SAIL to set up new melt shop at SSP

Dr Akhilesh Das union minister of state for steel said that as part of backward integration, Steel Authority of India Limited is installing new steel melting facilities of 180,000 tonnes per annum at Salem Steel Plant to make it an integrated plant, which is currently only a rolling facility.

Dr Das added that initially scrap will be used as input material for steel making however in future direct reducing iron is also being considered as a substitute for it. For this, SAIL has already applied for lease of Kanjamalai iron ore reserve to the government of Tamil Nadu.

The expansion plan envisages a production of 0.34 million tonnes per annum of saleable steel from the current level of 0.18 million tonnes per annum.

17 steel products to carry ISI mark in India

According to a notification issued by union government, Indian steel producers will hitherto have to get their products ISI certified before selling them, failing which they would draw penalty under the Bureau of Indian Standards Act, 1986.

Mr RS Pandey secretary in union steel ministry said that "On the proposal of the steel ministry, the ministry of consumer affairs has issued an order steel and steel products quality control order 2007 under which 17 variety of steel products must have ISI certification to conform to specified standards, failing which the steel producers would be punished under the Bureau of Indian Standards Act 1986."

A gazette notification to this effect has been issued by the Department of Consumer Affairs. The order covers semis for re rolling, Long products used in infrastructure & construction, steel plates for pressure vessels and boilers, electrical steel sheets for electrical machines and tinplates for packaging food products. However, it excludes Bars and Rods of diameter and thickness less than 6mm and structural angles below 50mmX50mmX6mm, which are normally made from re rollable scrap by small re rollers and used for non critical and non load bearing applications like grills, window frames etc.

As per this order, no person shall manufacture or store for sale, sell or distribute in the domestic market any of these steel products which do not conform to the specified standards and do not bear the Standard ISI Mark of the Bureau of Indian Standards on obtaining Certification Marks Licence. The sub standard or defective steel product not conforming to the specified standards shall be deformed by the manufacturer by cutting into lengths less than 1.5 meters and disposed off as scrap within three months.

The Order shall come into force after a period of six months from the date of its publication in the Official Gazette. This gestation period has been consciously allowed so that within this period, the producers of these steel products can equip themselves with in house testing facilities or arrange outsource facilities so that they can get the ISI Certification Marks on their product as per the Scheme. All manufacturers of the aforesaid steel products shall make an application to the Bureau of Indian Standards for obtaining licence for use of the Standard ISI mark within 45 days of the issue of this Order, if not already obtained. Any contravention of the provisions of this Order shall be dealt with in terms of the BIS Act which interalia provides imprisonment for a term which may extend to one year or with fine which extend to INR 50,000 or with both.

Indian steel industry not to get infrastructure status

Dr Akhilesh Das union minister of state for steel said that ministry of steel has received a representation from Confederation of Indian Industry on April 26th 2007 requesting for according infrastructure status to the steel sector.

Dr Das said that “The issue has been examined in consultation with ministry of finance and department of revenue. It has been replied to CII that, since in case of steel plant there is no positive externality and all the benefits are internalized, there is no case for granting any tax holiday to the steel industry.”

He further added that there is no proposal with government to set up a steel financial corporation for easy availability of credit to steel purchase since the existing arrangement of financial institutions is serving the needs.

SAIL wins “Employers of Choice Award 2007” in PSU sector

It is reported that Steel Authority of India Limited has won the India's Employers of Choice Award 2007 in the PSU category. The award has been instituted by CNBC TV18 with U21 Global and partnered by Watson Wyatt Worldwide and Jobstreet.com.

Mr G Ojha director personnel of SAIL received the award in a grand function organized in Mumbai on November27th 2007. He dedicated the award to the innovative, resilient and committed SAIL employees. He added that the award is a testimony to the success of SAIL's human resource interventions and initiatives for the motivation of employees.

The award aims at benchmarking the better companies from amongst the best in India. The defined objective is to recognize progressive companies that have managed to evolve, innovate and adapt themselves so as to set new standards in people practices not only in India but also across the world.

The selection process primarily focuses on employee engagement and involves use of 'WorkAsia', an international methodology. Employee perspective is given 70% weight age and it is based on feedback from employees on various aspects of HR function such as employee engagement, talent development and retention, employee commitment and motivation. The selection process has also taken into consideration organization's approach towards measuring and building people's capabilities in a changing landscape of business and building a strong foundation of measuring and rewarding performance.

Tension erupts over POSCO issue in Orissa again

SNS reported that the truce between pro and anti POSCO groups was short lived with both sides accusing each other of breach of agreement and resorting to protest blockades. As per report, within hours of the peace efforts and lifting of the blockade by anti POSCO group at Balitutha in Orissa, word spread that anti POSCO activists were prevented by supporters of the project at Noliasahi and Gadakujang.

Some anti POSCO activists of Noliashai with women members were on their way to Balitutha area when they were stopped by pro POSCO activists at the Mahabir temple. Similar action was taken at Gadakujang.

Such reports reached Balitutha where the anti project leaders of POSCO Pratirodha Sangram Samiti were present in full strength. They promptly resumed blocking of the Balitutha Bridge and announced that nobody will be allowed to use the bridge.

Mr Abhaya Sahoo who heads the PPSS said that village women of Noliashai and Gadakujnag were prevented from coming to Balitutha and this was a clear breach of the peace talks. Countering this Mr Naukal Sahoo a pro POSCO leader said that the PPSS had violated the agreement and obstructed movement along Balitutha Bridge.

It may be noted that since November 22nd 2007, the entire project area has witnessed violent clashes as both pro and anti project groups have confronted each other.

India denies US’s influence in IPI gas pipeline project

Mr Pranab Mukherjee union minister of external affairs has denied that USA has asked India not to move forward with the planned pipeline project that would bring natural gas from Iran to India and informed that the ministry of petroleum & natural gas has been negotiating the pipeline project with Iran and Pakistan.

Pakistan and Iran have already indicated that they are willing to go ahead with the project without India. India and Pakistan are yet to finalize gas transit and transportation fees and India has conveyed that till the transit issue is sorted out it cannot take a decision on the final gas pricing formula.

So far 6 meetings of the tripartite joint working group have been held with the last being held in Delhi on June 28th and 29th 2007. While, 3 meetings of the Indian and Pakistani joint working group and 5 meetings of the Indian and Iranian special joint working group have also been held so far.

With Pakistan now in a state of emergency, India has indicated that it is waiting for the political climate to cool down before initiating talks on the transit fees.

Indian Railway confident of achieving 2007-08 freight targets

Union railway ministry has achieved 54.15% of its freight earnings target of INR 46,943 crore for 2007-08 in the April to October 2007 period and with the busy season starting favorably it is well on track of achieving the annual target. Now, with the change in climate and increase in freight rates, they seem confident of achieving the revenue as well as freight loading targets for 2007-08, which is 785 million tonnes

Railway ministry officials said that the reason for the confidence is the end of the monsoon period and the start of the peak season. Also, from October 1st 2007, the freight charges have been hiked through various surcharges.

Loading during the April to August 2007 period was affected by the monsoons, which hit coal and iron ore belts the most. This led to the railways falling short of their freight loading target for the period by 3%. Indian Railway carried 308.88 million tonnes of freight during April to August 2007 up by 6.95% YoY as against 288.8 million tonnes during April to August 2006.

Indian Railway carried 66.05 million tonnes of freight traffic in October 2007 up by 12.41% YoY as compared with 58.76 million tonnes. During April to October 2007 period, it generated revenue of INR 25,423 crore from freight traffic up by 11.05% YoY as against INR 22,894 crore during April to October 2006 period. Indian Railway carried 435 million tonnes of freight up by 8.02% YoY as against 403 million tonnes.

PGCIL bags INR 192 crore order from NDMC

It is reported that Power Grid Corporation of India Limited has entered into 2 agreements with the New Delhi Municipal Council for strengthening transmission system at an estimated cost of INR 192 crore. Orders would be completed within 30 months from the date of signing of the agreements.

The contract involves construction and augmentation of 66 kV and 33 kV sub stations, augmentation of transformer and underground cabling. Under the agreements, PGCIL would be responsible for up gradation of electricity infrastructure in areas which fall under NDMC.

Ms Sheila Dikshit chief minister of Delhi said that “The step for agreement with Power Grid Corporation has been taken for improving efficiency in the NDMC area ahead of the Commonwealth Games in 2010. Supervisory control and data acquisition technology would help us see the faults anywhere in the area.”

Vessels over 25 years to be restricted from plying in Indian waters

The report of the India’s committee on urgent measures for prevention of marine casualties and emergency response, headed by director general of shipping, has suggested that all vessels over 25 years of age should be discouraged from plying in Indian waters during the monsoon months.

As per the limited data available with the directorate general of shipping for last 3 years, about ships that were 25 years of age when they met with shipping casualties and now sitting on Indian coast or seabed after such incidents

HZL raises zinc prices by 3.6%

Hindustan Zinc Limited announced that it had raised zinc prices by 3.6% or INR 3,800 per tonne to INR 108,300 (USD 2,728), effective immediately.

Government update of shipyards in India

Mr Thiru TR Baalu union minister of shipping, road transport & highways informed Indian Parliament that there are 27 shipyards in India.

3 shipyards are under its administrative control including Cochin Shipyard Limited, Hindustan Shipyard Limited and Hooghly Dock & Port Engineers Limited. 3 shipyards are under the administrative control defense include Mazagaon Dock Limited, Garden Reach Shipbuilders & Engineers Limited and Goa Shipyard Limited. 2 shipyards are under the administrative control of the state governments subsides Alcock Ashdown & Co Limited of Gujarat and Shalimar Works Limited of West Bengal. The rest are in the private sector.

The number of the ships built or under construction and proposed to be constructed by the shipyards under the administrative control of department of shipping and some of the state government and private sector shipyards which are members of the Shipyards Association of India during the last 3 years is given below

Central PSU shipyards

Source: Shipyards Association of India

State government and PSU shipyards

* L&T proposes to have a new shipyard to be implemented in a phased manner with capacity to construct 5 VLCC and 20 Panamax vessels per year and repair of about 60 to 80 ships per year

**Yard development work in progress since early 2005, hence no vessel was delivered in 2006-07. Shipyard has export orders for 20 vessels to be delivered by end 2009. Out of this 4 vessels are being delivered during this year. Work on next 4 vessels is in advanced stage of construction.

Knowledge Infra to acquire 50% stake in Indonesian coalmine

BL reported that coal trading firm Knowledge Infrastructure Systems Private Limited will be acquiring 50% stake in an Indonesian coalmine in East Kalimantan by December for 40 million tonnes of coal rights and that it will be able to supply 9 million tonnes of coal per starting from February 2008.

Mr Rahul Bhandare MD of Knowledge Infrastructure told BL that “It has already in place long term coal supply contracts with Athena Power Projects for supplying 4 million tonnes per annum of coal for its 1,200 MW project and for supply of 2 million tonnes of coal to OPG Power Generation Pvt Ltd, Chennai. Another contract is currently under negotiations for supplying 4 million tonnes of coal to another power plant. It has also tied up with MSTC Ltd for developing imported coal business.”

Mr Bhandare added that the current stake could be up scaled to 25 million tonnes in a few years depending on market conditions. He said “We are not only looking at exporting coal to India but also to China, Japan and other Asian countries.”

Knowledge Infrastructure has been in business for over five years and has a turnover of over INR 1,000 crore with annual coal trading volume of 4 million tonnes.

BHPV to become subsidiary of BHEL

India’s Union Cabinet has recently given its approval to the following proposals for revival of Visakhapatnam based Bharat Heavy Plate & Vessels Limited.

1) Government of India to waive and write off loans and interest amounting to INR 414.95 crores up to 31.3.2007

2) Government of India to settle all outstanding liabilities of BHPV amounting to INR 263.97 crores

3) To increase the authorized capital of BHPV to INR 70.00 crore out of which BHEL will subscribe INR 34 crore as equity.

4) BHEL will initially invest INR 275 crores for up gradation of manufacturing facilities.

5) To Take over of BHPV by BHEL as its subsidiary.

The release added that “The decision will help in financial restructuring and strengthening of BHPV through takeover of the company by BHEL. Both BHEL and BHPV would be benefited mutually.”

Update on the proposed system of coal block allocation

Mr Dasari Narayana Rao union minister of state for coal said that reservations were expressed from certain quarters against the proposed system of allocation of coal and lignite blocks through competitive bidding on the following grounds

1) There would be increase in the cost of coal and thereby in the cost of power generation

2) The prerogative of the states government in the selection of a lessee will get diluted

3) Allocation of lignite blocks through competitive bidding would place the lignite bearing state at a disadvantage while negotiating other terms and conditions with the power project developers

4) The proposed system of allocation through competitive bidding would not provide higher priority to power sector

Mr Rao said that the view of government has been that rational bidding is unlikely to increase the cost of coal when compared to notified price of CIL. Through competitive bidding, prerogative in the selection of a lessee will be exercised in a more transparent and objective manner.

He added that allocation of lignite blocks and award of power projects could be done in a planned and coordinated manner between the concerned state governments and the central government. There would be no bar on holding separate auction of coal blocks to different sectors as per the proposal under consideration. The power utilities in the public sector will still have access to coal blocks through the government company dispensation, without necessarily participating in the competitive bidding.

CIL NCL to ink MoU with Neyveli for power plan

BS reported that Coal India Limited’s subsidiary Northern Coalfields Limited is likely to sign a MoU with Neyveli Lignite Corporation for setting up a coal based power plant near Himasagar Dam in Madhya Pradesh by end December 2007.

The project will be implemented by a JV company, with an investment of around INR 5,500 crore. The JV will be responsible for land acquisition and the coal for the power plant will be procured from Neyveli Lignite's Nigahi coal Block B.

Plans for coal blocks allocation to PSUs

Mr Dasari Narayana Rao union minister of state for coal informed the parliament that, in the 5th meeting of the Energy Coordination Committee held on February 10th 2006, a view was taken that the ministry of coal would identify adequate number of coal blocks aggregating to 20 billion tonnes of reserves.

Mr Rao added that accordingly, 81 coal blocks with geological reserves of 20.02 billion tonnes were identified for allocation to public and private sector companies for specified end uses.

Out of 81 identified coal blocks, 27 blocks with 8536.38 million tonnes reserves have been allocated to central or state public sector undertakings under the government company dispensation for power generation and other end uses. He said that further, 15 coal blocks with 3622.45 million tonnes reserves have been allocated to private companies including 1 JV between a state government enterprise and private company under captive dispensation for power generation. 23 coal blocks offered for non power end uses will be considered by the screening committee in the meeting scheduled in December 2007.

He further added that out of 16 coal blocks earmarked for allocation to power sector on the basis of tariff based competitive bidding, 4 blocks with 1857.24 million tonnes of reserves have been allocated to ultra mega power projects and 2 blocks have been allocated to the Rajasthan Rajya Vidyut Utpadan Nigam Limited.

GAIL gets market rights for Panna Mukta & Tapti gas

BS reported that GAIL India has bagged the rights to market the entire gas produced from the Panna Mukta & Tapti fields. GAIL will get to transport and market the entire volume from April 1st 2008.

The gas field in Panna Mukta & Tapti offshore, which is jointly operated by Reliance, British Gas and ONGC, currently produces 17 million cubic meters per day of gas. It currently markets 4.8 million cubic meters per day of gas.

An official of GAIL said that “With the incremental volumes for marketing, we will earn about INR 100 crore annually by way of marketing margins and INR 450 crore more annually from transportation charges.”

In proportion to their equity in the block, ONGC, RIL and British Gas market 12.2 million cubic meters per day of gas from the PMT field. ONGC holds 40% stake in these fields, while Reliance and BG India hold 30% each. GAIL, which currently does not get a marketing margin on PMT gas, would be allowed to charge USD 2 per million British thermal unit on the entire gas volume from April 1st 2008.

In March 20006, union petroleum ministry had allowed the JV partners to directly market 5.6 million cubic meters per day gas from these fields for 2 years till March 31st 2008 and give the remaining 4.8 million cubic meters per day to GAIL. The ministry also found that the JV partners have entered into long term gas supply contracts with customers, violating its March 2006 order of direct gas sales up to March 31st 2008.

ONGC Videsh wins rights to explore 2 oil blocks in Brazil

IANS reported that ONGC Videsh Limited has won rights to explore 2 oil blocks in Brazil through international bidding. The first block, ES 470, is located in Espirito Santo basin, while the other is a shallow water block, SM 1413, in another highly prospective Santos basin.

For block ES 470, ONGC Videsh beat competition from a consortium led by Petrobras and another consortium led by Perenco, while it outbid a combine of Petrobras and Ecopetrol for the other. It already has a minority interest in Block BC 10, which is under development.

It is noted that, in September 2007, ONGC Videsh had won 3 blocks, 1 in consortium with Ecopetrol and Petrobras and 2 in consortium with Ecopetrol, in the Caribbean bid round of Colombia, of which it is the operator in 2 blocks.

India imported 53,378 tonnes of cement during April to May 2007

Mr Ashwani Kumar union minister of state for industry said that India has imported 53378 tonnes of cement worth INR 14.20 crore during April to May 2007 period.

Cement imports from China stood at 30,764 tonnes worth INR 76.7 million whereas from Pakistan at 550 tonnes valued at INR 2.3 million during the period.

AP to divert gas supply to GMR’s Vemagiri power plant

BS reported that Andhra Pradesh government has proposed to divert the natural gas being supplied to the 350 MW Lanco Kondapalli Power project to the 370 MW Vemagiri power project for at least 3 months from January 2008, during which Kondapalli project during the period will run on the expensive naphtha fuel. AP government has proposed to buy 502 million units of power from the Vemagiri plant during the 3 month period

The reason for diverting gas from one plant to the other is while the Kondapalli project has naphtha storage facilities to meet the fuel requirement for at least 1 week, there is no such storage facility available with the Vemagiri project.

Mr Panduranga Rao CEO of Lanco Kondapalli Power said that “The project was technically equipped to switch over to naphtha. Gas Authority of India Limited currently supplies around 70% of the allocated gas to the Kondapalli plant as all the existing power plants are operating at a lower plant load factor due to shortage in gas from the K-G Basin.”

The energy demand in Andhra Pradesh is projected to touch as much as 204 million units a day in March 2008 as compared with around 180 million units in the March 2007. While the estimated additional costs on additional energy purchases between November 2007 and March 2008 have been revised to INR 1,681 crore from INR 1,482 crore, the government has planned to spend INR 1,065 crore only on naphtha based fuel, which works out at INR 8.62 per unit.

CVRD under global brand unification becomes Vale

Companhia Vale do Rio Doce announced that from now on it starts using just one global brand, Vale, in all countries where it operates and, at the same time, adopts a new global visual identity.

The release added “The use of the name Vale and the new logo communicates the evolution, diversification and growth of the company in the past years, which transformed us into a global mining company with a diversified portfolio of products that are present and essential in people’s lives.”

The release said that “We believe that this single identity strategy, with an estimated project cost of USD 59 million, will bring the benefit of unifying and enhancing the efforts made towards the management of our image. As a result, we will optimize our capacity to attract qualified professionals and business partners, as well as to obtain permits for our operations from communities and regulatory entities. All of that, consequently, will improve our operations and the projects implementation process.”

Vale said that “Our commercial and exploration offices will also have their names and brand changed, as well as some of our operations, such as CVRD Inco, the company that manages our nickel operations, which will now be called and branded Vale Inco. Moreover, there will be no name or brand changes for affiliated companies and there will be no change on the Company´s legal name.”

The release concluded that “With Vale’s new brand, we also reinforce our commitment with the generation of value, keeping our focus on sustainability and respect for life.”

BHPB bid for Rio - May turn hostile

Analysts, amid the hot topic of BHPB’s next move, see a possibility of BHP Billiton making a hostile bid for Rio Tinto if its billion merger proposal fails to gain traction.

Mr Greg Canavan an analyst with Fat Prophets said that BHPB is likely to go hostile if Rio continued its refusal to sit down at the negotiating table. He said "We believe that, having made an initial approach, BHP will not walk away at the first hurdle. Indeed, Mr Kloppers has commented that if the Rio board continues to hold out then BHP may launch a hostile bid."

Iron ore price negotiations –Vale confirms start of pre talks

World's largest iron ore producer Brazilian Vale, formerly known as CVRD, has begun preliminary talks with clients over ore price increases for the coming term. Mr Roger Agnelli CEO of Vale confirmed this to local media.

Mr Agnelli during a media event to launch Companhia Vale do Rio Doce's new trademark name Vale said "Pre talks for iron ore term prices have started."

He did not say how big a price rise the company would propose, but said market conditions are strongly demanding natural resources but said that ""We do not see a reversal of this trend in the short term.”

ArcelorMittal to build a large dia pipe plant in Nigeria

ArcelorMittal announced its intention to construct a 300,000 tonne per annum Longitudinal Submerged Arc Welded pipe mill at Calabar Free Trade Zone in Cross River State of Nigeria.

Construction on the mill is due to begin in early 2008, with production starting in 2010. The mill will produce large diameter welded pipes in the size range of 20” to 56” of up to X80 steel grade and wall thicknesses of between 6.4mm and 38mm, in line with the oil and gas industry’s technical specifications.

The decision was made as a result of an independent project feasibility study ArcelorMittal conducted after receiving an invitation to invest by the Nigerian Government through the Nigerian Content Department of the Nigerian National Petroleum Corporation.

Mr Sudhir Maheshwari executive VP finance & M&A of ArcelorMittal commented that “Our investment in Nigeria gives ArcelorMittal access to a major oil and gas market. Through this investment we hope to develop Nigeria into a regional hub for ArcelorMittal’s products targeting the oil and gas industry and in so doing become part of a region with significant growth opportunities in the mid to long term.”

Nigerian National Petroleum Corporation, Chevron Nigeria Limited and Shell Petroleum and Development Company Nigeria have welcomed this investment plan.

Nigeria is the largest oil and gas producer in Sub Saharan Africa with planned investments of approximately USD 42 billion over the next 5 years. It has ambitions to increase its gas production capabilities and earn as much from gas as it does from oil through investments in new liquefaction plants and investment in local gas distribution pipelines to improve local consumption.

MEPS says flat product steel prices still under negative pressure in most countries

MEPS reported that US producers have rolled over October values during recent settlements. Their order books are described as in good shape. Inventories at distributors and OEM's have declined, although service centre business is only steady. There are few third country offers as the weak US dollar continues to hold imports at bay and encourages domestic steel makers to export. Several major mills have announced strip mill price hikes of USD 30 per ton, effective January 2008, even though the October one has not been fully implemented.

MEPS said that in Canadian pricing continues to be undermined by the strong domestic currency, adequate or slightly bloated service centre inventories and weak demand from the main consuming industries. Moreover, as the year end approaches, customers are reluctant to enter 2008 with any surplus stock. Third country imports remain low, helping to keep local steel mill activity at reasonable levels.

MEPS said that the strengthening Yuan, together with changes to the export tax system, has led to a loss of export business for the Chinese mills. At the moment, domestic flat product prices are largely unchanged with good demand and low stock levels. Increases in input costs are likely to encourage producers to push for higher prices in the coming months.

MEPS added that although Japanese mills have started to limit output of building related flat products, price hikes remain difficult to secure. Total domestic stocks of coil held by steelmakers and service centres, as end September, fell by 1.2% compared to August the first drop in three months. However, quayside inventories of imported flat products jumped by 6.5% in the same time frame. Demand from the major manufacturing sectors is still firm and steel export markets are active.

MEPS said that sales have strengthened in South Korea where flat product prices are stable this month. As expected, Taiwanese mills continue to implement increases, in line with the growing costs of production. Chung Hung's domestic list for November indicates price hikes of between NTD 300 and 500 per tonne. For shipments overseas, rises of USD 10/20 per tonne were announced for uncoated coil.

MEPS also said that producers in Poland have yet to indicate their price intentions for the start of 2008. Due to competitive imports as well as continuing high inventories, they have been forced to offer further discounts for late fourth quarter business. Growth in industrial production continues apace in the Czech Republic and Slovakia. Both producers and customers are keeping stocks under control. The market, so far has not been troubled by large quantities of imports. Our tabled figures are a little lower than a month ago, partly because some contracts are made in Euros and both the Czech and Slovak currencies are very strong at present.

MEPS said that West European producers are more optimistic for the first half of next year, hoping that escalating raw material costs will help to boost market prices. So much will depend on third country import pressure. Underlying demand appears to remain strong. There are some positive indications for local mills. Chinese export prices are rising. Furthermore, negotiations for annual contracts with the auto sector are likely to result in higher figures.

LME announces additional grades and location for billet contracts

The London Metal Exchange has confirmed the addition of new grades and shapes to its steel billet contracts, which the Exchange will launch on April 28th 2008 preceded by a soft launch on February 25th 2008.

LME has also confirmed the addition of Dubai as a proposed delivery location for the Mediterranean contract, in addition to the Marmara region in Turkey. Proposed delivery locations for the Far East contract are Incheon in South Korea and Johor in Malaysia.

The trading and prompt date structure for the contracts will be identical to the LME’s nonferrous metals contract for lead and tin, with prompt dates out to 15 months

Ms Liz Milan steel business manager of LME said that “The level of engagement with all aspects of the steel industry has been sustained and high. Their feedback is that a wide range of grades and shapes will expand participation in the contracts and create a more accepted pricing mechanism. The decision to add Dubai as a proposed delivery location for the Mediterranean contract also reflects market demand and current trade flows.”

Far East

Billet specifications according to GOST 380-94 Grade 5sp/ps or GOST 380-94 Grade 3sp/ps or GB 20MnSi or GB Q235 or ASTM A615/A, 615M-07 Grade 60 or BS4449: 2005

• 100S - 100mm x 100mm x (5,900mm – 6,000mm)
• 100L - 100mm x 100mm x (11,700mm – 12,000mm)
• 120S - 120mm x 120mm x (5,900mm – 6,000mm)
• 120L - 120mm x 120mm x (11,700mm – 12,000mm)
• 125S - 125mm x 125mm x (5,900mm – 6,000mm)
• 125L - 125mm x 125mm x (11,700mm – 12,000mm)
• 130S - 130mm x 130mm x (5,900mm – 6,000mm)
• 130L - 130mm x 130mm x (11,700mm – 12,000mm)
• 150S - 150mm x 150mm x (5,900mm – 6,000mm)
• 150L - 150mm x 150mm x (11,700mm – 12,000mm)
Length Tolerance (+/- 0.5%)
Each lot shall be made up from one shape and specification only.
Brands: All Steel Billets delivered must be from the production of those Brands named in the LME approved list.
Lot size: Warrant lot sizes: 65 metric tonnes (+/- 2%).
Delivery: In LME listed facilities.
Proposed delivery locations: South Korea, Inchon (Incheon); Malaysia, Johor.

Mediterranean Specification
Billet specifications according to GOST 380-94 Grade 5sp/ps or 2. GOST 380-94 Grade 3sp/ps or GB 20MnSi or GB Q235 or ASTM A615/A, 615M-07 Grade 60 or BS4449: 2005

Shapes:
• 100S - 100mm x 100mm x (5,900mm – 6,000mm)
• 100L - 100mm x 100mm x (11,700mm – 12,000mm)
• 120S - 120mm x 120mm x (5,900mm – 6,000mm)
• 120L - 120mm x 120mm x (11,700mm – 12,000mm)
• 125S - 125mm x 125mm x (5,900mm – 6,000mm)
• 125L - 125mm x 125mm x (11,700mm – 12,000mm)
• 130S - 130mm x 130mm x (5,900mm – 6,000mm)
• 130L - 130mm x 130mm x (11,700mm – 12,000mm)
• 150S - 150mm x 150mm x (5,900mm – 6,000mm)
• 150L - 150mm x 150mm x (11,700mm – 12,000mm)
Length Tolerance (+/- 0.5%)
Each lot shall be made up from one shape and specification only.
Brands: All Steel Billets delivered must be from the production of those Brands named in the LME approved list.
Lot size: Warrant lot sizes: 65 metric tonnes (+/- 2%).
Delivery In LME listed facilities.
Proposed delivery locations: Turkey, Marmara region; United Arab Emirates, Dubai.

Tenova to build silicon steel line at ArcelorMittal’s Frydek Mistek plant

Tenova Strip Processing has been awarded an order for a new silicon steel line for the Frydek-Mistek plant upgrade in the Czech Republic from Valcovny Plechu of the ArcelorMittal.

The order is relevant to the supply of a complete silicon steel line. This line is a medium size installation for the application of a magnesium based thermal insulator on grain oriented steel plate with magnetic properties.

Tenova will provide all the mechanical, electrical and hydraulic engineering, assembly supervision and plant start up. Installation will begin in March 2008, with start up scheduled before summer.

The line will deliver an annual production of 73,000 tonnes of steel with magnetic properties, to be used for electrical applications.

ArcelorMittal Tubarão expansion to add USD 1.2 billion revenues

BNamericas reported that the expansion project at Brazilian steelmaker ArcelorMittal Tubarão will lead to increase in its revenues by USD 1.2 billion starting in 2008.

Mr José Armando Campos president of ArcelorMittal Brazil during a press conference told reporters that investments to increase capacity at ArcelorMittal Tubarão to 7.5 million tonne per year from 5 million tonne per year amounted to USD 1.8 billion. The Espírito Santo state unit kicked off operations in July at blast furnace no 3, the main piece of equipment of the expansion project. He added that "We are operating at a rate of 7.5 million tonne per year.”

ArcelorMittal Tubarão plans an expansion at its 2 million tonne per year hot rolled strip mill to a nominal capacity of 4 million tonne per year, with works due to wrap up in 2009. The executive said that “But we expect the unit to reach a capacity of 5 million tonne per year, adding investments in the venture will amount to USD 80 million.” Mr Campos said that "The hot rolled strip mill is currently operating at 40% above capacity."

Forged crankshafts have better life than cast ones

In a recent study released by the University of Toledo, forged steel crankshafts were shown to have 36% higher fatigue strength than cast iron crankshafts, resulting in a usage life six times longer for the forged steel crankshaft.

Professor Ali Fatemi led a research team in conducting the study for the Forging Industry Educational and Research Foundation and the American Iron and Steel Institute. The study also explored strength, ductility and impact toughness of the two materials and found forged steel to be superior to the ductile cast iron.

Professor Fatemi said that “A crankshaft experiences a large number of load cycles during its service life. Therefore, fatigue performance and durability are key considerations in this component’s design and performance.”

Another aspect of the study was the design optimization of the forged steel crankshaft. The dimensions and geometry of the crank webs were changed while maintaining dynamic balance, resulting in an 18% weight reduction. This optimally designed crankshaft was found to have no degradation in performance. The weight reduction of a rotating engine component is important, as fuel efficiency improvements will be realized by the vehicle and the consumer.

Mr David Anderson director of AISI’s Long Product Market Development Group said that “This study continues to prove to powertrain design engineers that forged steel outperforms other materials in critical safety component applications.”

EU approves Scandinavian JV between Yara and Praxair

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of joint control by Yara International ASA of Norway and US based Praxair Inc of Yara's existing industrial gases business in Scandinavia.

After examining the operation it concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it and has therefore approved the concentration.

EC’s examination of the proposed transaction showed that in the market for the supply of industrial gases, such as helium, argon, nitrogen, carbon dioxide and specialty gases, in the EEA no anti competitive impact would arise. EC specifically considered the impact of the transaction on the upstream and downstream markets for all these product markets and concluded that competition would not be impeded on any of these markets. The overlaps between the parties' activities are limited as the industrial gas business contributed to the joint venture is active only in Scandinavia, where Praxair has a very limited presence. The proposed joint venture is not likely to lead to anti competitive co operative effects outside Scandinavia.

Yara is a chemical company based in Oslo, primarily focused on the production and marketing of fertilizers and nitrogen based chemicals. It also produces and distributes industrial gases and nitrogen chemicals that are mostly by products of its fertilizer business. Praxair is an industrial gases company, with large businesses in North and South America and Europe.

Siemens to modernize 3 converters at voestalpine Stahl

Austrian steel producer voestalpine Stahl recently announced that it awarded Siemens Metals Technologies a contract for the exchange and modernization of three LD steelmaking converters and peripheral facilities at the company's integrated steel plant in Linz.

The project involves the dismantling of the existing converters, installation of new converters equipped with a moveable skirt as well as new alloying charging systems during tapping. The capacity of the converter vessels will be increased from approximately 160 tonnes to 180 tonnes.

The project scope for Siemens Metals Technologies includes engineering and the supply and installation of equipment, electrics and basic automation. The equipment supply for each converter plant includes the vessel shell, trunnion ring, support bearing, 4 pinion tilting drive system, VAI CON Stopper system for minimized slag carry over, waste gas hood with moveable skirt and the converter doghouse. The converters will be outfitted with maintenance-free, highly compact VAI CON CD Link suspension systems, which are particularly suited for sites where extremely constricted space conditions prevail. The three alloy charging and ladle alloy-addition systems will be equipped with CaC2 charging lines to promote steel Deoxidation of the crude steel during tapping. Advisory services for onsite project activities and the converter start ups in addition to training rounds off the Siemens' project scope.

voestalpine said that a particular highlight of this project is that each converter will be replaced during ongoing production operations within only 49 days. This short implementation time will be possible through the application of a new technique to strengthen the foundations. Restart of the modernized converters is scheduled in steps for April 2009, September 2009 and November 2009 respectively. The order volume for Siemens exceeds EUR 30 million.

BlueScope unveils plans to build on its heritage and capabilities

Mr Paul O'Malley MD & CEO of BlueScope Steel outlined a renewed strategy and direction for the company at an analyst and media briefing in Sydney. Mr O'Malley unveiled a blueprint which will focus on reinvigorating the Company's Australian and New Zealand domestic businesses, continuing the improvement process across our Asian and North American businesses and growing or acquiring new businesses that build on BlueScope Steel's distinct competitive advantage.

Mr O'Malley said that "The blueprint will build on BlueScope Steel's outstanding heritage and capabilities. With a stronger customer emphasis, we will concentrate on growing steel use in our domestic markets, as well as driving manufacturing excellence, optimizing procurement, enhancing our supply chain and improving our capital planning, to drive improvement in shareholder value.”

He added that "There will be an increased priority given to innovation and sustainability, in particular working to reduce our environmental emissions and through our products and solutions, assisting our customers to do likewise.”

Mr O'Malley said that "More than 200 different blueprint initiatives have been identified. We are working on a plan to deliver these outcomes over the next three years. This is supported by the re organization of management accountabilities that was announced earlier this month.”

Mr O'Malley said that growth in the building and construction sector provides us with an exciting opportunity. For example, we will focus on residential framing, where the increasingly popular TrueCore® steel is already lifting steel usage in the Australian domestic market. Steel penetration in the commercial building sector could also be higher in Australia, where the steel market channels are still relatively immature. This will provide us with another growth opportunity.

Mr O'Malley added that "Across the Asia Building and Construction sector, the markets vary, offering different opportunities by country. India and China, with relatively low consumption of steel in construction, offers tremendous growth opportunities. The TATA BlueScope Steel joint venture is an early mover in an attractive, growing market in India. We will also focus on using innovation to match customer needs with steel solutions.”

Mr O'Malley said that "In the area of manufacturing, BlueScope Steel has a world class reputation, and we will further build on this heritage. Our focus will be on execution excellence. All operations will work to reduce the total cost per tonne of steel produced, increase production uptime and optimize inventory. Through our review of the balance sheet and capital program, we have identified further initiatives to release cash and maintain a productive balance sheet. We will achieve this through improved management of our property portfolio, minimizing the levels of working capital and improving supplier/partner contractual arrangements.”

Mr O'Malley said that "We will continue to invest in our businesses. For example, at Port Kembla Steelworks we are undertaking a feasibility study for an approximately AUD 1 billion co generation plant; we are well advanced in plans for the AUD 330 million No 5 blast furnace reline; and we are looking to upgrade the sinter plant in May 2009 for AUD 134 million. In New Zealand, we have two projects in the feasibility stage that will capitalize on our iron sand resources."

Mr O'Malley summarized the blueprint: "This is our blueprint for the future of BlueScope Steel. We will enhance execution excellence within our existing businesses and undertake disciplined growth. We will continue the transformation of the company into a truly customer focused organization, with outstanding brands and a world class asset base. We will continue to focus on safety, sustainability, shareholder value and capital management."

Sumitomo Metals reforms organizational structure to strengthens Titanium business

Sumitomo Metal Industries Ltd has decided to carry out the following organizational reforms with the aim of strengthening its titanium business in anticipation of higher titanium demand worldwide going forward.

The organizational structure will be changed in the Sumitomo Metals Group from the viewpoint of better integrating manufacturing and sales. The Titanium Division will be established to promote and oversee the titanium business across the Group.

Sumitomo Metals forecasts a rapid increase in global demand for titanium as demand from the aerospace industry, in particular, is expected to expand exponentially. To respond to the expected surge in demand for titanium, the Sumitomo Metals Group decided to execute this reform in order to further integrate and promote manufacturing, sales and technology services activities. This measure aims to further improve services for customers as well as strengthen the Group's titanium business base.

The Sumitomo Metals Group has steadily increased sales volume of titanium by offering sophisticated technologies and services that satisfy customers' requirements in sectors that use large amounts of titanium such as aerospace and power generation.

JFE Steel to increase HSM output at Chiba

JMB reported that JFE Steel started has trial to increase the hot strip mill output to monthly 400,000 tonnes at Chiba area of East Japan works.

The mill increased the direct hot charge rolling ratio from current 25% to 30% to cover bottleneck of reheat furnace capacity. The mill will clear the target by end of December topping record 385,000 tonnes of monthly production in 2006.

European welded pipe market weak due to overstock

It is learned that the European welded pipe market is weak due to the over purchase from buyers especially dealer and service center in the first half of this year.

From the end of September, European Commission has launched an anti dumping investigation to the import product from several countries. Before the result released, the market is very uncertain.

The stock welded pipe is expected to return to a normal level in the first few weeks of next year. And the demand will be strengthened.

General Moly announces closing of ArcelorMittal private placement

General Moly announced that it has closed its previously announced private placement with ArcelorMittal, the world's largest steel producer.

The placement included 8.257 million General Moly common shares at USD 8.50 per share and generated approximately USD 70 million in proceeds.

The funds will be utilized in the development of the Company's world class Mt Hope molybdenum project.

General Moly, formerly Idaho General Mines, is a US based molybdenum mineral development, exploration and mining company listed on the American Stock Exchange. Its primary asset, the Mt Hope project located in central Nevada is considered one of the world's largest and highest grade molybdenum deposits.

Acindar changes its name to Acindar Grupo ArcelorMittal

Argentine long steel producer Acindar announced that it will change its registered name to Acindar Grupo ArcelorMittal after merging with the ArcelorMittal group.

Mr Carlos Vaccaro external affairs director of Acindar said that "Our new slogan 'Transforming the future' is the focal point around which the company will work and its values are based on sustainability, quality and leadership."

In October, ArcelorMittal offered USD 542 million for a 34.7% stake in Acindar to bring its ownership to 100%. Acindar's board of directors approved the offer.

Harsco announces sale of Gas Technologies business group

Worldwide industrial services company Harsco Corporation announced that it has signed a definitive agreement to sell its Gas Technologies business group, Harsco GasServ, to Wind Point Partners a private equity investment firm with offices at Chicago in Illinois for a total purchase price of USD 340 million.

The terms include USD 300 million payable in cash at closing and USD 40 million payable in the form of an earnout, contingent on the Gas Technologies group achieving certain performance targets in 2008 or 2009. The transaction is expected to close in the near future and has already received regulatory approval.

Included in the transaction are the four complementary manufacturing and service businesses that comprise the Harsco GasServ group:
1. Taylor Wharton cryogenic storage units and compressed gas cylinders
2. American Welding & Tank propane tanks
3. Sherwood precision valves
4. Structural Composites Industries lightweight, filament-reinforced composite cylinders

Mr Derek C Hathaway chairman & CEO of Harsco said that “Given our initial announcement in January of our intention to divest the Harsco GasServ business group and the time elapsed since then, it can reasonably be concluded that this has been a long and arduous process, certainly exacerbated by the US credit crunch. Notwithstanding the timing, we believe we have accomplished our goals for achieving maximum value for our stockholders in conjunction with finding a suitable new home for this business. We wish the new owners and all of the employees every continuing success.”

Citigroup Global Markets Inc is acting as exclusive financial advisor to Harsco.

Rautaruukki to step up steel structure deliveries from Ylivieska

Rautaruukki announced that it is planning to step up the manufacture of large steel structures and increase production capacity at the Ylivieska Works in Finland.

Rautaruukki said that extension to the works is inaugurated on November 27th 2007 and it will further strengthen Ruukki’s position as a supplier of large steel structures used in commercial and industrial projects and bridge construction.

Mr Sami Eronen SVP infrastructure construction of Ruukki Construction said that “The Ylivieska investment will fast track our growth as a provider of total deliveries, especially in the Nordic countries. We are meeting customer expectations by providing increasingly prefabricated high-performance structures for building construction and bridges. Efficient production and additional capacity will improve our delivery capability and thus improve flexibility and delivery reliability for the customer.”

He added that completion of the extension to the Ylivieska Works enables large steel structures to be welded, fitted out and surface treated on the same site. The investment also considerably improves work safety.

Rautaruukki was one of the companies founding the Ylivieska Works in 1977. The works have been part of Rautaruukki since 2005, when the company acquired PPTH. The Ylivieska Works are currently making bridge structures for the Älandsfjärden railway bridge project at Härnösand near Sundsvall in Sweden. January 2008 will see work start on the production of two boiler plant frames.

Grupo Mexico says strike at mine may end in January

Grupo Mexico said a strike at its biggest copper mine may end in early January when federal courts return from a recess. About 3,000 workers went on strike July 30 at three Grupo Mexico mines, demanding better pay and safety conditions. Half of the strikers work at Cananea.

Mr Juan Rebolledo a spokesman of Grupo Mexico said that Federal judges reviewing the strike at the Cananea mine aren’t likely to decide whether the walkout is legal before December 15, the start of their winter recess. Mr Rebolledo said that "We expect it to be settled probably in January. But it is impossible to tell when a court will rule."

Mr Rebolledo said that the strike has cost the company about USD 4.1 million a day and reduced copper production by about 15,000 tonne per month.

The workers are all members of the National Mining and Metal Workers Union. Rebolledo denied the union`s claim that Grupo Mexico has refused to meet with the workers since August.

Taiwan SS import in October up by 26% MoM

According to the statistic record for October, Taiwan’s import of stainless steel hot rolled was about 20,272 tonnes up by 26% MoM as compared to September 2007

Meanwhile, the import of stainless steel cold rolled rose by 118% to 9,894 tonnes. In average of October import on stainless steel have increased by 23% YoY. In addition, the export of stainless steel material from Taiwan in October only slight increased by about 2%MoM. Buyers are still no in a hurry to purchase.

RBCT has enough coal stocks for now - CEO

Reuters reported that South Africa's Richard's Bay Coal Terminal has enough coal supplies for now and officials hope that shipments to the bay will be fully restored as soon as possible.

Mr Kuseni Dlamini CEO of RBCT told Reuters that "We have enough coal supplies to last a reasonable time. We hope the problem at Transnet doesn't last that long."

He also said it was too soon to say whether the disruption will prevent the terminal from reaching its 67 million tonnes export target for this year. Mr Dlamini said that "It is too early to say. We will see how much we can catch up in the remaining weeks of the year."

Transnet Freight Rail last week said that traffic to RBCT would return to normal in two weeks after lightning hit two transformers that supply electricity to the line and cut traffic to the world's largest single coal port by 20%.

Japanese tinplate export price increases

After negotiating the new price with Middle East buyers, Japanese mills announced that they will raise its price of tinplate nearly by USD 100 per tonne and the new price will reach FOB USD 1000 per tonne.

Due to the increase in sea freight cost and global supply, European mills have reduced tinning plates supply for Middle East and accordingly Japanese mills can take advantages to raise its price.

In addition, before Japanese steel mills increased tinplate price to Middle East, European steel mills have raised tinplate price to South America and Middle East by USD 70 per tonne.

ArcelorMittal share buyback program status report as of November 29

ArcelorMittal, under the new share buy back program as announced on September 13th 2007, hereby announces that it has repurchased 5,200,000 shares from November 22nd 207 until November 28th 2007.

The shares were repurchased at an average price of EUR 47.7651 and for a total amount of EUR 248,345,485

Kinder Morgan to pay in USD 25 million in coal sales dispute

Kinder Morgan Energy Partners LP, Kinder Morgan Operating LP and Kinder Morgan Operating LP have agreed to a USD 25 million civil settlement related to the unauthorized sales of customers' coal.

US’s Department of Justice in a statement said that the Tennessee Valley Authority contracted with Kinder Morgan to handle coal at Kinder Morgan's Cora and Grand Rivers terminals. Tennessee Valley Authority ordered large quantities of coal which was shipped to Cora and or Grand Rivers where it was offloaded, stored and eventually loaded onto barges for delivery to the Tennessee Valley Authority.

The government said that coal coming to the terminals was weighed by certified scales when it was loaded onto the train. However, at the Cora terminal, outgoing coal was weighed by barge draft. The barge draft method usually weighed 2% to 3% than the certified scales.

According to US’s Justice Department, Kinder Morgan exploited this weighing differential to show that it shipped out the same amount of coal as it had received. The Department of Justice said that Kinder Morgan took and sold about 258,725.84 tons of coal attributable to the Tennessee Valley Authority which amounted to a total loss of USD 6.6 million for the Tennessee Valley Authority.

The government said that Kinder Morgan has agreed to pay back three times this amount to the United States for a total of USD 19.8 million. In addition, Kinder Morgan will reimburse other private customers in the amount of USD 5.2 million for a total settlement of USD 25 million.

Anglo American approves Los Bronces development project

Anglo American announced the approval of the Los Bronces copper development project in Chile. The project will raise annual production of fine copper to 400,000 tonne per annum from the current level of 226,000, an increase of some 170,000 tonne per annum by 2011 and the production of Molybdenum will reach 5,400 tonnes from the current level of 2,123 tonnes. This project will transform Los Bronces into one of the largest copper mines in the world.

Los Bronces is an open pit copper mine located in the Andes 65 kilometers northeast of Santiago at 3,500 meters above sea level. It has copper sulphide ore treatment plants, a 56 kilometer slurry pipeline, copper and molybdenum floatation plants and two solvent extraction electro winning plants for the low grade ore dump leaching process.

The Los Bronces development project entails an investment of USD 1.7 billion to build new grinding facilities in the Confluencia sector and a new floatation plant at Las Tórtolas 2. It is expected to be completed in three years and to have a mine life of more than thirty years.

The Environmental Impact Study submitted in October 2006 was recently approved by the Chilean authorities and construction work for the project will start immediately.

Ms Cynthia Carroll CEO of Anglo American said that “The Los Bronces development project is an exciting brownfield project in Anglo American's extensive pipeline of base metal projects in South America, which will enable the company to carry on growing and consolidating its copper profile. Over the last 30 years, Anglo American has played a major role in expanding Chile's mining capacity and, in the process significant wealth creation has been generated for its employees, shareholders and Chile as an investment destination.”

This development is the first stage in Anglo American's strong pipeline of copper expansion projects which aims to increase copper production to approximately 1.7 million tonnes per annum by year 2016. In addition, Anglo American's Base Metals division is currently progressing the USD 1.2 billion Barro Alto nickel project in Brazil which will also double total Group nickel production by 2011.

S&P assigns A+ to Nucor Corp

Thomson Financial reported that Standard & Poor's Ratings Services assigned its 'A+' senior unsecured rating to the proposed offering of up to USD 1 billion in senior unsecured notes of Nucor Corp. The proceeds are expected to be used for general corporate purposes, including capital expenditures, working capital and share repurchases.

Mr Marie Shmaruk credit analyst of S&P said that “The ratings on Nucor reflect the company's premier market position in the highly competitive minimill segment of the US steel industry.”

He added that the ratings benefit from Nucor's nonunion status, diverse product mix and operating facilities, ability to generate good cash flow during distressed periods, current favorable steel industry conditions, and conservative financial profile.

S&P also said that the ratings also reflect high procurement costs, particularly for scrap and natural gas; more cost efficient integrated steel producers and concerns about the company's more aggressive financial policy in support of growth and expansion initiatives.

NWR to make IPO decision soon

Czech news agency E15 without citing sources reported that New World Resources, which owns Czech hard coal miner OKD should make a definite decision on its expected initial public offering.

The paper said that the recent market downturn has delayed its IPO plans, but several options are still under consideration. These include including scaling back the IPO by listing only in London and Prague and dropping a third listing in Warsaw and subscribing the majority of shares to institutional investors at the expense of retail investors.

Mr Vladimir Bystrov a spokesman of New World Resources told E15 that “The company is still evaluating all financing options, including listing on an exchange. A definite decision still hasn't been reached.”

Earlier media reports said New World Resources would seek to raise an estimated CZK 18 billion on the exchanges by the end of the year.

Grange Resources signs agreement for water supply

Grange Resources Limited announced that it has signed an Option Agreement with the West Australian Water Corporation to supply treated waste water to the proposed Southdown Magnetite Mine. Southdown is located near Wellstead 90 kilometer north east of the city of Albany in Western Australia.

The agreement provides Grange with access to a minimum of 5,000 kilolitres per day of water, which represents over two thirds of the total water requirements for the project. It is expected that the volume of waste water available will increase over time as the town of Albany grows.

Grange will construct a water treatment plant as part of the project to upgrade the waste water quality to the appropriate level for use as industrial process water. The treated water will be pumped to the mine via the project's return water pipeline from Albany.

Commenting on the project, Mr Geoff Wedlock MD of Grange said that this is a major breakthrough for Southdown's project sustainability and environmental impact. He added that "We need about 2.7 giga liters per annum of water for the project and to have most of that need met with no environmental impact is a great achievement. We expect to be able to supply the remaining water requirements from pit dewatering and on-site rainfall harvesting."

Mr Wedlock said that "Southdown is progressing favorably and in line with our commitment to modern sustainable mining practices. This achievement also fits well with the potential development of wind generated power capacity near Southdown, in addition to the available grid power."

Water Corporation spokesman said that "The option agreement represents an excellent opportunity for the Water Corporation to support new industry and increase the use of recycled water in Western Australia."

Erdemir net profit in 9 months up by 36.5% YoY

Turkish steel maker Erdemir has net profit of TRL 548.7 million in January to September 2007 period up by 36.5% YoY as against TRL 400 million in January to September 2006 period while sales rose by 15.4% YoY to TRL 4.186 billion.

Erdemir did not release a statement on the results but previously said its profit rise in the first half had been helped by cost controls and lower financial expenditure.

Al Arrab Limited acquires 63% stake in Electroputere

It is reported that Saudi Arabian company Al Arrab Contracting Co Limited has bought 63% stake in Romania’s train engines and generators manufacturer Electroputere for USD 174 million.

The priorities for Al Arrab will be to invest in new technology for the production of train engines and to make Electroputere profitable by the end of 2009. At the moment, Electroputere carries debts of more than USD 64 million and hence the only solution to continue production and modernize the facility was the involvement of a strong investor like Al Arrab. Al Arrab intends to export engines produced by Electroputere to countries in the Middle East.

Dr Ion Dobreci ambassador of Romania to Saudi Arabia said that “This is one of the major investments made by Saudi Arabia, which has so far invested USD 2.2 billion in Romania. Romania is all set to boost its ties in different sectors with the Kingdom and the Gulf states.” He added that Zamil Group and Amiantit are also working to invest in steel and pipe projects.

Dr Dobreci said that Saudi businessmen can benefits from a flat tax rate with greater incentives offered by Romania. He added that “With an upward trend in economy, Saudi investors can go to Romania and avail of a large market, which also boasts of low costs, cheap labor, land and cheap utilities besides economic and political stability.”

Dr Dobreci further added that total Saudi Romanian trade is about USD 200 million annually. He pointed out that many senior Saudi and GCC officials have been invited to visit Romania and the 2 sides are working on suitable dates. Also, business and the tourism traffic between the two countries are growing.

Scrap metal trade has a bright future in Saudi Arab– Report

Saudi Arabia reuses scrap metal locally and regulations allow for excess scrap metals such as iron, steel, aluminum and copper to be exported, mostly to Asian nations for recycling.

Mr Yousef A Al Dossary MD of Al Sale Eastern said that “We have been working in steel scrap for a long time since SABIC started in Saudi Arabia. Before, we used to deliver our material in the Kingdom, initially for Saudi Iron & Steel Company and also for Al Ittifaq Steel. In the future, we hope to begin talks with Al Rajhi Steel in Jeddah in order to start meeting their requirements. However, the steel mills in Saudi don’t use all the scrap collected locally and that excess is exported.”

Mr Dossary added that “We collect what is required by the local factories. Scrap that is clean and in the desired size is nearly always delivered locally. This makes economic sense. Once we meet the amounts of scrap needed locally, we export the remainder. With the introduction of our new shredder in the coming year, we predict that we will be able to process as much scrap steel as the market can provide. I believe the future for the scrap metal trade will be very bright.”

Mr Jayantha D Nandaraj GM of Al Sale Eastern said that “In the end, about 50% of the scrap we handle is exported. That averages about 5,000 tonnes monthly. Most of the exported scrap is type No 2. We load the scrap into a ship at Dammam or Jeddah and the agent pays for the transportation. Custodian of the 2 Holy Mosques King Abdullah decided to lift restrictions on the export of scrap and that has led to a growth in our business and better support for the price per tonne. I should also mention that people are more aware now. They understand the requirements of the scrap industry. Instead of letting an old refrigerator just sit abandoned in a trash heap, now they sell it for scrap.”

Mr Nandaraj added that until recently, the scrap market was unpredictable and prices for scrap steel were poor. With increasing demand, higher prices have been offered to the sellers and this has spurred the collection of scrap metal from around the Saudi Kingdom. He said that “Now with the high price, there are more scrap yards and people all over the Kingdom are loading scrap into their pick up trucks and bringing it in. Even people who used to sell vegetables and fish have now switched and are collecting scrap. This is why we have scrap to sell abroad.”

Al Sale Eastern Co Limited has been a leader in the recycling of ferrous metal, with a focus on steel recycling. It collects, sorts, processes and eventually sells the scrap metal to foundries, mills and other purchasers. Al Sale Eastern also exports steel scrap to India, Pakistan and the Far East using brokers.

Laser & More pitching to supply laser welded SS to Dubai Metro

Mr Reinhard Aumayr MD of Laser & More said that the increased price of SS is reducing its popularity across Europe and by using laser cut and welded SS companies can reduce the associated costs of using the metal.

Mr Aumayr, while speaking at the Big 5, said that "People in Europe are starting to substitute stainless steel for other materials due to an increase in costs. But we believe that by using stainless steel that has been laser welded you use less and therefore you can keep the prices down."

Laser & More supplies laser cut and welded components in stainless steel. It is currently in talks to supply the Dubai Metro with its products.

Qatar tops in world’s per capita CO2 emission

Ms Jasleen Bhinder environment officer at Emirates Environmental Group, while addressing at two day seminar “Waste problems in the region and the UAE scenario” said that Qatar ranked No 1 in the world, followed by the UAE, in terms of per capita carbon dioxide emissions. He added that estimates of per capita carbon dioxide emissions ranged from 28 metric tonnes to 43.5 metric tonnes a year.

UAE has one of the world’s highest per capita consumption of bottled water per year with 256 liters per person. The per capita use of water was 456 million gallons in 2003 while the per capita use was 133 gallons daily. Similarly, the Gulf countries also ranked very high in energy consumption. In the UAE, for instance, the estimated energy consumption was 11,872 kW hours per capita. Waste generation in the Gulf was one of the highest in the world, ranging from 1.9 to 2.1 kilogram daily per capita.

Ms Bhinder said that “According to some reports, the UAE has the largest ecological footprint in the world with 12.9 global hectares, compared to Qatar’s bio capacity of 1 global hectare per person.” She added that municipalities spent 20% to 50% of their available budget on solid waste. In most cases, 30% to 60% of all urban solid waste is uncollected and less than 50% of population served.

Mr Benno Boer senior ecological adviser at UNESCO Doha pointed out that Arab state faced a massive water crisis. Most water in the region came from desalination plants, which polluted the atmosphere and used huge amounts of energy. He added that current energy costs demanded development of renewable energy, reduce wasting fossil fuels and reduce Co2 output and air pollution.

Mr Basel al Yousfi deputy regional director of UN Environment Program Regional Office for West Asia said that making sustainable buildings was the need of the hour. He added that building and construction sector accounted for the largest share in the use of natural resources and consumed 50% of the world’s natural resources.

Dubai plans to have 4 metro lines by 2015

It is reported that Dubai will have four Metro lines by 2015 covering the existing and new developments in the emirate.

Mr Abdul Majid Al Khaja CEO of Dubai Rail Agency at the Dubai Roads & Transport Authority said that "The Red and Green Lines are currently under construction while the Purple and Blue Lines will be constructed by 2012 and 2015 respectively." He added that Rail Agency will construct 318 kilometer of Metro network and 270 kilometer of tram network by 2020.

He said that the contract for the 49 kilometer long Purple Line will connect Dubai airport with Jebel Ali Airport through the new developments on Al Khail Road. The line is likely to be extended to new developments at later stages. The contract for the Purple Line will be awarded in 2009 and it will be operational in 2012.

The 50 kilometer long Blue Line will start from Dubai International Airport to Jebel Ali Airport passing through Emirates Road. It is likely to be extended from Dubai airport to Palm Deira and to other new developments towards Dubai waterfront projects. The construction of this line is expected to start after 2012.

Mr Khaja said that all the Metro lines would be linked to provide easy journey for commuters. Dubai will have a total of 74.6 kilometer Metro network fully operational by March 2010. The 54.1 kilometer long Red Line will be operational in September 2009 while the 22.3 kilometer Green Line will be in use in March 2010.

Behsazeh’s light structural steel facility in Iran commissioned

Genesis Worldwide Inc has announced the commissioning of the new production facility of its licensee Behsazeh Construction Engineering Co in Iran. The new plant will enable Behsazeh to build residences and institutional buildings with greater efficiency and speed.

Using the Genesis Solution, a turn key solution which includes leading edge software, industrial equipment, hardware, processes and engineering services, Behsazeh will utilize the latest version of the C4 custom panel fabrication line, which is a key element of the Genesis technology package. C4 is a light steel panel assembly line which is designed to maximize production and maintain quality control. As part of the Genesis Solution, Behsazeh will also receive assistance from a team of Genesis experts that support project management and implementation services.

Mr Mohammadali A Gholitabar GM of Behsazeh said that he believes that by joining the international network of Genesis’ licensees, Behsazeh’s key goals can now be achieved. He added that “Our business objective is to be the leading building manufacturer in Iran and local regions, with a building solution that is not only quick to assemble but also built to withstand the seismic activity common to the geography of Iran. Our agreement and ongoing relationship with Genesis is an ideal partnership because of its superior products and services and the ongoing support that they provide. We are in negotiations with the government and other potential clients and are extremely optimistic about the numerous opportunities in Iran.”

Mr Vince Mifsud president & CEO of Genesis said that “This is another important milestone in the growth of our company by expanding our licensees globally. We are very optimistic about the growth opportunity in the Iranian building market. This is the third plant that we have commissioned in 2007 and therefore we have successfully met our goal of commissioning 3 plants by year end.”

Behsazeh, an Iranian building construction company, recognized the need for alternative safe building technologies due, in part, to the frequent seismic activity in Iran. Iran requires safe schools and housing for its population. Behsazeh has responded to these needs by building its new production facility specifically to produce light steel structural frames.

Pakistan to raise USD 1 billion from overseas for water and power projects

It is reported that Pakistan government has decided to help remove the growing funding problems of Water & Power Development Authority by raising USD 1 billion next month from overseas investors.

A senior official of Pakistan power ministry said that the major objective is to get rid of increasing power shortages across Pakistan. He added that the government is assisting the WAPDA and Pakistan Electric Power Company to issue international bonds of over a USD 1 billion to meet development needs of some hydropower projects including 969 MW Neelum Jhelum hydropower project.

He said that "Some of the funds to be generated through these bonds could be used for general budgetary support in view of rising foreign debt repayment requirements but the primary objective would be WAPDA's foreign exchange needs.” He added that the bonds would most probably be of 5 years and 10 year maturity and would be backed by the sovereign guarantees of the government of Pakistan.

WAPDA currently faces an electricity shortage of about 3,000 MW in peak hours, resulting in load shedding across the country, mostly in rural areas. The situation aggravates when generation from the hydel sources drops owing to reduction in river flows and reduced irrigation requirements. A WAPDA official said that its hydel generation has gone below 2000 MW against its total installed capacity of more than 6,500 MW. It has been under immense financial pressure in the recent months owing non payment of over PKR 60 billion electricity bills by the public sector and another PKR 30 billion in subsidy being held back by the ministry of finance despite the government's commitment last year.

Pakistan had a comfortable supply position until during the last several years but started facing shortages due to restrictions on WAPDA to development new thermal power projects and WAPDA's refusal to offer reasonable tariff to hydel projects, coupled with higher economic growth in the last few years. As a result, the consumers have suffered worst ever electricity crisis in the recent summer. Meanwhile, the World Bank estimates put firm power shortage to the extent of 5,500 MW by fiscal 2010 if now new capacity is made available. These estimates suggest the country is most likely to face a major energy crisis in natural gas, power and oil in the next 3 to 4 years that could choke the economic growth for many years to come.

Sohar Aluminum to start production in mid 2008

It is reported that production at the Sohar Aluminum’s smelter, is scheduled to produce its first hot metal in mid 2008 at the Sohar Industrial Estate, is fast becoming a reality for its new operational employees.

The Sohar Aluminum Smelter Project is an USD 2.4 billion Greenfield project involving construction of a single 360 pot AP35G aluminum smelter potlines with a capacity of approximately 350,000 tonnes per year, a carbon anode plant, a metal casting facility, and a port facility for product storage and ship loading and unloading.

Sri Lanka and Iran to boost trade ties

IRNA quoted Mr Rajapaksa President of Sri Lankan as saying that Colombo would provide all facilities to Iranian investors to enter into JVs in Sri Lanka. He stated that Sri Lanka intends to prepare the groundwork for investment and development of its economy, adding obstacles to investment have been removed in recent decades.

Mr Rajapaksa called on Iranian investors to venture into different sectors of Sri Lankan economy which will lead to expansion of bilateral relations and an exchange of know how between the two countries.

Meanwhile, Mr Parviz Rezayi deputy of Iran's Trade Promotion Organization in the Commercial Affairs of the Asia Pacific region said that Iran will build a 150 MW electricity power plant in Sri Lanka. He added that "Expansion of bilateral ties requires enhancing cooperation especially in the field of exporting technical and engineering services."

Mr Rezayi said that the value of trade interactions between the two countries amounted to USD 730 million in 2006. Sri Lanka's main export item to Iran is tea and Iran supplies more than 70% of the crude oil Sri Lanka needs.

Turkey aiming to get USD 40 billion investments from UAE

Mr Kürşad Tüzmen state minister for foreign of Turkey said that United Arab Emirates plans to invest approximately USD 400 billion overseas and locally in the coming 10 to 15 years and his ministry's aim was to attract around USD 40 billion of the total amount.

Mr Tüzmen said that UAE had launched large projects since its revenues increased due to rise in oil prices. Abu Dhabi Emirate will invest over USD 230 billion and the Dubai Emirate will invest over USD 170 billion.

He added that "The main bids will be done in the next few years. This is a great opportunity for Turkish contractors. The main thing Turkish contractors should do is find a reliable local partner in the UAE."

Mr Tüzmen said that another one of their goals was to attract the Gulf countries' investment pool to Turkey as foreign direct investment. Mr Tüzmen said the investors were searching for countries suitable for investment and Turkey must allocate new appropriate land for new investment as soon as possible.

He also emphasized that investors from Abu Dhabi were interested in the automotive sector, banking, petro chemicals and processed agriculture lands in Turkey.

OPEC to discuss oil output increase in Abu Dabi summit

Reuters quoted Mr Abdullah al Attiyah oil minister of Qatar as saying that there is no need for OPEC to increase its oil production however the use of a basket of currencies for oil pricing instead of the dollar is unrealistic.

Meanwhile, Mr Ali al Naimi oil minister of Saudi Arabia declined to comment whether the OPEC will boost its oil output in its meeting to be held on December 5th 2007.

Mr Purnomo Yusgiantoro energy minister of Indonesia however, said that Jakarta will back a new production increase at the upcoming summit.

It is noted that OPEC member states did not discuss an output increase in the Riyadh summit held on November 17th to 18th 2007, but the issue will be high on the agenda in Abu Dhabi's ministerial conference.

Real estate business in Gulf countries continue to boom

Mr Chadi Abou Daher regional manager of World Trade Center, while addressing at Qatar Property Investment Forum, said that Qatar has emerged as one of the most attractive real estate markets in the world and forum would be a yearly platform offering insights into the latest trends emerging in he Gulf region and Qatar in particular.

Mr Molad Elia manager real estate of Kuwait Financial Center said that demand for real estate has been soaring. He added that “The demand for housing has risen by 27% in the last year and in the office market the vacancy level is only 1%. In the hospitality sector, the demand is still high showing around 70% occupancy. All in all the sustainability of the growth is high and it should remain so for the next 5 years.”

Mr Chris Filinos VP of Merrill Lynch International has stressed the need for property indices to help investors decide where to invest. He also talked about providing international standards to the real estates investment trusts that do a lot of investing in different parts of the world.

The panel session was followed by a presentation on Tarfeeh Entertainment City which will be coming up soon. Tarfeeh City will be a place where families, visitors, residents and tourists meet to experience a blend of the old and the new.

Iran Oil Company to produce 160,000 BPD oil by March 2008

Mehr News Agency quoted Mr Alireza Zeighami MD of National Iranian Central Oil Company as saying its oil output will touch 160,000 barrels per day by March 2008.

He added that the hike means more 15,000 barrels when compared to the figure of 145,000 barrels during September and October 2007.

Mr Zeighami further added that NICOC will produce 295 to 300 million cubic meters of commodity by March 2008.

Chinese billet export in 2008 to drop substantially - CISA

According to Mr Qi Xiangdong deputy secretary general of the China Iron and Steel Association higher production cost will lower China's export of steel billets by at least 50% in 2008 and that steel products will also drop by some 1% compared with 2007.

He said that “The reasons for the sharp export drop are price rises for iron ore, coal, charcoal and nonferrous metals. The combined effect of these rises is likely to see costs rise for iron and steel enterprises.”

He added that China's iron and steel industry has acquired the ability to grow in a sustainable way, but the growth rate will continue to slow next year.

By the end of 2007, China's steel output capacity will reach 550 million tonnes while higher cost will shift profits to enterprises with industrial advantages. Possible rises in interest rates and the state's macro control on resources will also impact the export of steel and steel products, the international steel billets market may feel the impact of China's export drop.

Steel market outlook not optimistic next year - NDRC

The National Development & Reform Commission in a latest report said that due to many reasons such as unabated capacity expanding momentum, possible decline in export demand and further rising production cost etc, the 2008 steel market outlook seems not optimistic and the sector's restructuring, energy saving and emission reduction efforts should be strengthened.

In terms of supply, the steel capacity is booming with September 2007 daily steel output indicating an annualized figure of 520 million tonne. And the backward capacity elimination campaign still appears tough despite periodical fruits, for a host of mills continue to open larger projects while closing down small ones.

In terms of demand, though the world and domestic economies keep growing sound and post steely demand for steel products, the nation's export curbing policy sees further fruits emerged. With lessening export, more products will be redirected back to the home market and lend it downward pressure.

From the perspective of cost, iron ore, freight and energy prices are on further increase, adding resource and environment expenses, the whole steel industry is also under heavy stress.

The report says the key point is that overlarge export for the moment has hidden oversupply problem and high expense of resource, energy and environment, while disturbing the backward capacity elimination campaign. This year, incremental steels consumed at home are 16.3 million tonnes less than the same period of last year.

The report also noted that huge export helped the steel supply/demand balance, but in next couple of months, the situation will change with emerging restrictive effects, large amount of resources would flow back and lend pressure on the home market.

(Sourced from MySteel.net)

Coke price to be up by CNY 200 per tonne in Shanxi province

It is reported that the supervising price of coke in province Shanxi in December would be raised again by CNY 200 per tonne than in December 2007. By now coke price in province Shanxi has increased for seven times by CNY 610 per tonne to CNY 64 per tonne cumulatively.

Mr Wu Jingchen assistant of general manager and the director of coke channel of Umetal.com said “The rise of coke price this time is mainly boosted by high cost. Due to the closure of coal industry price of coal is climbing. In addition, the supply of high quality metallurgical coal is short and the transportation cost of coke has also increased.”

The price rise of coke may increase the production cost of downward iron and steel industry substantially. Mr Wu Jingchen expects that the cost of steel production would increase by CNY100 per tonne.

Baosteel Q1 2008 price hike to help stabilize Chinese market

Since Baosteel increased product prices for the first quarter of next year, Chinese steel market prices have witnessed evident rise which is almost across the board. Traders have been upbeat on the future market performance.

Mr Li Zhongshuang GM of Shanghai Ruikun Materials Ltd said that the increase is the signal for upward trend for steel prices in the future and has brought confidence to most market players.

Price for slab and billet is lifted by CNY 200 per tonne from Q4 2007 level, wire rod by CNY 300 per tonne, HR steel CNY 300 per tonne, HR PO CNY 100 per tonne, CR steel CNY 200 per tonne, wide and thick plate CNY 500 per tonne, silicon steel CNY 250 per tonne, Electro Tin Plate CNY 200 per tonne. This shows that Baosteel is optimistic on the market price in early next year and steel makers have to raise prices to offset the rising input cost.

Mr Li Zhongshuang indicated that the Baosteel's ex works price for 3.0mm HRC is CNY 4670 per tonne which compares with spot market price of CNY 4550 per tonne. It is clear that there is still room for further rise. He said that "We have raised our sales prices twice by CNY 80 per tonne following Baosteel price increase. He added that out that transactions are quite good and daily sales volume averages 400 million tonnes to 500 million tonnes. The problem is that there is not enough resources for sales.”

On Shanghai market, commodity grade 4.5mm to 11.5mm HRC is being quoted at CNY 4440 per tonne up by CNY 300 per tonne from end October. Most traders say that they are anticipating further rise in prices following Baosteel's price hike. Meanwhile, CRC price also have witnessed an average rise of CNY 50 per tonne in Shanghai since Baosteel raise its prices. 1.0mm CR sheet by Aashan Steel is being offered at CNY 5250 per tonne, 1.0mm CRC at CNY 5050 per tonne.

Construction steel prices are also continuously on the rise. HRB335 20mm rebar prices have jumped to CNY 4250 per tonne to CNY 4270 per tonne, HRB400 20mm climbed to CNY 4380 per tonne to CNY 4410 per tonne up by CNY 100 per tonne following Baosteel's improvement in prices for next quarter.

(Sourced from MySteel.net)

Chinese coke export regains strength despite the tax hike

China Customs revealed that China government’s move to increase export duty on coke from 5% to 15% as of June 1st 2007 led substantial reduction on coke export volume in June and July 2007 but volumes picked up again in August and September 2007 along with rebounding export prices. Improving coke demand in global market has partially offset the impact of higher export duty and fuelled up the export price in turn.

The coke shipment to other countries has slipped 19.1% to 1.3 million tons in June and further down 25% to 0.98 million tonnes in July 2007 respectively. Meanwhile, the export price has once dropped below USD 200 per tonne during June to July 2007 and rebounded to USD 223.9 per tonne and USD 226.7 per tonne in August and September 2007. The export volume also revived to 1.24 million tonnes in August and 1.47 million tonnes in September 2007.

According to the Customs data China exported 11.73 million tonnes of coke in the first three quarters of this year with a total value of USD 2.15 billion up by 9.6% and 48% from same period of last year respectively. The export price has risen 35%YoY to USD 183.2 per tonne.

China's coke exports to top three destinations have posted notable growth in the first three quarters. Japan imported 2.58 million tonnes of coke from China up by 56.9% YoY, EU imported 2.54 million tonnes down by 23.6%YoY, Brazil imported 1.81 million tonnes up by 71.1% YoY. These three countries have accounted for 59.1% of China's total coke export.

Currently, there are 1400 coke plants in China with a combined capacity of 300 million tonnes. Of this, over 80% are small and medium independent coke producers. Therefore, the authority should tighten the threshold and consolidate the sector.

(Sourced from MySteel.net)

Chinese steelmakers urged to meet international competition

Xinhua reported that China's Iron and Steel Association has urged the State Council to rationalize the industry around the top four manufacturers in hopes of developing world scale companies.

Mr Luo Bingsheng deputy secretary general of CISA said that all the difficulties in the steel industry are directly or indirectly related to the slow pace of mergers and acquisitions. He said that “Reorganization of the industry should be based on the top four companies: Baosteel Group, the Anshan Benxi Steel Company, the Shougang Tangshang Steel Company and Wuhan Iron and Steel Group Corporation.”

China's official industry policy states that by 2010, the crude steel output of the top 10 producers should account for 50% of the total, rising to 70% by 2020. But the recent trend has actually been just the opposite, with figures indicating increased fragmentation. The top 10 steelmakers' share of production declined to 34.66% in 2006 from 46.25% in 2001.

Mr Feng Fei, the industrial economy research department director of the Development Research Center of the State Council, contended that local governments have a vested interest in opposing industry reorganization, since steel companies are among their major tax sources.

Mr Zhao Kun deputy general manager of the Shanghai based Baosteel Group has said reorganization was a key method of dealing with international competition but the government should make the decision and promulgate policies that would support reorganization. He also said the government should help smaller companies to improve their technology levels and production capacity.

While China's steel industry has been decentralizing, its competitors abroad have been banding together. In July 2006, Mittal Steel acquired Arcelor to form the first 100 million ton year steel maker. In February 2007, India based TATA merged with Corus to form the world's fifth largest steel maker.

Wisco’s wire rod gets attestation from Michelin

It is reported that recently, WLX72A wire rod from Wisco has won Michelin Group of France’s global quality attestation. Wisco became one of the few companies in China that gained the attestation.

WLX72A wire rod steel for curtain strand has met Michelin Group’s quality standards and now WISCO is listed in Michelin’s global purchase system.

Since 2002 when the first batch of steel curtain strand delivered to Michelin from Wisco, the company has continued improve the production technology and the quality, meeting Michelin’s requirements and winning praise from the consumer. Now Wisco has become the largest steel curtain strand supplier in China.

Michelin is one of the three largest tyre manufacturers in the world.

Taisteel to cut production of stainless steel in December

It is reported that Taigang plans to cut the stainless steel’s production output in December down by 30% compared with the production in November 2007 .

In order to stabilize the market, the upstream steel plants decreased the supply all along in Q4. Taigang began to cut the quantum in October 2007.

Jinchuan cuts nickel price again in line with global weakness

It is reported that the largest Asian nickel producer, Jinchuan Group, has cut nickel ex works price recently by CNY 8000 per tonne down to CNY 251,000 per tonne while it raised that for cobalt from CNY 578,000 per tonne to CNY 610,000 per tonne.

On the spot market, nickel price also went down with 1# electrolytic nickel traded at CNY 258,250 per tonne in Shanghai dropping CNY 5500 per tonne. It's learned the nickel price on LME has been dipping from USD 31500 per tonne to below USD 30,000, with lowest level touching USD 28700 per tonne a 5% decrease. Recently, the price rebounded to USD 29,000 per tonne following the upward trend of copper and zinc.

The market observers said Jinchuan's price cut may base on the consideration that downward price on LME would trigger more import of nickel and strike the domestic market.

Jinchuan also denied the rumor recently that says it has reduced nickel supply to Baosteel and Taigang as punishment to their underselling of its nickel resource on the market. The company said Baosteel and Taigang are its shareholders and long term partners, who it always pays great attention to ensure the supply to.

(Sourced from MySteel.net)

Shagang and Korea STX ink iron ore transportation pact

It is reported that recently, Shagang International Trading Co Ltd signed 13 year long agreement on Brazilian iron ore transport with Korean STX.

After the signature of the agreement, the company will transport 11.52 million tonnes iron ore from Brazil for Shagang during 2008 to 2020.

Sinotrans plans to acquire smaller rivals for expansion

China Knowledge reported that Sinotrans Shipping Ltd, the third largest dry bulk shipper by capacity in China, is seeking to buy smaller rivals or second hand shipping facilities as part of its expansion strategy.

In line with the objective of expanding its operations, Sinotrans plans to incur approximately USD 3.5 billion in capital expenditure in the following five years, aiming to raise its existing capacity of 2.2 million DWT to up to 7 million DWT.

Mr Zhao Huxiang Chairman of Sinotrans Shipping Ltd said in a recent briefing that "China has many small bulk carrier operators with just several ships, and if opportunities arise we will consider taking over them."

However, shares of Sinotran's slid 13% on its debut trading in Hong Kong recently due to a dip in iron ore and coal freight rates that threatened investors to sell bulk shipping shares. The company is confident that its profit margin will grow considerably in 2008 as dry bulk freight rates have almost doubled this year.

Similarly, Sinotran's IPO sponsors, UBS and BOC International, predicted that the company’s net profit is likely to jump by 15% to USD 137 million in 2007 and more than double in 2008, reaching USD 298.5 million.

Xinjiang Basteel No.1 coke oven under the operation

It is reported that Bagang new area No1 coke oven was succeed in producing high quality coke on November 23rd 2007 after three months of lighting.

As per reports the No1 coke oven is under the operation at present, the No 2 coke oven began to baker on September 20th 2007, No 3 and No 4 coke oven project are under construction.

Finally, the coke production output will reaches 2.2 million tonnes per year.

Hansteel and Baosteel to build plate base in Handan

It is reported that Hansteel and Baosteel will build a 4.6 million tonnes steel plate base at Handan in Hebei province. This is the most important and largest project in Hebei province, the total investment reaches CNY 19.3 billion which is started from April 18th 2006.

At present blast furnace, coking, sintering machine, the raw materials market and steel melting system have started construction. The whole new base will be completely constructed and put into production in 2010.

Shanxi colliery officials jailed over deadly fire

Xinhua reported that three colliery officials were sentenced on recently to three to five years in prison in north China's coal rich Shanxi Province for negligence in connection with a mine accident that left three people dead and 18 missing. The three did not lodge an appeal.

Mr Lin Guangli former deputy head of the Huquangou Coal Mine in Datong's Zuoyun County, Mr Yang Debin former contractor at the mine, and Mr Zhang Ershuan former head of the mine received sentences of five years, four years and three years, respectively.

The China court heard that a total of 42 miners were working in the mine when it caught fire on the night of September 19th 2007 and 24 escaped but 18 others were trapped. Three other miners who attempted to rescue those trapped died in a subsequent underground blast. The 18 trapped miners were never found.

It heard Mr Yang as the contractor in full charge of the mine had failed to ensure safe production. Mr Zhang, as coal mine head had failed to manage and supervise safe production.

According to the verdict "Considering their active efforts to rescue the trapped miners and pay compensation of up to CNY 12.74 million to the miners' relatives, the judges took a lenient attitude in arriving at the sentences."

Investigations found that the fire was caused by a short circuit which was in turn triggered by an underground tunnel collapse. The court heard that Mr Lin as a deputy head in charge of production and safety had failed to eliminate hazards before the accident. The sentence was handed down at the People's Court of the Mining District in Datong City.

China imports 420,000 tonnes of manganese ore in October

According to the statistics, China imported 419,646 tonnes manganese ore in October 2007, decreasing by 28% than 583,546 tonnes in the same time of September 2007.

The import volume has decreased for continuous two months. The average import price was USD 261.38 per tonne.

The details of imports of manganese ore in October 2007 are as under
1. Australia - 211,044 tonnes down by 21.1% YoY
2. Gabon - 80,244 tonnes down by 41% YoY
3. South Africa - 76,379 tonnes down by 41.2% YoY
4. India - 16,173 tonnes up by 60.1% YoY

Liaoning Benxi discovers large iron ore deposit

It is reported that Liaoning Benxi has discovered super large iron ore deposit with over 1 billion tonnes.

As per report its thickness is 157.37 meters with Fe content at 34.68%.

Hansteel new base uses energy saving technology

It is reported that Hansteel new base has adopted world advanced energy saving technology, the total installed capacity reaches 246,000 KW only using CDQ power generation, gas powered generation. The power generation is 1.56 billion degrees per year can meet 66% consumption in new base.

As per reports the total investment of Hansteel new base is CNY 19.368 billion, the main equipment technology reaches advanced level in china and better than Baosteel’s.

TMK installing a new finishing line at Volzhsky Pipe Plant

TMK announced that a new finishing line for casing pipes is being installed at its Volzhsky Pipe Plant subsidiary. This new equipment will be added to the No3 pipe rolling workshop TPC-3 and will have 200,000 tonnes of annual finishing capacity. Commissioning of the new line is scheduled for June 2008.

The equipment will be supplied by IVTWH of Germany, Bronx of USA and EMAG of Germany and installed by Teploenergomontazh of Russia. Over 46 tonnes of equipment has been already installed in the workshop.

Volzhsky’s TCP-3 produces seamless casing and line pipes with diameters ranging from 168mm to 426 mm for use in oil and gas production and in the power industry.

The construction of this new casing finishing line is part of TMK’s Strategic Investment Programme, running up to 2010. The workshop is to undergo further upgrading with the installation of a new 340,000 tonnes per annum heat treatment line and a production line with integrated phosphatising for casing couplings. Hot rolling equipment will also be upgraded and modified to permit the use of round billets, allowing its capacity to be increased to 720,000 tonnes of pipes per year.

Severstal reduces exports to USA in 2007

FIS reported that CherMK Severstal is set to cut the export to the USA because of the low prices in that market.

In 2006, the company exported 587,000 tonnes of products mostly slabs and hot roll to the USA accounting for 20% of its total exports. This year, export to the USA declined to 5% of total exports as European and Middle East's markets are more attractive.

Ukraine to link gas price with gas transit tariffs

Itar-Tass cited Mr Anatoly Kinakh Ukrainian Minister of Economy as saying that Ukraine WOULD link the price of gas imports for 2008 with the transit tariff for the Russian gas, exported to Europe at the talks going on with Russia. He said those two problems are interconnected, and they were given as a directive for our delegation.

According to Mr Kinakh it is necessary “to use to the maximum” the argument that Ukraine is one of the main transit countries for Russian gas and that 70% of Russian gas exports to the European Union go by the Ukrainian territory.

Mr Kinakh stressed that Ukraine should have clear prospects of gas prices for the coming three to four years, in order to ensure a smooth transition of the energy consuming economy to market prices.

He said that Ukraine made a mistake several years ago, when it rejected goods deliveries in payment for the Turkmen gas, thus losing a direct gas contract with Turkmenistan. Another mistake was made, when Ukraine broke the link between the gas price and the transit tariffs for Russian gas exports. Mr Kinakh stressed “Ukraine became an observer at the talks on the gas price. It is of principled importance for us to make Ukraine an equal partner in the tackling of the gas price problem.”

Turkmenistan