December, 15 2007
MSL gets major contract for seamless tubes from US and LA
Maharashtra Seamless Limited announced that it has secured orders worth USD 40 million from United States and Latin America for supply of seamless and higher diameter pipes.
Its release said that “These supplies would support the drilling programs of oil & gas majors in the above region. With the exploration & drilling activities on the rise, the demand for Seamless Pipes is expected to rise significantly and MSL is better positioned to get some major pipes contracts in the coming time.”
It added that “Recently, US authorities have initiated anti dumping duty investigation against Chinese Pipe and have already imposed preliminary countervailing Duty. This would pave the way for better market share in USA for others and Indian players.”
MSL also said that “To meet the customer requirements and to support the export functions, the Company has opened export branch in USA to facilitate better services and customer support to its large base of OCTG and Line pipes customers in USA, Canada and Latin America.”
Sesa Goa eyeing tie ups and JVs in Indian mining sector
ET reported that Indian iron ore major Sesa Goa is looking for tie ups with domestic state run and private steel companies for undertaking their mining operations to tap a major share worth INR 12,000 crore in the iron ore mining market.
The report cited Sesa Goa source as saying that "We are open to tie up with anybody if it makes business sense. The Indian iron ore market is poised to grow bigger and with the government's setting an ambitious target of 200 million tonnes for the steel industry by 2020, we envisage a big market opportunity in the mining sector."
Sources said that Sesa Goa will also be interested in forming JVs with mine owners to develop iron ore mines in the mineral rich states like Jharkhand, Orissa and Chhattisgarh. Sesa Goa enjoys core competence in providing total solutions to those outsourcing their mining operations, including executing turnkey projects exceeding production level of more than 1 million tonne.
Sesa Goa, which has been recently taken over by Vedanta Resources, has invited expression of interest from owners of iron ore mines for undertaking mining operations on their behalf.
The efforts of it assume significance with the likely entry of foreign players who are increasingly evincing keen interest in the domestic mining operations, which is bound to make the market more competitive.
Wildlife Society alleges inadequate EIA for POSCO Port
SNS reported that Wildlife Society of Orissa has alleged that regulatory agencies have relaxed rules to clear POSCO steel plant’s captive port project.
Mr Biswajit Mohanty secretary of Wildlife Society of Orissa said that World Bank is lobbying for the project as the US pension funds and corporate investors have a huge stake in POSCO. He added that the speed at which clearances have been accorded and preferential treatment given to POSCO has raised everyone's eyebrows even within the concerned departments.
Mr Mohanty said that Indian companies face numerous hurdles and delays in obtaining routine clearances for even small projects. Recommendations made by the officials of the ministry of environment and forests at Bhubaneswar to carry out detailed impact studies have been ignored.
He added that “Similarly, the recommendation letter dated June 26th 2007, of the Orissa forest department is full of misleading data. It conceals the fact that the beaches at Jatadhar Muhan are a significant nesting ground for Olive Ridley turtles and has justified the location of the project at Paradeep.”
As per report
1. The Environment Impact Assessment studies are inadequate. Instead of carrying out a study of the offshore sea currents for a period of one year, the study has been made for only 34 days.
2. Dredging of 28 million cubic meters of sand for setting up the Jatadhar Muhan port would be disastrous and would affect the food chain of the Olive Ridley turtles.
Orissa to invest INR 600 crore in power transmission sector
It is reported that Orissa Power Transmission Corporation Limited will invest about INR 600 crore for strengthening of the power transmission infrastructure in the state. Out of the total investment, it will mobilize INR 480 crore or 80% as loan and the remaining 20% from its internal resources.
Mr Surya Narayan Patro energy minister of Orissa said that the state government has agreed to provide guarantee to Power Transmission Corporation Limited for raising the loan amount. Power Transmission Corporation Limited has been instructed to initiate discussion with Power Finance Corporation and Rural Electrification Corporation in this regard.
Mr Patro said that the state government has decided to strengthen the transmission infrastructure to meet the demand of power for rural electrification and the upcoming industries in the state. He added that in addition to the existing transmission lines, 132 KV, 220 KV and 400 KV substations will be set up in different districts with an investment of INR 600 crore.
Fourteen 132 KV sub stations will be set up in Barbil, Purusottampur, Anandapur, Banki, Bhawanipatna, Paradeep, Nuapada, Kuchinda, Chandapur, Padmapur, Boudh and Kalinga with an investment of INR 301 crore.
Similarly, 220 KV substations will be set up in industrial belts like Jharsuguda, Khurda and Bonei in Sundergarh district with an investment of IN R 92 crore. Besides, two 400 KV sub stations will be set up in Sundergarh and Keonjhar involving an expenditure of INR 215 crore.
He further added that the current installed capacity in the state is 2815 MW, 880 MW from thermal sector and 1935 MW from hydel sector. He added that similarly, the state is getting 951 MW thermal power and 75 MW hydro power from the central pool.
National Energy Conservation Day observed
Union ministry of power has organized the annual energy conservation awards function on the occasion of National Energy Conservation Day on December 14th 2007.
Mrs Pratibha Patil President of India has presented the energy conservation awards to 42 outstanding achievements by industrial units, buildings and zonal railways selected from 384 nominations received.
Some of the national energy conservation award winners are
1. Aluminum
1st Prize: Hindalco Industries Limited of Orissa
2nd Prize: Hindalco Industries Limited of Uttar Pradesh
2. Automobile
1st Prize: Mahindra & Mahindra Limited, Zaheerabad unit, AP
2nd Prize: Mahindra & Mahindra Limited, Nashik in Maharashtra
Certificate of Merit: General Motors, Panchmahal in Gujarat
3. Cement
1st Prize: Prism Cement Limited, Satna in Madhya Pradesh
2nd Prize: Shree Cement Limited, Beawar in Rajasthan
Certificate of Merit: Ultra Tech Cement Limited, Hirmi Cement Works of Chhattisgarh
4. Fertilizers
1st Prize: IFFCO Limited, Phulpur Unit-I, Uttar Pradesh
2nd Prize: IFFCO Limited, Phulpur Unit-II, Uttar Pradesh
Certificate of Merit: Coromondal Fertilisers Limited, Visakhapatnam
Godavari Fertilisers and Chemicals Limited, Kakinada in AP
5. Integrated Steel Plants
1st Prize: Jindal Steel & Power Limited, Raigarh in Chhattisgarh
Certificate of Merit: SAIL Rourkela Steel Plant, Orissa
6. Mining
1st Prize: Manganese Ore India Limited, Chikla Mine, Maharashtra
2nd Prize: West Bokaro Division, TATA Steel Limited, Jharkhand
7. Petrochemicals
1st Prize: Reliance Industries Limited Hazira Unit, Gujarat
2nd Prize: Reliance Industries Limited Vadodara Division, Gujarat
2nd Prize: Indo Rama Synthetics India Limited, Maharashtra
8. Refinery
1st Prize: Hindustan Petroleum Corporation Limited Vizag Refinery, AP
2nd Prize: Numaligarh Refinery Limited, Guwahati in Assam
Certificate of Merit: Indian Oil Corporation Limited, Guwahati in Assam
9. Steel Re Rolling
1st Prize: Jindal Stainless Limited (cold rolling division), Haryana
10. Zonal Railways
1st Prize: Western Railway, Churchgate, Mumbai in Maharashtra
2nd Prize: North Eastern Railway, Gorakhpur in Uttar Pradesh
Certificate of Merit: North Western Railway, Jaipur in Rajasthan
Certificate of Merit: South Central Railway, Rail Nilayam, AP
The awards are recognition of the demonstrated commitment to energy conservation and efficiency. These units have collectively invested INR 2923 crore in energy conservation measures, and achieved an annual monetary savings of INR 1843 crore, implying a payback period of 19 months and an avoided thermal generation capacity of 308 MW.
CCEA approves berth development at Mumbai Port
Cabinet Committee on Economic Affairs gave its approval for development of berths along the harbor wall for the Mumbai Port Trust on December 13th 2007. The project will entail an investment of INR 353 crore.
The project also includes construction of deepening of berth pocket and navigational channel, strengthening of the existing berths, 6 electrical wharf cranes and other cargo handling equipments. Work on the project is likely to be completed by February 2010.
Jindal Drilling to sell 10.5% stake to Citigroup
Jindal Drilling & Industries Ltd announced that it will raise INR 1.54 billion after its board approved issuing 1.2 million shares to Citigroup at INR 1,280 each for a 10.5% stake.
As per report, the funds will be used for CAPEX and business plans.
Jindal Drilling & Industries Ltd's board also approved acquiring 49% in Singapore based Virtue Drilling Pte Limited.
Sterlite moves to SC for mining permission in Orissa
It is reported that Vedanta Resources’ Sterlite Industries has moved to Supreme Court seeking permission to mine bauxite for its proposed INR 4,000 crore aluminum project to be set up in collaboration with the Orissa government.
A special bench comprising Chief Justice KG Balakrishnan, Justice Arijit Pasayat and Justice SH Kapadia deferred the matter till January 2008.
Mr KK Venugopal Sterlite counsel said that it is ready to follow all the conditions imposed by the court for going ahead with mining activities in the virgin Niyamgiri hills of Orissa.
It is noted that Supreme Court had last month declined permission to Vedanta Alumina, the local unit of Vedanta Resources, to mine bauxite for its aluminum project in Orissa, but left the door open for Sterlite Industries to extract the mineral in collaboration with the state government. It also directed that the Orissa government in collaboration with Orissa Mining Corporation and Sterlite will have to set up a special purpose vehicle to take up the scheduled area development.
Stating that Sterlite will have to contribute in terms of money and employment, the Supreme Court has asked it to keep aside 5% of its net profits from its mining activities all over India or INR 10 crore, whichever is higher, for tribals and shell out INR 50.5 crore towards wildlife and INR 12.5 crore towards tribal development. Besides, Sterlite should give details about the number of people to be given employment and the state government will have to stand by the project in case Sterlite backs out.
Jharkhand HC asked centre to clarify on power supply
Ranchi Express reported that Jharkhand High Court has sought the central government's clarification on why 267 MW of electricity supply, as per the agreed existing quota, should not be made from the central pool to Jharkhand.
A division bench comprising Chief Justice M Kargavniyagam and Justice DK Sinha has directed the central government to file an affidavit in this connection and posted the matter for further hearing on January 7th 2007.
The court also directed the centre to furnish information regarding the steps taken by it to enhance power supply from the stipulated 267 MW to 517 MW.
NELP VII invites global bids for 57 blocks
Mr Murli Deora union minister of petroleum & natural gas has launched the 7th round of New Exploration Licensing Policy inviting global competitive bids for blocks on offer. Mr Deora said the bid closing date for NELP VII is April 11th 2008 and reiterated that the government is committed to complete evaluation, award and signing of production sharing contracts in a strict time frame.
Mr Deora said that NELP VII is offering 57 exploration blocks worth USD 3.5 billion covering a sedimentary area of about 171,000 square kilometer. The offered blocks include 19 deepwater blocks, 9 shallow water blocks and 29 on land blocks. He added that the present offer has been made with a view to consolidate the experiences and advantages gained in the first 6 rounds in which 162 exploration blocks were awarded under a transparent mechanism.
The followings are the highlights of NELP VII
1. Blocks have been divided into 3 categories, Type A, Type B, Type S on the basis of geological perceptions, size of the blocks and tailor made bid evaluation criteria framed accordingly
2. For onland and shallow water blocks or Type A & Type B, technical capability is the qualifying criterion. In case of Type S onland blocks, bid evaluation will be made on work program and fiscal package parameters only
3. In order to attract multiple and experienced players in deepwater, the concept of consortium under the heading of technical capability for deepwater blocks only is introduced, where experienced companies in deepwater exploration being operator of the block and bidding for NELP deepwater blocks along with other Indian companies will be benefited with an additional 10 points
4. Mandatory 2D seismic is only for 23 exploration blocks, out of 57 blocks
He further informed that the exploration work is progressing well in the NELP blocks with 49 oil and gas discoveries already made in 15 exploration blocks with 5 blocks in NELP I, four blocks each in NELP II and NELP III, and two in NELP IV.
Lanco signs power supply deal with Haryana and MP
BL reported that Lanco Infratech, which is in the process of setting up a 2,640 MW coal based power plant at Talcher in Orissa, has secured a mandate for supply of 390 MW of power to Haryana and 600 MW to Madhya Pradesh.
The power supply agreement with Haryana has been struck at INR 2.35 a unit including 35 paise for transmission, while for Madhya Pradesh, Lanco has finalized for INR 2.32 a unit including 32 paise for transmission.
The proposed INR 1,000 crore Talcher project will have 4 units of 660 MW each, based on supercritical technology. It will be implemented with a debt equity ratio of 70:30 and financial closure is expected by March 2008. Work on the project is scheduled for completion by March 2012.
WB plans INR 2,200 crore vendor park for TATA car
BS reported that West Bengal government is planning to set up a 100,000 cars park with an investment of INR 2,200 crore. Around 55 vendors had been roped in for the project, of which 54 would be making an entry into Bengal with the small car project.
Mr Nirupam Sen commerce & industry minister of West Bengal said that the land for the project of TELCON’s earth moving equipment facility in Bengal had also been acquired. TELCON is promoted by TATA Motors.
The lease agreement was signed between TATA Motor and the state government. The total investment, including the vendor park, will be around INR 1,100 crore. Hitachi, a 40% partner in TELCON, would be setting up a R&D facility near the project site, which would be a global hub for Hitachi.
Videocon Industries to combine energy ventures
ET reported that Videocon Industries will spin off its different energy units namely Videocon Conventional Energy, Videocon Coal Reserves, Videocon Global Hydrocarbons, Videocon Green Energy Ventures and Videocon Hydro Carbons into a separate company called Videocon Natural Resources Limited to help unlock shareholder value.
Videocon Natural Resources Limited will be an independent energy company with a large and growing presence in conventional and non conventional energy. Its assets will include oil and gas blocks in Brazil and East Timor, coal blocks in Indonesia and other conventional and non conventional energy assets in India and the world. Videocon Natural Resources Limited will identify and spearhead strategic acquisitions in the space of natural resources and oil & gas, which will also help the company strengthen its management team and portfolio of assets Videocon Natural Resources Limited is also likely to seek JV partnerships with a large global energy entity.
Mr Venugopal Dhoot chairman of Videocon said that “There is tremendous growth opportunity in the energy space, both globally and in the domestic market and we want to be a part of it.”
Videocon’s power projects include Goa Energy, mega power projects in Gujarat and West Bengal while coal projects include a coal mine in West Bengal and 51% of a large coal block acquired in Indonesia. It has 14 oil blocks in Oman, Brazil, Australia and Timor Sea. Other energy ventures are the solar energy projects in Mexico, India and Europe.
ONGC seeks rig from global oil firms for KG block work
ET reported that Oil & Natural Gas Corporation is in talks with global oil firms StatOil, Norway’s Norsk Hydro among others to secure an ultra deepwater rig for drilling in well UD1 in Krishna Godavari basin block KG DWN 98-2. It has so far been unable to secure an ultra deepwater rig in the international market even after willing to pay higher prices.
A senior ONGC official confirmed of having had a talk with global oil firms to secure an ultra deepwater rig for drilling UD 1 well in the KG basin. He said that “We know that there is gas but cannot prove it unless we drill more and we do not have rigs for that. We are also willing to offer stake in the block.”
ONGC had informed the upstream regulator, directorate general of hydrocarbons of this commercial discovery. It had claimed reserves of between 2 trillion cubic feet to 14 trillion cubic feet. However, ONGC’s claims were refuted by directorate general of hydrocarbons’ office on technical grounds. ONGC was asked to drill more wells to prove the extent of its reserves. ONGC does not have an ultra deepwater rig to drill further and prove its discovery.
ONGC now plans to develop other discoveries in the block, claiming that these discoveries hold a potential of over 6 trillion cubic feet of gas. The cost of developing this discovery is about USD 5 billion and commercial production of this is likely to begin in 2011.
IOC OIL combine win 3 onshore oil blocks in Libya
ET reported that Indian Oil and Oil India combine has won 3 onshore oil blocks in Libya besides the 2 blocks it already had. IOC OIL teamed up with Sonatrach of Algeria to win blocks 1, 2 and 3 in contract area 95, 96 in the Ghadames Basin.
In the previous Libyan licensing round, IOC OIL combine had been disqualified from bidding but in the latest round as investors. They teamed up with Sonatrach, which will be the operator of the blocks. IOC OIL combine had in 2005 won 7,087 square kilometer block 86 and 2,710 sq kilometer block 102/4. Both hold 50% stake in each and OIL is operator for both.
Sources said that OIL IOC and Sonatrach will now sign an exploration and production sharing agreement with the National Oil Corporation of Libya. Sonatrach will be the operator of the blocks won in this round.
Libya auctioned exploration permits in the central, western and southern desert, in its first licensing round in potentially gas rich areas. Russia's Gazprom joined Shell, Algeria's Sonatrach and Polskie Gornictwo Naftowe Gazownictwo SA of Poland in winning four of 12 licenses on offer.
Vale suspends iron ore loading at CPBS terminal in Itaguaí
Companhia Vale do Rio Doce announced that, due to an accident with a ship in its Itaguaí maritime terminal in the Brazilian state of Rio de Janeiro, it has suspended iron shipments in this terminal. The stoppage of Itaguaí represents an average daily loss of the Vales shipment of 60,000 tonnes of iron ore.
On December 8th 2007, a vessel hit a berthing dolphin at Companhia Portuária Baía de Sepetiba port terminal located in the municipality of Itaguaí in Rio de Janeiro state. The berthing dolphin was damaged and iron ore shipments from Vale and other mining companies which use the same terminal were suspended.
Vale has informed the local authorities and CPBS has declared force majeure. The other terminals continue to operate normally. Vale will try to reallocate shipments that have not been made.
On December 15th 2007, CPBS will carry out tests to resume shipments and, if everything goes well, operations at the port terminal will resume on a provisional basis as earliest as December 15th 2007 but repair works at the terminal will take 30 to 40 days, which will start immediately.
Companhia Portuária Baía de Sepetiba is the smallest of Vale's four port terminals for iron ore shipments with annual shipload capacity of 25 million tonnes of iron ore, Vale also operates the Ponta da Madeira maritime terminal, in the Brazilian state of Maranhão, Guaíba Island maritime terminal, in the state of Rio de Janeiro, and Tubarão Port, in the state of Espírito Santo.
ThyssenKrupp start up new steel BF in Duisburg
ThyssenKrupp Steel AG announced that it has started up its new blast furnace 8 in Duisburg on December 13th 2007. The new unit is part of a EUR 340 million program to secure hot metal production for the company's German plants. Blast furnace 8 will produce around 5,600 tonnes of hot metal per day.
The blast furnace was completed earlier than planned. Reckoned from the date the building permit was issued the construction period was only 28 months.
On its nine square kilometer site in Duisburg ThyssenKrupp Steel operates four blast furnaces which produce around 11.5 million tonnes of hot metal per year. Blast furnaces Schwelgern 1 and 2 are among the biggest of their kind in the world. The new blast furnace 8 replaces blast furnace 4, built in 1963, which will serve as a spare in the future. The blast furnace program also includes the extensive modernization of the existing blast furnace 9. Furnaces 8 and 9 will be operated as twin units with common control and raw material supply systems.
ThyssenKrupp Steel has invested EUR 250 million in the construction of blast furnace 8 alone. Around 80 million, almost a third of the total investment, was spent on pollution control equipment. All emissions are below the limits set by the relevant environmental standards. In terms of dust emissions, blast furnaces 8 and 9 will be more than 20% below the previous figures for blast furnaces 4 and 9. Noise emissions have likewise been significantly reduced. Another special feature is the color design of the new blast furnace, changing from black at the top first to orange and then to yellow, reflecting the temperature changes inside the furnace. The color scheme was developed by ThyssenKrupp Steel in association with the renowned color designer Friedrich Ernst von Garnier.
BHPB bid for Rio - Fund managers expect sweetened bid
With the increase in skirmishes between BHP Billiton and Rio Tinto this week, fund managers are hoping for sweetened bid from BHP and believe this may be the final push needed to get Rio's board to engage in talks.
Rio Tinto applied to the UK Takeover Panel to impose a deadline on BHP's unremitting calls for merger talks this week banging, which will give BHP six to eight weeks to raise its proposal enough to get Rio engaged or go hostile or walk way and not bid for at least six months. BHP hurriedly convened a media and investor presentation in London at which Mr Marius Kloppers CEO of BHPB responded by reiterating his already rejected 3 for 1 offer.
Mr Tim Barker resources funds manager with BT Financial Group said "The bottom line is that the two companies should be talking to each other, so perhaps locking the door is not the best thing for Rio to do, but then being obstinate perhaps is not the best decision on BHP's part.”
According to Perennial Growth Management partner Mr Ken West the key for a significantly increased BHP bid will depend on shareholders' view of the long term benefits of a merger. He said “ higher bid would be depressive in terms of returns on investment, but if we can see it being strongly accretive in the medium to long term, that would be something we'd take account of.”
The encouragement for BHP is that with 60% to 70% of Rio's shareholders also having shares in BHP, shareholders are keen for a merger to be at least actively explored.
POSCO cuts monthly SS output by 20%
Reuters reported that POSCO has started in early December to reduce monthly stainless steel output by 20%, responding to slower demand. A POSCO company official said that the monthly reduction of around 130,000 tonnes would continue to early next year. He added that "Chinese and European stainless steel makers are also trimming output. We have no choice.”
POSCO in a statement said that it will also cut prices of stainless steel products by about 10% per tonne effective from December 17, with 300 grade hot rolled stainless steel products falling to KRW 3.40 million (USD 3,669) per tonne from KRW 3.80 million. It added that the price of 300 grade cold rolled stainless steel will be cut to KRW 3.67 million from KRW 4.07 million.
The moves come after customers have delayed orders for stainless steel, anticipating that prices would fall further due to tumbling nickel prices, a key input in the alloy. The report cited an official as saying that "Volatile nickel prices and concerns over global economic growth have hit the stainless steel market again."
POSCO had already cut stainless steel output by 135,000 tonnes for the third quarter. It produces around 2 million tonnes of stainless steel a year.
Hot band spot prices move up across globe in the last fortnight
SteelBenchmarker reported that the US hot rolled band spot price for December 10th 2007 surged by 1.8% to USD 606 per ton on FOB basis after 3 consecutive rises, world export HRB price rise by 1.2% to USD 588 per tonne FOB the port of export for the second consecutive time, Chinese HRB ex works price up by 6% to USD %529 per tonne for the third consecutive time and the Western European HRB down by 0.4% to USD 675 per tonne ex works, after two consecutive rises.
USA
USD 606 per metric ton FOB
Up by USD 11 per ton from USD 595 two weeks ago
Up by USD 46 per tonne from the recent low of USD 560 (USD 508 per net ton) on August 13th 2007
Down by USD 24 per tonne from the recent high of USD 630 on April 9th 2007
China
USD 529 per metric ton, ex works
Up by USD 30 per tonne from USD 499 two weeks ago
Up by USD 59 per tonne from the recent low of USD 470 on October 22nd 2007 previous low was USD 402 on July 9th 2007
Up by USD 42 per ton from the previous high of USD 487 on September 10th 2007
Western Europe
USD 675 per metric ton ex works
Down by USD 3 per ton from USD 678 two weeks ago
Down by USD 21 per ton from the recent high of USD 696 on June 11th 2007
Up by USD 12 per ton from the recent low of USD 663 on July 23rd 2007
World Export Price
USD 588 per metric ton FOB the port of export
Up by USD 7 per ton versus USD 581 two weeks ago
Up by USD 38 per ton from the recent low of USD 550 on July 23rd 2007
Down by USD 8 per ton from the recent high of USD 596 on March 26th 2007
SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar, and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.
Mexican steel price may increase by 8% next month
YIEH reported that Mexican steel price are expected to rise an average of around 5% to 8% next January.
Mexican steelmakers said that they consider the American steel mill should be able to raise the price from next month. Mexican domestic price will be rise, because American mills are very high occupation rate of market in Mexico.
The trader claims to drop with the import volume, the stock in Mexico is reducing too, steel consumption is likely to recover. It added that this kind of situation will contribute to domestic steel mills raising the price, but at present, there is not steel mill has any tendency.
Earlier this week, Mexican flats and longs producer Ahmsa said Mexico’s allover steel price will go up by about 30% in next month.
JFE to make coated steel sheets in Thailand
Japan Today reported that JFE Steel Corp plans to launch production of hot dip zinc coated steel sheets for use in automobiles in Thailand.
The report quoted Mr Hajime Bada president of JFE as saying that a unit of JFE Holdings Inc will spend about JPY 20 billion to JPY 30 billion on the project, apparently aiming to start operations by 2010 with an annual production capacity of 400,000 tonnes.
Mr Bada said the “Thai government has asked his company to invest in a project to construct a blast-furnace steelworks. JFE replied it is interested in the project. He added that the company will consider the possibility of investment after assessing infrastructure and other conditions.
Mr Bada also said his company will positively consider building a production facility in Thailand for coated steel sheets for automobiles.
Baffinland inks long term iron ore supply pact with ThyssenKrupp
It is reported that Baffinland Iron Mines Corporation has forged a tentative agreement to sell up to 3 million tonnes per year of iron ore to Germany's ThyssenKrupp Steel AG. Financial terms of the letter were not disclosed, but it represents about 15% to 20% of the potential initial output of the Mary River iron ore project on Baffin Island in Nunavut.
In the letter, ThyssenKrupp said it is interested in purchasing on a long term basis up to 2 million tonnes of lump and 1 million tonnes of fine ore per year beginning in 2014.
Mr Gordon McCreary CEO of Baffinland Iron Mines Corporation said "Baffinland is moving forward towards production and unlike those letters of intent signed with trading companies by aspiring iron ore producers, this is our first letter of intent with an end consumer of iron ore. ThyssenKrupp has reviewed Baffinland's comprehensive metallurgical database and we believe that they view Mary River iron ores as long term consistent and predictable, high quality feeds for their blast furnaces."
Baffinland hopes to see initial production of 18 million tonnes per year from Mary River. The project is looking to sell 16 million tonnes of its lump and fine iron ore into the European market and the rest into others. Japan's Mitsubishi Corp. has marketing rights for up to 1 million tonnes to be sold into the Asian market for the first 10 years of commercial production.
Finland to sell its stake in Outokumpu and Ruukki
AP reported that Finnish lawmakers have approved a bill allowing the government to sell its 30% stake in metals group Outokumpu Oyj and relinquish ownership of Rautaruukki Oyj.
The bill is in line with the government's policy of gradually reducing its ownership of several of the 19 companies in which it holds a major interest.
Last year, the government reduced its ownership in Outokumpu, the world's 2nd largest stainless steel maker, by more than 7%, selling shares worth nearly EUR 300 million.
It also has a 39% stake in Rautaruukki, which supplies metal based components for the construction and mechanical engineering industries.
CSC denies revived rumors of merger with Dragon Steel
It is reported that China Steel Corp has denied a local report that said it plans to merge with its Dragon Steel Corp unit.
Dragon Steel is building its first production facility a high furnace and hot rolled steel mill with annual capacity of over 2.5 million tonnes.
The parent company said it is actively assisting in the project because its early completion will boost the China Steel group's overall competitiveness. It added that the Dragon Steel project is part of more than TWD 200 billion in investment designed to push the China Steel group's capacity to 20 million tonnes in the next few years.
Indonesian coal export in 2008 estimated at 179 million tonnes
Platts reported that Indonesia is expected to up its total coal exports in 2008 by 8.5% to 179 million tonnes.
The report quoted Mr Jeffrey Mulyono chairman of the Indonesian coal producers association as saying that Indonesia's coal production next year is estimated to increase by 9% to 234 million tonnes. He added that "It is much higher than the government's estimate, as producers wants to benefit from the increasing coal demand from foreign buyers.”
Mr Mulyono said that 55 million tonnes from an anticipated production total of 234 million tonnes next year would be allocated for the domestic market. The remaining 179 million tonnes will be allocated for the export market.”
Mr Mulyono said that "Domestic coal demand has yet to be increased significantly in 2008. It is only raised by 10% next year. However, domestic coal use will increase tremendously in 2009 and 2010, following the crash power program. At that time coal export volume may be reduced.”
Meanwhile in 2007, Indonesia's domestic coal needs are expected to use 50 million tonnes, while exports should account for 165 million tonnes, according to the chairman of the Indonesian coal producers association.
Pluton Resources gets exploration license for Irvine Island iron ore
ABC News reported that a Melbourne resource company Pluton Resources has secured an exploration license allowing it to search for iron ore on Irvine Island, north east of Broome in northern Western Australia.
Pluton Resources signed a native title heritage protection and exploration agreement with the Mayala people earlier in the year. It has been waiting several months for the Kimberley Land Council, which represents the traditional owners, to sign off on the exploration licence.
Mr Tony Schoer managing director of Pluton Resources said that the Kimberley Land Council has now agreed to the conditions of the licence. He added that the next process will involve liaising with the Environmental Protection Authority.
Philippine’ Power Corp issues tender for thermal coal purchase
It is reported that state run Philippines' largest power producer National Power Corporation has issued tenders for purchasing of 1.08 million tonnes of coal with a total budget of USD 78 million for its three remaining coal fired power plants for next year. A pre bid conference is on December 19th 2007 and the bid opening date is on January 3rd 2008.
The tenders contained in three separate bid invitations are for 6 lots of 65,000 tonnes of coal for the Sual plant with an approved budget of PHP 1.16 billion and 6 lots of 65,000 tonnes of coal for the Pagbilao plant at a budget of PHP 946 million. The tender notice on Napocor's Website also showed it is seeking to buy 300,000 tonnes of coal locally for its Naga Cebu plant with an approved budget of PHP 1.15 billion. No delivery period was specified.
Napocor said that Masinloc and Calaca will need 1.67 million tonnes of coal next year.
National Power Corporation is left with three coal run plants after it sold its Masinloc and Calaca plants to private investors this year, as part of a government privatization program. The government expects to turn over the 600 MW Masinloc coal fired plant to Singapore's AES Transpower Pte Ltd before the end of the year and the 600 MW Calaca plant to Suez Tractebel, a unit of France's Suez Tractebel, early next year.
Larox to supply iron ore filters to MMX Minas Rio
Finland’s industrial filters manufacturer Larox has won an order to supply filters for use in iron ore filtration at the Minas Rio System project in Brazil. The contract, placed by MMX Minas Rio Mineracao SA is worth EUR 19.5 million and is Larox's biggest to date. Delivery will be in three phases during the years 2008 and 2009
The MMX Minas Rio System has estimated iron ore reserves of 2 billion tonnes in the state of Minas Gerais. It plans to transport iron ore output of the mine by the world's largest ore pipeline, designed to carry 26.5 million tons iron ore a year and running some 525 kilometers between the inland ore beds and the Açu Port Complex being built on the Rio de Janeiro State coast.
The system is expected to start operations during the second half of 2009, when it is expected to handle eight million tons, rising to 20 million tons in 2010 and topping 26 million tons by 2011.
Fire at another ThyssenKrupp plant in Italy
Reuters reported that a fire broke out at a ThyssenKrupp plant in Italy on Friday, just over a week after a blaze killed four workers at another company site, but the fire was put out with no injuries or damage.
A firefighters said that a exterior dust filter caught fire at a service centre at the German steel maker’s plant in Terni about 70 kilometer north of Rome, about 5:30 AM and was quickly controlled.
Earlier on December 6th 2007, a fire at a ThyssenKrupp plant in Turin, in northwest Italy, killed four workers and injured three.
Minnesota unions to build SDI iron nugget plant in Minnesota
Duluth News Tribune reported that a project labor agreement that guarantees the use of local union labor for construction of the world's first commercial iron nugget plant has been reached between Steel Dynamics Inc and Northeastern Minnesota labor unions. Steel Dynamics of Fort Wayne hopes to have a 500,000 tonnes per year nugget plant operating at the site by mid 2009.
The agreement ensures that all of the work to build the USD 235 million nugget plant near Aurora and Hoyt Lakes will be done with local union labor.
Mr John Grahek president of the Iron Range Building Trades said that "It is going to be an all union job and it will put a lot of local people and contractors to work. It is going to mean 1 million man hours of work. And they have a seven year plan, from what I understand, in which they could possibly add two other nugget modules."
Mr Grahek said that construction on the plant's initial module is already under way. He added that with the agreement, about 500 construction workers including electricians, plumbers, carpenters, pipe fitters and laborers are expected to be at work at the site this spring.
Mr Steve Rutherford, operations manager of the nugget plant said the agreement establishes the rules of engagement surrounding construction of the plant.
Last week, Steel Dynamics closed a deal with Cleveland Cliffs to acquire about 6,000 acres of land at the nugget plant site.
Wire rod export prices to US soaring
YIEH reported that European and Turkish export prices of rebar increased by USD 11 per tonne and the prices of wire rod reached USD 694 to USD 717 per tonne in last week.
The report further added that the wire mesh price also raised to USD 735 to USD 755 per tone and China has stopped exporting wire rod to the US now, due to strong domestic need and high costs of freight.
A trader said that Chinese new prices may come under pressure because China government may apply adjust its export taxes again soon. China’s export is believed to be reduced.
Morgan Stanley to arrange finance for Guatemala nickel project
Metals Insider reported that Canadian listed junior Skye Resources has retained Morgan Stanley & Co as the lead arranger for all financing relating to the development of its Fenix ferronickel project in Guatemala.
Skye in a statement said that “Morgan Stanley and Skye are advancing the debt financing arrangements for the project, with the objective of having the project fully funded in early 2008.”
Fenix will produce around 22,300 tonne per year of nickel in ferronickel once at full capacity. The first 11,200 tonne per year stage is due to enter production late 2009.
Fitch raises ArcelorMittal's long term IDR outlook to positive
Thomson Financial reported that Fitch Ratings has raised its outlook on 'BBB' long term issuer default rating of ArcelorMittal SA to positive from stable, reflecting its view that the group's scale and diversity, combined with current developments to strengthen its operational profile should enable it to record more stable financial performance relative to industry peers in coming periods.
Fitch said that “Evidence of more stable relative operational performance, together with satisfactory progress of major development projects, could lead to an upgrade of the group's ratings.”
The ratings agency affirmed the company's long term IDR and senior unsecured debt at BBB and short term IDR at 'F2', citing ArcelorMittal's scale as the world's largest steel producer with significant product and geographic diversity, a comparatively high level of raw material ownership and low to medium overall production costs as factors supporting the ratings.
Fitch said that the ratings are also supported by AM's strong cash flow generation, which is likely to continue to be sufficient to internally fund future CAPEX and dividend and share buyback payments.
BHPB continues share buy back program
BHP Billiton said that, since the announcement of November 8th 2007 concerning market speculation in relation to the proposal for a potential combination between BHP Billiton and Rio Tinto, BHP Billiton Limited has continued to buy back ordinary shares in BHP Billiton Plc on the London Stock Exchange, as disclosed by BHP Billiton in daily announcements to the market.
BHP Billiton confirmed that these purchases have been made by an independent third party on behalf of BHP Billiton under an irrevocable mandate. The mandate ended today and BHP Billiton will suspend the program of buying on market ordinary shares in BHP Billiton Plc as was announced on February 7th 2007 from the expiry of the mandate until further notice.
REL emerges as qualified bidder for Bahrain power project
PTI reported that Mr Anil Ambani led Reliance Energy Limited has emerged as a qualified bidder for setting up a USD 1 billion gas based power project in Bahrain, which would also include a desalination plant.
The report said “Reliance Energy has emerged as one of the qualified bidders for setting up a 1,250 MW project in Bahrain.”
Rebar prices in MEA likely to go up
It is reported that, after Arcelor Mittal announcement to raise price of rebar from January 2008, the price of rebar will reach USD 700 per tonne in Turkey.
It is noted that Arcelor Mittal plans to rise USD 30 per tonne for rebar and wire in Turkey, Middle East, black sea, North Africa, North America and Mediterranean Sea market on next quarter.
The market analyst said that the rebar rise will also cause the price rise of flat steel.
Pakistan’s cement consumption to reach 36 million tonnes by 2012
Pakistani daily The News reported that cement consumption in Pakistan is expected to increase from present 21 million tonnes to 36 million tonnes by 2012 while exports would touch 12 million tonnes from present export volume of 3 million tonnes.
Mr Husnain Ahmad president of Pakistan Engineering Council said that Pakistan is way behind developed countries in use of cement for construction purposes. However he added the cement consumption is increasing rapidly in the country. Pakistan’s cement consumption has doubled from 10 million tonnes in 2000 to 21 million tonnes now and is expected to increase by another 15 million tonnes in next 5 years.
Mr Ahmad said that it was commendable that the local cement industry has regularly increased its production capacity much above the local demand and cement exports have already reached 3 million tonnes. He added that exports are likely to increase by another 10 million tonnes on the strength of demand from neighboring countries of Afghanistan and India.
He further added that Pakistan’s cement production capacity would reach 54 million tonnes in next 5 years that would be higher than the combined domestic and export demand.
Oman Oil may raise stake in refinery in India
BS reported that Oman Oil Company is planning to increase its stake in Bharat Oman Refinery Limited, which is building a 6 million tonnes per year refinery at Bina in Madhya Pradesh, which is scheduled to be completed in December 2009.
Mr Ahmed Al Wahaidi CEO of Oman Oil said that “We are evaluating this project to possibly increase our share in the Bina refinery. We will take a final decision by the first quarter of 2008.”
Mr Wahaidi said that Oman Oil was in talks with companies such as Reliance Industries, GAIL India and the TATA Group for exploring investment avenues in energy related projects. He added that “We are discussing some general opportunities with Reliance Industries, while our subsidiary Takamul is in talks with the TATA Group for setting up soda ash and industrial salt plants in Oman.”
Mr Ashok Sinha CMD of Bharat Petroleum Corporation, which is Oman Oil’s partner in the Bina refinery, said that “We are still to take a decision on the public offer. It has to be taken up by the board first.”
If Oman Oil increases its stake, BORL’s public offering may not be needed as it has already raised money through debts and plans to raise more through financial institutions.
Inflation to plague Gulf in 2008
According to a Reuter’s poll, Saudi Arabia is the only Gulf Arab oil producer to face accelerating inflation in 2008 with prices rising twice as fast as they did last year, spurred by rents and a dollar pegged currency. As per poll result, inflation in Saudi Arabia's 5 Gulf neighbors will ease only slightly in 2008, mostly from near record highs, with region's central banks constrained in the battle to contain rising prices by the need to maintain links to the weak dollar.
According to the poll, average inflation in Saudi Arabia will rise to a 4.1% in 2008 from 3.8% this year. Inflation was 2.21% in 2006. UAE inflation will accelerate to 10.1% in 2007 before easing to 8.9% in 2008. Qatar will still have the Gulf's highest inflation rate, although it will slip from a record 12.2% in 2007 to 10.7% in 2008. Oman’s inflation will fall to 3.9% in 2008 from 4.4% in 2007. Kuwait cited inflation as the main reason for its decision to sever its dollar peg in May 2007 and track a currency basket. Average inflation in Kuwait will fall to 4.3% in 2008 from 4.4% in 2007. Inflation in Bahrain will be 3.2% in 2008 and 3.3% in 2007.
Mr Marios Maratheftis regional head of research at Standard Chartered Bank said that "The inflation outlook is bleak for the entire region. Capacity constraints from the housing market will begin to ease slightly next year, but even where inflation is easing in Qatar and the UAE, it is easing from a high base."
Prices across the Gulf region is rising at their fastest pace this decade, spurred by economic growth and government spending of windfall revenue from a near fivefold increase in crude prices since 2002. Inflation is stirring discontent among migrant labor, which dominates the Gulf's workforce, forcing governments to intervene in markets, and firing investor speculation that central banks will eventually unshackle currencies from the dollar.
Iran proposes to set up oil refinery in Sindh
The News reported that Mr Massoud Mohammad Zamani Iranian Consul General in Karachi has expressed Iran’s interest in setting up an oil refinery in Sindh.
During the meeting with Mr Abdul Qadir Halepota caretaker chief minister of Sindh, Mr Zamani has discussed investment opportunities in the area of livestock, cement and construction of hotels and commercial complexes in Sindh. He stressed the need for exploiting potential in trade, commerce and industry between Pakistan and Iran and said both the nations should take maximum advantage from the business ties and relations between Tehran and Islamabad.
Mr Halepota thanked Mr Zamani for presenting proposal regarding establishment of oil refinery in Sindh and assured him of taking up the matter with the federal government. He expressed the hope that if materialized, the said project will bring prosperity and generate innumerable job opportunities for the people of Sindh in particular.
During the meeting, other matters of mutual interest ranging from age old fraternal ties between the two brotherly Islamic countries in all spheres of life including arts, culture and heritage also came under discussion.
Gulf Finance inks deal for USD 10 billion economic zone in Mumbai
Bahraini Islamic investment Bank Gulf Finance House announced that it has signed a deal to develop a USD 10 billion economic development zone near Mumbai to tap booming sectors such as energy and telecommunications.
The zone, located in an area of 1,600 acres alongside the Mumbai to Pune expressway, will include an energy city, a hub for the oil and gas industry in Maharashtra state. It will also house a telecom city, a software city and an entertainment city.
Mr Esam Janahi chairman of Gulf Finance House said "The opportunities that India offers within infrastructure and its allied sectors such as energy, software and telecommunications, are tremendous.”
The bank in October 2007 had said that it raised USD 630 million for an Indian infrastructure project and said it would seek more cash for other investments.
Dubai plans credit insurance scheme for exporters
Mr Khalid Al Kassim chairman of Dubai Export Development Corporation recently said that it will implement a credit insurance scheme for exporters within the next few months.
Mr Al Kassim said that the new scheme is one of a number of initiatives being planned by the DEDC to effectively deliver value added trade support services for Dubai exporters.
He added that "The credit insurance scheme for Dubai exporters which will act almost as a factoring service and ensure prompt payment."
Abu Dhabi industrial output reached AED 92 billion in 2006
According to the primary data carried out by Industrial Survey Abu Dhabi, the total value of industrial output in Abu Dhabi was as high as AED 92 billion during 2006, while value addition of AED 48 billion was also made by a total of 4634 industrial units.
The total production value in 2006 was worth AED 91 billion with chemical and allied industries contributing about 88%. These units included oil refining and petrochemical and plastic manufacturing units. Abu Dhabi based industrial units' added value to their product base, valuing AED 48.4 billion contributed 53% of the total production. The total invested capital is AED 6.5 billion, of which the UAE nationals contributed 84.5%, while the remaining was invested by expatriates.
The survey shows that the total of the new investments in existing industrial units or fixed capital formation, reached significantly to AED 6.6 billion. Most of it concentrated in the chemical industries, representing 83.3% of the total capital formation in the manufacturing sector.
The survey covered all manufacturing activities taking place in the emirate, covering 4634 industrial units, while data from 2500 units was studied. The survey, however, did not consider the information gathered from industrial units which have 4 or less employees, in the readymade garments industry, iron and steel workshops and the furniture industry. A sample of 20% of the establishments working in these activities had been considered. The results showed that the number of establishments in the readymade garments industry, iron workshops and the furniture industry constituted about 70% out of a total of 4634 units.
The survey is the first ever attempt to document the industrial sector of Abu Dhabi, providing basic industry specific data to the decision makers, who wanted to capitalize on the enormous advantages the emirate has like availability of low priced energy, access to regional and international markets, besides tax free benefits.
OPEC crude price up by USD 2.07 per barrel
It is reported that the price of crude produced by the 13 member OPEC has surged by USD 2.07 per barrel to USD 86.71 per barrel from USD 84.64.
But despite the jump, OPEC's per barrel crude price is still well below the November record high of USD 91.91 per barrels. The average crude basket price of OPEC is calculated based on 12 brands produced by its member states.
OPEC's reference basket is made up of Algeria's Saharan Blend, Indonesia's Minas, Iran's Heavy, Iraq's Basra Light, Kuwait's Export, Libya's Es Sider, Qatar's Marine and Saudi Light among others.
EU starts AD probe for Chinese coated steel imports
It is reported that the European Union launched an investigation Friday into whether China is illegally selling steel at prices so low they are hurting European steelmakers. The new dumping investigation is linked to an October 30th 2007 complaint by the European steel lobby group EUROFER asking for a 40% surcharge on soaring imports.
As per report, EU began an inquiry into whether Chinese exporters, including Baoshan Iron & Steel and Wuhan Iron & Steel, sell flat rolled steel in the EU below cost. The inquiry covers EUR 1.2 billion of imports of hot dipped metallic coated steel.
EC said that “The European Confederation of Iron and Steel Industries or EUROFER has provided evidence that imports of the product concerned from the People's Republic of China have increased overall in absolute terms and in terms of market share. It is alleged that the volumes and the prices of the imported product concerned have had a negative impact on the market share held, the quantities sold and the level of prices charged.”
EU said that the investigation will determine whether the steel is being dumped and whether this dumping has caused injury. It has nine months to decide whether to impose provisional anti dumping duties for half a year and EU governments have 15 months to decide whether to apply definitive levies for five years.
EU statistics bear out EUROFER's complaints that steel imports from China during January to September 2007 grew 137% YoY to 8.9 million tonnes. EUROFER is also seeking European AD duties on stainless steel, cold rolled flat products from China, Taiwan and South Korea and on wire rod from China and Turkey. The association filed an initial dumping complaint on stainless steel in late October and then re filed it a month later to make Mexico, rather than the United States, the comparative country for calculating the dumping margin for China.
EU does not recognize China as a market economy because it suspects government subsidies may make usual business costs such as rent much cheaper than in other parts of the world. This puts the onus on Chinese steelmakers to prove that they operate in normal market conditions. Under global trade rules, the EU has the right to impose extra charges on imports if it gathers evidence any importer has illegally sold below cost.
TISCO ties up with CNPC
It is reported that Taiyuan Iron & Steel Co Ltd has signed strategic cooperation agreement with China National Petroleum Corporation.
In a strategic agreement both agree to carry out omni directional and multi level cooperation in pipe line steel for oil and natural gas pipe, stainless steel, low temperature vessel steel, seamless steel and joint development of new materials. Moreover both sides inked X80 supply contract in the first quarter of 2008 for the subline of west east gas transmission project.
TISCO is a super large iron and steel complex in China and a stainless steel producer with the greatest capacity and most advanced equipment and technology known to the world.
ArcelorMittal and Laiwu announce termination of share purchase Contract
ArcelorMittal and Laiwu Steel announced that the share purchase contract they signed will not be extended beyond December 31st 2007. As of December 2007, the contract had not received the required approval from the relevant government organizations.
Mr LN Mittal president & CEO of ArcelorMittal said “We continue to view China as an important market and will continue to look for opportunities where the company can add value to China’s Steel Industry.”
Mr Jiang Kaiwen chairman of Laiwu Steel added that “ArcelorMittal is well known as one of the most sophisticated producers of steel products. We are disappointed that we will not have the opportunity to directly benefit from this as strategic equity partners, but we hope we may have other opportunities to work closely together in the future.
Chinese government cancels 13 small thermal power projects
Interfax China reported that China's National Development and Reform Commission has ordered the cancellation or elimination of 13 small scale thermal power projects in six provinces with a combined installed power generation capacity of 2,442 megawatts.
The NDRC has ordered that the 13 projects, some of which are still under construction, halt all development or operational activities and be demolished. All the projects in question were approved for development by the commission between 2003 and 2005.
The move is in line with an NDRC notice issued earlier this year, which requires small scale thermal power projects with generator units of less than 300 MW of capacity be phased out and eliminated.
Mr Hao Xiangbin an industry expert with the China Coal Trade Association told Interfax that the 13 canceled projects could be put towards next year's elimination target. He said that this year's target to shut down 10,000 MW was achieved at the end of October. The government plans to shut down another 10,000 MW of generation capacity next year.
Hebei steelmaker’s income in 10 months reaches CNY 445.3 billion
According to Hebei Metallurgical Association that total income from main business of iron and steel industry in province Hebei in first ten months this year was CNY 445.35 billion up by 42.38%YoY. Total profit and tax was CNY 42.44 billion up by 35.28%YoY while the profit was CNY25.88 billion up by 33.27%YoY. The investment in iron and steel industry in province Hebei was CNY 27.43 billion down by 0.4%YoY.
Mr Song Jijun vice chairman of Hebei Metallurgical Association said that the demand in the market is strong since this year and the market remains in a rapid increasing trend. Along with the rise of steel price, the economic profit in iron and steel industry increases substantially.
However, prices of fuels and raw materials have been surging since 2007. The growth rate of profit in domestic steel enterprises is declining MoM and the profit has been decreasing since this June 2007. The sales profit rate in iron and steel industry in province Hebei in this February was 5.64% and it reached a peak of 6.29% in May, but it fell down to 5.81% in October 2007.
CITIC Pacific to buy 17 vessels for USD 888 million
Reuters reported that Property to steel conglomerate CITIC Pacific Ltd will buy 17 vessels for a total of USD 888 million to ensure the transportation of iron ore and coal to supply its special steel and power plant operations. The vessels will be delivered during 2010 to 2012.
CITIC Pacific said the 12 vessels of 115,000 DWT each will enable the firm to ensure transportation of iron ore from abroad to its special steel business in China and are also suitable for the transportation of the group's iron ore products from Western Australia.
In addition CITIC said the five 57,000 DWT vessels would enable its unit, Jiangyi Ligang Electric Power Generation Co Ltd to ensure transportation of coal for its power plant.
ShuoQing steel plate mill brakes 1 million tonnes record
It is reported that in December 2nd 2007 the output of steel plate produced by ShouQing steel 4300 production line reached 1 million tonnes advanced 29 days to realize the production target.
From January to November 2007 ShouQing company had developed Q420qD high strength bridge plate, D32 & D36 high strength Ship Plate, K60 pipeline steel, X70 pipeline steel, Z15 and Z25 structural steel, Q420 & Q460 high strength structural steel plate and other new varieties.
Steel throughput top 10 million tonnes in Jintang port
It is reported that steel delivery through Jintang port has exceeded 10 million tonnes through December 1st 2007 becoming the third main driver for port operation together with coal and iron ore.
As per report Jintang has made great efforts to improve logistics and transportation management and offer favorable finance service, attracting lots of steel exports from Xuanhua Steel, Taiyuan Steel, Baotou Steel and Chengde Steel.
It also has been providing regular ships, more containers and mixed loading service to better improve shipping capacity. The monthly shipping times average 140 at moment.
Tangshan Guofeng’s 1,780 cubic meter BF warms up
It is reported that a technical reform project of 1,780 cubic meters BF in Tangshan Guofeng entirely completed on December 3rd 2007.
The project, which broke ground on November 6th 2006, includes ore trough and charging systems, preheating furnace, air heating furnace, blast furnace, de dust device, water cycle, blowing machine and TRT unit with installation expenditure of CNY 200 million.
Nanjing Steel inks first X80 pipeline steel contract
It is reported that Nanjing Steel has signed its first X80 pipeline steel contract with Shanghai BSW Petro Pipe Co Ltd a subsidiary of China National Petroleum Corporation.
The 1000 tonnes of products will be used in the West East gas transmission project.
Shougang Group hikes EXW prices for medium plate
It is reported that Shougang Group pulled up prices for medium plate recently. Prices for all medium plates are raised by CNY 400 per tonne that for shipbuilding plate by CNY 700 per tonne.
Prices listed above are inclusive of 17% VAT effective as of December 11th 2007.
Chinese zinc production rises again in November
According to the latest official figures released by China National Bureau of Statistics that Chinese zinc production surged to a new monthly high in November 2007.
China Zinc production in November was 350,400 tonnes up by 15.5%YoY. Cumulative production was 3,395,100 tonnes in January to November 2007 representing strong YoY growth of 18.9%.
China exports 550,000 tonnes of silicon metal in first 10 months
According to the statistics China exported 67,620 tonne of silicon metal in October decreasing by 5.5%MoM from the last month.
The statistics of China's silicon in October 2007 are
Japan was 22,831 tonnes down by 7.1%MoM
Hong Kong was 9,064 tonnes up by 0.4%MoM
South Korea was 6,736 tonnes up by 83%MoM
China exported some 546,850 tonnes of silicon metal in the first ten months up by 15.3%YoY. The total silicon metal export is expected to reach about 655,000 tonnes in 2007.
Baosteel Special Steel gets a big order of super boiler pipe
It is reported that Chinese domestic super 304 boiler pipes, which mainly depended on the imports in the past, have been successfully developed by the pipe mill of Special Steel Branch of Baosteel.
Recently the company has obtained a 1,300 tonnes supply contract.
Severstal to buy more stakes in SeverCorr
AP reported that Russian steel maker Severstal will buy out the senior management of the SeverCorr steel mill in Lowndes County. As per report, Severstal will buy the shares of SeverCorr's senior management including Mr John Correnti CEO, Mr Mike Wagner COO and other officials of SeverCorr.
Severstal in a statement released on last Wednesday had said that discussions between the two sides are ongoing and agreement is expected to be reached shortly.
Severstal announced on December 3rd 2007 that it would buy the holding company Baracom from Mr Alexey Mordashov CEO of Severstal for USD 84.4 million thus acquiring a 79.9% controlling stake over SeverCorr.
SeverCorr is Severstal's and its American partners' mini mill at Columbus in Mississippi. The plant can produce up to 1.43 million tons of high quality steel a year and employs 450 people.
Voestalpine to supply plates to OMK for North Stream pipeline
Reuters reported that Austrian steelmaker voestalpine will supply up to 200,000 tonnes of heavy steel plate to Russia's OMK for the planned North Stream gas pipeline between Russia and Germany.
Voestalpine said that half of the order will be delivered to OMK in 2008 in a first tranche worth EUR 100 million. OMK can exercise options for the remainder in the subsequent years.
The order, placed after an international bidding process, is the biggest ever for voestalpine's Grobblech unit.
Norilsk shareholders oppose company spin off
Itar Tass reported that shareholders of the Norilsk Nickel mining and metallurgical plant at an extraordinary general meeting have not backed a proposal of the enterprise’s board of directors on the spin off of its energy assets into an independent company EnergoPolyus, according to preliminary results of the voting.
Amur gets positive study on Russian nickel prospect
Metals Insider reported that UK listed junior Amur Resources pre feasibility study has confirmed the economic viability of its Kun Manie nickel prospect in eastern Russia.
The study showed Kun Manie’s currently identified reserves could support a mine life of 10 years and annual production of 16,000 tonne per year of nickel contained in concentrates. It added that the capital costs would be USD 331 million of which around 42% would be spent on building a seasonal access road to the mine. The total cost to produce a pound of payable nickel would be around USD 5,534 per tonne.
Amur also stressed that the deposit has still to be fully delineated and the mine plan to be fully optimized.
Mr Robin Young CEO of Amur commented that "Our primary objective was to determine if the resource we have identified to date is large enough to justify the significant capital expenditure required due to the remote location of Kun Manie. This report confirms that the first phase of the Kun Manie development is economic. It also confirms our belief that Kun Manie will be a premier nickel producer when in production.”
Russian metal exports in 10 months up by 130% YoY
YIEH reported that Russia exported 22.66 million tonnes of metals in the first ten months up by 130.8%YoY and the import volume was 5.26 million tonnes up by 48%YoY.
Pig iron export volume was 4.58 million tonnes down by 6.5%YoY Ferroalloy was 645,900 tonnes down by 6.6%YoY
Billet was 12.09 million tonnes up by 5.8%YoY
Iron ore was 19.96 million tonnes down by 12.7%YoY
Coke was 2.77 million tonnes up by 9.6%YoY
Fat product was 6.64 million tonnes down by 1%YoY
Russia imported 1.3 million tonnes of steel pipe in the first ten months up by 18%YoY.
Mechel to buy Russe heating utility stake in Bulgaria
Bulgaria's competition watchdog announced it would allow Russian mining and steel conglomerate Mechel to acquire 49% of the shares in the power plant in the town of Russe on the Danube in northern Bulgaria.
The Competition Protection Council said in a statement that the proposed deal would not have any negative impact on the central heating or electricity market in Bulgaria.
Under the terms of the contract, Slovenske Elektrarne cannot sell a majority stake in the company in the first three years after acquisition without the accord of the Bulgarian government. Additionally, it cannot shut down the power plant, nor cut its payroll during the same period.
Earlier this year, Bulgaria sold its full stake in the utility, which owns and operates the power plant in the city, to Slovak power utility Slovenske Elektrarne for EUR 85.1 million.
EBRD to invest USD 800 million in Ukraine in 2008
Ukrainian Journal Staff reported that investment by the European Bank for Reconstruction and Development in Ukrainian projects in 2008 may total USD 700 million to USD 800 million.
Caspian states to launch gas project
It is reported that the Russian, Kazak and Turkmen Presidents are slated to sign an agreement on the development of a trilateral gas pipeline project.
Based on the agreement the project will be launched in 2008 and will carry gas from Turkmenistan and Kazakhstan to Europe through Russia.
According to the US proposed Trans Caspian plan, Turkmenistan's gas was to be delivered to Azerbaijan, Georgia, Turkey and Europe through the Caspian Sea.
However, the new deal, which has been initiated by Russia, has raised questions about the effectiveness of the Trans-Caspian plan.
Gazprom in talks with Kogas on gas supplies
RIA Novosti reported that Gazprom and South Korea's gas corporation Kogas are discussing possible options for Russian natural gas deliveries to the East Asian country.
Mr Konstantin Pulikovsky head of Russian industrial safety regulator Rostekhnadzor and also co chairman of a Russian South Korean intergovernmental commission said Kogas was responding with understanding to Russia's plans to create a unified gas supply system in the East.
He also said Russia and South Korea were discussing the joint exploration and development of oil deposits on the Sea of Okhotsk shelf. He added that we are interested in mutually beneficial energy dialogue in the implementation of fuel and energy projects in Russia.
Gazprom has previously said that Russia would be able to start supplying up to 10 billion cubic meters of natural gas a year to South Korea from 2012-13.
Ukraine car sale exceed by 45%
Ukrainian Journal Staff reported that sales of new cars in Ukraine in 2007 could exceed 2006 by 45%, being around 540,000 cars.
The forecast is based on figures of car sales in November, when they grew by 83% compared to November 2006 to 58,000 cars.
