January, 26 2008
JSW Steel launches Galvalume
JSW Steel Limited has announced that it has re commissioned one of its galvanizing line after modification to produce Galvalume, a zinc and aluminum alloy coated steel product.
JSW release added that “It is the first Indian Company, under a technology licensing from BIEC International Inc of USA to produce Galvalume sheets. With this licensing, the Company has continuous access to latest product innovations and process refinements, ensuring a product of highest international standards.”
Mr Jayant Acharya senior VP of sales & marketing said "The added advantages of this product will take the construction standards in India to a much higher level. With the Pre Engineered Building Industry coming up very fast in India, JSW Steel will benefit by its ability to cater to the growing demand of this product which is currently dependent on imports."
A patented alloy of barrier resistant aluminum and corrosion fighting zinc gives Galvalume superior corrosion resistance. Most Galvalume substrates feature an alloy that is 55% aluminum, 43.5% zinc and 1.5% silicon. Tests have proven this alloy superior to the zinc only coating used in regular Galvanized sheeting. Galvalume's performance in the construction industry has been superior to Galvanized.
ArcelorMittal chooses Topra Kamdara for Jharkhand plant
It is reported that ArcelorMittal has chosen the Torpa Kamdara blocks of Khunti and Gumla districts of Jharkhand as the site for its 12 million tonne integrated Greenfield steel project.
The report cited Mr KK Khandelwal industry secretary of Jharkhand as confirming the development by saying that Mr Sudhir Maheshwari VP of ArcelorMittal informed the state official that “It has zeroed in on Torpa due to availability of water for industrial purposes, its thin population density and the potential for infrastructure development.”
Mittal Steel had inked a memorandum of understanding with Jharkhand Government on October 8th 2005 for setting up a 12 million tonnes steel plant involving a cumulative investment of approximately INR 40,000 crores.
JSW Steel may develop deep sea port in West Bengal
Steel major JSW Steel Group has announced that it would look into the possibility of setting up a deep sea port in West Bengal.
Mr Sajan Jindal vice CMD of JSW Steel, after meeting Mr Buddhadeb Bhattacharjee chief minister of West Bengal, said that "The chief minister asked us to carry out the study for the port. We will start work from February itself.”
Mr Jindal added that "The port will be good enough for 20 million tonnes of cargo annually and that will have a draft of 18 meters.” Mr Jindal indicated that the investment in the port would be INR 2,000 crore.
JSW Steel has developed three ports in Goa, Ratnagiri in Maharashtra and Kakinada in Andhra Pradesh. This would, however, be first time the group will foray into deep sea port.
Earlier, the Union shipping ministry had invited expressions of interest from global consultants for the state government’s port idea, backed by INR 10 crore funds released for the purpose by finance minister P Chidambaram in the Union budget for 2006-07 but nothing has happened so far.
A deep sea port could boost West Bengal’s industrialization drive since the existing docks at Calcutta and Haldia, built along a river, are too shallow for large ships.
Railway freight might be reduced – Reports
As per media reports, railway budget 2008-09 may see a lowering of freight charges for coal, fertilisers and iron ore by 3% to 5% due to reduction in the freight determination classes. The new budget may also allow private players to design their own commodity specific wagons.
As Indian Railways had already reduced freight rates for lighter commodities over the years, the 2008-09 budget may focus on bringing down freight rates for bulk commodities. Also, the usual lean season discount, empty flow direction and mini rake schemes are expected to continue.
To promote private ownership and investment of wagons, Indian Railways plans to expand the ambit of the wagon investment scheme. Private players may be allowed to design customized wagons as per their requirements. However, the designs may have to be duly approved by the Railways.
In 2007-08 railway budget, freight rates for petrol, diesel and limestone came down by 6%. If the classes are brought down further, it would result in reduction of freight rates of coal and iron ore.
Indian Railways has generated about INR 33,757.87 crore of revenue earnings from freight traffic during April to December 2007 period up by 11.62% YoY as against INR 30,242.78 crore during April to December 2006 period. It carried 571.35 million tonnes of freight traffic during April to December 2007 up y 8.22% YoY as compared to 527.95 million tonnes.
Kandla Port crosses 50 million tonnes mark
Exim News Service reported that Kandla Port, in its steady march towards becoming a facility par excellence in the international maritime sector, has crossed the milestone of handling 50 million tonnes of cargo in 2007-08, well ahead of the close of the financial year. Its target for the current fiscal is 60 million tonnes. Hence, it is just 10 million tonnes away from this target, with about 73 days to go.
Mr Sanjay Bhaty public relation officer & head of the port’s business development cell said that it touched the magic figure on January 18th 2008, which was an impressive 9.6 million tonnes more than the 40.8 million tonnes it handled by the same day in 2006-07.
He said that “Till date, the overall growth rate of Kandla Port in this fiscal has been 23.60% as against the national growth rate of 11%. Its productivity has also increased by 33% during 2007 fiscal till January 18.
In 2006-07, the Kandla Port had attained the 50 million tonne mark only by the middle of March 2007, with the final throughput for the fiscal being 52.98 million tonnes. It has now achieved this magical figure more than 2 months before the fiscal end.
MMTC invites bids for import of 30,000 tonnes of LAM coke
It is reported that MMTC Ltd has invited global bids for import of 30,000 tonnes low ash metallurgical coke. Prospective suppliers can submit their bids by February 5th 2008.
The bidders would be required to submit their offers for the supply of coke on CFR FO New Mangalore Port basis. All the bidders are required to submit an interest free EMD of USD 25000.The successful bidder would have to execute a performance guarantee bond in the form of a bank guarantee for an amount covering 3% of the contract value.
To qualify technically, bidder who has not supplied LAM coke to MMTC shall satisfy all the following minimum threshold criteria.
1. The bidder shall have an original letter of authority and support for participation in this tender from LAM coke producer owning coke ovens.
2. The bidder must demonstrate sound financial status. The bidder’s annual turn-over shall not be less than USD 25 million.
3. Bidders, who have not supplied LAM coke to MMTC earlier, must submit the duly filled in empanelment form with required documents.
The coal and hydrocarbons business of MMTC mainly comprises Lam coke, coking coal and steam coal. MMTC is one of the largest importers of LAM COKE in India. LAM COKE is imported by MMTC for various customers like NINL, SAIL, RINL, KIOCL, and IDCOL and also for some private companies.
Job seekers create tension at RINL
It is reported that tension broke out in Rashtriya Ispat Nigam Limited at Vizag as those displaced by the plant, who are on an agitation for the past 3 months seeking jobs in the plant, went on a rampage and stoned the administrative building recently.
As per report, 2 peoples sustained injuries in the incident and 90 agitators, including some trade union leaders were taken into custody by the police.
Several thousand people were displaced at the time of the construction of the plant and they were given rehabilitation & resettlement cards. But, the agitators allege that they were not given the promised jobs, even after nearly 2 decades. As the steel plant management has taken up expansion project to double the capacity at a cost of INR 8,600 crore, the displaced families are demanding jobs and they have been on an agitation for over 3 months.
Road & rail connectivity to be built at non major ports
It is reported that centre government is considering a proposal to set up a corpus of INR 500 crore to develop road and rail connectivity at non major ports, which are administered by the state governments. The money to develop road and rail connectivity will be routed through the state maritime boards. The move is aimed at increasing cargo movement through these ports.
Mr Rakesh Srivastava joint secretary at union shipping ministry said that “We have sent a proposal to the finance ministry, under which we plan to develop non major ports by giving them financial help.”
Currently, only 30% of the cargo moving through ports is routed via non major ports, while the remaining 70% is concentrated at major ports.
McNally receives INR 29 crore order from BHEL
McNally Bharat Engineering Company Limited announced that it has received an order from Bharat Heavy Electricals Limited for supply of ash handling system mechanical package for 1000 MW DVC Mejia Phase B Units 1 & 2 valued at INR 28.92 crores including all taxes and duties.
Adani outlines major initiatives for next 5 years
Adani Enterprises Limited has informed BSE about its plans major initiatives in energy, real estate & agri business. In its annual strategic review, Adani Enterprises Limited has identified several new initiatives in the ensuing 3 to 5 years.
A) Energy
Adani Enterprises Limited has a significant presence in the energy commodities of coal, power, petroleum products trading and city gas distribution. In order to be present across the value chain in these business areas, it initiated its foray into power generation, coal mining, oil & gas exploration, as well as expanding the city gas distribution footprint to several other cities in India.
B) Power Generation
In the power generation space, Adani Enterprises Limited is targeting a total power generation capacity of around 10,000 MW to be operational in a phased manner.
Its current initiatives are
1) Mundra project with 2640 MW capacity
2) Gondia project with 1980 MW capacity
Its new initiatives are
1) Mundra expansion project with 1980 MW capacity
2) Rajasthan project with 1320 MW capacity
3) Dahej project with 1980 MW capacity
C) Coal Mining
Adani Enterprises Limited has begun initial operation of coal mining at Indonesia, on the coal blocks at Bunyu Island, which are slated to commence operations by April 08, and will reach full production capacity in the next 2 years.
D) City Gas Distribution
The city gas distribution business of supplying clean and environment friendly fuel to the industries, commercial establishments and households through a piped gas network is already operational in the cities of Ahmedabad and Baroda.
E) Oil & Gas Exploration
In the oil arid gas exploration field, Adani Enterprises Limited through its subsidiary Adani Welspun Exploration Limited, has already three exploration blocks under its purview in India and Thailand.
F) Real Estate
AEL made it foray into large integrated real estate projects a year back and now has more than six projects in progress entailing around 100 million square feet of development. A large integrated township spread over 578 acres is coming up at Ahmedabad with over 40 million square feet of development. A slew of high end commercial and residential projects are progressing at Mumbai with each project ranging from a minimum of 2 million square feet and upwards.
Its current initiatives are
1) Shantigram Township at Ahmedabad with 41.5 million square feet
2) BKC at Mumbai with 2.2 million square feet
3) Mill Land at Mumbai with 2 million square feet
Its new initiatives are
1) Mundra Township with 50 million square feet
2) Cochin with 3.2 million square feet
3) Surat with 5.6 million square feet
India and France to ink MoU in rail sector
It is reported that Union Cabinet has given its approval for signing of a MoU between Indian Railways and French National Railways.
The MoU will help promote cooperation in the rail sector between French National Railways and Indian Railways. It will be signed in January 2008 during the current visit of French President to India.
The MoU will be valid for 3 years.
REC to fund revival of GSPC Pipavav power project
It is reported that GSPC Pipavav Power Company Limited has signed a loan agreement with Rural Electrification Corporation Limited to put the 700 MW Pipavav power project back on track. REC would provide a loan of around INR 2,000 crore for the project, which costs INR 2,334 crore.
Mr Saurabh Patel energy & petrochemicals minister of Gujarat said that the Pipavav power project was conceived by the earstwhile Gujarat Electricity Board way back in 1990 based on the Panna Mukta Tapti gas committed by the centre but as the gas allocation was not coming through, the project implementation remained on drawing board only.
Incorporated as a special purpose vehicle by the Gujarat State Petroleum Corporation and the Gujarat Power Corporation with the initial equity, the GPPC will see induction of other equity partners at a later stage.
For the EPC contract, Bharat Heavy Electrical Limited has been issued a letter of intent after a selection through the international bidding route. While the GSPC would arrange for the gas, Gujarat State Petronet Limited would transport the gas required for the power project. Once commissioned by end of 2010, the total electricity generated from the project would be sold to Gujarat Urja Vikas Nigam Ltd to bridge the demand-supply gap of electricity in the state, a company release stated.
Being an environment friendly project as compared with a coal or lignite based power project, the GPPC has also initiated the process to register the project with the United Nations Framework Convention on Climate Change to avail of the carbon credit benefits.
TN to invest INR 925crore in co generation units
BS reported that Tamil Nadu government is planning to set up co generation units in all co operative and public sector sugar mills in the state at a cost of INR 925 crore to generate 185 MW of power.
Mr Surjit Singh Barnala governor of Tamil Nadu said that all these co generation units are expected to be operational within 18 months.
According to the Policy Note 2007-08 of the state energy department, co generation plants in the sugar mills had a total installed capacity of 315 MW as of February 2007. There are 38 sugar mills operating in the states. Of these, 16 are in the co-operative sector and 19 in the private sector.
Tamil Nadu has faced a marked power crisis over the past few months. The state attributed this to a shortfall in power supplied by the central power stations. Neyveli Lignite Corporation was not able to supply the committed quantum of power due to lignite shortage. Similarly, Kalpakkam and Kaiga nuclear power stations have not been able to produce power at the rated capacity due to inadequate fuel. The power shortfall in the state is estimated at about 650 MW.
However, the state has been making efforts to tide over the power shortage. It has managed to procure about 300 MW of power from the centre out of the latter’s pool of unallocated power. It has also been procuring 150 MW of power from Kerala and another 150 MW of power from Assam and Haryana under a swap agreement.
Sikkim to withdraw LoIs for private hydel projects
It is reported that Sikkim government has decided to withdraw letters of intent issued to private hydroelectricity developers for 4 proposed hydel projects in the state.
The 4 projects are
a) 99 MW Lingza project in Dzongu on the Tholong Chu in North Sikkim which was to be developed by the SSNR Super Power Private Limited.
b) 40 MW Rateychu Bakchuachu HEP in Kabi Tingda in North Sikkim, to be developed by Costal Energy Private Limited.
c) 88 MW Tashiding Project in West Sikkim over the Rathong Chu by Shiga Energy Private Limited.
d) 90 MW Ting Ting Project over the Rathong chu in West Sikkim, which was scheduled to be taken up by SMEC International Private Limited.
The decision to withdraw the letters of intent was because of non performance of activities as per the agreement signed between the government and the private parties and non compliance of milestones as per letter of intent and because of technical flaws in the pre feasibility reports submitted.
The state cabinet also deferred its decision on whether or not to cancel the agreement drawn up with Amalgamated Transpower for the proposed hydel projects in the state.
Gujarat NRE lines up AUD 300 million investment for mining
BL reported that Gujarat NRE Group’s Australian subsidiary India NRE Minerals Limited has firmed up plans to invest AUD 300 million in mining initiatives in Australia.
As per report, promoters of India NRE Minerals Limited plan to dilute their holding, which currently stands at around 80% of the equity stake in the company in the Australian capital market to part finance the mining initiatives.
Mr Arun Kumar Jagatramka vice CMD of Gujarat NRE Coke Limited and director of India NRE Minerals Limited said that coal mine NRE Avondale and Eulora has been consolidated into one mine that has now been renamed NRE Wongawilli. Earlier, the company had acquired Eulora from BHP Billiton Ltd. He added that the aggregate production from NRE Wongawilli had been pegged at 2.5 million tonnes in the next 3 years. Thereafter, annual production from the mine would be of the order of 2.5 million tonnes.
India NRE Minerals also owns the NRE number 1 colliery in New South Wales. Steps have been initiated to open new entries into the mine and commence mining activities. NRE number 1 has hard coking coal deposits of 300 million tonnes and annual production from the mine has been pegged at 4 million tonnes.
Varun Shipping earmarks USD 400 million CAPEX
BS reported that Varun Shipping Company has earmarked USD 400 million as capital expenditure for the calendar year ending December 31st 2008. This would be used for acquisition of additional ships.
Mr Yudhishthir Khatau MD of Varun Shipping said that “The capex will be used for consolidation of our oil, gas and offshore activities, and for acquisition of vessels. This would be mainly raised from internal accruals and refinancing of the company’s certain assets.” He added that the capex would be mainly used for acquiring vessels for offshore operations, which is a priority for Varun Shipping.
According to Mr Khatau, “Varun Shipping is in the process of identifying the availability of assets and acquiring it in a quick leap time. However, the acquisition will depend upon the assets coming up at the right time and price.” He added that the capex is in addition to the USD 400 million announced earlier this year, of which the company also already spent around USD 320 million. At present, the company owns a total of 20 vessels.
Varun Shipping has posted a net profit of INR 73.68 crore in October December 2007 quarter as compared with INR 39.62 crore posted during October December 2006 quarter. Its total income for the October December 2007 quarter rose to INR 246.87 crore as against INR 179.26 crore recorded during October December 2006 quarter.
Adani Welspun wins second oil and gas block in Thailand
It is reported that Adani Welspun Exploration, a JV between Adani Group and Welspun Group, has won a second oil and gas block in Thailand.
Mr B Mathur CEO of Adani Welspun said that Thailand’s energy ministry on January 21st 2008 awarded concession rights for 13 onshore and offshore oil and gas blocks, with Adani Welspun Exploration winning onland Block L22/50. He added that “We are in midst of planning and executing seismic and drilling activities in these blocks as well as actively pursuing new business opportunities in India and globally.”
Block L22/50 measures 3,957 square kilometer in area and lies in western Thailand. AWEL had previously won 3,975 square kilometers Block L39/48 in the north eastern part of Thailand, near the southern rim of Khorat Plateau and towards the edge of Greater Khorat Basin. The block is situated 350 kilometers from Bangkok and 100 kilometers from Khon Kean city.
The 13 blocks awarded this week are part of the 56 onshore blocks and 9 offshore blocks in the Gulf of Thailand, spanning 235,606 square kilometers, which are being offered in the 20th petroleum concession bidding round of Thailand.
ThyssenKrupp and JFE develop new ultrahigh strength steel
It is reported that ThyssenKrupp Steel and JFE Steel Corporation have jointly developed a new multiphase steel for automotive applications.
It has a minimum strength of 780 Pa similar to that of the advanced ultrahigh strength steels CP-W 800 from ThyssenKrupp Steel and NANO 780 from JFE. But with up to 40% higher elongation compared with conventional 780 Pa high strength steel it possesses significantly improved forming properties. First components made of the new material confirm its advantages. The two companies have jointly filed a patent on the newly developed material, which is designated TP-N 68/78.
ThyssenKrupp Steel and JFE have been working together closely since 2002 under a cooperation agreement aimed at securing the global availability of high-performance steel materials for the automotive customers of both partners. Results so far include the definition of common specifications for high-strength automotive steels and the conclusion of a cross-licensing agreement for the steel grades CP from ThyssenKrupp Steel and NANO HITENTM from JFE. Under the agreement, both companies can produce the other partner's material.
The high strength and good formability of the newly developed 780MPa high strength steel are attributable to a bainitic ferritic microstructure with embedded retained austenite in combination with nanometer sized precipitations. During forming, the austenite content is transformed into hard martensite, which means that the steel only reaches its final strength during fabrication to the finished part. To achieve these specific properties, the materials developers at ThyssenKrupp Steel and JFE developed a new alloying concept and also employed new temperature control methods during hot rolling and cooling.
The newly developed steel is available as hot rolled coil, on request also coated. Typical applications include crash-relevant automotive body structural parts. Further joint developments for such high strength steels will be following.
Sumitomo Metals to hike domestic price for seamless pipes
Sumitomo Metal Industries Ltd has announced that it is in negotiations with customers regarding a domestic price increase for seamless pipes. It is considering a 15% increase.
It said that price increase would apply to all domestic sales both spot and long term contracts for seamless pipes produced from April 2008 onwards.
It said that seamless pipe supply demand is tight, so a price increase is necessary to ensure international parity and a stable supply. It added that “Moreover, we expect a rise in the price of iron ore, coal, ferrous alloys, and other raw materials in FY2008, as well as a rise in shipping charges.”
Sumitomo said that “Overseas energy sector demand for seamless pipes should remain robust in FY2008. Domestic demand is expected to remain strong as well, particularly from the construction, industrial machinery, and plants sectors. Moreover, our customers have requested an increase in seamless pipe supply. At the same time, Sumitomo Metals believes its existing facilities are insufficient given current demand and forecasts for the future.”
The release added that Sumitomo Metals is also considering raising its gas tubing price in April.
South Africa declares electricity emergency
It is reported that leading South African gold and platinum mines stopped production Friday as the government declared a national electricity emergency in the face of power outages that have caused chaos and threatened to choke economic growth.
The government said there was no foreseeable end to the electricity shortages that have spilled over the nation's borders into Botswana and Namibia, which rely heavily on South African energy exports.
Mr Alec Erwin public enterprise minister after a Cabinet meeting told journalists "The unprecedented, unplanned power outages must now be treated as a national electricity emergency situation that has to be addressed with urgent, vigorous and coordinated actions. We are viewing the next two years as being critical.”
South African government and state owned utility Eskom said that South Africa's economic growth has outstripped energy supplies and the nation must cut use by 10% to 15%.
European coal prices rose the most in almost three weeks as Anglo American Plc and other mining companies shut production in South Africa because of power cuts. Anglo American, the second-biggest coal producer in the country, stopped five of its nine mines after state utility Eskom Holdings Ltd. said it couldn't guarantee electricity supply. More than a quarter of Europe's energy coal is shipped from Richards Bay.
China, the world's biggest coal producer, ordered domestic shippers to halt exports next month and in March to ease shortages. In Australia, the world's biggest energy coal exporter, rains disrupted mining in Queensland.
Sparrow Point trustees picks Morgan Stanley to manage sale
AP reported that investment bank Morgan Stanley will manage the sale of Mittal Steel Co NV's Sparrows Point steel mill near Baltimore.
Mr Joseph G. Krauss, a Washington lawyer who was appointed by a federal judge in August to oversee the sale said that Morgan Stanley has begun the process of soliciting bids from prospective buyers of the plant. Mr Krauss did not provide a timetable for the transaction.
Mr Krauss wrote in an e-mailed response to questions from The Associated Press wrote that “We are working toward reaching a conclusion in as timely a manner as possible.”
Mittal Steel had agreed in February to sell Sparrows Point to resolve US Justice Department antitrust concerns that its USD 41 billion takeover of Arcelor SA would give the new company too much market power over the production of tin plated steel. A deal to sell the plant for USD 1.35 billion to E2 Acquisition Corp, an international investment group led by Esmark Inc, collapsed in December due to what Mittal Steel said was E2's inability to secure financing.
Bulgaria Government supporting Kremikovtzi sale
Bulgarian media reported that the Bulgarian government will not obstruct the negotiations for the sale of a majority stake to Ukraine's Mr Konstantyn Zhevago.
The report cited Mr Petar Dimitrov Energy and Economy Minister said "The state holds a 25% stake in the company, but it will not create any problems for the deal to be finalized. He said that the government's seal of approval is crucial for inking the deal."
He assured that the potential buyer, who is holding negotiations for acquiring a majority stake in the loss incurring plant, has committed to make the necessary investments to bring the plant up to EU environmental standards.
PT Bumi sees 11% rise in 2008 coal output
Reuters reported that Indonesia's top coal producer, PT Bumi Resources Tbk expects its coal output to grow by at least 11% in 2008 as compared to around 56 million tonnes in 2007.
Mr Dileep Srivastava senior VP of investor relations at Bumi said that "We are targeting output growth of at least 11% this year, if not more. And it could be more if the weather is more favorable. During dry weather, we can maximize output.”
He said the company had also leased more mobile equipment which was helping to raise production. He added that company could spend USD 150 million to USD 200 million this year to upgrade coal infrastructure and on exploration, but excluding acquisitions.
Mr Srivastava said supply constraints at other major producers would continue to underpin average free on board prices received by the company. He said “It is likely to be higher for the full year 2007. We should be able to obtain average prices 25% higher in 2008. It could be even higher due to supply constraints such as what happened in Queensland."
Indonesia, the world's top thermal coal exporter, is expected to produce 234 million tonnes of coal this year, up from 215 million tonnes in 2007.
Voest Alpine orders for a new HDG line
Siemens Metals Technologies will supply the hot dip galvanizing line 5 of the Austrian steel producer voestalpine Stahl GmbH at Linz with drives and automation equipment. The first strip of metal is scheduled to be galvanized at the new plant at the end of 2009 and completion of the power up phase is planned for summer of 2010.
The hot dip galvanizing line 5 will have an annual capacity of around 400,000 tonnes and will be used to produce high strength galvanized cold wide strip up to 1750 millimeters wide for applications in the automobile industry.
For the new line, Siemens is supplying Sinamics drive systems with a total installed power output of around 15 MW. Simatic PCS7 will be used as the process control system. The hot dip galvanizing line will be automated by means of Simatic S7 processors, one of which will control the safety systems. WinCC will be used for visualization. The scope of supply and services also includes planning of the electrical and control equipment, creation of the software, including the integration test. In addition, Siemens is responsible for complete installation of all the electrical equipment and commissioning of the electrical and control equipment for the plant.
Siemens previously supplied the same company with equipment for the hot dip galvanizing lines 3 and 4.
Klöckner & Co appoints Mr Ulrich as board member
At its meeting held the supervisory board of Klöckner & Co AG appointed Mr Ulrich Becker as a member of the board of management. Mr Becker will assume responsibility for the Europe segment and take on functional responsibility for purchasing.
Mr. Becker was previously a member of the management team of Benteler Automobiltechnik GmbH and already has many years’ experience at management level in the steel distribution and trading business.
Klöckner & Co was founded more than 100 years ago by Mr Peter Klöckner. Klöckner & Co is the largest independent producer and distributor of steel and metal products in the European and North American markets combined. During the financial year 2006, the Company achieved sales of approximately EUR 5.5 billion with around 10,000 employees.
SSAB awarded insurance compensation
In a judgment issued by the Svea Court of Appeal, the insurance company, Zürich Insurance, Sweden Branch, has been ordered to pay SSAB’s wholly owned subsidiary, SSAB Tunnplåt AB, additional insurance compensation of approx. SEK 161 million as well as interest and compensation for litigation costs relating to a blast furnace breakdown which occurred at the company’s plant in Luleå in 1997.
Including accrued interest thus far, the awarded compensation totals approx. SEK 302 million, excluding compensation for litigation costs. In addition to the insurance compensation that has now been awarded, approx.
SEK 110 million have already been paid out earlier in insurance compensation as a consequence of the breakdown. If the judgment becomes final, it will have a positive impact on SSAB’s earnings in the amount of approx. SEK 250 million.
Strikers halt Sidor output for a day
El Universal and El Nacional reported that workers at Venezuela's largest steelmaker, Argentine controlled Ternium Sidor, halted output for a day in a dispute over benefits.
As per report, thousands of workers held the 24 hour stoppage that started late Wednesday to demand Sidor increase its pay offer in collective contract talks being monitored by the government.
Sidor, which Mr Chavez threatened last year to nationalize, complained to the government that the stoppage was illegal.
Argentina's Ternium has a 60% stake in Sidor, with workers, pensioners and the state holding the remaining portion.
Japan produces 903,200 tonnes of small bar in December
It is reported that Japan produced 903,200 tonnes of small bar products in December a 4.9% drop compared to last month while a decrease by 13.5%YoY. Production of small bar totaled about 9.05 million tonnes from April to December decrease by 2.8%YoY.
As per report the output for small bar has been dropped for 4 months in a low, the output for the whole year was 11.97 million tonnes a decrease by 1.1%YoY about 1 million tonnes.
FMG completes 82% of Pilbara Iron ore project
It is reported that construction was 82% complete at the end of December 2007 on Fortescue Metals Group’s AUD 2.7 billion iron ore project in Australia.
FMG has dispelled rumors it will miss its first shipment of iron ore in mid May, claiming the project is still on schedule. First shipment of ore from the mine remains on schedule for May.
It did however concede the timeframe for the completion of the rail link was pushing critical because of minor delays. By the end of December, Fortescue had laid 97 kilometer of the 260 kilometer link between its vast Pilbara iron ore deposits and its Port Hedland berth, which is scheduled to receive ore on March 14th 2008. But construction delays on the rail link will mean the ore cannot be loaded till April, gobbling up significant breathing space.
FMG said "The challenge is to ensure sufficient capped rail formation ahead of the SUM track laying machinery to ensure it operates all day every day.”
New high grade zinc intersected at Victoria prospect
It is reported that the first diamond drill hole completed by Kagara Zinc at the Victoria prospect near Chillagoe in far north Queensland has intersected 26.84 meter assaying 6.0% zinc, 0.6% copper and 11 grams per tonne silver from a depth of 176.56 meter.
Mr Kim Robinson, the company’s executive chairman said that this intersection is particularly significant in that it is drilled beneath a number of shallow Reverse Circulation holes drilled in November 2005, which outlined a lower grade, narrower zone of mineralization over a 400 meters strike length.
Victoria lies 5 kilometer due east of the Mungana treatment plant site and any ore discovered at Victoria would be ideal feed into the Mungana facility.
Mirabela Nickel revises costs for Santa Rita Nickel project
Australia’s Mirabela Nickel has revised the cost estimate for its Santa Rita nickel project in Brazil upwards by 22% to AUD 322 million from the previous estimate of AUD 263 million given in July 2006.
The latest increases in capital costs follows signed contracts with providers of construction services for the mine, which is expected to come on stream in 2009.
Golden Grove mine misses 2007 zinc production target
The Golden Grove zinc copper gold mine in Western Australia produced 131,954 tonnes of zinc in concentrates in 2007, which was short of zinc guidance of 140,000 tonnes to 150,000 tonnes.
Kumho Asiana inks deal to acquire Korea Express
Kumho-Asiana Group, South Korea's seventh largest conglomerate, has signed a preliminary agreement to take over Korea Express Co, the nation's top logistics company.
Kumho-Asiana will conduct a formal due diligence investigation of Korea Express by February 15th 2008 and the final contract will be signed on March 5th 2008.
The deal, reportedly valued at KWR 4 trillion won (USD 4.2 billion), will open the door for Kumho-Asiana, which owns Asiana Airlines Inc, to expand its cargo business into the inland freight operations of Korea Express.
Last week, a consortium led by Kumho-Asiana's two major affiliates Daewoo Engineering and Construction Co and Asiana Airlines won the bid for Korea Express, beating Hanjin Group, STX Group and Hyundai Heavy Industries Co.
Korea Express has been under court receivership since 2000 after it failed to repay the debts of its parent company, Dong-ah Construction, which collapsed in financial turmoil.
UAE pumps AED 29 billion into manufacturing
Emirates news agency WAM reported that UAE has pumped nearly AED 29 billion into manufacturing projects over the past 4 years and most of the investments have been made by Abu Dhabi. Food, beverages and tobacco had the lion’s share of the investments, while chemicals, metals and minerals remained a key target of the country’s drive to expand its industrial base and lessen reliance on volatile oil sales.
Official figures showed the new investments covered more than 1,000 projects and national investors controlled nearly 85% of the cumulative industrial capital of around AED 72 billion at the end of 2007. From nearly AED 43.6 billion at the end of 2003, total investments in the UAE’s non oil industrial sector surged to AED 72.6 billion at the end of 2007, an increase of AED 29 billion.
Abu Dhabi accounted for the bulk of the investments, pumping a total of AED 38.9 billion by the end of 2007. Investments in its industrial sector stood at around AED 15.6 billion in 2003 up by AED 23.3 billion in 4 years. Most of the increase in Abu Dhabi’s industrial capital was in 2004, when it leaped to AED 34.3 billion from AED 15.62 billion the previous year
Areva T&D bags EUR 500 million contract from Qatar
Areva T&D India has bagged an order worth EUR 500 million from Qatar General Electricity & Water Corporation.
The proposed contract is part of the Qatar power transmission system expansion program and includes the turnkey delivery of 14 gas insulated substations to develop and improve the network in the Doha region. The equipment is planned for delivery by the first quarter of 2010.
Gulf to earn USD 6 trillion from oil by 2022
According to a report BY McKinsey Global Institute, 6 Middle East oil exporters stand to earn more than USD 6 trillion by 2022. With oil at USD 70 a barrel, the 6 Gulf Cooperation Council countries would reap export revenues of USD 6.2 trillion over the next 14 years, triple the amount earned during the previous 14 years.
At USD 100 a barrel, earnings would approach USD 9 trillion, while even a pullback in crude prices to USD 50 would bring in a cumulative USD 4.7 trillion.
The report said that investment choices of the 6 countries namely Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Oman and Bahrain will affect interest rates, liquidity and financial markets around the world. It added that "The new fortune also comes with risks. A flood of liquidity into global markets could cause asset price bubbles, fuel profligate lending and result in a poor use of global capital."
McKinsey estimated that the 6 states will have USD 3.5 trillion to invest abroad between now and 2020, nearly twice their current foreign wealth. 6 GCC countries held foreign assets worth about USD 1.9 trillion at the end of 2006.
Gujarat Vahanvatti industry booming on orders from MEA
It is reported that Arabian buyers are placing regular orders for ancient design vessels to carry livestock etc with shipbuilder in Gujarat. Locally known as vahanvatti, the wooden ship building industry exists in Mandvi and Salaya ports. However, the past 2 years have seen massive orders coming from the Middle East and Africa to make huge wooden ships.
Mr Satish Joshi a retired maritime official who now works for the Porbandar Vahanvatti association said that ''Till now, only Indians used to order wooden ships but now orders are coming in from Dubai, Iran and even Somalia for wooden ships to be built at Salaya port in Jamnagar and Mandvi in Kutch.''
Mr Noor Mohammed president of Mandvi Vahanvatti Association said that ''Vahans weighing 500 to 2000 tonnes are made using various types of wood and combining it with traditional skills. A ship takes almost a year to shape up. The wooden vessel is towed to the Gulf and then they fit the engine of their choice.''
Mr Shukla head of the department of Gujarat Maritime Board in Jamnagar said that ''While modern vessels come under the purview of the director general shipping, the wooden vessels have to get their required clearances from the ministry of commerce as they are considered as country class cargo vessels. The registration of the wooden cargo ships is done at the destination and by the purchaser. After construction it is towed to its destination by an Indian registered tug boat.”
Industry old timers said that wooden ships are made with expertise in Salaya, Porbandar and Mandvi in Gujarat and the excellent make of the vessel is what lures the buyers to Gujarat rather than Mangalore, where a similar industry exists. Experts also point to the environmentally friendly reasons for the wooden ships being still in demand as there are hardly any hazardous materials used in their manufacture.
Wooden ship manufacturers said that the cost of such ships range from INR 1 crore to INR 5 crore, based on their tonnage and size and have a life of about 30 years. Though wooden ships perform the same task as their modern counterparts the entities that complete the registration and other formalities are separate.
Masdar to build CSP plant worth up to USD 500 million
It is reported that Abu Dhabi Future Energy Company will invite bids to build, own and operate a 100 MW concentrating solar power plant by early March 2008, costing USD 400 to USD 500 million.
Mr Ziad Tassabehji director innovation & investment unit at Abu Dhabi Future Energy Company said that "The project named Shams, which would be built in the town of Madinat Zayad in the western region of Abu Dhabi, would be the first of many CSP plants to be setup in the UAE, to feed electric power to the national grid." He added that the plant will use parabolic trough technology and is expected to be operational by the end of 2010. Bids would be invited for engineering procurement and construction along with technology and the capital to setup the project.
Mr Tassabehji said that Masdar provides market driven incentives for carbon management, by monetizing greenhouse gas emission reductions in compliance with the clean development mechanism framework of the Kyoto Protocol.
He said that the company is currently developing a portfolio of clean development mechanism projects with major asset owners in the UAE and the Middle East, including Abu Dhabi National Oil Company, Abu Dhabi Water and Electricity Authority and Dubai Aluminum.
In March 2007, Masdar announced a strategic initiative aimed at developing an Abu Dhabi based national CCS network for enhanced oil recovery.
ETA Star to invest USD 1 billion in Indian port and aviation sector
Dubai based ETA Star is planning to invest more than USD 1 billion in sectors such as ports and aviation in India. The proposed investment will be in addition to other combined investments committed by the company in the power and real estate sectors, which total more than INR 9,000 crore.
The group is likely to invest INR 4,000 to INR 4,500 crore in the development of a port in Tamil Nadu and is final stages of selecting the required site. The project will be executed through a special purpose vehicle ETA Star Ports, which is likely to be formed by August 2008.
ETA will also start commercial flight operations in southern India in June to July 2008 and is awaiting a mandate from the Indian government on rules for international operations. The airline aims to first launch itself as a regional carrier in the southern market, connecting cities such as Visakhapatanam, Coimbatore and Madurai as also metros such as Chennai, Bangalore, Kochi and Hyderabad.
Iran and Kuwait finalize water export plan
Mehr News Agency reported that during the past week’s visit of Kuwaiti foreign minister to Iran, the 2 sides gave finishing touches to the deal for export of water from Iran to Kuwait.
Mr Zargar deputy energy minister of Kuwait said that in 2004, a MoU was inked between the 2 countries in this respect but it has been delayed due to some problems. Based on the deal, 300 million cubic meters of water will be conveyed through a pipeline to Kuwait.
Durrat Al Bahrain awards water desalination plant project
Durrat Al BahrainDurrat Al Bahrain has announced the award of a 25 year concession agreement to design, build and operate the sea water desalination plant serving the irrigation for the entire development to energy central.
The desalination project will operate by reverse osmosis, the preferred system for developments of this size due to its flexibility. The desalination plant will become operational in stages, starting with a capacity of 4,000 cubic meters per day in 2007 scaling up to 20,000 cubic meters per day by 2009 and reaching its full capacity in excess of 30,000 cubic meters per day thereafter.
The installation and capacity of the desalination treatment facility will be staged to suit the various phases of the resort’s development, ensuring a steady supply of irrigated water as villa owners take up residence and Durrat’s extensive facilities become fully operational.
Mr Jassim Al Jowder CEO of Durrat Al Bahrain said that “One of the unique characteristics of Durrat Al Bahrain is that it offers distinctively green surroundings and it is crucial for us to choose suppliers who offer environmentally conscious solutions. Energy Central’s services comply with our stringent requirements, regulatory standards and international environmental guidelines. We are confident that Energy Central will deliver high quality services, which meet Durrat Al Bahrain’s excellence in design and development.”
The extensive landscaped areas of the USD 6 billion Durrat Al Bahrain, including its fifteen islands, the commercial centre of Durrat Al Bahrain and its Ernie Els designed championship golf course, will be irrigated by water from the desalination plant located on the mainland at a distance from the resort. The development will benefit from a constant water supply ensuring all gardens, communal parklands and sporting facilities can flourish.
Galp in talks with Iran on exploration deal
Mfr Luis Amado foreign minister of Portugal said that energy company Galp is in talks to explore for oil in Iran.
He said that "For several months there have been conversations between Galp and the National Iranian Oil Company on joint exploration at a field in Iran."
Roshan Construction bags Quality Commitment & Excellence Award
It is reported that Roshan Construction LLC, a leader in turnkey industrial construction of pre engineered steel buildings, has bagged the 10th Diamond Eye Award for Quality Commitment & Excellence' from OtherWays Management & Consulting Association.
The award was presented to Mr Shiraz Jamaji GM of Roshan Construction LLC by Mrs Cecilia Suarez a representative of the government of Mexico in France and Mr Charbel S Tabet president & CEO of OtherWays International Research & Consultants.
This is the second international award won by Roshan Construction in 3 months. Recently, the firm was awarded the 19th International Construction Award by The Trade Leaders' Club of Spain for excellence in industrial construction.
Mr Minoo Jamaji MD of Roshan Construction LLC said that “The prestigious OtherWays Quality Award once again endorses our commitment to total quality and customer satisfaction which has endeared us to our customers and earned us their loyalty. This international recognition will inspire us to work harder to follow the standards we have set for ourselves.”
Roshan Construction has been executing world class projects for major clients, as Dubai's industrial and storage sectors continue to boom. As specialists in pre engineered steel buildings, the company has gained a strong reputation in this field over the years.
Chinese coal export halt pushes global rice levels
It is reported that China told its miners and port authorities on Friday to stop coal exports for the next two months to help end its most severe power crisis yet, sending benchmark Newcastle coal swap prices to record levels.
Chinese government said that "During the Chinese New Year and parliamentary meeting, all thermal coal exports will be suspended. There is a need; all international shipping capacity will be diverted for domestic transportation requirements. Officials of irresponsible companies that do not abide by the latest regulations would face serious investigations.”
Some traders had been bracing for a possible clamp down by Beijing after regional electricity shortages built this week into a nationwide crisis, with some generators struggling to secure increasingly costly coal and others shutting down capacity to avoid producing cheap electricity at a loss.
China's export halt comes at a time when supply of coal is extremely tight at most exporting countries due to strong demand and a variety of logistical problems.
China is an important supplier of thermal coal to power plants in Japan and South Korea, shipping an average 5 million tonnes a month in the second half of 2007. Indonesia, the world's biggest exporter, ships over 12 million tonnes monthly.
Chinese plate export prices on up trend
It is reported that plate prices have kept firm in the past two weeks in Chinese domestic market but export prices have firmed up due to strong global demand.
In Shanghai, commodity grade 14mm to 20mm plate by Yingkou Steel was being offered at CNY 5180 per tonne to CNY 5250 per tonne and Maanshan Steel was quoted at CNY 5100 per tonne while smaller producers were quoting at lower level of CNY 4950 per tonne to CNY 4980 per tonne
Plate prices are still on an upward trend, bolstered by robust demand from mechanical industry and ship building sector. The lower growth rate for plate output and huge demand from home and abroad has led to short supply. Hence export price is continuously on the rise in 2007 and the trend continues in January.
Now tier one steel producers have shoot up base price for S275JR 15mm to 40mm to USD 870 per tonne to USD 875 per tonne on FOB basis for April shipment as compared with USD 850 per tonne to 860 per tonne in early this month. While those for plates by tier two steel mills are prevailing at USD 830 per tonne to USD 840 per tonne on FOB basis for end March or early April delivery. However transaction level is believed to be at USD 825 per tonne to USD 830 per tonne on FOB basis.
Chinese ships recalled in coal transport drive
It is reported that some cargo ships used overseas have been called back or refitted to join a nationwide coal transport drive as many parts of China are now on the verge of losing power as supplies are low after snowstorms have largely disrupted rail and road shipments of coal.
China Cosco Co has recalled 11 cargo ships from its oversea routes while China Shipping Co also transformed four oil tankers in order to transport coal to energy starved regions,
Mr Fu Jinxiu an official of ministry of communications said "The 11 ships from China Shipping can carry 760,000 tons of coal. The four ships from COSCO can carry 80,000 tons. That should greatly ease the shortage."
About 5% percent of the country's coal fired power plants have been shut down, forcing 13 provinces to ration electricity as snowfalls and transport delays hamper deliveries. The five biggest electricity producers have shut 90 power stations with a combined capacity of more than 20,000 MW in northern and central China. Coal stockpiles at the plants have dropped below the caution line of three days' requirements.
Railway congestion as millions of Chinese travel before the Lunar New Year holiday and heavy snowfalls have contributed to the lack of coal.
China settles SBQ plate prices for Japan
It is reported that the new prices of shipbuilding quality plates between China’s suppliers and Japanese buyers have been set at as high as USD 910 per tonne to USD 950 per tonne.
The price rise was because of tight supply in South Korea. Moreover, the new price to South Korea for March and April shipments will be over than USD 1,000 per tonne including the freight and other handling charges.
Chinese coke prices likely to surge due to supply shortfalls
Interfax China reported that tight supplies and transportation bottlenecks in China have driven domestic coke prices to a high of CNY 2,000 per tonne and analysts predict that the coke shortage will not ease until early March.
According to statistics released by the Shanxi Coking Industry Association the ex works price of grade one metallurgical coke soared to nearly CNY 2,000 per tonne while grade two metallurgical coke reached CNY 1,700 per tonne this week in Shanxi Province, the largest coke producing province in China.
Mr Wang Ling Beijing Umetal analyst said that "Tight transportation, caused by recent severe snowfalls, as well as decreased coke production in Shanxi is responsible for the increased coke prices. Moreover, I don't think the tight coke supply will ease up until early March."
He said that "Lots of migrant laborers working in coalmines have returned to their hometowns for Chinese New Year, and coal is given transportation priority to regions with power shortages. The combination of these two factors has increased coal supply problems and driven up coke prices."
China has experienced tight coal supply since the fourth quarter of last year, due to the central government shutting down many small scale substandard coalmines in Shanxi. This has forced local coke producers to cut production resulting in the current shortfall in coke supply in the domestic market.
Baosteel Special Steel eliminates 1.5 million tonnes of capacity
It is reported that Baosteel Special Steel Branch shut down its old No 8 electric furnace built in 1959 at No 2 Steel Works on January 20th 2008. As a result, the branch has eliminated all 1.5 million tonnes of outdated steel capacity.
In late 1990s, the special steel branch speeded up to eliminate obsolete steel capacity. For example, 200,000 tonnes per year former No 1 Steel Works was closed in 2000 and 1 million tonnes per year cupola was entirely eliminated in 2004. Meanwhile, the company launched a series of world class new projects including stainless long products, Pudong Steel’s relocation and continuous casting.
Since 2000 Baosteel, the company has invested CNY 3.2 billion on environmental protection among 22 new projects. In 2007, its emissions of wastewater, COD, oil, dust and SO2 were reduced by 90% on average compared to the year 2000.
Pansteel becomes leading rail supplier
It is reported that Panzhihua steel company has enhanced its high added value and advanced technological products in 2007 and achieved outstanding results in brands in 2007.
Among which, the rail production created four records
1. Highest total output
2. Largest export volume
3. Highest output of 100 meter rails
4. Products standard covering all global standards
Pansteel exported 100,000 tonnes rails to 12 countries since the 1980s, such as USA, Australia, India, Brazil and New Zealand etc. All exported rails meet the standard without quality disputes. It produced rails according to GB standard, TB/T2344-2003 as well as the strictest standard in international market, the EN standard. Insiders think the products specification of Pansteel covered the widest of the world.
Pansteel developed the 100 meter Normal Rail with the world class equipment and advanced technology in December 2004 and developed another 100 meter high speed normal rail with the speed of 350 kilometers per hour in December 2005. The 100 meter normal rail output reached to 130,000 tonnes from 2005 to 2007. It plans to increase rail output of 300 tonnes in 2008.
Jigang exports 1.42 million tonnes of steel products in 2007
It is reported that Jinan Iron & Steel Group has exported 1.42 million tonnes of steel products in 2007 down by 140,000 tonnes from the year before. However, the export value has risen by 22%YoY to USD 810 million.
As a leading medium plate producer in China, Jigang has stepped up the ratio of high end and high value added specialty plate to 88%. Shipbuilding plate sales has recorded 100% increase for two straight years and hit a record high of 1.3 million tonnes in 2007.
Canada starts AD investigation against Chinese welded pipe
It is reported that Canada Border Service Agency decides to start anti dumping and anti subsidiary investigation against carbon steel welded pipe produced or imported from China.
As per report, market economy industry investigation would also begin at the same time.
It is the sixth similar case Canada filed against Chinese products.
Chinese railway prioritizes coal shipments
It is reported that China's railway administration has pledged to prioritize thermal coal shipments to power plants in regions hit by power shortages, as part of efforts to help ease a supply crunch ahead of upcoming Chinese holidays.
China Ministry of Railways said that the railway departments would immediately load and ship coal once they received requests.
As per report on January 22nd 2008, coal stocks in 355 power plants that depend mostly on railways for supplies had dropped to 19.68 million tonnes, approaching the "caution level" of 18.9 million tonnes, just enough for 8.8 days of generation.
Coal stocks in power plants in Hubei, Guizhou, Zhejiang, Ningxia and Anhui provinces were insufficient for even three days of generation, and the number of plants with stockpiles below requirement for three days had risen to more than 60.
CRNGO prices in China firming up
It is reported that the NGO CR silicon steel ex works prices have picked up on a steely basis over the recent period.
Following a CNY 200 per tonnes to CNY 250 per tonne gain in January, the prices climb further by an average of CNY 100 per tonne excluding VAT for February, forcing smaller mechanical motor and household appliance sectors into more troubles. The CR silicon steel traders are also depressed in face of higher risks.
The traders' cost is close to CNY 7000 per tonne including VAT and have to increase market offers to CNY 7100 per tonne from previous CNY 7000 per tonne for "50WW800"*0.5*1200*C yet pushing smaller buyers into a wait and see status and leading to reducing transactions finally.
As per report buying upsurge is yet to come until the spring festival as majority downstream users and the traders are still faced with financial strains.
Meigang commissions RH furnaces
It is reported that RH furnace smelting model was successfully exploited by Meigang, a subsidiary company of Baosteel Group. The model was put into trial operation in last September and both the quality and performance are better than the expected standard.
The success of the model is beneficial in raising ability of RH furnace, raising products quality, enlarging the range of products varieties and in reducing the cost of materials. Meanwhile, it also provides experiences in technology extension and in model exploitation and application.
Mr Duan Ruiyu the academician of Chinese Academy of Engineering said that 210 tonnes converter whole set automatic steelmaking technology in Qiangang under Shougang Group is excellent. It is the first automatic steelmaking technology that is totally self designed and exploited and self manufactured in China.
The smelting cycle would be averagely reduced by 16.8%. The investment in the project could save CNY 22.62 million than importing the technology from abroad. After the project is commissioned, it would earn a direct economic profit of CNY 14.76million.
Chuan Dong Shipyard bags major order for a vessel
It is reported that recently, Chuan Dong Shipyard and CSC Nanjing Tanker Corporation singed a contract. Chuan Dong Shipyard and CSC Nanjing Tanker Corporation will together to build two 5,500 tonnes stainless steel chemical vessels. It is the first large order for Chuan Dong Shipyard in 2008.
As per report it is the second cooperation for Chuan Dong Shipyard and CSC Nanjing Tanker Corporation after the successful construction of 12 vessels in 2004. Through long-term cooperation, Chuan Dong Shipyard and CSC Nanjing Tanker Corporation have already set up strategic cooperative partnership.
China coal spot prices unlikely to rise further - Citigroup
XFN-ASIA cited Mr Thomas Wrigglesworth Citigroup analyst as saying that coal prices on the Chinese spot market are unlikely to rise above the USD 75 per tonne level reached at the end of 2007 and the beginning of 2008 amid government calls for coal producers to stabilize prices.
He said that “Because of concerns about rising inflation, coal enterprises have been urged to settle on prices that reflect 'structural' factors rather than temporary market shortages.”
Severe shortages of coal have forced power grids to ration electricity across China in the last two weeks, with the regulator, the National Development and Reform Commission, blaming coal delivery bottlenecks, poor weather and a lack of coordination between the coal, power and transportation sectors.
Tisco to add 2 lines for 300 series SS
It is reported that Tisco will add two rolling machines during the second construction period, with these 4 rolling machines, the capacity of Tisco will reach to 400,000 tonnes all used to produce 300 series stainless steel.
In addition, during the second construction period, Tisco will also add a BA production line, the production output will reach to 200,000 tonnes and part of them will be exported to other countries.
At present, the largest domestic BA producer was Shanghai Krupp Stainless with its output about 100,000 tonnes which was mainly for exporting.
It is learned that 200 series stainless steel produced by Tisco was sold out almost at present.
Shenzhen Energy to build power plant in Ghana
Interfax China reported that Shenzhen listed Shenzhen Energy Investment will build a combined steam and gas turbine cycle power plant in Ghana.
According to China Business News, the project will require total investment of CNY 1 billion and will be funded by the China-Africa Development Fund an organization supported by the Chinese government that promotes economic cooperation between China and Africa.
The report said Shenzhen Energy Investment will begin construction on the 560 megawatt plant in the first half of this year, but the company has not yet revealed when the plant will be completed. It said the company signed an preliminary cooperative agreement with the China-Africa Development Fund in September last year, under which it agreed to construct a combined steam and gas turbine cycle power plant in Ghana with investment from the fund.
This project is the first of four planned by the fund to strengthen Sino-African economic ties. No further information is available about the other three projects.
NLMK to acquire international steel trading companies
Novolipetsk Steel has announces that its 100% owned subsidiary, NLMK International BV has signed an agreement to acquire a 100% stake in Novexco Limited and 100% of Novex Trading SA, both trading companies, from the United Steel Group. The acquisition price is approximately EUR 77 million. The deal is subject to regulatory approval.
In 2007, Novex Trading SA and Novexco Limited acquired the trading business of Steelco Mediterranean Trading Ltd Tuscany Intertrade and Moorfield Commodities Company, the international wholesale traders that were exclusive export traders of NLMK’s products for several years.
Steelco Mediterranean Trading Ltd is a trading company specializing in slabs supply to the countries of North America and South East Asia.
Tuscany Intertrade (UK) is a trading company supplying hot and cold rolled steel to EU countries.
Moorfield Commodities Company is a trading company supplying electrical steel, hot and cold-rolled steel primarily to European countries.
NLMK release said tat “This transaction is in line with the Company’s strategy to establish an international trading department within the Group and is designed to better control the Company’s export sales and further enhance its presence in core export markets.
Mr Dmitry Baranov VP for sales of NLMK said that “This acquisition will enable us to better control our export sales to core markets, consolidate and control trading revenues as well as better service our customers and enhance the transparency of our export operations. We have long lasting relationships with the companies acquired, and we are sure that these companies will perfectly integrate into NLMK’s business model.”
Mr Zhevago likely to buy Kremikovtzi – Reports
As per reports in Bulgarian media, Global Steel Holding’s Bulgarian steel plant Kremikovtzi may be sold to Mr Konstantin Zhevago of Ukraine very shortly. The reports quoted Mr Alexander Tomov CEO of Kremikovtzi as telling media that "The talks are being held in London. An agreement might be reached today or tomorrow.”
Mr Tomov added that the current owner of the plant, must chose fast whether to invest EUR 140 million to clean up its act of the plant, which is the country's biggest polluter or sell the majority stake to another investor. He said that “The new owner will have to invest about EUR 200 million more in the modernization of Kremikovtzi.”
Dizzying climb of 33 year old Mr Zhevago, whose fortune estimates about USD 1.5 billion, dates back to 1993 when he became financial director of the Finance and Credit group. In 1996 he took over as head of the group. That same year he took control of the enrichment complex of Poltava the world's fourth largest iron ore deposit He also controls domestic truck maker AvtoKraz. His Swiss based Vorskla Steel is putting up HSM at Hungary and some other locations also, Mr Zhevago is also an MP from the party of Ms Yulia Timoshenko.
Finmetals had privatized the factory in 1999 for a token price of USD 1 while pledging to pay its debts of some USD 400 million. Global Steel Holdings bought 71% of Kremikovtzi for an undisclosed price in 2005 and had reportedly pledged to invest USD 340 million to modernize the plant and help it meet European Union environmental safety requirements. The Bulgarian state still controls 25% of Kremikovtzi, while the remaining 4^ are owned by individual investors.
As per reports, currently Kremikovtzi is under pressure because of its ineffective environmental program. Apart from paying serious monthly fines, the enterprise is under the pressure of being closed.
Evraz Completes acquisition of Claymont Steel
Evraz Group SA and Claymont Steel Holdings Inc announced that Evraz has completed its acquisition of Claymont Steel via a short form merger of Titan Acquisition Sub Inc an indirect wholly owned subsidiary of Evraz with and into Claymont Steel pursuant to the applicable provisions of Delaware law.
As a result of the merger, Claymont Steel is now an indirect wholly owned subsidiary of Evraz.
The merger followed the announcement on January 17th 2008 of the successful closing of the cash tender offer by Titan Acquisition Sub, Inc. to purchase all outstanding shares of common stock of Claymont Steel for USD 23.50 per share, in which approximately 96.6% of the shares were tendered. Payment has been made for the tendered shares.
Pursuant to the merger, each share of Claymont Steel common stock not accepted for payment in the tender offer, other than those as to which holders exercise dissenters’ rights and those held by Evraz or Claymont Steel or their respective subsidiaries has been converted into the right to receive the USD 23.50 price per share that was paid in the tender offer, without interest thereon and less any applicable stock transfer taxes and withholding taxes.
Russia and Serbia ink agreement on South Stream section
Russia and Serbia have signed an oil and natural gas cooperation agreement on the construction of the Serbian section of the South Stream gas pipeline system. Mr Alexei Miller CEO of Gazprom said that the South Stream agreement with Serbia envisions transportation of 10 billion cu m of Russian gas annually.
Russia's Gazprom Neft signed a deal on the purchase of a 51% stake in the Serbia state owned oil monopoly Naftna Industrija Srbije during talks between the two countries' leaders in Moscow. Gazprom had reportedly offered USD 580 million for a 51% stake in NIS
Mr Dmitry Medvedev first deputy prime minister of Russia has described the newly signed Russian Serb energy agreements as a brilliant breakthrough. He said "The mutually beneficial investment that will be made as a result of these protocols ensures the interests of our countries, our peoples and are ultimately aimed at strengthening the energy security system in Europe.”
South Stream is designed to supply natural gas to the Balkans and on to other European countries from Russia across the Black Sea. The pipeline will run from Russia's Black Sea coast under the sea to Bulgaria, where it will branch off to different destinations in the European Union, supplying 30 billion cubic meters of gas annually.
The South Stream pipeline proposed by Russia's Gazprom and Italy's Eni is a rival project to the Nabucco pipeline backed by the European Union and United States, which will pump Central Asian gas to Europe via Turkey bypassing Russia.
PGOK increases production of iron ore by 9% in 2007
Ukrainian Journal Staff reported that Poltava Mining, Ukraine's biggest producer of iron ore pellets, increased production of iron ore by 9% or 28.934 million tonnes in 2007.
Poltava Mining said in a statement that production of iron ore concentrate rose 10% to 10.652 million tonnes, and pellet production grew 6% to 9.072 million tonnes including 5.372 million tonnes of pellets with 62% iron and 3.701 million tonnes with 65% iron
Poltava produced 8.793 million tonnes of pellets from its own ore and concentrate, including 5.092 million tonnes with 62% iron and 3.701 million tonnes with 65% iron, respectively 8%, 1% and 19% more than in the previous year.
VMZ to modernization pipe mill
FIS reported that in 2008 to 2009, OMK’s Vyksa Metallurgical Plant will invest RUB 2.3 billion into modernization of the mill of the pipe electric welding unit No 3 of the small and medium size pipes division.
The unit makes oil and has pipes with the diameter of 203mm to 530 mm.
Under the project the plant will install equipment of foreign producers such as SMS Meer, Nakata, Linsinger, the supplies of which are to begin in February 2009.
Kremenchug to raise steel casting production by 1.6% in 2008
Interfax reported that the Kremenchug Steel Casting Plant plans to increase production of steel castings by 1.6% to 140,000 tonnes in 2008. According to the budget for the year the plant is targeting sales of UAH 1.35 billion for 2008.
It was reported earlier that KSZ planned to increase commercial production by 56.6% to UAH 802.624 million in 2007 after raising output 1.2% to UAH 512.589 million.
Kremenchug Steel Casting Plant makes steel and iron castings, including for large trucks, freight cars and pipe billets. It increased net profit by 120% to UAH 23.706 million in 2006.
Estar's Nytva plant boosts output by 5% in 2007
Interfax reported that the Nytva Steel Plant, a unit of the Estar group increased production of steel roll by 5.1% to 50,900 tonnes in 2007.
The plant produced 1.941 million coin blanks, more than twice as many as a year earlier. Production of tableware and kitchenware increased 41.5% to 16.1 million items.
Nytva makes bimetals, coin blanks, cold rolled steel strip and parts for the engineering sector.
Novoroslesexport completes modernization project
It is reported that Novorossiysk Commercial Sea Port has completed the works on berths reconstruction and dredging at the container terminal of Novoroslesexport where the port can serve container vessels of Panamax class and capacity of 5,000 TEU. There are 2 container loaders STS at the terminal.
As per report the first vessel called at the reconstructed terminal was Jean pieerre A of 1 500 TEU capacity owned by Emes. Earlier Novoroslesexport could handle only vessels of 500 TEU capacity. The port modernization program is scheduled to double existing export handling capacities.
According to the Association of Russian Sea Ports, the port of Novorossiysk, the primary base of NCSP, is Russia's largest in terms of cargo volumes. NCSP is said to be a key southern gateway for a wide range of cargoes to and from Russia with throughput including oil, oil products, timber, grain, fertilizers, ferrous metals, containers, automobiles and general cargo.
The Association of Russian Sea Ports has calculated that NCSP handles some 20% of total cargo volumes moved through Russian sea ports. Russian Black Sea ports currently handle more than a third of Russia's maritime exports in terms of cargo tonnage. Total export cargo volumes were 160 million tonnes in 2006. They are projected to rise to more than 250 million tonnes a year by 2010.
