CIL increases coal prices

It is reported that, for the first time in 3 and a half years, Coal India Limited has increased coal prices across the board by 10% for its subsidiaries and 15% for coal produced at North Eastern Coalfields with effect from midnight of December 13th 2007.

Mr K Rangnath director marketing of CIL said that "Coal prices were last revised in June 2004. In the intervening period, the annualized inflation was 5.5% and the actual inflationary impact on the overall input cost to CIL was even more. So it became imperative to increase the coal price.''

He added that with effect from the midnight of December 13th 2007, CIL had increased coal prices across the board by 10% for all its subsidiaries and 15% for coal produced at NEC.

Mr Rangnath said that the long overdue increase in real terms might not be adequate to cover the net impact of inflation over the period of more than 3 years. However, this rise would help in improving the bottom line for the cash starved coal firms like Eastern Coalfields and Bharat Coking Coal. He added that the increase would generate additional income of around INR 763 crore during January to March 2008.

Outokumpu planning CR complex in India

ET reported that Finnish steel major Outokumpu Oy has decided to invest around EUR 300 million to set up a cold rolling mill in India and is looking at sites in Maharashtra and Gujarat for locating its first manufacturing plant in India.

The report cited Mr Yatinder Suri head of Outokumpu India as saying that “We would require around 125 acres to set up the unit. We have decided to establish 250,000 tonnes. Our main criterion is to be based close to a port in a major consumption centre. We are talking to the Maharashtra government in this regard. We have also looked at sites in Gujarat.”

Mr Suri added that “We have a cold rolling mill in our Sheffield plant. The unit has been shut down and mothballed. We have decided to relocate the unit along with some other equipment to India.”

As per report, Outokumpu will import hot rolled coils from its mother plant in Finland.

POSCO should quit India – Mr Rabi Ray

It is reported that Mr Rabi Ray, former speaker of Lok Sabha, has demanded that South Korean steelmaker POSCO, which is planning to set up a mega steel plant in Jagatsinghpur district of Orissa, should quit India.

He cautioned both the centre and Orissa government to stop facilitating establishment of the steel project of POSCO.

He also extended his support to the ongoing agitation by POSCO Pratirodh Sangram Samiti against government's efforts to acquire land in the gram panchayats of Dhinkia, Nuagaon and Gadakujang in Erasama Block of Jagatsinghpur district for the steel project.

In a statement, Mr Ray alleged that the police and POSCO goons were working in tandem to deprive the farmers and agricultural laborers of their only source of livelihood.

JSPL bags National Energy Conservation Award

Jindal Steel and Power Limited announced that its Raigarh plant has bagged an award for implementation of best practices to achieve energy efficiency.

JSPL’s Raigarh plant secured an award for the implementation of best practices to achieve energy efficiency.

As per report, by the use of modern energy savings, JSPL has achieved 5% savings on gross sales for the year 2006-07.

Daimler inks JV with Hero Group for manufacturing trucks

It is reported that German automobile giant Daimler’s commercial vehicles subsidiary Daimler Trucks has signed a JV agreement with Hero Group to produce its full range of commercial vehicles. Both companies signed a shareholder agreement and are in the process of submitting the application to the Foreign Investment Promotion Board for approval.

The JV will make light, medium and heavy duty trucks, initially targeted at the local market and aims to export volumes at later stages. The vehicles produced will be variants of Daimler Trucks’ current product portfolio in India.
Mr Andreas Renschler member of the Daimler management board and head of Daimler Trucks said that “The decision to form JV in India marks a milestone in Daimler Trucks’ overall strategy to participate in fast growing emerging markets. Hero has a proven track record of managing long term relationships with global and domestic partners. We believe this is a strong foundation for long term cooperation in one of the world’s most dynamic markets.”

Mr Sunil Kant Munjal chairman of Hero Corporate Service said that “The partnership with Daimler Trucks is in pursuance of the Hero Group’s long term vision and strategy to have a diversified portfolio of high growth businesses. We can benefit from Daimler Trucks’ world class products and technology and combine those with our own strengths to create winning products for Indian and other global customers.”

Daimler Trucks is the world’s largest manufacturer of commercial vehicles. With its 5 leading truck brands namely Mercedes Benz, Freightliner, Sterling, Western Star and Mitsubishi Fuso, Daimler Trucks sold over 516,000 trucks worldwide and generated revenues of EUR 31.8 billion in 2006.

The USD 4 billion Hero Group’s flagship company Hero Honda Motors is the world’s largest motorcycle producer. It also makes bicycles.

CIL may form JV for supplying imported thermal coal

BL reported that Coal India Limited is planning to form JVs for supplying imported low ash thermal coal to Indian customers in sponge iron, glass, cement sectors.

As per report, CIL is looking forward to market 5 million tonne imported coal during 2008-09 and the imports will begin after entering into the fuel supply agreements.

The report cited a CIL official as saying that “The possibility of doing the business through a joint venture having core competence in overseas trade did cross our minds. The issue was also touched upon during our discussions with MSTC and MMTC. However, we may explore the joint venture route further if the actual demand settles beyond 5 million tonne mark.”

The total demand for such coal is estimated to be about 20 million tonne annually.

TELCON to set up earth moving equipment facility in WB

BL reported that West Bengal government has handed over 250 acres of land near Kharagpur to Telco Construction Equipment Company Limited for the setting up of a heavy earth moving equipment manufacturing facility at an estimated investment of INR 600 crore. TELCON is a 60:40 JV between TATA Group and Hitachi Construction Machinery Company Limited of Japan.

Mr Rana Sinha MD of TELCON said that the Kharagpur project would be implemented in 3 phases. The first phase of the project would entail the setting up of an assembly shop and painting line. It would be operational by March 2009. The second and final phases of the project would be ready by March 2010 and 2011, respectively.

Mr Sinha said that an R&D centre would also be set up at Kharagpur and would be the hub of Hitachi’s global R&D operations. He added that “The R&D centre will be Hitachi’s first R&D centre outside of Japan.”

Mr Nirupam Sen Minister for industries &commerce of West Bengal said that an additional 90 acres would be allotted to vendors who would supply components to the TELCON facility. Aggregate investment by the vendors was expected to be of the order of INR 500 crore.

India to invest USD 50 billion for modernizing highways

It is reported that union ministry of road transport and highways is planning to spend USD 50 billion on modernizing 40,000 kilometer highways by 2015.

India has a network of nearly 67,000 kilometer highways. These are being upgraded to expressways and 6 to 4 lane highways in public private partnership mode

Meanwhile the ministry is set to notify new speed limits which would allow personal cars to go up to 100 kilometer per hour on expressways. An earlier rule of 1989 prescribes a maximum upper limit of 65 kilometer per hour for taxis, but is silent on cars.

GE India to set up wind turbine manufacturing unit

BL reported that GE India is planning a Greenfield facility for manufacturing wind turbines and equipment. It would also focus on upcoming opportunities to invest in airports, both non metro up gradation projects and Greenfield ones and upcoming port development projects as it expands its focus on India’s infrastructure sectors.

Mr Tejpreet S Chopra president & CEO of GE India said that it is still to finalize the location of the proposed wind power equipment facility. He added that “Our windmills are among the most efficient in generating power. We are very bullish on the renewable sector and are keenly looking at this segment.”

Mr Chopra said that GE could look to strike partnerships in India to leverage capabilities to provide customer solutions, on the lines of a recent pact inked with Triveni Engineering and Industries Limited for manufacturing compressors for the oil and gas industry in India.

GE makes everything from light bulbs and diagnostic imaging systems to aircraft engines and nuclear power plants. GE India is eyeing an over 50% jump in its turnover to USD 3 billion by 2007 end. Going forward, it expects to clock USD 8 billion in revenues by 2010, driven by growth in sectors such as infrastructure, healthcare and financial services.

Cement workers threaten nationwide strike

It is reported that cement factory workers, during a meeting at the National Convention of Cement Workers Federations, have threatened to go on a nationwide strike on January 24th 2007 if manufacturers do not announce an ad hoc payment of INR 60,000 to employees in view of the huge profits being made by them.

A resolution passed in the meeting claimed that the manufacturers have not shown any favorable response to the reasonable request and proposal for providing an ad hoc payment to the workers in view of the huge profits being made by the employers. The resolution also alleged that the manufacturers were flouting all laws and discriminating contract laborers by denying them benefits enjoyed by permanent workers.

Mr N Nanjappan general secretary of Indian National Cement Workers' Federation said that "So the meeting decided to wait till December 31st 2007 and if the demand is not met, we will serve the strike notice on January 3rd 2007. All cement units across India will strike work on January 24th 2007."

Mr H Mahadevan of All India Cement Workers Federation said that about 115 leaders representing 56 unions from 12 states, including Andhra Pradesh, Bihar and Tamil Nadu attended the convention.

Bihar to develop small power plants

Projects Today reported that Bihar State Hydro Electric Power Corporation is setting up 5 small hydel power projects in Rohtas and Jahanabad districts to meet the increasing demand for power.

The details of the projects are

Capacity in MW

Indian car sales in November up by 16% YoY

According to figures released by the Society of Indian Automobile Manufacturers, India’s domestic passenger car sales has increased by 16.42% YoY in November 2007 to 103,031 units from 88,501 units in November 2006.

Motorcycle sale in India during November 2007 has down by 2.89% YoY at 540,553 units as against 556,612 units in November 2006.

Society of Indian Automobile Manufacturers release said that total two wheeler sales in November 2007 also slipped by 2.07% YoY at 665,181 units as compared to 679,215 units in November 2006 while, commercial vehicle sales rose by 0.38% YoY at 40,466 units as against 40,313 units.

Update on Kochi Port development

With the commissioning of the single point mooring of the BPCL Kochi Refinery and the commencement of civil works for the international container transshipment terminal at Vallarpadam, the Cochin Port Trust has achieved a major milestone in implementing 2 of the ambitious development projects envisaged under the National Maritime Development Program.

Mr N Ramachandran chairman of Cochin Port Trust said that the project feasibility report for the cruise terminal has been submitted. As far as financial structuring is concerned, it needs more fine-tuning. The final feasibility report will be submitted only after that and then we will proceed for expression of interest. He added that as far as LNG terminal is concerned, the port is negotiating with Petronet LNG on the licence agreement as the company had demanded some departures from the existing policy.

Mr Ramachandran said that the port is handling roughly 10 million tonnes of cargo of BPCL KRL, comprising 7.5 million tonnes crude and 2.5 million tonnes petroleum products. The present wharfage rate is INR 65 per tonne. He added that once the crude moves to SPM, the wharfage rate will drop to INR 25 per tonne, which means that annual revenue will fall from INR 65 crore to INR 25 crore.

About the steps taken to end flash strikes, he said that “I have 2 clear choices before me. The easier option is to succumb to the pressures and continue the way we have always been. The more difficult option is to take the road less traveled, face the issues upfront, suffer the pain today and clean up the system. This may involve some strikes and work stoppages, but I believe it is worth it.” He added that an overwhelming majority of workers are totally against the culture of flash strikes and work stoppages. They want to work and contribute towards the developments of the port.

Uttarakhand to call for bids for hydel power projects

BS reported that, amid claims that small hydel projects will be the main focus of the new revised power policy, Uttarakhand government is working to finalize the process of bidding from the private and government sectors for the construction of 30 to 40 big hydel projects, which can attract investments of INR 30,000 to 40,000 crore.

An Uttarakhand government official said that “We are finalizing the bid proposals for 30 to 40 big hydel projects. All these projects would be subject to verification.”

He added that the projects include 485 MW Tapovan Chunar and 225 MW Khal Tavaghat in Pithoragarh district. Besides this, 190 MW Neelong on the river Jat Ganga in Uttarkashi district can also go for bidding. The total capacity of these projects would be 5,000 to 6000 MW and the bidding process is expected to start early in 2008.

The official further added that Uttarakhand has identified 20,000 MW of hydel power and nearly 400 projects in this regard have already been proposed. Till now, Uttarakhand is generating only 2,819 MW of power. At present, different projects with the capacity of generating 11,480 MW of power are at various stages of construction.

Currently, Uttarakhand needs 15.5 million units of power daily whereas the power production in the state stands only at 5 million units. To meet the gap, Uttarakhand is taking 6.5 million units of power from the central pool. Besides, 2 million units are being overdrawn. Apart from this, the state is also taking back 1 million units, which it had banked in Punjab and Haryana. But in spite of all this, there is still a deficiency of 2 to 3 million units of power.

Gujarat NRE to register news windmills under CDM

It is reported that Gujarat NRE Coke Limited, which recently announced an investment of INR 175 crore to set up 20 windmills of 1500kw each at Kutch, is expecting to generate around 70,000 carbon credits from them in addition to the 55,000 carbon credits it expects to receive from its existing 25Mw wind mill in Kutch. Gujarat NRE is developing a clean development mechanism project for the proposed 20 windmills.

Gujarat NRE plans to conduct generation from the proposed 20 windmills in a phased manner. Around 10 of them are set to be operational by March 2008, while the rest will go into generation by September 2008, taking the combined generation capacity of the company to 57.5 MW from wind mills alone. It is also in the process of setting up a coke oven flu gas based power plants in all its production facilities, which will have the capacity to generate another 45 MW of clean power.

Mr Arun Kumar Jagatramka vice CMD of Gujarat NRE said that “Our foray into power generation is a part of our overall corporate philosophy of being eco friendly. We are a responsible corporate entity and we believe that all the steps that we take must be towards the greater goal of inclusive development.”

Carbon credits are measured in units of certified emission reductions and each CER is equivalent to 1 tonne of carbon dioxide reduction. At present, the value of 1 carbon credit is around EUR 15, but could vary at the time the CDM project is sent for verification.

300 MW wind projects to be start in TN by March 2008

Mr Vilas Muttemwar union minister of state in the ministry of new & renewable sources said that about 300 MW capacity wind power projects is likely to be added in Tamil Nadu up to March 2008 besides 3700 MW installed in the state up to September 2007.

New wind power projects have been planned in Theni Circle of Theni District in Tamil Nadu. Total quantum of electricity likely to be generated is about 26 billion units from these projects.

Center to invest heavily for developing renewable energy in 11th Plan

It is reported that Planning Commission has constituted an expert committee called integrated energy policy report covering all sources of energy including renewable energy sources.

The report has highlighted the need to maximally develop domestic supply options and diversify energy sources. It has also projected that renewable may account for 5% to 6% of India’s energy mix by 2031-32 and has observed that the distributed nature of renewable can provide many socio economic benefits for the country, including its rural, tribal and remote areas.

The recommendations of the IEPR are yet to be accepted by the government. Meanwhile, the ministry has proposed an outlay of INR 10,460 crore for the 11th Plan period for development of new and renewable energy in the country.

The ministry of new & renewable sources has provided assistance for various renewable energy schemes and programs. Under small hydro power projects, INR 135.59 crore has been allotted during 2004-05 to 2006-07. Biomass power schemes have been provided financial assistance to the tune of INR 33crores and biomass gasifier projects nearly INR 14 crores. Various schemes to produce energy from wastes received INR 15 crore as central financial assistance.

During the same period wind power projects were given INR 22.80 crore, biogas plants got INR 101 crore, small wind energy systems got INR 8.5 crores, solar photovoltaic systems INR 92 crores, solar thermal projects, INR 44 crores and remote village electrification got INR 122 crores.

GE Shipping orders 2 more Supramax dry bulk carriers

It is reported that Great Eastern Shipping Co Limited has signed a contract with Cosco Shipyard Co Limited for 2 more Supramax dry bulk carriers. The 57,000 DWT vessels are expected to join GE Shipping’s fleet during the first and second quarter of 2010-11.

It is noted that GE Shipping had already contracted 2 Supramax dry bulk carriers of similar specifications with Cosco Shipyard Co Limited last month. These will join its fleet in the fourth quarter of 2009-10.

With this contract, GE Shipping’s new building order book comprises 10 vessels, aggregating 0.69 million DWT with 4 LR1 product tankers, aggregating 0.30 million DWT and 6 dry bulk carriers, aggregating 0.39 million DWT.

Brazil's steel industry to thrive in coming years – S&P

According to a report released by Standard & Poor's Ratings Services titled, "Will Investments To Boost Steel Capacity Change Market Dynamics In Brazil?", Brazilian steel production would thrive in the next several years because of new projects that are in the works.

Mr Reginaldo Takara credit analyst at S&P said that "Not only are existing players moving ahead with their Greenfield and Brownfield expansion projects, but new foreign entrants are also building new steel capacity in the country.”

He added that "Furthermore, strong growth in the domestic market as of 2007, with flat and long steel domestic sales increasing by 17% and 14%, respectively, through October 2007, has reinforced sanguine expectations for the sector after years of rather sluggish domestic demand."

S&P said that “Although the bulk of Brazil's newly planned capacity is primarily destined for semi-finished export markets, in particular steel slab, S&P maintains that this trend could eventually lead to increased competition in the domestic market in the medium to long term.”

Hyundai Steel orders for 5 meter wide plate mill

South Korean Hyundai Steel Corporation announced that it has placed an order with Germany SMS Demag for the supply of a 5 meter heavy plate rolling mill. The new facility is being built in Dangjin on the east coast of South Korea and will go into operation in late 2009.

The new plate mill is designed for the production of plates in widths between 900mm and 4,800 mm and thicknesses from 6mm to 200 mm. Hyundai Steel wishes to concentrate above all on the manufacture of ship plates, though it will also be supplying plates to the construction and mechanical engineering industries as well as pipe grades.

The annual production is around 1.5 million tonnes of finished plate and can be expanded to 2 million tonnes by installing a roughing stand.

SMS Demag supply scope comprises of the mechanical and automation systems for the entire process line, with finishing stand, hot plate leveler, cooling beds, shearing line and finishing line with cold plate leveler.

Four shears of the shearing line operate according to the rolling cut principle. Furthermore, the dividing and cropping shears are of closed type design, which serves to further optimize the cut to length accuracy and edge quality above all for high-strength plates. The mill is equipped not only with a hot plate leveler but also a cold plate leveler in 9/5 design with an extended leveling range, thus ensuring excellent plate flatness.

The mill stand possesses a rolling force of 100 MN and is equipped with CVC plus® technology to enable close profile and flatness tolerances to be observed. The plate cooling system is designed as a laminar cooling system. Provision has already been made for expanding the system to include a pre-leveler and spray cooling.

Philippine coal demand expected to rise in 2008

According to data in the Philippine Energy Plan, Philippines’ demand for coal both for power generation and for industries will reach 12.246 million tonnes in 2008, with only one third coming from local mines.

The data shows that power sector will account for 10.177 million tonnes and industrial users, 2.07 million tonnes. Only 3.88 million tons will come from local mines and the remainder will be imported from China, Indonesia and Australia.

The data added that for the next few years, the projected coal demand is 15.28 million tonnes in 2014, with 13.06 million tonnes for electricity and 2.22 million tonnes for industries. It further added that domestic coal production is projected to reach 6.603 million tonnes in 2014 from 3.88 million tonnes in 2008.

IBS forecasts USD 23 billion investment in Brazil

According to IBS, The Brazilian steel sector is expected to invest USD 23 billion through 2012 to reach 52 million tones in output that year.

During the presentation of a report released this week by IBS entitled "Brazilian steelmaking: policies and principles," Mr Rinaldo Campos Soares president of the IBS said that the sector could reach up to 80 million tonne per year if all investments announced are confirmed.

According to IBS, The forecast of 52 million tonne per year assumes a 2% increase yearly in steel consumption for each 1% of annual increase in Brazil's GDP, which has been predicted to rise 4% to 5% each year until 2012.

IBS is forecasting 34 million tonnes in output and 22.1 million tonnes in apparent consumption in Brazil for 2007

IISA appeal to work with steel sector to formulate a global approach to address climate change

Speaking in Bali at the UNFCCC Cop 13 meeting, Mr Ian Christmas, secretary general of the International Iron and Steel Institute issued an appeal to the delegates that Governments need to work together with the steel industry if future successful emissions regulatory regimes are to deliver meaningful reductions in emissions and thus genuinely benefit climate change.

Mr Ian Christmas said that “The steel industry is unique in having such a clear case to put forward to be treated on a global basis. The steel industry operates in a truly globally competitive environment in a sector in which developing countries account for more than 50% of emissions and we already have the commitment worldwide from our members to work together to adopt a common climate change approach. Policies to encourage improved energy efficiency and reduced CO2 emissions are vital and the steel industry is asking for a new emissions regulatory regime that takes a global steel sector approach.”

Mr Christmas said that “Cap and trade regional policies such as those currently used in the EU.” He continued that “are not effective in reducing carbon dioxide emissions. Constraining production from the best emission performing plants is not the solution for a globally competitive industry such as steel. An effective approach for the steel industry requires the participation of all major steel producing countries and a focus on improving emissions per unit of production”.

Continuing Mr Ian Christmas said that “To all Governments we ask four things
1. Governments should work closely with the steel industry on a global approach by adopting a sector specific framework which involves all major steel-producing countries.
2. Any emission regulatory regimes should support the expansion of efficient steel companies and the decline of the least efficient companies based on an equal basis.
3. Governments should work with IISI to adopt and support a new methodology that will measure and analyse emissions data from its member companies’ plants in all major steel producing countries.
4. Governments should work with the steel industry to invest in the next generation of “breakthrough” technology CO2 program to bring about the next major advancement in steelmaking.”

Japanese scrap and steel price rises for second week

Bloomberg reported that Japan's scrap iron and steel prices climbed for a second week as South Korean steelmakers increased purchases after rates fell from a 27 year high.

According to the Japan Ferrous Raw Materials Association, The average cost of so called H2 grade ferrous scrap rose by 1.4% WoW to JPY 35,851 a tonne this week.

Tokyo based scrap exporter Mr Kanto Tetsugen Kyodo Kumiai in a statement said that average prices for exported scrap rose to JPY 37,250 a tonne in December from JPY 35,414 a tonne in November.

Mr Sakio Norita director of Mitsui Bussan Raw Materials, a unit of Mitsui & Co said that “Japanese scrap steel prices have become cheap for Korean steelmakers, who are buying scrap from the US as well.” He added that “Chinese and Taiwanese demand for scrap is becoming strong too.''

A slump in Japanese housing starts earlier this year curbed demand for scrap used to make girders and caused prices to fall from a peak of JPY 37,341 scaled in September, the highest since the association began to compile data in 1980. Demand from steel producers outside Japan has buoyed prices in the past two weeks.

Taiwanese scrap and billet prices continue to soar

YIEH reported that Taiwan’s domestic prices of scrap and billet are expected to increase due to soaring costs of raw materials.

As for scarp, Feng Hsin has raised their domestic price by TWD 300 per tonne and new price is at TWD 12,400 to TWD 13,200 per tonne. The move that domestic billet and rebar mills are preparing to increase their price will push scrap prices to up again.

In terms of billet, import price is around C&F USD 600 to USD 630 per tonne and the import prices of pig iron are still between C&F USD 430 to USD 440 per tonne.

Change of guard at Gladstone to fast track nickel project

Australian junior Gladstone Pacific said that a new board team, led by local mining entrepreneur Mr Clive Palmer, has been appointed to facilitate the fast tracking of its mega new nickel project.

Mr Palmer has bought a 14.8% stake in the company from its founders and becomes non executive chairman. Other to come on board includes Mr Domenic Martino, Mr Benjamin Hill and Mr Geoffrey Smith. The previous non executive chairman Mr Robert Pearce and directors Mr Peter Matheson, Mr Andrew Daley and Mr Peter Watson have resigned from the board.

The aim is to fast track the AUD 4 billion nickel mine and refinery project at Gladstone, which is currently the subject of a definitive feasibility study.

Martino explained further that “Gladstone Pacific Nickel Ltd has the potential to become a significant nickel producer. The Gladstone Nickel Project has made significant progress on the necessary approvals and has a secure nickel ore supply to ensure it can become a world class producer. I believe with the addition of Mr Clive Palmer and his personal commitment to GPN, the company is now poised to make the project a reality."

Italian politicians call for crackdowns to ensure workplace safety

It is reported that Italian politicians, including the premier called for crackdowns to ensure workplace safety after four workers died recently in a factory blaze in ThyssenKrupp.

Premier Mr Romano Prodi in Portugal's capital for an EU Africa summit, said that new legislation alone was not enough and that existing laws needed to be better enforced.

Italian news agencies quoted the center left leader as saying that "Surveillance, discipline and punishment of violators of safety rules are needed.”

Far left partners in Prodi's coalition, with strong support from unions, have been pushing for stronger workplace safety measures. Unions have exerted heavy pressure on the government to help put the spotlight on workplace deaths, but statistics show that Italy's fatalities in job accidents are about average for the EU, with 2.5 deaths for every 100,000 workers.

Experts say enforcement is often lax in Italy. It is not uncommon, for example, to see workers on scaffolding wearing no headgear, while helmets sometimes dangle unused from their belts.

Red River Resources up beat about magnetite iron ore potential

Red River Resources has announced it has found substantial magnetite iron ore potential during early drilling at its Feral prospect project in mid west Western Australia.

Initial drilling has targeted hematite ore deposits which were identified after surveys and sampling earlier this year.

Mr John Karajas MD of Red River said that the results are a significant step in the development of a potentially large scale mining project. He said that "Very pleased with them, the project area obviously has potential to produce substantial quantities of magnetite products and it's a step forward in the right direction.”

Freeport McMoRan to reopen Colorado molybdenum mine

It is reported that Arizona based mining company Freeport McMoran Copper & Gold Inc is planning to reopen its Climax molybdenum mine in Colorado, which has been closed for 12 years.

The initial USD 500 million projects involves restarting open pit mining and construction of new milling facilities, with annual production of about 30Mlb of molybdenum at an estimated cash cost of USD 3.50 per pound beginning in 2010.

Freeport said it would evaluate the second phase of the Climax project, which could potentially double future annual molybdenum production to about 60 M lb. Freeport said that major construction at the mine near Leadville, Colorado, is expected to begin in the spring of 2008.

The Climax mine, which last operated in 1995, is believed to be the world’s largest, highest grade and lowest cost undeveloped molybdenum deposit. Using a long term molybdenum price of USD 6.50 per short ton, reserves are estimated at half a billion pounds of recoverable molybdenum.

US scrap price to Taiwan soars

YIEH reported that global scrap price continues to soar. US 80:20 container scrap price to Taiwan has been quoted at C&F USD 375 per tonne last week and the final price is settled at around C&F USD 372 to USD 373 per tonne.

The report added that as for Japan H2 scrap, the price to Taiwan has hiked to C&F USD 390 to USD 395 per tonne and the Hong Kong’s bulk scrap price has also raised to C&F USD 385 to USD 390 per tonne.

According to market participants, Taiwan’s China Steel Corp held a bid for scrap but the price is too low to be accepted by suppliers.

Transnet to start work on Durban Gauteng pipeline in Q1 of 08

It is reported that Transnet Pipelines expects work on its ZAR 11.2 billion multi product fuel pipeline from Durban to Gauteng to start in the first quarter of next year as this will be crucial in order for it to be completed by the third quarter of 2010.

National Energy Regulator of SA awarded a license to construct the 24 inch pipeline to Transnet Pipelines, which is a subsidiary of Transnet in September. At the same time the regulator refused the same right to iPayipi Consortium, a private entity that had also applied to build a Durban to Gauteng fuel transport network.

The license allows Transnet Pipelines to construct petroleum pipelines from Durban to Jameson Park, in Gauteng, from Jameson Park to Alrode and Langlaagte, and from Kendal to Waltloo. It also stipulates the construction of two five tank storage facilities, one in Durban and one in Jameson Park, each with a capacity of 160 million liters.

The fuel pipeline operator is now awaiting only final license conditions from the National Energy Regulator of SA and a record of decision signaling environmental sanction for the proposed network.

Mr Vuyo Kahla the group executive in the office of the chief executive said that "We expect to receive the conditions for the license this month." He added that much of the preparatory work had already been done. The project management tender for the project had been awarded to Arup and the utility should soon be in a position to place the other orders.

Low priced forecasts offsetting steady demand for H beams

Purchasing.com reported that wide flange steel beam producers have kept December list prices flat at USD 787 per ton so most transactions remain around USD 770 for the third straight month. It added that overall demand is about where it was at this time last year but there is strong price competition among service centers.

The dramatic slowdown in residential construction in US has cut deeply into demand for smaller beams. Mr Mark Parr analyst at KeyBanc Capital Markets in Cleveland said that “The outlook for housing both new construction and remodeling will likely fail to recover in 2008.”

He added that sales this year have been steady for the heavier sections to general contractors for such nonresidential projects as bridge and highway work.

But the outlook for heavier beams in 2008 is hazy because of signs of an intensified economic slowdown. Also, there are market reports of imports already being available around USD 750 per tonne. A steel trader said that “The European beam market has weakened and mills are making offers over here, despite the weak dollar.”

Mr Roelens appointed as group executive VP of Bekaert

The Board of Directors of Bekaert has decided to appoint Mr Geert Roelens as group executive VP and member of the Bekaert group executive committee, effective March 1st 2008. He will succeed Mr Marc Vandecasteele group executive vice president AWP Steelcord, who will retire after more than 36 years of service.

Mr Geert Roelens in his new position, will be responsible for managing and developing Bekaert’s steel cord activities on a global level. He is currently GM of steel cord products Asia, based in Shanghai.

He joined Bekaert in 1988 and gained extensive international business experience in various management assignments in Belgium, the United States, Indonesia and China

Cambodia target another USD 3 billion for mining

It is reported that Cambodia expects to attract investment valued at 60% of its 2006 estimated gross domestic product as mining and energy companies such as BHP Billiton and CNOOC Ltd scout for new resources amid surging commodity prices.

Mr Cham Prasidh a senior minister and minister of commerce said that the USD 5 billion economy expects USD 3 billion of investment in iron ore and gold mining as well as the energy sector. He added that 'We have still resources that are not exploited.”

Mr Cham said that “The Southeast Asian nation has ''large resources of iron ore'' as well as oil and natural gas.”

According to the Asian Development Bank, New investment will help Cambodia, which expanded at an average annual pace of about 11% in the four years ending 2006, to pull 36% of its 13 million people out of poverty. The economy will be the fastest growing of nine Southeast Asian nations this year.

Z-group's Ferromet sales in 9 months up by 31% YoY

Z group's Marcela Mrazkova has informed CTK that steel division of Z group has generated sales worth CZK 6.33 billion in January to September 2007 period up by 31%YoY.

Z group in a statement said that the steel division, Ferromet group, produced 330,000 tonnes of steel in January to September 2007, up from 260,000 tonnes in January to September 2006.

Ferromet group comprises steel works in Hradek, Veseli & Moravou, and Chomutov and is the fourth largest steel group in the Czech Republic. Over a half of its output is exported, mainly to the EU.

The steel group moved from red to black two years ago. Last year's sales totaled CZK 7.7 billion, up by 25% from 2005. The group produced 350,000 tonnes of steel, 22,000 more year on year.

Mr Growcock to join Harsco board

Worldwide industrial services company Harsco Corporation announced that Mr Terry D Growcock has been named to the Harsco Board of Directors effective January 1st 2008.

Mr Growcock is chairman of The Manitowoc Company, a diversified industrial company with operations in over 20 countries worldwide that ranks as one of the world's largest providers of lifting equipment for the global construction industry. Mr Growcock has served as chairman of The Manitowoc Company since October 2002, and served as CEO from 1998 until May 2007. Prior to joining Manitowoc in 1994, Mr Growcock served in numerous management and executive positions with Siebe plc and United Technologies Corporation. Mr Growcock also serves on the Board of Directors of Harris Corporation and Bemis Manufacturing Company. He is also Chairman of Wisconsin Manufacturers and Commerce, one of the state’s leading business associations.

Mr Derek C Hathaway chairman & CEO of Harsco said that “Terry Growcock’s experienced executive leadership serving diversified, multinational industrial markets further enhances the ongoing strength and global perspective of the Harsco Board. Like Harsco, Mr. Growcock comes from a committed Economic Value Added culture that has been instrumental to Manitowoc’s considerable success. The addition of Mr. Growcock to the Harsco Board will bring its current membership to 12, of whom nine are independent directors.”

Harsco Corporation is one of the world’s leading diversified industrial services companies, serving major customers in the non residential construction and infrastructure, steel and metals, energy and railway industries.

Singapore stays as world’s biggest container port

According to monthly October statistics, Singapore has remained the world’s biggest container port with throughput rising by 10.4% YoY, while Shanghai up by 7.8% YoY and Hong Kong by 0.4% YoY respectively.

According to the Maritime and Port Authority of Singapore, in the January to September 2007 period volumes at Singapore up by 12.8%YoY to 23.1 million TEUs, Shanghai handled 21.6 million TEUs from January to October 2007 up by 21% YoY as compared to January to October 2006.

Statistics from the Hong Kong Port Development Council show that the SAR handled 19.7 million TEUs from January to October 2007 up by 1.7%. It handled 2.03 million TEUs in October 2007 up by 0.4% compared to October 2006.

The statistics added that the container terminals outside Kwai Tsing handled 530,000 TEUs in September, nearly 1.4% more than in the same month in 2006. Since the beginning of the year, Hong Kong terminals have handled a total of 17.7 million TEUs, a rise of 2% over the same period in 2006 and slightly more than three million TEUs behind Singapore’s nine month total.

Zamil Industrial signs SAR 42 million deal with SABIC

Zamil Industrial Investment Company has recently signed a SAR 42 million and 22 year energy performance contract with Saudi Basic Industries Corporation for the complete outsourcing of process and comfort cooling and building a plant to supply up to 20,000 tonnes of refrigeration at Saudi Iron & Steel Company.

Mr Abdulla M Al Zamil COO at Zamil Industrial said that "This first of its kind agreement in the Gulf region will usher in an era of utility outsourcing for large industrial and commercial players who want to focus on their own service delivery and would like to rely on specialized partners to support them in that quest."

He added that due to the nature of this complex undertaking, the process took longer than expected but will yield enormous benefits to Hadeed and will serve as a model for many of the SABIC companies and the extended industrial conglomerates in Jubail and elsewhere. This project will significantly reduce energy consumption, and will help Hadeed focus on its vision of becoming the leading producer of steel products in the region.

GCC countries to hold currency revaluation talks soon

Mr Sheikh Khaled bin Ahmed Al Khalifa foreign minister of Bahrain said that Gulf oil producers are considering revaluing their dollar pegged currencies together and will hold talks on a change in the exchange rates in the next few days.

Mr Al Khalifa said that the 6 states were working together to shift exchange rates, although they would keep their dollar pegs. He added that “That’s being discussed between the central banks and there will be a meeting between the ministers of finance and the central bank governors in the next few days.”

Saudi Arabia and 5 neighbors preparing for monetary union as early as 2010 ruled out dropping pegs to the tumbling dollar after a summit last week and said that any talks on revaluation would be kept secret. Since the summit the United Arab Emirates, which has been pushing for currency reform, said it would not change exchange rate policy for the foreseeable future.

He said that all countries with dollar pegs have no plans to drop them. Kuwait broke ranks with its neighbors in May 2007 and started tracking a currency basket, saying the dollar’s slide was fuelling inflation by making imports more expensive. The Gulf States still planned to work together. He added that “The right is there. Yes, each country has the right, but we do have a common policy.”

It is noted that the dollar pegs force the region to shadow US interest rates. Gulf central banks are cutting rates in tandem with the US Federal Reserve to prevent currency appreciation, ignoring inflation at home which is running at its highest this decade. With more Fed cuts expected and the dollar hitting record lows on global markets, investors expect the Gulf states to eventually give up on their pegs and allow their currencies to appreciate.

Gulf Finance set to build estate development in Tunisia

It is reported that Bahrain's Gulf Finance House is planning to spend USD 3 billion to build a financial park and real estate development in Tunisia.

The site will contain a corporate centre, investment banking & advisory centre, an insurance centre and an exchange. It will also include homes, offices, a golf course, a business school and trade centers.

Mr Esam Janahi chairman of Gulf Finance said that Tunis Financial Harbour will span 450 hectares in the Raoued suburb of Tunis. He added that "The Tunisian economy has been constantly outperforming the African average. This growth along with a progressive and proactive government has made Tunisia a very attractive investment destination for us. Tunisia could benefit from developing its offshore financial services industry and creating a world class international financial centre for North Africa."

Established in 1999, Gulf Finance House has invested USD 12 billion in infrastructure development projects in the Middle East and North Africa.

Japanese upbeat on investments in Bahrain

Bahrain Tribune reported that Bahrain, being among the top 3 trading partners of Japan, is under spotlight for huge Japanese investments including the proposed steel plant as well as automobile spare parts manufacturing unit to be established by the Japanese investors.

Mr Takeshi Kondo Japanese ambassador to Bahrain said that the proposed steel plant would give a new impetus to Bahrain's exports with projected USD 1 billion surge a year. He added that "The negotiations are going on and we expect results by the first quarter of 2008.

The Japanese companies are also keen to set up automobile manufacturing plant taking the advantage of world class aluminum being produced by Alba. Japan is a leading consumer of Alba and Bapco refinery and the growing business ties will impact the bilateral trade in positive manners."

Mr Kondo said that "Japan has maintained its position as one of the three largest trading partners of Bahrain with a total trade volume exceeding USD 500 million during first half of 2007. The other 2 are the United States of America and the Saudi Arabia.

Japan Bahrain bilateral trade stood at USD 511.82 million, in which exports were valued at USD 298.64 million up by 13.87%. Bahrain's exports to Japan stood at USD 213.2 million during the first half of 2007 down by 19.2% YoY as compared to the same period last year due to the decreased supply of petroleum products. Bahrain's imports from Japan were worth USD 298.6 million during first half of 2007 up by 13.9% YoY over the same period last year.

Chinese industrial zone will come up in Egypt

It is reported that China’s first ever foreign industrial zone will be developed in Egypt, bringing over USD 2.5 billion investment from Chinese businesses eager to gain a foothold in the lucrative markets of the Middle East and Africa.

The Egyptian Chinese zone for economic cooperation and trade will occupy a 5 square kilometer area of the Suez region and will be constructed in 2 phases over the coming decade at a cost of over USD 100 million. Although industrial zones have long been utilized to great success within China, forming vital engines for the nation’s economic boom, this will be the first Chinese industrial zone to be built in a foreign country.

Phase 1 of development will take almost 3 years and will cover 1 square kilometer of land. It is expected to attract some USD 250 million worth of Chinese investment. Phase 2 will take almost 10 years to complete, covering the remaining 4r square kilometers. The zone will mainly target businesses involved in the textile and ready made garments, gas and petroleum, automotive and electronics sectors. The 2 governments are also studying the possibility of establishing an international conference and exhibitions center outside of Cairo.

Mr Rachid Mohamed Rachid minister of trade & industry of Egypt said that China’s decision to build the industrial zone in Egypt is a testament to the considerable advantages that Egypt offers as a manufacturing destination. He added that “The new zone will serve as a hub in the region for Chinese manufacturers looking to move closer to markets throughout the Middle East and Africa. Chinese investors in the zone will be able to take advantage of Egypt’s competitively priced manufacturing environment and our unique basket of preferential trade agreements with the Middle East, Africa and Europe.”

China is among the biggest non Arab investors in Egypt, with total investments estimated at EGP 574 million in 435 local companies across the industrial, tourism, agricultural, telecommunication and service sectors.

Pakistan cabinet approves hike in electricity tariff

Khaleej Times reported that Pakistan's caretaker cabinet has approved an upward revision in electricity tariff by PKR 0.1 per unit to finance over 43% cost overrun of 969 MW Neelum Jhelum hydropower projects being built in Pakistani occupied Kashmir. Sources in the government confirmed that a PKR 0.1 per unit increase in tariff was approved by the cabinet that would now be charged through the electricity bills in the shape of a special surcharge from all consumers including those of KESC.

The cabinet meeting presided over by Mr Mohammadmian Soomro caretaker prime minister of Pakistan also approved the revised cost of PKR 128.4 billion, including a foreign exchange component of PKR 46.5 billion.


The project was originally estimated to cost USD 1.5 billion in 2003 but due to inordinate delays, it has now increased its cost to about USD 2.14 billion. It is expected to be completed in more than 8 years in equity debt ratio of 50:50.

Pakistan’s Water & Power Development Authority had set up the Neelum Jhelum hydroelectric project company as a special purpose vehicle to raise about PKR 50 billion for the 969 MW project in Kashmir for protecting Pakistan's priority rights over the Neelum River. It has also awarded a contract to a Chinese consortium, comprising China Gezhouba and the CMEC China, at PKR 90.90 billion.

On completion, the project will generate electricity at a cost of PKR 1.91 per kilowatt hour, which is much higher than the engineers' estimate of PKR 1.42 per unit, but significantly lower than the tariff currently being offered by the government for thermal power projects.

Arab banks balance sheet to reach AED 7.34 trillion in 2007

Khaleej Times reported that the consolidated balance sheet of Arab banks will reach AED 7.34 trillion in 2007 up by 25% YoY as against AED 5.87 trillion in 2006.

According to Mr Adnan Ahmed Yousif chairman of the Union of Arab Banks and president & CEO of Bahrain's Albaraka Banking Group, the banks' overall net profit will reach AED 117.48 billion by 2007 end. He said that no Gulf Cooperation Council member state will revalue its currency without the regional bloc's approval.

Mr Yousif said that talks on currencies revaluation in the Gulf are best done when social and economic pressures to abandon the dollar-peg have died down. He added that "There should be a discussion on this issue but not under any pressure. Noting that the region had enjoyed the strength of the greenback for years and nobody said anything."

Mr Yousif described as baseless fears that Arab banks would be badly affected by the sub prime mortgage crisis in the US and high inflation rates in European countries. He said the long term borrowings in GCC banks are not big, unlike those in Europe. He added that most GCC banks have the needed capital for their various expansion programs.

Government asks LPG producers to slash prices by 10%

Daily Times reported that after de regulating the LPG prices, Pakistan’s caretaker government has directed liquefied petroleum gas producing companies to reduce the LPG base stock prices by 10% from PKR 39,809 to PKR 35,921.74 per tonne registering a decrease of PKR 3,887.26 per tonne. Sources told that petroleum ministry has issued a letter to LPG producing companies asking for reduce in the prices of LPG to PKR 35,921 per tonne to provide a relief to consumers.

At present, only Jamshoro JV Limited has reduced its LPG base stock price by 10% from PKR 39,809 per tonne to PKR 35,921.74 per tonne. While other LPG producing companies like Oil & Development Corporation, Pakistan Petroleum Limited and the refineries like Pak Arab, National Refinery Limited, Pakistan Refinery Limited and Attock Refinery are not following the JVL prices and maintaining the prices at the level of PKR 39,809 per tonne after de regulating the LPG prices with international market.

Moreover, the government has turned down the request of LPG distributors association to scale down the prices of LPG to PKR 25,000 per tonne. Representatives of LPG distributors association of Pakistan led by its chairman Mr Irfan Khokhar held a meeting with petroleum minister Mr Ihsanullah and sought to scale down the prices of LPG to PKR 25,000 per tonne. However, the minister did not accept the demand and assured the delegation that the LPG producing companies would be bound to scale down the prices of LPG to PKR 35,921.74 per tonne at the level of JJVL prices.

Chinese crude steel output growth slows down in November 2007

According to latest statistics the crude steel output registered 39.691 million tonnes in November 2007 down by 3.2307 million tonnes or 7.5%MoM or up by 4.3%YoY marking the first time crude steel falls below 40 million tonnes since the breakthrough in March 2007. The YoY growth rate is 9.2% points down than that of October 2007.

Daily crude steel output was posted at 1.323 million tonnes down by 61,600 tonnes or 4.45%MoM or up by 4.6%YoY.

Crude steel output was also lower than pig iron production for the first time in recent memory. China produced 3 399 million tonnes of pig iron and 47.68 million tonnes of finished steel products in November up by 10.4% and 12.7%YoY respectively the lowest growth in six years.

China's daily pig iron output in November was 1.33 million tonnes up by slightly from 1.31 million tonnes in October 2007 while finished steel output was 1.59 million tonnes up from 1.58 million tonnes in October 2007.

Meanwhile, China's iron ore imports have only risen 16.6%YoY in January to September 2007 a slide of 5% in 2006. As a result, limited iron ore supply has put a squeeze on China's steel production.

Crude production in November fell because high input costs for iron ore and coke have forced many smaller players to cut or halt production temporarily.

BHP bid for Rio – Mysteel sees merger in 6 months

China's Mysteel Research Institute recently stated in a report that BHP Billiton and Rio Tinto are very likely to realize their merger in six months to a year because those against their merger come from less important industries, thus they fail to exert any substantial influence to stop the deal.

The report said that “Rio Tinto opposes the merger because they want a higher price, but from a strategic point of view they welcome the merger. BHP Billion has to pay a much higher price to acquire Rio Tinto, at least 40% higher than the present offer.”

Mysteel Research Institute also believed that the merger will do more harm than good to China. It said “The merger of the two mining giants will surely strengthen their price control capacity and enable them to gain a bigger say in bargaining with China. However, the merger will surely increase production efficiency, thus guaranteeing an iron ore supply for China in the short term.”

MRI suggested that the Chinese government and enterprises pay close attention to further developments. It said that “One Chinese enterprise or a joint group of several steel companies are less likely to make a bid for Rio Tinto unless supported by the government. But other countries would not find this acceptable. China may use various strategies to force BHP Billiton to raise its offer or actively participate in the merger or other mergers.”

Brief on Chinese steel export prices this week

This week, Chinese domestic prices have entered a period of downward corrections due to Beijing's decision to implement tightening monetary policy in 2008.

Construction steel price saw most evident drop from peak levels, while those for other products remained stable.

Export offers have been adjusted accordingly and exports seem to be still stable, bolstered by robust overseas demand.

China Oriental capacity expansion plan seen unreal by analysts

China has tightened control on approval of new steel capacities and 10 million tonnes grade fresh projects in coastal areas proposed by Baosteel Group and Wuhan Steel have both been rejected. Insiders point out the capacity expansion plan of China oriental would face lot of uncertainties.

A Hong Kong based sector banker said that China could make things difficult for ArcelorMittal, as China Oriental has assets in mainland China. It may affect any plans for capacity expansion, he added. China Oriental may be a Hong Kong listed company, but with its assets in China, it is likely to come under indirect scrutiny by Chinese regulatory boards, he said, adding that the China Oriental deal will be a test case for the Chinese authorities.

According to a Beijing-based leading steel sector analyst in China, the Chinese central government is making efforts to control new increases in iron and steel production capacity, as a means to cool down the overheated economy. It is unlikely for central and local provincial National Development and Reform Commissions to approve any new steel production capacity increase, the analyst said. He said "Hebei Province is on the top of the list monitored by the central government to restrict its iron and steel industry investment. Hebei has already had many big steel makers. If ArcelorMittal wanted to increase the new production capacity of steel in Hebei, it could be very difficult to get regulatory approval to do that.”

ArcelorMittal entered into a business co operation agreement with China Oriental Group on November 9th 2007. The agreement included a plan to increase China Oriental Group's production capacity of steel from its current 6 million tonnes per annum to 10 million tonnes per annum in the future.

China Oriental Group is a Bermuda incorporated vehicle company with major iron and steel assets, including Jinxi Steel Stock, based in Hebei Province. China Oriental's main assets Hebei Jinxi Steel produced 3.62 million tons of steel last year.

Zhejiang Yougjin to increase SS output to 50,000 tonnes

It is reported that Zhejiang Yougjin Stainless Co will lift up 60% of its capacity of cold rolled stainless precision strip to 50,000 tonnes per year in 2008. The maximum width of precision strip will be 850mm.

Zhejiang has doubled the capacity of cold rolled stainless strip to 30,000 tonnes per year in 2007. It mainly offers 400 series and some 300 series stainless steel.

Zhejiang may also build new annealing and pickling line with annual capacity of 150,000 tonnes in 2008 or 2009.

Chinese plate export prices continuously on the rise

It is reported that Chinese steel plate export quotations have hit new high again this week. There is another increase of USD 20 per tonne to USD 30 per tonne from November 2007 due to the result of further price improvement in domestic market.

Export prices are raised by producers to offset the rise in home market prices. At moment, export quotation for commercial plate is prevailing at USD 780 per tonne FOB up compared with USD 750 per tonne to USD 760 per tonne FOB in November 2007.

Offers by tier one steel makers for commercial plate are at USD 800 per tonne FOB up as base probably USD 820 per tonne to USD 830 per tonne FOB USD 50 per tonne to USD 60 per tonne above the level in late November.

A Shandong based major is quoting at USD 780 per tonne to USD 790 per tonne FOB but there is no taker now. As a matter of fact, it is not ready to export commercial steel plate since most of exports are such high valued added products as pipeline steel or boiler plate.

Sources in South Korea indicated that there is little transaction at the updated levels due to low domestic market and rising inventory level. Buyers point out that they are weighing the situation and whether to purchase at current price depends on the price trend.

China's yuan hits new high against US dollar

According to the Chinese Foreign Exchange Trading System, China's currency the yuan hit a new high against the USD recently.

The central parity rate of the yuan known as Renminbi stood at CNY 7.3647 to USD 1 gaining 150 basis points recently reference rate of 7.3797.

The sharp rise in the CNY reference rate came as China and the US opened third bilateral Strategic Economic Dialogue in Beijing recently when yuan appreciation is expected to become a topic.

Recently the CNY also appreciated against other major currencies. The central parity rate of yuan stood at 10.8000 and 15.0026 to one euro and pound respectively up from 10.8566 and 15.1018 recently.

Nanjing steel raises prices for some products

It is reported that Jiangsu based Nanjing Steel recently raises prices for wire rod and rebar products

As per report price is pulled up by CNY 120 per tonne for rebar and high speed wire rod.

Prices listed above are inclusive of 17% VAT effective as of December 12th 2007.

Baosteel starts GE examination technology center

It is reported that Baosteel has built the GE examination technology center on December 10th 2007. The center will depend on research capacity and advanced technology to provide technology support for Baosteel.

Ms Caroline CEO of GE expressed that GE and Baosteel have long term and various friendly cooperation and GE examination technology center strengthens the further cooperation.

She hoped that through two sides’ efforts the service ability in localization of GE can be advanced and contribute to Baosteel’s development.

Pan steel to produce 5 million tonnes of iron ore concentrate

It is reported that Pan Steel has produced 4.57 million tonnes of iron ore concentrate in January to November 2007 where iron ore concentrate’s grade is 54.02%.

According to the present iron ore concentrate stocks, outside sales, equipment overhaul situations and so on, Pan steel issued the goal that this month to have to complete 430,000 tonnes ore concentrate.

Handan Steel hikes EXW price

It is reported that Hebei based Handan Steel raises its EXW prices for some products.

Rebar, Round Bar and Wire Rod up by CNY 330 per tonne
Q235 6.5mm wire rod is quoted at CNY 4550 per tonne
Q235 6.5mm high speed wire rod at CNY 4590 per tonne
HRB335 12mm rebar at CNY 4910 per tonne
HRB335 14mm rebar at CNY 4860 per tonne
HRB335 16mm to 25mm rebar at CNY 4710 per tonne
Q235 16mm to 25mm round bars at CNY 4750 per tonne

Prices listed above are Inclusive of 17% VAT effective as of December 8th 2007.

Ansteel obtains certificate for large ship crankshaft forging

It is reported that Ansteel Company received large ship crankshaft forging manufacture Certificate from MAN-B&W HQ of Denmark on December 7th 2007 indicating that Ansteel becomes the first enterprise in china that can produce 260mm to 980mm diameter large marine diesel engine crankshaft forging.

Ansteel began to develop large ship crankshaft forging in May 2006. At present this product has gotten Certificate not only from MAN-B&W HQ of Denmark but also other international large ship’s classification societies.

Sino Australian coal tar JV commissioned

According to China national chemical engineering group that coal tar project which produce 300,000 tonne per year has formally started working recently.

The project is built by Kuailuan Clean Company Ltd, Australia Koppers Company and Tangshan Iron & Steel Company Ltd.

As per reports, the total investment of this coal tar project is more than CNY 0.3 billion. It introduces into the world’s advanced Australia Koppers tar processing technology and is expected to be completed by the end of September 2008.

Adrial buys 80% of The Light Metal Factory in Croatia

Croatia Today reported that The Light Metals Factory from the southern Croatian town of Sibenik has been sold to the Croatian consortium Adrial.

After the Croatian government gave its consent for a draft sales contract, the Croatian Privatization Fund signed a contract with consortium representatives on the transfer of the 80% of the TLM stocks, for which the new owners paid HRK 1 in exchange for keeping all of the factory's 1,400 employees and investing EUR 107 million in the business in the next three years.

As per report, the new owners also must continue with the factory's primary activity and restore the electrolysis plant and rehabilitate the polluted ground surrounding the plant.

Adrial consortium is comprised of companies Konstruktor Inzenjering, Zagrebmontaza, Dalekovod, Aluflexpack and the Feal company from Siroki Brijeg in Bosnia-Herzegovin

Strikeforce raises USD 100 million to fund molybdenum growth

Metals Insider reported that Strikeforce Mining and Resources, a unit of Russian oligarch Mr Oleg Deripaska’s Basic Element group, has made its first foray into the international markets to rise funding for an expansion of its molybdenum business.

Strikeforce Mining and Resources has raised USD 100 million from a consortium of international banks, including ABN AMRO, BNP Paribas, ING and Raiffeisen. The 3 year facility is structured as a pre export finance loan and is secured by molybdenum export receivables.

The fund will be used primarily to expand the company’s moly production by 10% per year over the next two years. Production from the company’s two Russian mines totaled 4,463 tonnes of ferromolybdenum in 2006.

Dr Geoff Cowley CEO of SMR said that "The Company’s vision is to grow as a diversified metals company through internal projects and acquisitions, and included in our strategy to achieve this is improving our reputation with the financial stakeholders and better access to capital. Our first steps I believe have been positively received given the status of the lending banks."

Belarus to pay USD 119 for Russian gas in Q1 of 2008

It is reported that Russia will sell natural gas to ex Soviet neighbor Belarus at USD 119 per thousand cubic meters in the first quarter of 2008 up by 19% more than this year.

After meeting on recently in Minsk, Mr Vladimir Putin president of Russian and his Belarusian counterpart, Mr Alexander Lukashenko, said Russia will raise the price for exports of natural gas to Belarus next year in line with existing agreements.

Mr Sergei Kuprianov while speaking on Ekho-Moskvy radio station said tariffs on the transit of Russian gas through Belarus will correspond to a five year agreement that runs until 2011. He said we have a long term agreement with Belarus.

This will ensure stable supplies to Europe along a key pipeline supply route. Russia will also lend Belarus USD 1.5 billion to help its ally pay for gas imports. Government sources in Minsk had earlier said Moscow was seeking an increase of up to 60% for 2008.

Kazakh ENRC to invest USD 2.3 billion for growth

It is reported that Kazakh metals major Eurasian Natural Resources Corp plans to invest a total of USD 2.3 billion to develop its business over the next four years.

Mr Johannes Sittard CEO of ENRC's said that "The Company has an investment program for the next four years of USD 2.3 billion. He said the money would be channeled to all sectors of its business, including aluminum and mining.”

ENRC is one of Kazakhstan's largest companies accounting for about 4% of gross domestic product.

Russia and South & North Koreas to discuss railway link

RIA Novosti reported that North Korea has agreed to hold trilateral talks with Russia and South Korea on a railway project linking the Korean peninsula with Russia's Trans Siberian Railway.

Mr Konstantin Pulikovsky head of Rostekhnadzor said "We are currently working on preparations for another round of trilateral talks to promote this project. North Korea has officially confirmed its readiness to hold this meeting."

He said "The project implementation to restore the Trans Korean railway and its further link with the Trans Siberian Railway would have tremendous long term economic impact, saving considerable time and reducing freight costs from South Korea to Russia and Europe."

Gazprom to start production at Yuzhno-Russkoye field

RIA Novosti cited Mr Dmitry Medvedev board chairman of Gazprom as saying that Russian energy giant Gazprom will start production at northwest Siberia's Yuzhno-Russkoye oil and gas deposit on December 18th 2007.

Mr Medvedev said "This is a serious event, involving tens of thousands of people, which is linked to our asset-swap agreements with our German partners. He said Russia saw no obstacles to launching on schedule the Nord Stream pipeline, being built under the Baltic Sea to pump natural gas to Germany.

Mr Medvedev said the situation around the pipeline due to be commissioned in the latter half of 2010 was quite favorable, despite concerns being voiced by a number of countries. He said Gazprom was seeking to enter the New York and Shanghai exchanges. He added that Gazprom has capitalization growth reserves, and work is in store for the company to position itself on the New York and Shanghai exchanges.

Mr Medvedev said with confidence that Gazprom's capitalization growth would have a positive impact on the entire Russian stock market.

Russia increases tariff for oil transportation along Transneft system

Interfax reported that the executive committee of Russia's Federal Tariffs Service approved an increase in the tariff for the transportation of oil along the Transneft oil pipeline system to 19.4% in 2008.

Transneft's tariff consists of two parts, the larger of which applies to the price oil companies pay to Transneft's regional subsidiaries for actual transportation. The remaining element, a much smaller part called a dispatch fee is what Transneft charges for coordinating the process.

The tariffs service said the larger part would be increased by 6% while the dispatch fee would be increased by 33%. It also said the tariff on the Baltic pipeline to the country's key Primorsk port would increase by 15%.

Moscow based analyst at a Western bank said that "The increase seems to be too small. In our calculations we assumed that the average tariff would rise by 12%. But it can be the first rise of many, as it was with Transneft previously."

Traders said the average tariff had yet to be calculated. It said it's too early the average needs to be calculated. At the moment we can see that the tariff was raised for Primorsk. The dispatch fee was increased by 33% but this is minor.