USD 12 from USD 487 on September 10th 2007
Up by USD 42 per tonne from the previous high of USD 457 on May 14th 2007
Up by USD 97 per tonne from the recent low of USD 402 on July 9th 2007
Western Europe
USD 678 per tonne ex works
Up by USD 1 per tonne from USD 677 two weeks ago
Down by USD 18 per tonne from the recent high of USD 696 on June 11th 2007
Up by USD 15 per tonne from the recent low of USD 663 on July 23rd 2007
World Export Price
USD 581 per tonne FOB the port of export
Down by USD 2 per tonne from USD 583 two weeks ago
Down by USD 15 per tonne from the recent high of USD 596 on March 26th 2007
Up by USD 31 per tonne from the recent low of USD 550 on July 23rd 2007
SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar, and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.
Mr Mittal urges to link carbon emissions to import duties in EU
Reuters reported that Mr LN Mittal president & CEO of ArcelorMittal said import duties should be used to penalize China for its greenhouse gas emissions.
Mr Mittal said that Chinese steel mills emit on average twice as much carbon dioxide as plants in the EU, risking the relocation of mills out of Europe and the loss of jobs.
He said "The future emissions trading scheme must be linked to the EU's trade policy and mitigate any negative impact from imports from non carbon constrained countries.”
Mr Mittal also proposed a mechanism to include the steel sector on a global level in an emissions trading scheme.
The EU limits the amount of greenhouse gases emitted by industry or requires them to buy CO2 credits through a market.
Cosipar seeks alternatives after CVRD supply halt
BNamericas reported that Brazilian pig iron maker Cosipar is seeking new alternatives to secure iron ore after CVRD halted certain shipments.
A Cosipar spokesperson told BNamericas that CVRD cut off supply of the raw steelmaking material to Cosipar and other pig iron producers Simasa, Fergumar and Usimar on October 25th2 007 but Fergumar secured an injunction a few days later forcing the miner to resume shipments. At the time, CVRD said it would follow the judicial order but planned to appeal the decision.
The Cosipar official said that "We are still negotiating with CVRD to resume our iron ore contract, which should not have been cancelled unilaterally. Despite the supply halt, there hasn't been a stoppage at our pig iron operations in Marabá.”
The Cosipar spokesperson without disclosing company names said that "Besides having stocks, we are seeking sources for iron ore supply while we negotiate with CVRD, in order to not halt our operations.”
CVRD requested in August information and documentation from some pig iron companies to certify that operations were observing environmental and labor legislation. As a result of its analysis of the documents, CVRD halted supply to the four pig iron makers in Maranhão and Pará states.
POSCO may raise HR price in Q1 2008
Market analyst commented that it is very possible for POSCO to increase its HR price for Q1 of 2008.
According to market analyst in the Q4 of 2007, the domestic price of HRC in South Korea differed a lot between different mills. For example, the price of hot rolled coils for cold rolling of POSCO was at USD 568 per tonne and the price of Hyundai steel was at USD 634 per tonne.
In China, the price of Baosteel was at FOB USD 565 per tonne while that of Wu Gang was at FOB USD 590 per tonne and the price of JFE Steel in Japan was at FOB USD 535 per tonne.
The analyst further added that taking the cost of freight and insurance into consideration, both the CFR price of China and Japan are higher than that of POSCO. Therefore, POSCO may increase its HR price by KRW 50,000 per tonne in the Q1 of 2008. Meanwhile, the CR price in South Korea is expected to up by USD 30 to USD 50 per tonne as well.
Iron ore freighter sinks off Taiwanese coast
It is reported that 26 Indonesian sailors are feared dead after their Panamanian registered 27,000 tonne iron ore freighter MV Mezzanine hit rough seas off Taiwan's north coast.
The accident happened as the ship, loaded with iron ore from Indonesia, was heading to the Chinese mainland.
Television images showed coast guards plucking one surviving sailor from the sea, but Mr Ho Wen chih an official with the transport ministry of Taiwan aid that he feared the others were dead. He told Agence France Presse that "I'm afraid the other people are dead. After all the chance of surviving such a bad weather for a whole day is really low.”
The surviving sailor told rescuers the ship was submerged barely five minutes after tonnes of water gushed into the ship. The survivor said he was on the ship's deck when the accident happened, allowing him time to throw himself to the sea.
Indonesian authorities have dispatched two helicopters and six ships after they received distress signals on Tuesday from MV Mezzanine. The coast guards said the search for the missing sailors would not end before the 72-hour period in which they estimate people could survive is up.
POSCO orders for a 400mm thick slab caster
Siemens Metals Technologies announced that it received an order from the Korean steel producer POSCO for the installation of a slab caster capable of casting 400 mm thick slabs at its steel works site in Pohang. Siemen said that the machine will be the largest slab caster ever supplied worldwide. The first slab is scheduled to be cast on the new caster in February 2010.
POSCO in response to the growing demand for ultra thick plates in Asia required for the construction of pipelines as well as in the shipbuilding industry, it decided to install a 2 strand ultra thick slab caster in Pohang which will have a nominal casting capacity of 1.3 million tonne per year.
The overall engineering concept was jointly developed by POSCO and Siemens. Siemens will provide engineering, key equipment, technological packages and advisory services. The project will be implemented in consortium with POSCO Engineering & Construction Co Ltd and POSCON, an affiliated company of the automation division of POSCO.
Mr Helmut Resch of Siemens said that “The enormous forces necessary to bend, support and straighten the ultra thick slab sizes requires a highly robust and rigid design of the entire strand guide system. At the same time, the high internal and surface quality standards of the cast slabs are to be met. It is only through the use of advanced modeling techniques such as finite element analyses that this machine can be designed.”
He added that “It is also unique is the extension of the uppermost section of the strand guide system to promote the ascension and subsequent removal of any inclusions present in the liquid steel. This is important to meet the quality standards required by the demanding downstream applications.”
BHPB bid for Rio - Seven banks funding BHPB
As per media reports, 7 banks are financing BHP Billiton's bid for rival Rio Tinto with a loan of up to USD 70 billion rather than 5 banks as per earlier reports. The report cited a banking source as saying that "We have already raised it. The deal is done.”
The financing is being led by coordinator Goldman Sachs and mandated lead arrangers include Barclays, BNP Paribas, Citigroup, HSBC, Santander and UBS. It is not clear whether these banks will hold the loan on their balance sheets over the year end due to banks' increasing capital constraints and risk aversion in a volatile environment.
The deal is likely to be the European syndicated loan market's largest ever loan to date, which was previously held by German utility E.ON, which raised USD 63.51 billion earlier this year to finance its bid for Spanish utility Endesa, which was thwarted by Italy's Enel.
New executive committee of Corus
TATA Steel has announced a new organization, which includes a new Executive Committee for Corus, effective from January 1st 2008.
The Executive Committee of Corus, chaired by the CEO of Corus Mr Philippe Varin will comprise of
1. Mr Rauke Henstra COO
2. Mrs Marjan Oudeman strip products division director
3. Mr Phil Dryden long products division director
4. Mr Scott MacDonald distribution and building systems division director
5. Mr Tor Farquhar director human resources
6. Mr Frank Royle director finance
The Director Legal, compliance and secretariat who will be appointed shortly. Ms Helen Matheson is currently acting as director legal compliance and secretariat.
In order to ensure strong Group alignment, the TATA Group CFO, the Group Director, Strategy and the Group Director, Technology and Integration will participate in the Executive Committee:
1. Dr Tridibesh Mukherjee group director, technology & integration
2. Mr Koushik Chatterjee group CFO
3. Mr Jean Sébastien Jacques group director, strategy
Colombian steel import down by 14% YoY in September 2007
YIEH reported that Colombia imported steel products of about 170,000 tonnes in September 2007, reducing its steel import for two months in a row. Also, it is a big drop from 193,000 tonnes if compared with the September 2006.
According to the data released by Colombian government, total steel import in September 2007 was about USD 123 million based on CFR item up by 14% YoY.
Colombian steel import during January to September 2007 was 1.51 million tonnes down by 13.2% YoY as compared with January to September 2006.
Indonesian tin quota proposal submitted to president
Bloomberg reported that Mr Eko Maulana Ali governor of Indonesia’s Bangka Belitung province told a media briefing in Jakarta that a proposal to introduce tin export quotas from next year has been submitted to Indonesia’s president by the energy and mineral resources ministry.
Mr Eko Maulana Ali said that the ministry has submitted the export quota proposal to the president; the quota is for 90,000 tonnes a year. He added that the quota proposal was submitted after talks between the province, tin mining companies and Indonesia's trade ministry and may be implemented next year.
Mr Eko said that the proposal is pending Mr Susilo Bambang Yudhoyono president of Indonesia for approval.
Canadian FNX urged to put itself up for sale
Metals Insider reported that Canadian nickel junior FNX has been urged by a major shareholder to put itself up for sale.
The suggestion comes from York Capital, which holds a 19.37% stake in FNX. FNX York Capital wrote on November 19th 2007 that “It is frustrated with the public market’s unwillingness to recognize the intrinsic value in FNX shares.”
FNX owns and operates the restarted McCreedy West Levack mines in Canada’s Ontario. Production in 2006 was 3,680 tonnes contained nickel and it is forecast to rise to 5,760 tonnes this year.
Mr Ola appointed president and CEO for LKAB
It is reported that Mr Ola Johnsson VP of LKAB’s mining division has been appointed president & CEO of the LKAB Group effective March 1st 2008. He will succeed Mr Martin Ivert who will retire after six years as president of the company.
Mr Johnsson said that “I am very proud and pleased. It is a great honor and challenge to be president of LKAB, a great company that means a lot to the people who work in it, our customers and the communities in which we operate.”
He added that “Our common task will now be to give it everything we have got and maintain the positive trend of recent years, to develop and quality assures all facets of the operation, not least our common environment and our products.”
LKAB is an international high tech minerals group, one of the world’s leading producers of upgraded iron ore products for the steel industry and a growing supplier of industrial minerals products to other sectors. LKAB has subsidiaries and facilities for industrial minerals in Sweden, Finland, Greenland, the UK, Germany, the Netherlands, Greece, Turkey, Thailand, Hong Kong, China and the USA. LKAB’s chief assets are the magnetite ore of the Orefields of northern Sweden. Most of the iron ore products are sold to European steel mills.
CSC to launch SN490C anti seismic heavy plate
YIEH reported that China Steel Corp has successfully developed the new SN490C anti seismic heavy plate for construction usage in this July. Its available supply ranges from 40 mm to 75 mm. CSC will start to take order in the fourth quarter of 2007 to meet market demand.
CSC said that the SN490C heavy plate is anti seismic for construction usage. Its tensile strength of 490 to 610 N/mm2 and yield strength of 325 N/mm2to 445N/mm2 not only can meet the standard requirement, but also its yielding rate must be more than 80% to ensure that the product can absorb more physical strength.
The SN490C plate also has several advantages for welding, tenacity and high tactility, which can ensure that the building will not be collapsed by earthquake.
CSC expects the Taiwan domestic demand for the SN490C heavy plate will be upon 10,000 tonne per year and it will bring about TWD 40 million extra values for the company per year.
Broner releases improved solutions for planning and scheduling
Broner Metals Solutions announced that it has released new versions of its Planning and Scheduling solutions that enable metal producers to achieve significant improvements in customer service.
The release said that “The new enhancements span all Broner planning and scheduling modules, and include improvements to usability, response time, internal integration and optimization technology. Together, these improvements are already helping Broner customers to increase on time delivery and productivity while minimizing inventories, costs and lead times.”
Mr David Mushin CEO of Broner Metals Solutions said that “I am confident that these enhancements will help further strengthen Broner’s position as the leading specialist in software solutions for the metals industry and will make a significant impact in improving customer service and planning operations for all types of metal producers.”
Broner Metals Solutions is a leading provider of supply chain planning, scheduling and manufacturing execution systems, specifically for the Metals Industry.
Argentina to increase duties on raw material export
YIEH reported that after rising custom duties on oil and agriculture export products, Argentina government has initiated a plan for raising custom duties on raw material products.
Argentina’s exportation has reached USD 250 million this year from USD 150 million in 2005. The great volume of raw material export has caused domestic metal supplies tight, and even making the cost of producing coinage higher.
Currently, Argentina exporter had to pay 10% custom duties on all the raw material.
Pike River Coal announces new coal transport route
Pike River Coal Limited has announced that it will transport its premium hard coking coal by rail to Lyttelton at Christchurch for export under a new agreement signed with Solid Energy NZ Limited.
The 18 year agreement to use rail, supersedes previous transport arrangements with West Coast Coal Company Limited which were based on coastal shipping of Pike River coal from the port at Greymouth to Port Taranaki for export. Pike River has agreed with Solid Energy that it will have capacity reserved of up to 1.3 million tonnes per year on the rail network and has priority access to rail and port facilities to transport that tonnage.
Mr Gordon Ward CEO of Pike River said that “The main factors leading to the change in transport mode were a significant recent increase in rail capacity that has allowed Solid Energy and Toll Rail to transport all of Pike River’s coal by rail and the fact that the financing conditions in the transport agreement were not met.”
Mr Ward said “One benefit of this decision will be the shorter distance Pike River coal travels by road and the consequent reduction in emissions and on traffic through the Greymouth Township. Delivery by Solid Energy and Toll Rail of a proven annual capacity of more than 4 million tonnes has given us the confidence to move forward with Solid Energy’s transport supply proposal.”
The total cost to transport Pike River coal from the coal preparation plant to the point loaded on Panamax vessels at Port Lyttelton under the new agreement with Solid Energy is approximately NZD 39 per tonne. Mr Ward said “This cost is at a level at least 10% less than WCCC were able to offer and slightly below the level forecast in the IPO prospectus.”
Following ONTRACK’s upgrade of the rail route and implementation of improved traction control on trains, Solid Energy and Toll Rail are able to introduce 45 wagon trains boosting the capacity and efficiency of the Midland line. Since the Government took back ownership of the rail network in July 2004, investing USD 25 million in the Midland line through ONTRACK, Solid Energy has committed more than USD 100 million to the line through its long term contract with Toll Rail and then spent a further USD 15 million on the new Cobden rail bridge over the Grey River.
Griffin to suspend zinc sales due to price weakness
Metals Insider reported that UK listed junior Griffin Mining has decided to suspend sales of zinc concentrates from its Caijiaying mine in China until the new year due to what it said it believes is a temporary retracement in the zinc price.
Griffin said. that “The company believes that the relatively low zinc concentrate prices currently being offered are a function of the significantly greater exports of physical zinc from China as exporters seek to gain financial benefits which will be abolished at year end.”
Griffin added that “It will therefore maximize value by stockpiling zinc concentrate at the mine site rather than continue sales at current prices.”
Caijiaying produced 10,983 tonnes of zinc in concentrates during the H1 of 2007.
Breitenfeld postpones Vienna IPO due to market conditions
Thomson Financial reported that stainless steel maker Breitenfeld AG will postpone its planned initial public offering on the Vienna Stock Exchange because of the 'current negative conditions on the equity markets'
Breitenfeld in a statement said that the decision on when to resume the listing procedure will be made at a later date with Deutsche Bank.
Japan to reduce green house gas in steel making
It is reported that Japanese ministry of economy, trade and industry offered scheme of Cool Earth 50, which is the strategy to reduce green house effect gas by 2050.
As per report Japanese ministry of economy, trade and industry offered 20 technical projects to reduce green house gas including hydrogen reducing iron making process, zero emission coal power generation, hydrogen energy vehicle and hydrogen infrastructure to make, transport and deposit hydrogen.
TPG Axon Capital discloses 6.1% stake in CMC
It is reported that in a 13G filing TPG Axon Capital disclosed a 6.1% stake in Commercial Metals Co. It had not show a stake in the Commercial Metals at the quarter ended September 30th 2007.
TPG Axon Capital is a leading global investment firm with over USD 5.8 billion of capital invested in public and private markets around the world. TPG Axon is led by the former head of Goldman Sachs' Principal Strategies Department Mr Dinakar Singh.
Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
BlueScope Steel appoints Mr Elias as new CFO
BlueScope Steel announced the appointment of Mr Charlie Elias as chief financial officer. He fills the position vacated by Mr Paul O'Malley who was promoted to BlueScope Steel MD & CEO on November 1st 2007.
Mr Elias is presently CFO and director for Linfox Logistics, one of Asia Pacific's largest supply chain and logistics companies. He will join BlueScope Steel in February.
Welcoming the new CFO, Mr Paul O'Malley MD & CEO of BlueScope Steel said that “Mr Elias would add an important extra dimension to the Company's senior executive team. Charlie is an outstanding finance executive with a strong track record in mergers and acquisitions and business restructures for Linfox and prior to that, as CFO and Head of Strategy and Business Development for TXU Australia. He will bring an added performance management focus to BlueScope Steel as we reorganize into a more agile, customer focused company. Charlie also understands the complexities and opportunities inherent in supply chain systems.”
Gindalbie remains on the lookout for merger opportunities
Iron ore explorer Gindalbie Metals said it maintains a positive outlook and will continue its transition into an iron ore company in the year ahead, despite some challenges in the past year.
Mr George Jones chairman of Gindalbie Metals at its annual general meeting told shareholders that the past 12 months had not been without its challenges. He added that “During the year, we considered one corporate opportunity in the shape of the proposed merger with fellow iron ore company, Sundance Resources Ltd. While in this instance, both companies made the decision not to proceed Gindalbie remains on the lookout for opportunities to facilitate growth."
Mr Jones expects Gindalbie's market value to significantly increase in the future, as it progresses the construction and development of its Karara magnetite iron ore project in Western Australia's mid west region.
He added that "Next year will undoubtedly be a strong year for Gindalbie and a major turning point in our growth. Gindalbie is only just beginning to realize its growth potential, given the continuing expansion of the iron ore industry. We have seen analysts at Morgan Stanley factoring in a 30% price increase, to be followed by a further 5% increase in 2009, and Merrill Lynch predicting a 30 to 40% increase in contract prices as the global market enters its tightest ever supply phase.”
CVRD wins nine gas exploration license in ANP auction
Companhia Vale do Rio Doce announced that it won for BRR 31 million, the right to explore nine gas exploration blocks in different regions in Brazil in the public auction promoted by Agência Nacional does Petróleo, Gás Natural e Biocombustíveis, the Brazilian regulatory agency for the oil industry.
CVRD aims to use the natural gas resulting from this exploration effort to meet its energy consumption needs.
In the Santos basin, off the Brazilian Southeastern Coast, CVRD will explore three blocks
1. S-M-791
2. S-M-792
Through the consortium CVRD (30%), Petrobras (40%) and Maersk Oil (30%)
3. S-M-731
Through the consortium CVRD (40%) and Petrobras (60%)
In the Pará – Maranhão basin, the Company won the right to explore four blocks
1. PAMA-M187
2. PAMA-M188
3. PAMA-M222
4. PAMA-M223
Through the consortium CVRD (30%), Petrobras (40%) and Ecopetrol SA (30%)
In the Brazilian Northeastern region, in the Parnaíba basin, CVRD will explore two blocks,
1. PN-T66
2. PN-T86
Through the consortium CVRD (20%), Petrobras (40%) and Devon Energy Corporation (40%)
CVRD as a major energy consumer, it is seeking to diversify and optimize its energy grid through increased use of thermal coal, renewable fuels and natural gas.
Vinashin Shinec industrial complex starts in Hai Phong
VietNamNet Bridge reported that construction of the Vinashin Shinec industrial complex began in Vietnams Thuy Nguyen district in the northern port city of Hai Phong on November 24th 2007.
The Vinashin Shinec industrial was set up in September 2006 under the management of the Vietnam Shipbuilding Industry Corporation. It covers 300 hectare along the Cam River, Hai Phong port and National Highway 10.
The report added that, so far, Vinashin Shinec industrial has attracted seven foreign invested projects with a combined registered capital of VND 3 trillion (USD 187.5 million). Ten other companies also pledged to pour investment into the complex next year.
Fitch upgrades Sidetur ratings
It is reported that Fitch Ratings has affirmed its B+ foreign and local currency issuer default ratings on Venezuelan steel company Sidetur, as well as its B+/RR4 ratings on Sidetur's USD 100 million unsecured notes due 2016.
Fitch in a statement said that the ratings service also upgraded Sidetur's national scale rating to A+ from A- and the outlook is stable. It added that the actions reflect the Sidetur's improving financial profile and solid position as one of Venezuela's two leading steelmakers, with 42% of the rebar market. Sidetur also benefits from relationships with large steel distributors, wholesalers and retailers in the country.
Sidetur a subsidiary of Siderúrgica Venezolana issued the bonds mid last year and took out a USD 32 million loan, which together allowed it to refinance its debt and buy back 15% of its shares.
Sidetur makes billets, reinforcing bars, angles, beams and other products and churned out 577,000 tonnes of crude steel and 527,000 tonnes of rolled or finished products in fiscal year 2007.
CSC subsidiary buys 7.68 million parent shares
Taiwanese steel major China Steel Corp said its subsidiary Winning Investment Corp purchased 7.68 million common shares in the parent company at an average price of TWD 39.76 per share or a total of TWD 305.23 million between March 20th 2007 and November 27th 2007.
According to a company filing with the Taiwan Stock Exchange following the acquisition, Winning now owns 87.41 million shares representing a 0.76% stake in China Steel.
EU authorizes state aid for coal innovation and environmental protection in Spain
The European Commission has decided not to raise objections to a Spanish State aid measure to be granted to the region of Castilla y Leon for research, development and innovation purposes as well as for environmental protection related to the coal mining sector.
The aid amounts to approximately EUR 3 million. The objective of the aid for research, development and innovation will be to
1. Encourage the implementation of research, technological development and innovation projects
2. Improve health and safety conditions for work in mines
3. Optimize the use of mining reserves and resources
4. Promote technological innovation in order to reduce the negative environmental impact of mines.
The Commission assessed that the aid will have an incentive character, in that it should encourage the beneficiary to devote more effort to research, development and innovation projects. The aid will be granted in accordance with the requirements of EU legislation in the field, namely regarding admissible amounts of aid and eligible costs.
As regards the aid for environmental protection, the Commission assessed that it aims to reduce the environmental degradation caused by mining activities and is therefore compatible with EU legislation. It will be granted for SMEs to comply with new Community environmental standards, to improve on the Community environmental standards and for advisory services on environmental matters to SMEs.
Gulf countries to spend USD 40 billion on railway network
Gulf News reported that more than USD 40 billion worth of rail and metro projects are planned for the Persian Gulf over the next 10 years as some of the word's most ambitious real estate projects are developed and a tax free lifestyle and plentiful jobs lure ever more migrant workers to the region. Each of the 6 Gulf Cooperation Council member states is planning its own rail network and there are plans for an integrated rail system, which its supporters say will link the countries socially, politically and economically.
Mr Jean Christophe Chuniaud Middle East business development manager for Systra said that "Cities in the Middle East are expanding at an incredible rate and so need to develop their public transport systems to keep up with demand."
Dubai will be first out of the gate, building an urban metro system that's due to open in September 2009. Initially covering a distance of 75 kilometer, the USD 4.2 billion mainly elevated system is intended to help stem the flow of vehicle traffic through Dubai's booming business districts. Commuters along that route currently rely on cars, taxis and limited bus services, with the result that traffic jams are frequent and the city's rush hour extends for most of the day. In response, Dubai is investing heavily in transport infrastructure in an effort to keep pace with rapid growth.
Abu Dhabi is planning a light rail system for 2020, the details of which are largely unknown at the moment.
Ajman, the smallest of the emirates, is also said to be in the early stages of planning a similar system. Work on a USD 3 billion, 800 kilometer long trans UAE passenger and cargo rail network from Abu Dhabi to Fujairah will also start early next year, with completion expected in 2012.
Kuwait will begin construction of a USD 14 billion, 400 kilometer long rail network next year to include a rapid transit network within Kuwait City and a national rail system with two new lines to the borders of Saudi Arabia and Iraq.
Saudi Arabia plans to spend up to USD 30 billion through 2020 by extending its rail network by more than 3,000 kilometer. The Saudi Landbridge railway will run between Dammam to the Red Sea, while the North South Railway will extend from the capital Riyadh to the Jordanian border.
GCC member states are also planning a USD 2.5 billion GCC wide network for 2015 to connect with the existing and planned railways of each member state. The line would run from Kuwait to Muscat and could eventually be extended to Yemen in the south of the Gulf peninsula.
Ugitech urges MEA builders to use more of SS
Developers in the Middle East have been urged by stainless steel solution provider Ugitech to take into consideration the potentially harmful effects of the aggressive climate when selecting metal for offshore projects.
Mr Gwennaël Godot project assistant at Ugitech told Construction Week that "People usually use carbon steel in this region because it is less expensive but in extreme, aggressive environments carbon steel rusts."
Mr Godot explained that, in comparison, stainless steel offers no risk of corrosion and longer durability. He said that customers are often put off purchasing stainless steel because of the higher cost but stressed that customers need to take more of a long term approach when selecting steel. He said "Stainless steel is expensive, but the mentality has to change with customers thinking more about the long term.”
Ugitech is a subsidiary company of German firm Schmolz and Bickenbach.
Doha to host Maritime Expo in May 2008
Al Fajer and Ahoy Rotterdam have jointly announced their decision to host the third edition of Ship & Port + Europort Maritime Expo 2008 in Doha. The 3 day event is slated to be opened at the brand new Qatar International Exhibition Center on May 5th 2008.
The exhibitors and visitors at the Ship & Port + Europort Maritime would be from the shipping industry vertical, including ship building, port authorities and operators, LNG and oil professionals, ship owners, ship suppliers and distributors, shipping agents, logistics companies, freight forwarders, infrastructure developers and consultants. Over 250 delegates from all over the world will turn up to the event. The event will also be marked by an exclusive exhibition on dredging. The Qatar Port and Customs General Authority is the principal sponsor of the international expo. Qatar Navigation and Radio Holland are the co sponsors.
Mr Peter Niemantsverdriet exhibition manager of Europort Maritime termed the event as a “One stop platform for trade and technology seekers.” He said the show would offer an excellent opportunity to encourage the growth of the maritime industry in Qatar and the Middle East region, where major multi billion dollar maritime projects are underway.
He informed that "Over150 regional and international exhibitors from 25 countries will showcase their products in the exhibition. Germany, China, Holland, Finland, Korea and Romania will have their country pavilions. A wide array of high tech products and latest developments in the ship building industry will be the highlight of the event."
Mr Satish Khanna GM of Al Fajer Information and Services said that “Qatar is a key hub for shipping, port and maritime industry. It is an ideal ground to host an international maritime expo. The previous edition of the expo had witnessed tremendous success in Qatar". He added that the expo will also be coincided with the Asian conference of Central Dredging Association.
Al Fajer Information and Services is a leading organizer of industry expositions in the Middle East, Africa and India. Ahoy Rotterdam is a property of Europort Maritime, a global name in the field of maritime design and preventive maintenance.
Privatization in Iran to be completed in 2014 - Report
Tehran Times quoted Mr Gholamreza Heidari Kord Zanganeh MD of Iranian Privatization Organization as saying that privatization in the country will be completed by 2014.
Referring to enforcement of Article 44 of the constitution, Mr Gholamreza said that 80% of the state run companies will be privatized. He added that revenues earned by the selling of shares in Tehran Stock Exchange will be injected into the government’s coffers
Pakistan energy board issues LoI to 93 firms for wind power
Officials of Alternative Energy Development Board of Pakistan, during a meeting with Mr Tariq Hameed the caretaker federal minister for power & water, informed that letters of intent have been issued by the government to 93 local and foreign firms for power generation using wind energy to help meet the country’s growing power demand,.
AEDB officials told the minister that 5 investors had applied for licenses to set up such facilities at Gharo Keti Bandar in Sindh where the AEDB had identified the potential of around 50,000 MW. They added that licenses were issued to Green Tower, New Park Energy, Tenega, Win Power and Miligro. The licenses of Zephyr Power, Zolyu Energy and Beacon Energy are under process. Moreover, land has been allotted to 15 companies so that each of them could establish plants for 50 MW each.
Officials said that the major thrust of the AEDB was to assist investors in meeting the increasing power demand. Pakistan has been facing a power crisis and the galloping demand supply gap had resulted in frequent breakdowns, hurting not only domestic consumers but also the industry. Officials further said that the generation potential was based on 3 year wind data gathered at Gharo-Keti Bandar by the Meteorological Department.
Mr Hameed had held 2 separate meetings with AEDB officials and the Indus River System Authority officials to seek briefings regarding ongoing and upcoming projects. In another meeting, IRSA officials told Mr Hameed that a meeting of the advisory committee would be held on December 3rd 2007. During the meeting, all provinces are expected to present their water plan for the Rabi season.
Iran to invest USD 4 billion in water projects annually
Mehr News Agency quoted Mr Parviz Fattah energy minister of Iran as saying that Iran is planning to invest USD 4 billion annually in water treatment, distribution and supply. He added that "We do our best to borrow international loans for the sector.”
Referring to the importance of water management, he proposed the formation of the Global Water Network which informs about water affairs.
Taiwan firms keen on setting up JVs in Qatar - Report
The Peninsula reported that Taiwanese businessmen are keenly looking for Qatari partners to set up JV plants to manufacture solar energy powered electrical devices.
The report added that members of Taiwanese trade mission met their Qatari counterparts at the Qatar Chamber of Commerce and Industry and held talks to further relations between the private sectors of their two countries. The trade mission was organized by the Taiwanese External Trade Development Council to help promote foreign trade.
Mr Johnny CY Shin head of the Taiwanese trade mission said that the mission is as part of the regional tour to promote Taiwanese products and services and discuss JVs. He added that the delegation has representatives from 25 companies manufacturing high tech products, including solar energy, water cooler, air conditioning and green house devices for horticulture.
Mr Shin further added that since the Qatari market is booming, the delegation was looking to set up JV plants and supply their products through dealerships here.
Mr Mohammed bin Ahmed Towar Al Kuwari executive board member of QCCI told that trade between Qatar and Taiwan was USD 604 million in 2006 and it did not meet expectations of the two sides. He added that QCCI would not spare efforts to assist Qatari and Taiwanese businessmen to achieve common objectives.
Amana secures construction contract from Saleh Al Hobaishi
It is reported that Amana Contracting & Steel Buildings has secured a contract from Saleh Al Hobaishi to design and build a warehouse and offices at Dubai Investment Park.
The facility, totaling 3,000 square meters, will consist of an independent warehouse with mezzanine and offices in the front. The project will require 100 tonnes of steel and 180 days to complete.
Amana Contracting & Steel Buildings is a leading regional turnkey contractor with 11 operational offices in Middle East.
UNIDO eager to boost cooperation with Iran - Report
Mehr News Agency reported that United Nations Industrial Development Organization has expressed its readiness to strengthen cooperation with Iran.
Mr Mohammad Hossein Bassiri Iran’s industries & mines ministry official said that small and medium sized industries, agriculture, energy conservation, pollution control and the environment protection are the main fields of cooperation between Iran and UNIDO. Referring to the sides’ 30 years of collaboration, he added that Iran has carried out over 100 projects and held 71 expert level sessions in the 3 decades.
UNIDO is financially supported by its 172 members and some development organizations. Its primary objective is the promotion and acceleration of industrial development in developing countries and countries with economies in transition.
Dubai and Vienna CoC sign MoU on trade cooperation
Mr Abdul Rahman Saif Al Ghurair VC of Dubai Chamber of Commerce and Industry and Mr KommaRat Brigitte Jank president of Vienna Chamber of Commerce & Industry have signed a MoU to boost trade relation between the two countries.
Netherlands ready to invest in Iranian oil and gas industries
Tehran Times quoted Mr Radnik van Vollenhoven Netherlands’ Ambassador to Tehran as saying that “The Netherlands is ready to participate in Iran’s oil and gas projects.”
He put the emphasis on privatization in country which would prepare the ground for Dutch companies to invest in the sector.
Mr Mohammad Nahavandian head of Iran’s Chamber of Commerce, Industries & Mines, at the meeting with Mr Radnik, named the enforcement of the Article 44 of the constitution and privatization that helps promote his country’s economy.
He added that “Sanctions against Iran are ineffectual. Iran plays a great role in world’s energy market, having 17% and 11% of world’s gas and oil reserves respectively. It will not be to the advantage of Iran and Europe to sever their economic relations.”
Emirates Oil appoints Mr Khoory as its new CEO
Emirates National Oil Company announced that it has appointed Mr Saeed Abdullah Khoory as CEO with effect from December 1st 2007 replacing Mr Hussain Sultan, who retires as group CEO.
Mr Ahmed Humaid Al Tayer VC of ENOC, while commenting on the new appointment said that “I would like to take this opportunity to welcome Mr Saeed Khoory to the ENOC family. With a solid 28 years experience in ADNOC, he is an expert in both upstream and downstream activities in the Emirates and is well placed to be a strategic implementer for ENOC’s growth.”
Mr Khoory, on his new role, said that “With the support of ENOC management and its board of directors, we will continue to focus our activities to be an important player in the local and international energy industry. ENOC already operates many international businesses, which will be a major focus of our growth in the future, and will help to extend our excellent brand vision across the world.”
With a strong industry background, Mr Khoory has been responsible for several industry achievements and is set to spearhead the future growth of ENOC.
EUROFER lodges AD complaint for Chinese and Turkish wire rods
It is reported that European steelmakers have launched a new anti dumping complaint over surging imports of wire rods from China and Turkey.
The European Confederation of Iron and Steel Industries said that wire rod imports from China and Turkey into the European Union rose more than 400% from 2004 to 2007.
Mr Gordon Moffat director general of EUROFER said that "The root cause of these dramatic, market distorting export surges is the economically irrational growth of steel capacities outpacing the growth of domestic steel consumption." Mr Moffat added that “Growth in capacity in China and Turkey had been fuelled by subsidies and driven by pervasive state intervention.”
EU has 45 days from the date of a dumping or subsidy complaint to decide whether to open an inquiry. After the start of a probe, the commission can impose provisional anti-dumping duties for six months and the EU's national governments, acting on a commission proposal can turn those measures into definitive 5 year levies at the same or different rates. The commission has nine months from the start of an investigation to decide on provisional measures. EU governments have 15 months from the beginning of a probe to impose 5 year anti dumping measures.
This action comes just before a China European Union summit dominated by growing trade friction. European trade chief Mr Peter Mandelson, who is taking part in summit in Beijing, has warned he might take action if China does not address its barriers to EU businesses. He has previously suggested he is sympathetic to the complaints of the European steelmakers.
EUROFER had asked the European Commission last month to impose anti dumping duties on imports of stainless steel cold rolled flat products from China, South Korea and Taiwan and on hot dipped galvanized sheet and strip from China.
US DOC finds unfair subsidies in Chinese rectangular tubes
The US Department of Commerce found that imports of rectangular pipe from China benefited from unfair subsidies. DOC’s preliminarily found that Chinese producers and exporters of rectangular pipes received countervail able subsidies ranging from 0.27% to 77.85%. A final decision is currently due in April 2008.
From 2004 to 2006, imports of rectangular pipe from China increased 839.79% by volume and were valued at an estimated USD 44.11 million in 2006.
Rectangular pipe can be used for fencing, window guards and railing for the construction industry, but is not used for the conveyance of liquid or gas.
Mr David Spooner assistant secretary for import administration of US DOC said that “The administration looked at the facts and found that China has subsidized imports of certain pipe and tube sold in the United States. The Administration is committed to aggressively enforcing US trade laws to achieve a strong and fair trading relationship.”
US’s domestic manufacturers have a right to petition Commerce and the International Trade Commission to impose tariffs to counteract foreign subsidies. Commerce investigates the existence of subsides and the ITC separately determines whether domestic manufacturers are injured by the subsidized imports. In March 2007, Commerce applied the countervailing duty law to China for the first time.
Shougang to build CR JV in Beijing
Shougang announced on November 28th 2007 that Shougang Company, the controlling shareholder of Shougang Corporation and the Beijing Automobile Investment Company to jointly invest to set up Beijing Shougang cold rolled sheet Limited company.
The new company is the key project for Shougang removing and adjusting product structure, the total investment is about CNY 6.4 billion and the registered capital is CNY 2.6 billion. Beijing Shougang and parent Shougang Corp. plan to invest CNY 2.08 billion together for controlling 80% stake of the factory and Beijing Automobile Investment Co. get the remaining share.
The new 1.5 million tonnes per year CR mill located in the capital's Shunyi District and two HDG lines with a combined capacity of 800,000 tonnes per year will follow later this month. The CRC mill is capable of producing coil up to 1,900mm wide coils. About 800,000 tonnes of its output will feed the HDG lines and 400,000 tonnes will be used to make automotive outer body panels for car makers in the Beijing area.
Shougang Qian'an Steel Co Ltd would supply the HRC to feed Shougang's CRC mill according to a framework agreement signed between Beijing Shougang and Qian'an Steel.
NDRC sees Chinese steel supply outpacing demand in 2008
China’s National Development and Reform Commission said China's steel supply will continue to outpace demand next year because the country's steel firms are still expanding capacity.
NDRC said that “The domestic steel market will also face supply pressure as demand for steel exports is expected to weaken next year.” However it noted that government measures to curb steel exports will show results.
NDRC added that the China government should step up industry restructuring and energy conservation in the steel sector.
Baosteel plans to expand capacity to 80 million tonnes by 2012
It is reported that Baosteel is looking to reach 80 million tonnes per year capacity by 2012 and raise its sales revenue up above USD 50 billion and profit of over USD 5 billion. It also aims to vault into the world's top three most competitive steelmaker and top 200 of Fortune 500 by then.
As China's biggest steelmaker, Baosteel plans to realize its capacity expansion by setting up new mills in combination with merger & acquisition.
Baosteel has increased its steel output by twofold over last decade, and lifted sales income by over 600%. It has become one of the only two steel mills that have got obtained credit rating of "A-" across the world and awarded as "The World's Most Respected Company by Fortune for three straight years.
(Sourced from MySteel.net)
Chinese HR price forecast to increase further
It is reported that this week, domestic HR plate and coil market gained overall upsurge to a higher extent than that in last week. Prices in some particular market attained CNY150 per tonne rise.
According to the statistics from Steelhome on November 27th 2007, 2.75mm HR plate & coil and 5.75mm HR plate & coil prices averaged at CNY 4661 & CNY 4472 per tonne among 28 key domestic cities in China up by CNY 176 & 179 per tonne from October 26th 2007.
Chinese state enterprises unlikely to overcome local interest barriers for M&A
China Securities Journal reported that in contrast to more and more converging world steel industry, China's steel sector presents decreasing concentration rate these years including top ten producers' crude steel output taking up 34.66% in 2006 compared with 2001 figure of 46.25%.
Mr Luo Bingsheng deputy director with China Iron & Steel Association noted interest distribution conflicts between the central and local governments has become the keynote obstacle to steel M&A promotion as the industry is mainly formed by state enterprises. Other analysts believe the private capital is possibly to dominate the consolidation campaign in future.
Another official with the industrial economic research institute noted the state owned assets are hard to be moved with much local government interest involved and defects in China’s taxation system also make cross region merger and acquisition difficult.
Mr Li Su director with China Mergers & Acquisitions Association expressed that he is not optimistic toward the present combining activities of state enterprises saying that it's hard to break the locality barriers, while the private capital may play more important role in future matches.
Mr Li made a survey in Hebei and found private steel mills have absolute advantage in cost controlling etc.
(Sourced from MySteel.net)
China to increase resource tax on coal rate to 3%
It is reported that the total reform plans on resource tax rate have been reported to State Council and advice and opinions from related departments still need to be solicited, however it is very clear that coal resource tax rate will be improved from 1% to 3%.
As per report the coal resource accounts for a very important position in China’s energy structure, the increase of coal tax rate will transmit to downstream products leading to CPI further rising again.
Wuhan Steel gets approval to buy assets from parent
Wuhan Steel announced that it has gained approval from State owned Asset Supervision & Administration Commission of the State Council over purchasing assets of CNY 8.2 billion (USD 1.11 billion) from its state owned parent WISCO.
The listed mill plans to buy coke, oxygen, scrap steel, railway and other steel related assets from its parent company. The net value of the assets Wuhan Steel is buying is CNY 8.159 billion representing 37.4% of the listed company's total net assets at the end of last year.
Wuhan Steel hopes to extend the steel production chain to upper stream fields of coking, industrial gas preparation and metal recycling etc and save costs through the acquisition.
(Sourced from MySteel.net)
Chinese HDG export volume in October dips
It is reported that hot dipped Galvanized coil exports in China have been going down since August and it is quiet evident for October 2007 shipments. This trend is anticipated to spread into the end of the year due to weak overseas market price and possible anti dumping by EU.
Customs statistics show that HDG export volume for both coil and strip in October is 270,000 metric tonnes down by 172,400 metric tonnes or 38.96%MoM from August 2007.
Shanghai based trader said that "HDG exports are becoming more and more difficult since European market is heavily depressed now and there is no sign of improvement yet. In addition, the risk of anti-dumping by EU would further choke exports."
Export offers have seen small improvements in the past two weeks but transactions are quiet thin. Quotations for 1.0mm HDG is prevailing at USD 690 per tonne FOB to USD 700 per tonne FOB.
Domestic HDG prices are still lagging behind despite substantial rise in HRC prices. However it is expected to go up little by little since CRC prices have seen evident increase. On Shanghai market, 1.0mm HDG by Anshan steel is being offered at CNY 5070 per tonne to CNY 5100 per tonne, 0.5mm by private producers remain at CNY 5500 per tonne.
If price for 1.0mm HDG by Anshan could go past CNY 5200 per tonne, the next aim will be CNY 5400 per tonne. Otherwise it still would choose to fluctuate between CNY 5000 per tonne and CNY 5200 per tonne, while CNY 5000 per tonne is just the critical price level.
(Sourced from MySteel.net)
Chinese zinc prices marching south wards
According to an inspection of Chinese ministry of commerce, domestic price of non ferrous metals continued to fall down in last week.
The price of zinc ore decreased by 20% in WoW, the price of 1# zinc declined by 16.9% in WoW, while the price of 1# lead fell down by 9.3% in WoW. As a result, the general average market price of production materials in China in last week came down by 0.1% than in previous week.
It is analyzed that the rapid increase of supply is the key factor driving the zinc price down. The cumulative zinc output in first nine months this year was 2.7 million tonnes up by 19%YoY. Meanwhile, China imported 294,000 tonnes of zinc ore concentrate in September 2007 up by 280.6% YoY and expect that Chinese zinc capacity could increase by 250,000 tonnes in 2008 and the high level of stock would limit the rise of zinc price as well.
Coal mine gas outburst kills 35 in South West China
Xinhua reported that 8 people have been detained after a deadly gas leak in a mine in southwest China's Guizhou Province killed 35 people on November 8th 2007.
According to police in Nayong County the eight include Mr Liu Longling, an investor in the Qunli coal mine, Mr Li Tianxiang a relative of Mr Liu who was in charge of the mining project, and six other mine managers.
According to the local government the families of the dead have each been paid CNY 200,000.
The operation of the mine is still suspended.
CR SS line put into operation in Jiuquan
It is reported that the first cold rolled stainless steel production line in West China came on stream on November 26th 2007 in Jiuquan Iron & Steel Co Ltd. The line can yield high grade 300 series and 400 series CR stainless strip steel with annual capacity of 530,000 tonnes.
At an investment of CNY 2.4 billion, the construction started on April 17th 2004.
The expansion project is the core part of the first stage of JISCO’s stainless steel project. It includes nine production lines and units such as one cover type annealing furnace, one HR strip annealing pickling line, one CR strip annealing pickling line and so on.
The production is scheduled with annual capacity of 350,000 tonnes of HR stainless annealing pickled stainless steel and 180,000 tonnes of CR stainless annealing pickled stainless steel. The first batch of products is on sale after production start up in this July 2007.
JISCO thus becomes the third domestic steelmaker boasting whole stainless steel production system, following Baosteel Group and Taiyuan Steel.
(Sourced from MySteel.net)
Chonggang to acquire 11 small size steel plants
It is reported that Chonggang Group plans to acquire eleven small sized iron and steel companies in Tianjin with an amount of more than CNY 1 billion and transfer their capacity of iron and steel melting into Chonggang, bringing Chonggang’s capacity from 3 million tonne per year at present to more than 6 million tonnes per year and sale income from CNY 10 billion per year to CNY 30 billion per year.
Iron ore mine approved in Taigang
According to Taigang, on November 26th 2007 the examination on iron ore mill run of Taigang Yuan Jia village has been approved by the experts.
It indicates that the largest iron mine which contains about 1.2 billion iron ore resources is about to be exploited and utilized.
As per reports the designed size of Taigang YuanJia village iron ore is 22 million tonnes per year, it is the largest iron mine in china at present. YuanJia village has more types of iron ore, the crystal grain is so fine, it is quite difficult for engineering design, so it has not been exploited and utilized all long.
China remains net importer of tin in October 2007
Official Chinese customs figures released recently showed that China remained a net importer of unwrought tin last month. Exports of refined tin and alloy were only 733 tonnes 56.3% lower than in October 2006, while imports were 2,469 tonnes 59.1% higher than the same month last year.
The reversal of traditional trade flows in recent months reflects the fact that Chinese domestic market prices have been at a large premium to LME values since August 2007. This in turn has been due to a strong revival in demand for tin in combination with short supplies of tin concentrates since the middle of the year.
One big surprise in the October customs figures is that very large concentrate imports from Myanmar are reported 15,482 tonnes of concentrate was reportedly imported from China’s neighbor last month a massive increase from the 257 tonnes received in January to September 2007.
China's shipbuilding keeps strong growth
According to statistics, China's shipbuilding manufactures continues to grow fast in the first half of the year. Mainland completed 7.55 million shipping tonnes up by 43%, new ship orders held 42.62 million shipping tonnes up by 165% and order book 105.40 million shipping tonnes an increase of 107%.
According to data on world shipbuilding gross from Clarkson Research Studies, the three shipbuilding indexes in China mentioned above accorded for 19%, 42% and 28% shares separately in world market which is the first time to break 100 million tonnes in China.
Baosteel produces super 13Cr bushings
It is reported that Baosteel had succeed in producing super 13Cr bushing recently.
Rolling of super 13Cr bushing is very difficult as it is the refine product in steel pipe products and so far there is no batch production capacity in china.
At present, the pipe plant is on the quality of the new steel tube test, to expand preparation of further exploration and acquire the relevant technology.
Iron ore mine at Lvliang ready to be developed
According to a Shanxi Youth Daily report that Taigang Yuanjiacun iron mine which is located at Lvliang in Shanxi Province and contains the largest iron ore deposits in China is ready to be developed and utilized.
This mine is designed to produce 22 million tonnes of iron ore from total stripping of 85.8millin tonnes annually. The deposit was delayed for exploitation containing a variety of ore types and being difficult for designing the project.
Taigang and Changsha Research Institute of Mining And Metallurgy spent twp years together and brought about a feasible dressing test that is approved and make it ready to be mined.
(Sourced from MySteel.net)
Handan Steel hikes December prices for some products
It is reported that Hebei based Handan Steel published December 2007 prices for some products recently.
Its prices are raised by CNY 100 per tonne for HRC and CRC, CNY 50 per tonne for full hard and HDG as compared to prices released on October 28th 2007.
Latest EXW price for Q235 3.0mm HRC stands at CNY 4530 per tonne, that for 5.5mm HRC at CNY 4400 per tonne.
Prices listed above are inclusive of 17% VAT, effective as of November 27th 2007.
(Sourced from MySteel.net)
Jinan’s listing plan approval by its board of directors
Jinan Iron and Steel announced on its first provisional shareholder meeting held on November 22nd 2007 that a plan to issue additional A shares has got approval, which meant Jigang Group has moved a crucial step towards overall listing on the stock market.
Jinan Steel proposes to raise money by issuing another less than 380 million A shares to purchase certain asserts in Jinan Iron and Steel Group Corporation a big shareholder in Jinan Steel.
The targeted assets include continuous HR plant, CR plant, gas based power project, power plant, transportation department, automatic department and other relative assets with net value of CNY 6.736 billion.
HR plant was founded on March 10th 2005 and put into production in January 2006 with design capacity of 2.5 million tonnes per year. It mainly produces HR coils with ordinary carbon, premium carbon structure, low alloy and pipeline grade. The CR plant was founded on September 19th 2005 and come into operations at the end of 2006.
Severstal’s Beryozovskaya mine increases reserves
It is reported that Severstal’s mining division Severstal-Resurs managed Beryozovskaya Mine has won approval for the right to use subsoil in the Beryozovsky Deep Block of the Beryozovo Biryulinskoye Coal Field in Kemerovo Region of Russia.
The release said that “The boundaries of the licensed block directly adjoin the existing mining allotment of the Beryozovskaya Mine, so the acquired block will be added to the main mine field. It will enable the mine’s reserves to be considerably increased.”
According to Federal Subsurface Management Agency Rosnedra, the coal reserves of grade and in this block make up 111.2 million tonnes.
Mechel seeking control of Ductil Steel in Romania
Mr Ilya Zhitomirsky a spokesperson of the Russian steel giant Mechel said that it has applied to Romania's anti monopoly regulator requesting a go ahead to acquire a controlling 50% plus one share stake in the Romanian producer of wire and wire products Ductil Steel Buzao.
Meanwhile, Mechel declined to reveal any further details of the prospective deal.
Raspadskaya managed to increase net profit.
It is reported that the 9 month net profit of Raspadskaya Mine increased 52.3% to come to RUB 1.524 billion from RUB 1.001 billion.
Its revenues reached RUB 6.53 billion or 26.9% higher prior year, costs being up by 16.8% to RUB 3.679 billion, gross profit 42.8% to RUB 2.85 billion from RUB 1.996 billion, profit from sales 51% to RUB 2.32 billion from RUB 1.537 billion, pretax profit being up 49.5% to RUB 2.102 billion from RUB 1.406 billion.
In June 2007 the total reserves of the Mine were appraised by IMC Consulting to cover 782 million tonnes. The coke accounts for 100% of the production volume.
IUD may float Polish unit in Warsaw in 2008 - report
According to daily Parkiet, Donbas Industrial Union may float its Polish arm on the Warsaw stock exchange next year and could raise PLN 700 million to PLN 1 billion from the share sale.
Parkiet cited Mr Ludwik Sobolewski CEO of Warsaw stock exchange as saying that the flotation of Donbas's Polish unit in 2008 is not out of the question.
Donbas, controlled by one of Ukraine's richest man, Mr Serhiy Taruta, owns the Huta Czestochowa steel mill, Poland's largest steelmaker for the shipbuilding industry. The company is also set to take over the local Gdansk shipyard.
Serbia cancels Cuprom Romania deal for RTB Bor
It is reported that Serbia has canceled a USD 400 million contracts with Cuprom Romania saying that Cuprom failed to submit financial guarantees for buying the Balkan republic's copper giant Rudarsko Topionicarski Basen Bor. Serbian government is now expected to renew its offer to sell RTB Bor.
The announcement came after difficulties emerged recently in the nearly finalized deal by which Cuprom Romania, one of Europe's biggest makers of copper products, was to buy the mines and a smelter of RTB Bor. Last week, Cuprom Romania signaled it might withdraw from the deal, citing considerably changed circumstances and an alleged opposition from the unions.
Cuprom won the bid to buy RTB Bor in March 2007 by making the highest offer and pledging multimillion dollar investments to solve the company's environmental and production problems.
RTB Bor has vast but decrepit mining and processing complex in eastern Serbia. RTB Bor's production of copper was reduced from 170,000 tonnes a year in the 1970s to 40,000 tonnes per year after 2000.
Russia sets new terms at gas talks with Ukraine
Itar-Tass cited Mr Yuri Boiko Russia Ukrainian Minister of Fuel and Energy as saying that Russia has set new terms at the gas talks with Ukraine.
Mr Boiko said that “Our Russian partners set new terms concerning the price of gas. This is why we did not finish the talks in due time, and they will be continued.”
Gazprom and Turkmen leaders reached agreement on Tuesday on the growth of the price of Turkmen gas exported to Russia. It will amount to USD 130 in the first half of 2008 and to USD 150 in the second half.
RusAl could block Norilsk's power spin off – Citigroup
It is reported that United Company Rusal which agreed to acquire a 25% stake in Norilsk Nickel, may block the spinoff of electricity assets planned by Russia's biggest miner. Norilsk shareholders are scheduled to vote on the spin off on December 14th 2007.
Mr Mikhail Seleznev and Mr Daniel Yakub analysts with Citigroup in a note to investors said that "In the near future we see a decent probability of the utility assets spinoff falling apart as we believe that RusAl may want to see the utility assets as part of the consolidated entity."
RusAl, the world's second largest aluminum maker, last week agreed with Norilsk shareholder Mr Mikhail Prokhorov to acquire his blocking stake of 25% plus one share in the miner. The transaction relies on Mr Prokhorov's partner and Norilsk shareholder Mr Vladimir Potanin rejecting an earlier USD 15.7 billion all cash offer made to him for the shares.
Inflation in Russia could hit 11.5% in 2007
RIA Novosti cited the economics ministry of Russia as saying that inflation in Russia could reach 11% to 11.5% by the end of this year. The Russia government's inflation target for this year was 8%.
In an overview of Russia socioeconomic development, the ministry said that in October 2007 consumer price growth totaled 1.6%, twice September's figure and that since the start of the year inflation has aggregated 9.3% compared to 7.5% in the same period of last year.
A recent report by the World Bank said that continued inflationary pressure and the strengthening of ruble against the US dollar and other world currencies are proving to be major fiscal problems for Russia.
The World Bank said that owing to the limited number of instruments for withdrawing excess monetary resources from the economy and the current policy of restricting the ruble's nominal appreciation, it is becoming increasingly difficult for Russian fiscal authorities to rein in inflation.
Moody raises Evraz rating to Ba2
It is reported that Moody's Investor's Service has upgraded the corporate family rating for Evraz Group to 'Ba2' from 'Ba3', citing the continuing improvement of Evraz's operating performance and financial results in 2006 and the first half of 2007.
As per report the upgrade is also supported by growing demand for steel products in Russia and international markets, and the strengthened liquidity profile as a result of successful re-financing of short term indebtedness.
Moody's also upgraded the ratings for the senior unsecured global bonds at Evraz Group totaling USD 750 million due in 2015 to 'Ba3' from 'B2' and the senior guaranteed Eurobonds totaling USD 300 million due in 2009 to 'Ba2' from 'Ba3'.
Ukraine may charge more for Russian gas transit
Reuter reported that Ukraine told Russia recently that it may charge more for Russian gas transit to Europe if Russia sharply increases gas prices for Kiev, raising the prospect of another gas dispute between the two states.
Russia’s gas export monopoly Gazprom recently said that it had agreed to pay 30% to 50% more for Turkmen gas imports next year. which is likely to produce tough negotiations on pricing between Russia and Ukraine, a major consumer of Turkmen gas.
Mr Anatoly Kinakh Economy Minister of Ukaine said that “It is important for us to use our arguments as one of the top gas transit states during talks. The changes in gas prices should no doubt be linked to our arguments about the levels of transit fees via Ukraine.”
Gazprom and Ukraine are holding difficult talks on next year’s gas prices which Gazprom has said could only be determined after it reaches a supply deal with Turkmenistan.
The gas market and analysts follow closely pricing talks between Moscow and Kiev because previous disputes led to disruptions in Russian gas supplies to Europe as Ukraine accounts for 80% of Russian gas transit.
EBRD extends credit to Volkswagen to build plant in Kaluga
Itar-Tass reported that the European Bank of Reconstruction and Development has extended a RUB 26 billion syndicated credit to Germany’s car making concern Volkswagen to build an automobile plant in Kaluga, western Russia.
The report said this credit is the largest one in the EBRD’s history
