January, 03 2008
2007 - Year of new landmarks for SAIL
Steel Authority of India Limited has ended the calendar year 2007 with landmark achievements in all key operational areas, be it production, sales, productivity, techno economics or project implementation, with highest ever capacity utilization of 116%.
Some of the highlights are as under
1. SAIL touched new peaks in production with hot metal output of 15 million tonnes, crude steel of 14 million tonnes and saleable steel of nearly 13 million tonnes.
2. With finished steel production touching 11 million tonnes, its proportion in saleable steel rose from 81% in 2006 to 83% in 2007.
3. Highest ever continuous casting of 8.7 million tonnes was also achieved during 2007 with a growth of 6% over the previous year.
4. Substantially higher volumes of value-added items like high corrosion resistant TMT wire & rounds, SAILMA structurals, electrode quality wire rods, HR for LPG manufacturers and 90 UTS rails were produced.
5. Major techno economic parameters like coke rate and energy consumption were further improved during 2007. Best ever coke rate of 535 kilograms per tonne of hot metal and specific power consumption of 460 kwh per tonne of saleable steel were achieved.
6. The captive mines of SAIL achieved record production of 26 million tonnes of iron ore during 2007 and met 100% of the requirement of the SAIL plants. Thrust was given on expansion of the existing iron ore mines and proposals for development of new mines were taken up on priority.
7. In house coal production was also given a thrust, resulting in 59% improvement in output during the year.
8. While notching up highest-ever sales of nearly 12 million tonnes during 2007, SAIL strengthened its countrywide marketing network by appointing over 700 new dealers. As on date, there are 1,283 dealers covering all districts of the country, helping to improve reach of steel materials to all corners of the country.
9. SAIL continued to develop and commercialize new products during 2007. Some of the special quality steels supplied for high technology applications through special development efforts included IS 2062 grade C plates for construction of a railway bridge on the Chenab river by the Konkan Railways; DMR 249 grade steel to the Indian Navy for manufacture of India's first indigenous aircraft carrier/battleship; GOST/NES grade plates to the Indian Navy for repairs/maintenance of warships; High tensile plates for manufacturing of instantaneous/temporary bridges during movement of troops and materials in border/unconnected areas; IS 2062 copper bearing structural for border fencing; Jackal/Spade steel plates for Army tanks/armored vehicles; Corrosion resistant and micro-alloyed rails for various applications of Indian Railways, etc.
10. During 2007, SAIL gave the go ahead for a record investment of more than INR 40,000 crore for expansion & modernization of its steel plants at Bhilai, Rourkela, Durgapur, Burnpur and Salem. Several major projects under the company's ongoing expansion & modernization plan 2010 were commissioned during the year. These included technological up gradation of blast furnaces, rebuilding of coke oven batteries, modernization and expansion of finishing mills, etc. At present, 42 projects involving more than INR 5,500 crore investments are under implementation.
11. Several new strategic initiatives were taken to consolidate the company's future. These include
A) Formation of a special purpose vehicle with NTPC, RINL and NMDC for acquiring equity stakes in coal mines abroad.
B) Formation of a JV company with Jaypee Associates for a 2.2 million tonne cement plant at Bhilai. Similar JVs are being set up at Bokaro and Rourkela.
c) Further expansion of captive power plants undertaken, with initiative to set up wind power units in Tamil Nadu.
D) MoU with RINL and NMDC to set up a 4 million tonne integrated steel plant in Chhattisgarh.
E) MoU with POSCO to establish a strategic alliance for aligning and cooperating in a wide range of strategic business and commercial interest areas.
F) Initiative to develop Special Economic Zone at Salem with IL&FSIDC in advanced stage of approval.
G) Approval for setting up 8 steel processing units in 7 states where SAIL does not have a manufacturing base. This will help in downstream processing of SAIL products, adding value to and widening the product portfolio.
12. Even as SAIL achieved highest ever labor productivity of 218 tonnes per man per year in 2007 up by 9% YoY, several new initiatives were introduced in the HR area during the year in order to achieve consistent growth and foster a motivational climate, including ingenious reward and motivation schemes related to daily performances, resulting in enhanced level of performance and employee satisfaction, and a major to provide better exposure to large number of employees, both workmen and executives, through visits to sister units, other companies in India and abroad.
13. SAIL continued to enhance its activities in the area of corporate social responsibility during 2007. Among the major initiatives were setting up 5 schools in steel townships providing completely free education, including midday meals, transport, etc., for underprivileged children living in peripheral areas; opening of 4 free health centers in steel townships; holding over 235 health camps in 10 states to provide free medical check-ups, path lab treatment, medicines, immunization, etc., to over 4.5 lakh people; and adoption of 79 villages in 8 states for comprehensive development as model steel villages.
SAIL’s success was widely recognized by various institutions of repute through awards/accolades, notable among which are the SCOPE Gold Trophy for Excellence & Outstanding Contribution to Public Sector Management for 2006-07, India's Employer of Choice Award 2007 by CNBC-TV18 and Watson Wyatt, Businessworld-FICCI-SEDF CSR Award 2006, Prime Minister's Shram Awards to 10 employees, Vishwakarma Rashtriya Puraskar to 41 employees etc.
CVIL scouting for global investment bankers for overseas acquisitions
It is reported that Coal Ventures International Limited, a special purpose vehicle promoted by Steel Authority of India Limited, National Thermal Power Corporation, Rashtriya Ispat Nigam Limited, Coal India Limited and National Mineral Development Corporation has invited expressions of interest from global investment bankers to assist it in scouting for both metallurgical and thermal coal assets abroad.
As per report, the selection of investment or merchant bankers will be based on
1) Global foot prints and or selected countries specific credentials
2) Adept at mergers and acquisitions, particularly of coal assets
3) Recently successful record of advising clients
CVIL is looking at acquisitions in countries such as Australia, Canada, the US, Indonesia, Mozambique, Zimbabwe and South Africa. It will look at 3 routes of acquisitions
1) Strategic investment in shares of listed coal companies producing or intending to produce metallurgical, PCI and steam coal anywhere in the world, but preferably in Australia, USA and Canada etc
2) Private equity deals with unlisted companies, partners, owners having coal assets in production or not in production any where in the world including South Africa, Mozambique, Zimbabwe and Indonesia etc
3) Acquiring or applying for prospecting mining licenses to develop coal mines anywhere in the world
CVIL, which would have functional directors and a business development group comprising officials from the five promoter companies, is to have a total authorized capital base of INR 10,000 crore and a paid up equity of INR 3,500 crore. While SAIL and CIL would chip in with INR 1,000 crore each, the other three companies are to contribute INR 500 crore. CVIL has been handed over more powers than a Navaratna company as it has been mandated to clear investment proposals of up to INR 1,500 crore at the board level itself. A Navaratna company currently can clear investments up to INR 1,000 crore.
SAIL SSP SEZ proposals approved
It is reported that centre has approved 34 fresh proposals for special economic zones taking the total number of clearances to over 600 tax free zones. Those given approval included proposal of Steel Authority of India Limited at Salem in Tamil Nadu.
The board of approvals, chaired by Mr GK Pillai union commerce secretary, gave in principle clearance to 4 SEZs, while 30 proposals were granted formal green signal. Mr Pillai said that "An investment of INR 56,000 crore has already been made in the 187 notified SEZs, which will create 100,000 jobs in 2008 itself."
India has so far approved 404 SEZs to boost exports, and more than INR 521.93 billion have been invested in about 187 zones where work has begun.
Tribals observe 2nd anniversary of Kalinga Nagar firing incident
SNS reported that the 2nd anniversary of Kalinga Nagar police firing which had killed 14 people turned into a show of strength of those leading peoples movement against displacement and acquisition of farm and forest land.
As per report, leaders of various organizations from different parts of the state as well as West Bengal, Jharkhand, Chhattisgarh, Bihar and elsewhere vowed to battle it out against such land grab by industry houses.
The Visthapan Virodhi Jana Manch spearheading the anti displacement movement in the area since two years held a rally from Champakoila to Ambagadia while the pro industry group organized under the banner of Visthapita Parivar Unnayan Samiti held a meeting at the TATA funded rehabilitation colony.
While the local tribals were seen with their traditional weapons, activists from Nadigram, Singur, Jagatsinghpur, Keonjhar, Bhadrak, Balasore, Kalahandi and Sambalpur where the locals have been opposing land acquisition participated under their respective banners.
SAIL needs all the iron ore from Chiria
Rebutting the Jharkhand government’s contention that Steel Authority of India Limited does not need the full reserve of iron ore from the Chiria mines, a top government official has warned that SAIL’s expansion plans could be seriously hit if the mine is denied to it.
The official is reported to have said that “The Jharkhand government has said that if the erstwhile Indian Iron & Steel Company steel plant’s extraction in the past was considered, SAIL would not need the entire 3 billion tonne of iron ore from Chiria. This is a flawed argument as it ignores the fact that IISCO has been merged with SAIL and the latter is executing major expansion programs.”
He added that “Since IISCO was earlier under BIFR its utilization of raw materials was not substantial. The Chiria and Gua mines were thus producing only as per requirements. While SAIL would need 5,736 million tonnes of iron ore in the next 50 years, it only has 3,443 million tonnes in Orissa, Chhattisgarh and Jharkhand.”
He further added that “So, clearly, SAIL has no surplus iron ore in its domain. In fact, it needs new reserves for catering to its growing needs and so it has applied for mining leases in the Ghatkuri and Meghataburu range.”
NMDC may go overseas for more iron ore
Reuters reported that National Mineral Development Corporation is scouting for iron ore resources overseas to meet a likely surge in demand from domestic steel makers.
Mr Rana Som CMD of NMDC told Reuters that "We are planning to step outside of India, particularly for iron ore. I feel that the situation in iron ore will become more and tighter as our steel production will grow by more than double in the next 4 to 5 years. I do not think iron ore production would double during the same period.”
Mr Som said that it had applied for 8 mining leases in Karnataka and another 1 in Orissa. He added that "But wherever there are mining leases available, the tussle between various parties is very intense. We have been pressing the state governments saying that every ounce of mining material extracted by us is done without wastage."
Annual iron ore production in India is estimated at 170 million tonnes, and its total iron ore reserves are seen at 25 billion tonnes. NMDC, which accounts for about 15% of iron ore production in India, operates 3 mines, two in Chhattisgarh and one in the southern state of Karnataka. Mr Som said that its iron ore production in the financial year ending March 2008 is estimated at 30 million tonnes and is expected to rise to 32 million tonnes by 2008-09.
2 of RPG Group firms to merge with KEC International
Its is reported that 2 RPG Group companies namely RPG Transmission Limited and National Information Technologies Limited would merge with KEC International Limited by February 2008. Post merger, KEC will have a turnover of INR 3,000 crore and promoter holding of 40%. Currently, the promoters’ stake is 34.61%.
The swap ratio has been finalized and 4 shares of KEC shall be allotted to the shareholders of RPG Transmission holding 9 shares. NITEL shareholders holding 15 shares of INR 1 will get 2 KEC shares of INR 10 each.
The RPG Group is merging 2 companies as they have complementary assets and skills and after the merger will allow KEC to lower costs and enhance delivery. It would be able to bid for large size projects, especially promoted on build own operate basis. It will also enable focusing on the fast growing telecom infrastructure business.
Mr Ramesh Chandak MD of KEC said that by February 2008 end all the regulatory and legal process would be in place and the merger would be completed.
Established in 1951, RPG Transmission, earlier known as SAE India Limited, is one of the oldest companies in transmission and railway electrification business in India. It operates primarily in SAARC countries and has a presence right across the value chain in power transmission, sub transmission, rural electrification, railway electrification and tower testing. It has a manufacturing facility at Deori in Jabalpur with 55,000 tonnes per year production capacity.
NITEL is a communications network and transmission company, engaged in turnkey projects in the telecom sector. It undertakes contracts for wireline and wireless networks. It is an approved service provider for GSM/CDMA networks.
KEC is also part of the RPG Group and is a global player in the power transmission infrastructure market.
Visakha Forum urges for captive iron ore mines to RINL
It is reported that the Forum for Better Visakha is planning to submit a memorandum to Dr Manmohan Singh, urging him to take personal initiative and see to it that the Visakhapatnam steel plant gets captive iron ore mines.
Mr EAS Sarma former IAS official and convener of the forum said that so many private steel companies such as Brahmani Steels had captive iron ore mines but the claim of the public sector Visakhapatnam steel plant was being ignored by the union government.
He added that “The steel plant here should be granted captive mines immediately, keeping in view its long term growth and to decrease the cost of production and keep it competitive in the market. The claim of the VSP can no longer be ignored and we want to impress on the Prime Minister the necessity of his intervention in the vital matter.”
Mr Sarma said that the memorandum would also include a demand to increase the capacity of the NTPC Simhadri thermal plant from 2000 MW to 3,000 MW and to allocate the entire power to the state only. Supply of natural gas found by Reliance group in the Krishna Godavari basin to the state, the pricing pattern and related issues would also find a place in the memorandum and the state should be given priority in all these matters. He said “This is necessary for speeding up the industrial growth of Visakhapatnam and the state.”
He also urged the state government and the union government to take back the land allotted to the Hindujas for setting up a power plant and allots it to the NTPC for expanding the Simhadri plant. He said “The land is lying unutilized and it should be taken back.”
Villagers post 17 point charter of demand for handing land to POSCO
SNS reported that some of the villagers of POSCO affected areas, have said that they are prepared to give land to POSCO if it provided their demands including jobs to all, compensation of INR 2.5 million per acre and a 3 room house with all facilities to the displaced are fulfilled.
Listing out a 17 point charter of demands villagers, who met under the banner of United Action Committee at Nuagaon, said that they will submit their proposals to the government.
Significantly, the UAC has sought a compensation for land acquisition at the rate of INR 2.5 million per acre against the INR 6,000 per acre that was being offered. It also wants job for all families of 3 panchayats, 20 decimal land to displaced families with 3 pucca rooms having electricity and other facilities, setting up schools and colleges and to provide free educations to children. It also wants fishermen to be given free access to fishing areas after establishment of the proposed captive port and the steel plant. Besides, it wants POSCO to give contract work to local contractors on priority basis, to provide drinking water facilities, better communication, undertake plantation, health and sanitation related activities.
It may be noted here that the UAC is considered a more pro project outfit as opposed to the CPI led POSCO Pratirodh Sangram Samiti which is leading the anti project movement.
BSL plans to produce 7 million tonnes steel in next 5 years
DNA reported that Bhushan Steel Limited is planning to ramp up its steel manufacturing capacity to 7 million tonnes per annum from 1 million tonnes per annum in the next 5 years. It is also aiming at achieving a power generation target of 2,000 MW by the end of 2012.
Mr Nitin Johari executive director of Bhushan Steel Limited said that “It is planning to emerge an integrated steel producer in the next 5 years and as a prominent player in the power sector of India.”
Bhushan Steel Limited has 2 plants operational, one at Sahibabad in Uttar Pradesh and another at Khopoli in Maharashtra. These plants together have a cold rolled steel capacity of 1 million tonne per annum. It has initiated construction for its maiden venture into hot rolled steel in Orissa and another plant in West Bengal.
BSL’s Orissa plant, which is coming up at an investment of INR 6,000 crore, will manufacture hot rolled auto grade steel. The first phase with a capacity of 2.2 million tonnes per annum will be complete by 2008 end. It has already invested INR 4,000 crore in the venture till now. Mr Johari said that it is looking at further expanding the capacity to 4.5 million tonnes per annum, which is expected to be completed by March 2011.
Bhushan Energy, a subsidiary of the Bhushan Group, is setting up another plant of 2,000 MW near the Orissa plant for selling power at the commercial level. This would entail an investment of close to INR 8,000 crore. It will come up with a public issue next year to raise capital for Bhushan Energy’s power plans.
SAIL implements integrity pact with bidders
Ranchi Express reported that Steel Authority of India Limited has implemented integrity pact with its bidders and vendors for all purchases and contracts valued at INR 100 crore and more, when it is in the process of finalizing multi crore expansion and modernization projects.
Mr Bishwajit Roy chief of communication of R&D centre for iron & steel of SAIL said that the system emphasizes that both SAIL and bidders bear the onus of ensuring, that tendering and award of contracts are done in a free and fair manner.
The pact will also be a contractual agreement between SAIL and purchasers, committing both sides to adhere to certain prescribed ethical norms. It also has provisions for payment of damages and other retributive actions in case any of the prescribed norms are violated.
GMR Infrastructure incorporates 2 new subsidiaries
GMR Infrastructure Limited has successfully incorporated a 100% subsidiary company called GMR Infrastructure (Mauritius) Limited in Mauritius, which will be the holding company for overseas projects. GMR Infrastructure's equity investments in overseas projects will be routed through this subsidiary.
GMR Infrastructure has also set up a subsidiary called GMR Kamalanga Energy in association with its 100% subsidiary GMR Energy to develop its 1,000 MW coal based power project in Orissa. The debt equity ratio for the INR 4,000 crore projects will be 3:1. The financial closure for the project is expected to be completed by June 2008.
Goldman and Macquarie to pick up 20% each stake in PTC India
PTC India Financial Services, Goldman Sachs and Macquarie India Holdings has entered into a share subscription and shareholders agreement wherein, Goldman Sachs and Macquarie will subscribe 20% each of the aggregate issued share capital of PFS.
Of the total equity worth INR 300 crore, PTC India will contribution INR 146 crore, while INR 78 crore each will come from Goldman Sachs and Macquarie. The completion of the transaction is subject to all necessary approvals.
The FIPB has granted the company approval to invite equity participation from Goldman Sachs and Macquarie for up to 40% of the paid up capital of PFS.
Several projects in Jharkhand fail to take off during 2007
Ranchi Express reported that many a project promised, announced and meant for Ghatsila in Jharkhand including the power substation, water supply project, sub divisional hospital and Phooldungri beautification project, have failed to take off in 2007.
At least 700 villages of the Ghatsila sub division are still devoid of electricity. Yet the work on the electric power sub station is far from over though transformers have been stalled and electric polls erected.
Mr Suresh Ram executive engineer at Jharkhand State Electricity Board has blamed the forest department for objecting to drawing of high voltage electric power line over the forestland and thus stalling the project. He said "For some reason, they could not be connected with wires."
Crude oil hits USD 100 mark
It is reported that crude oil prices for the first time broke the USD 100 per barrel record due to supply concerns and fresh clashes in Nigeria.
As per report, a barrel of light sweet crude for February delivery briefly reached USD 100 in New York on Wednesday soaring USD 4.02 per barrel. The prices, however, slipped back to USD 99.27 a barrel. London's Brent North Sea crude for February delivery climbed to a record USD 97.05 a barrel.
Surging economies in China and India fed by oil and gasoline have sent prices soaring over the past year, while tensions in oil producing nations like Nigeria and Iran have increasingly made investors nervous and invited speculators to drive prices even higher.
Usipar seeks alternatives after Vale cuts iron supply
BNamericas reported that Brazilian pig iron producer Usipar has turned to other sources of iron ore supply as a result of the halt of shipments from Vale.
An official from Usipar told BNamericas that "We are discussing the possibilities of action to reverse Vale's decision, which is based on a halt that has already been suspended due to the lack of real proof of irregularities at Usipar. In the meantime, we're working with iron ore in stock and with alternative supply."
Vale suspended iron ore shipments to the pig iron maker last month due to Usipar's alleged non compliance with environmental legislation, which resulted in the Pará environment department halting the company's operations. According to Usipar, the environment department carried out an inspection of its operations in December and determined a temporary halt of pig iron output was necessary based on a supposed possibility of contamination of the Arienga River. A state court reversed the halt due to the lack of evidence of contamination from Usipar's operations.
Ugitech USA is now Schmolz + Bickenbach USA
Specialty steels provider Ugitech USA, which is part of the Schmolz + Bickenbach Group, announced that it will now operate as Schmolz + Bickenbach USA. As the Stainless Steel Materials division of Schmolz + Bickenbach USA, the company will continue its responsibility for all US sales and distribution of stainless long products from its Ugitech production division.
The new name is reflective of the group's global vision to operate all of its distribution divisions under one cohesive international brand, Schmolz + Bickenbach.
Mr Chris Zimmer vice president of Schmolz + Bickenbach USA said that “Our product offering, technical and customer service, network of warehouses and commitment to carry inventory remains the same. In fact, the only real change our customers will notice is a different name on our paperwork and a different name when we answer the telephone."
Operating as Ugitech USA, formerly Ugine Stainless & Alloys, the Stainless Steel Materials division of Schmolz + Bickenbach USA has enjoyed a successful track record as a distributor of specialty steel long products to the US market since 1990.
Schmolz + Bickenbach USA is a distributor of specialty steels to the US market comprised of four divisions, including Stainless Steel Materials, Tool Steel Materials, Heat Treatment and Mill Direct. The primary material suppliers for Schmolz + Bickenbach USA are the group owned producers Ugitech, Deutsche Edelstahlwerke and Swiss Steel.
Baffinland signs iron ore supply LOI with voestalpine
Baffinland Iron Mines Corporation announced the signing of a letter of intent for the future sale of up to 1.2 million tonnes per year of iron ore to voestalpine Rohstoffbeschaffungs GmbH. This represents the third letter of intent signed with an end user steel company.
Under the Letter of Intent, voestalpine would purchase up to one million tonnes of lump and two hundred thousand tonnes of fine iron ore per year over a fifteen year period, to start in 2014. The Letter of Intent is an expression of interest only, and any binding contract of purchase and sale will be subject to, among other things, a production decision by Baffinland and the future negotiation and consummation of a final sales contract with voestalpine.
Mr Michael Zurowski executive vice president of Baffinland said that "voestalpine is the third steel company to sign a letter of intent with Baffinland. This is a further indicator of the quality of the Mary River ores and, again, further validates the Project.”
Mr Gordon McCreary president & CEO of , Baffinland said that "Baffinland is pleased with the strong support of voestalpine, and the European steel industry. The Mary River project will be a premier producer of quality lump and we also believe that the fine iron ore will also be sought after as an excellent addition to the steel company's sinter mix."
Baffinland's Mary River Project is focused on the European market for the sales of its lump and fine iron ore. It has currently targeted 16 million tonnes to be placed within the European market on an annual basis. This level of European market penetration would represent some 90% of Baffinland's intended initial output of 18 million tonnes per annum. Approximately 250,000 tonnes is proposed to be mined over the current winter and trucked to Milne Inlet before being transported to Europe as feed for production scale trials in various blast furnaces beginning in the third quarter of 2008. The results of this program will form an important final geological and metallurgical test prior to the establishment of contractual sales and purchase agreements with steel producers.
Japanese Q1 crude steel output to reduce by 3% QoQ
According to the forecast from Ministry of Economy, Trade and Industry, Japanese output of crude steel will reach 29.86 million tonnes in the Q1 of 2008, up by 1.1% YoY, or an increase of 330,000 tonnes.
The figure is down by around 3% compared to the Q4 of 2007 or a decrease of 920,000 tonnes.
CBPM to launch iron ore deposit bidding in April
BNamericas reported that Brazil's Bahia state owned mineral research company CBPM plans to launch in April a bidding process for rights to an iron ore area within the state.
Mr Paulo Fontana president of CBPM told BNamericas that "The deposit has more than 1 billion tonnes of reserves and will be auctioned off in more than one block.”
CBPM launched a similar bidding process in September for the exploration rights to nine areas totaling more than 275,000 hectare in 25 municipalities of Bahia, which contain zinc, lead, gold, nickel and other minerals. Mr Fontana said "We expect to wrap up the bidding process for seven areas this month.”
The company president said that "The process was not successful in two areas that hold barite and calcium carbonate deposits."
According to Mr Fontana the process was not successful in two areas that hold barite and calcium carbonate deposits He said "The company interested in calcium carbonate only wants a part of the area, so we'll divide it and launch a new bidding process,”
In Bahia region, Perth based Mirabela Nickel is developing the Santa Rita deposit, while local miner Bahia Mineração plans to invest USD 1.6 billion to build an iron ore complex.
Japanese mill may offer X80 pipes to Petro China
YIEH reported that Japan’s blast furnaces is considering to offer the UO pipe export price to Petro China Company Limited for its new west to east pipeline project. According to the news report that Japan mill's export offer price for X80 level UO pipe will be at least USD 1,500 per tonne.
It is still not sure that if China PetroChina Company Limited will invite a public bidding for the UO pipe, or the company will just purchase the UO pipe from the domestic and global pipe mills.
According to market insider, China PetroChina Company has purchased the X80 level UO pipe from China Julong Steel Pipe Co Ltd.
Thailand scrap import up by 25.9%YoY in first 10 months
YIEH reported that Thailand imported 98,000 tonnes of scrap in October 2007 and the import totaled 1.41 million tonnes from January to October 2007, up by 25.9% YoY.
It is estimated that all year import volume was 1.7 million tonnes in 2007. America ranked the first biggest scrap exporter to Thailand with 587,000 tonnes, accounting for 41.4%, up by 69.5% YoY.
Russia accounted for 15.8% with 224,000 tonnes, up by 70.9% YoY Australia accounted for 9.9% with 140,000 tonnes, down by 33.9% YoY.
Tubarão eyes 2008 waste sale revenue of USD 102 million
BNamericas reported that Brazilian steelmaker ArcelorMittal Tubarão expects to bring in USD 102 million with the sale of steelmaking waste in 2008.
A company spokesperson told BNamericas that by comparison waste shipments are due to reach a value of some USD 80 million this year, up from USD 53 million reported in 2006. The Espírito Santo state based steel producer started operations in November at its expansion project that increased capacity to 7.5 million tonne per year from 5.0 million tonne per year.
According to the official, every 1 tonne of steel production creates some 500 kilogram of waste. Sectors that acquire the material left over in the steelmaking process include cement, concrete, ceramics and even steel itself.
Tubarão is part of ArcelorMittal Brasil, the South American subsidiary of the world's largest steelmaker ArcelorMittal.
Hyundai Steel appoints 4 new vice chairman’s
Korea Times reported that Hyundai Motor Kia Automotive Group promoted a total of 264 executives including four vice chairmen in a move to reinforce its sales and marketing capabilities.
According to the group on December 28th 2007, Hyundai Motor Company's presidents Mr Suh Byung Kee and Mr Lee Jung Dae, Hyundai Steel Co's president Mr Park Seung Ha and Amco president Mr Kim Chang Hee were promoted as vice chairmen.
Seven others including Kia Motors Corporation's vice president Mr Chung Sung Eun were appointed as presidents in the regular personnel shakeup, which also affected 12 vice presidents, 14 managing directors and 55 standing and many other directors.
US weekly coal supplies drop by 1.7% WoW - Genscape
The industry data provider, Genscape said that US coal supplies slipped for the fourth week in a row as winter weather pushed up heating demand.
Genscape said that US power generators had 153.6 million tonnes of coal as of the week ending December 31, down by 2.75 million tonnes or 1.7% WoW from the previous week. It added that power stations had coal stockpiles 10.9% greater than they had during the same week in 2006, down from a surplus of 12.8% in last week's report.
US coal supplies typically fall into winter as heating demand picks up.
Power stations had 55 days of average coal burn, down one from the previous week. They had five days more average coal burn than during the same week the previous year, down one.
South Korea posts trade deficit in December
Thomson Financial reported that South Korea posted a trade deficit in December for the first time since March 2003, with imports surging on high oil prices and exports slowing due to a sharp fall in semiconductor chip prices.
According to South Korea ministry of commerce, energy and industry, the trade account turned into a deficit of USD 865 million in December 2007. But its exports rose by 15.5% YoY to record USD 33.248 billion in November, while imports jumped by 24% to USD 34.113 billion.
The ministry further added that for the whole of 2007, the trade surplus came in at USD 15.1 billion, below the surplus of USD 16.08 billion in 2006. The estimate is expected to rank as the world's eleventh largest.
The ministry said that exports totaled USD 317.8 billion last year, up by 14.2% YoY, with vessels, flat screens, machinery, automobiles, steel, handsets and semiconductor chips showing a balanced and robust performance. Imports stood at USD 356.7 billion, up by 15.3%, with the won's strength against the US dollar spurring domestic demand for imported capital goods and luxury products.
For 2008, the ministry has forecast a trade surplus of USD 13 billion, with exports expanding 11.6% to USD 415 billion and imports rising 12.7% to USD 402 billion.
Vietnam automobile import reaches USD 523 million
According to Vietnam general statistical office, Vietnam automobile import in 2007 reaches 28,000 cars, a 2.3 fold increase over 2006. In December 2007, about 5,000 full automobiles worth USD 73 million were imported into Vietnam.
The GSO said that therefore, Vietnam spent USD 523 million importing automobiles in 2007 against USD 208 million in 2006, marking the record figure so far.
According to general Customs Office, the volume of full cars imported in 2007 was mainly via airlines and two big seaports of Hai Phong and HCM City.
Open declaration proceedings that car import tariff reduced from 90% down to 80%, 70% and finally 60% encouraged importers and started a wave of importing original cars into Vietnam this year.
Novamerican Steel begin trading on Nasdaq Capital Market
Novamerican Steel Inc announced that its common stock, USD 0.001 par value and warrants to purchase one share of Common Stock began trading on The Nasdaq Capital Market.
The Securities and Novamerican's units, consisting of one share of Common Stock and one Warrant, formerly traded on the American Stock Exchange. The Units, which had traded as a separate class of security, ceased to trade as such and all outstanding Units have been automatically separated into one share of Common Stock and one Warrant.
Mr Corrado De Gasperis CEO of Novamerican said that "We believe the TONS symbol has been an integral part of the Novamerican awareness within the investor community and look forward to the continuity of that recognition as a new member of NASDAQ.”
PLN halves output at two power plants due to coal shortage
Thomson Financial reported that Indonesia’s state power company PT Perusahaan Listrik Negara has halved its power output capacity at its Tanjung Jati B and Cilacap coal fired power plants since December 31st 2007 due to a shortage of coal after inclement weather delayed coal deliveries.
The two plants are both located in Java while coal is transported from Kalimantan and have a normal power output of 1,960 MW combined.
Mr Ali Herman Ibrahim transmission and distribution director of PLN said that “There was a transportation problem because of high waves that reached about 5 meters to 6 meters.”
Mr Ibrahim said that delivery of about 120,000 tonnes of coal for Tanjung Jati B was delayed. Coal stocks at the plant currently stand at 55,000 tonnes. He added that the Tanjung Jati B plant normally needs about 11,000 tonnes of coal a day while the Cilacap plant needs 6,000 tonnes a day.
Mr Ibrahim said that PLN hopes to see the situation resolved soon as Indonesia's Meteorological and Geophysics Agency has forecast that the weather will start to normalize around January 4. He added that “So, hopefully things will normalize by then.”
Daewoo Shipbuilding wins major deal to build drill ship
Daewoo Shipbuilding & Marine Engineering Co announced that it has won a deal valued at KRW 606 billion (USD 647 million) to build a drill ship.
Daewoo Shipbuilding in a regulatory filing, without identifying the customer said that the deal calls on Daewoo Shipbuilding to deliver the vessel by July 2011.
Daewoo Shipbuilding has won more than USD 22 billion worth of contracts so far in 2007 to build 136 vessels.
IPIC awards contracts for pipes for Abu Dhabi and Fujairah pipe line
Abu Dhabi based International Petroleum Investment Company said that it had awarded contracts worth USD 460 million to three companies to supply pipes for a domestic crude oil export pipeline connecting Abu Dhabi and Fujairah.
IPIC split the contract for a total of 225,000 tonnes of coated steel pipes between Sumitomo of Japan, Salzgitter Mannesmann International of Germany and Jindal Saw of India. First delivery of the pipe will be in July 2008 and the whole contract will be completed in January 2009.
Abu Dhabi intends to construct the 360 kilometers pipeline to transport up to 1.5 million barrels a day from Habshan oil fields to Fujairah to bypass the Strait of Hormuz through which Gulf producers ship crude oil exports. The pipeline would link state oil firm Abu Dhabi National Oil Company's Habshan fields to Fujairah on the Gulf of Oman. The project also includes oil storage and terminal facilities for crude exports at Fujairah. In September, IPIC awarded Australia's WorleyParsons an engineering and design contract for the 1.5 million barrel per pipeline.
IPIC is the Abu Dhabi state enterprise which is responsible for all foreign investments in the oil and chemicals sector. It is supervised by the supreme petroleum council of Abu Dhabi which oversees the United Arab Emirates' oil and gas operations and related industries.
Turkish billet and rebar prices soar to record levels
It is reported that Turkish rebar producers have successfully raised the export price by USD 55 to USD 65 per tonne to USD 700 to USD 720 per tonne on FOB basis.
According to market news, Turkey’s billet export price has reached FOB USD 620 per tonne and mills are expecting that billet export price will hit FOB USD 640 per tonne.
As per reports, the main reason for this surge is high scarp prices HMS 80:20, which is reported to be ruling in the range USD 430 per tonne on CFR basis.
Saudi Arab’s steel demand in 2008 to go up by 11%
It is reported that the demand for steel in Saudi Arab in 2008 is likely to surge due to projects announced under the 2008 State Budget.
The report cited Mr Mohamed Ibn Saleh Al Jabr deputy chairman of SABIC and chairman of the Arab Union for Iron & Steel said that projects announced in Saudi Arabia under the 2008 State Budget would increase demand projections for steel by 11% YoY in 2008. He said that “Steel demand is projected to reach 5 million tonnes up from 4.5 million tonnes consumed in 2007.
Construction work begins on Arabian Canal
Emirates news agency Wam reported that, in the last week of December 2007, Limitless began construction work on the AED 40.4 billion Arabian Canal, which would join two mega projects under construction in the Gulf emirate
75 kilometer long canal would flow inland from Dubai waterfront, passing to the east of the new Dubai World Central International Airport before turning back towards Palm Jumeirah. Spanning 20,000 hectares, the waterfront development project will stretch 33 kilometers along the inland section of the waterway.
The project is said to be the largest and most complex engineering work in the Middle East since 1859, when the Suez Canal was built in Egypt. The 150 meter wide and 6 meter deep project will be finished in 3 years and will be able to accommodate vessels of up to 40 meters long.
Mr Saeed Ahmed Saeed CEO of Limitless has also said that the project was a product of the company's strength in innovative engineering and distinctive master planning development. He added that "It will involve digging and moving more than 1 million cubic meters of earth, enough to fill 400 Olympic sized swimming pools every day. Arabian Canal will be one of the wonders of the engineering world."
Khoramabad Steel to commission plate mill in 2008
YIEH reported that Iran’s Khoramabad Steel Company will launch a 300,000 tonnes per year plate rolling mill in 2008.
Khoramabad Steel holds 4 hectare plant and is owned by 7 shareholders. The mill, originally bought from a Turkish plant supplier, currently operates a debar rolling mill with annual capacity of 80,000 tonnes. Both plate and debar mill source the slab and billet from CIS and Iranian suppliers.
Oman to build 6 new airports in 2008
Mr Ahmad Bin Abdul Nabi Makki Oman’s minister of national economy and supervisor of the ministry of finance, while releasing Oman's 2008 budget, said that Oman will have 6 more regional airports. He added that "Work is underway on the designs for construction of 6 regional airports in Sohar, Al Duqm, Ras Al Had, Adam, Haima and Shaleem."
Mr Nabi Makki said that "The ministry of transport & communication and the ministerial committee commissioned for improving the 2 airports are now reviewing the designs and the detailed maps. It is expected that the tenders for the new runway will be invited during the first half of 2008."
Mr Darwish Bin Esmail Al Balushi secretary general in the ministry of finance said that the move was to support the development of tourism as these places were major tourist attractions.
Iran cuts gas exports to Turkey - Report
Fars news agency reported that Iran has slashed gas exports to Turkey after high domestic consumption and a halt in supplies from Turkmenistan left many Iranian towns without gas in freezing weather.
Fars quoted an Iranian source as saying that “After the sharp falls in temperature over the last days and the halt in deliveries by Turkmenistan, exports of gas to Turkey have been cut to a minimum. We are obliged to deliver 20 million cubic meters of gas to Turkey daily but now the volume of exports has been reduced to 5 million cubic meters.”
Mr Manouchehr Mottaki foreign minister of Iran said that the problem has been compounded by a complete halt in gas supplies from Turkmenistan, which normally meets 5% of Iran’s consumption needs, because of what officials have called technical problems. He added that “The cold and the drop in gas pressure have created problems throughout the country. For us, as exporters of gas to Turkey, there have also been problems.”
It is noted that in January 2007, Iran had been forced to completely halt its gas exports to Turkey for 5 days to compensate for a domestic consumption crunch. Demand has surged again this year with heavy snowfalls and temperatures in Iran’s north plummeting to 10 degrees Celsius, causing gas cuts in around a dozen Iranian cities and towns.
Emirates Extrusions unveils superior quality sliding systems
Emirates Extrusions Factory, a subsidiary of M'sharie, has recently unveiled the 'Emerald 2008' with section 120mm and 'Paragon 2008' with section 105mm as part of a new sliding series developed to address the growth in demand for high performance, eco friendly and technologically superior aluminum profiles in the region's booming construction sector.
Emerald 2008 is a new thermal break system that features competitive advantages such as powerful mechanic strength for compound thermal insulation aluminum materials, good heat and sound insulation properties, and innovative design that keeps out sand and dust. Emerald 2008 with 120mm section and the Paragon 2008 with 105mm section have been carefully developed to match the construction and architectural requirements in Arab countries. The new products have also been designed according to European standards and have been thoroughly tested to withstand extreme environment conditions.
Mr Khalfan Al Suwaidi GM of Emirates Extrusions Factory said that "The enormous growth of the construction industry has led to an increase in demand for stronger aluminum systems that can withstand extreme local conditions. With the immense size and complexity of the development projects in the region, it is essential that only the highest quality products be used in all levels of development. Emirates Extrusions Factory has developed Emerald 2008 and Paragon 2008 to match regional requirements and offer excellent environmental benefits."
Established in 1993, Emirates Extrusions Factory has been offering a broad selection of premium quality, energy efficient extruded aluminum profiles as part of its continuing strategy to consolidate its presence in global markets. Its offerings include windows and doors, curtain wall, structural glazing, partition system and hand rail systems, and are manufactured in conformity with ISO 9001 standards, certifying the company is adopting consistent processes for production of quality products.
Saudi Arab and Kazakhstan discuss investment opportunities
Khaleej Times reported that Mr Alwaleed bin Talal bin Abdulaziz Al Saud chairman of Kingdom Holding Company has met Mr Kairat Lama Sharif Kazakhsthan ambassador to Saudi Arabia and discussed economic and investment issues related to their respective countries.
Mr Sharif commended Mr Alwaleed on his local and international investments in the various sectors that include hotels, banking and media. He also extended an invitation to Mr Alwaleed to visit his country in the near future to explore investment opportunities there.
The meeting focused on potential investments in Kazakhstan and concluded with Mr Alwaleed expressing his willingness to explore investment opportunities in Kazakhstan and to visit it soon.
ORPC and Oman LNG sign deal
Oman Refineries & Petrochemicals Company and Oman LNG Company have signed a long term agreement for the sale and procurement of natural gas condensates. Dr Adil bin Abudlaziz al Kindi CEO of ORPC and Dr Brian Buckly CEO of Oman LNG Company have signed the agreement.
Under the agreement, Oman LNG will supply 24,000 tonnes per month of natural gas condensates to ORPC's plant at Mina Al Fahal in Muscat via the vessel Massirah to be arranged by ORPC.
A source said that "The signing of the agreement comes within the context of strengthening the joint corporate relations between the two companies."
Dutch business group to visit Saudi Arab to explore investment
Arab News reported that a 31 member business group, representing 24 major companies in the upstream oil and gas industry in the Netherlands, will visit the Kingdom between January 25th and January 29th 2007 to explore investment opportunities.
The delegation is led by Association of Dutch Suppliers in the Oil Gas Industry which represents some 300 companies in the oil and gas supply industry such as engineering, field development, pipeline installation, maintenance and material and equipment supply manufacturing, onshore as well as offshore projects.
Ms Jurgen Bertelink first secretary economic and cultural affairs in the Royal Netherlands Embassy said that some of the participating companies will be visiting the market for the first time and have a range of objectives, including market research to identify suitable representatives for their products and services.
The Saudi Arabian General Investment Authority said in its latest report that the Netherlands has 35 enterprises in the Kingdom ranging from industrial to services, aside from other 20 Dutch companies that have investment here. In September 2007, the Netherlands imports from Saudi reached EUR 2,398,043 million. The total value of exports to Saudi hit EUR 1,095 million, composed mainly of industrial agricultural equipment and foodstuffs.
Chinese rebar and WRC export offers reach record levels
It is reported that export offers for Chinese rebar and wire rod have seen another jump in the first week of 2008 due to increase in export duty rate. The rise is expected to continue in January since domestic market prices are to pick up again.
As per report, most steel producers have raised rebar export quotations to USD 730 to USD 735 per tonne on FOB basis up by USD 30 to USD 40 per tonne from late December levels and offers for wire rod are prevailing at USD 730 to USD 740 per tonne on FOB basis.
However, prices are mixed from mill to mill as some lower quotations are still at USD 710 to USD 720 per tonne on FOB basis while some producers are tagging at USD 750 to USD 760 per tonne on FOB basis.
The hike is contributed partially to the increase in export tax effective from January 1st 2008. But it is also supported by increase in domestic prices in some of the important markets and increase in prices by other major exporting nations. The drop in exports from China and rise in scarp prices are believed to be the major reasons.
Shagang to become 2nd steel maker in China
Interfax China reported that Jiangsu Province based Shagang Group will acquire 25% stake in Jiangsu Yonggang Iron & Steel Group to become its largest shareholder. Shagang will become Yonggang's controlling shareholder after the transaction.
Yonggang Group booked 2007 revenue of CNY 25 billion up from CNY 16.3 billion in 2006.
As per reports, Shagang will become China's second largest steel maker by capacity, following Baosteel Group.
Both Shagang and Yonggang are located in Zhangjiagang in eastern China's Jiangsu province.
Baosteel to take lead M&A in iron and steel industry in 2008
Mr Xu Lejiang board chairman of Baosteel Group, in 2008 Work Conference, has pointed out that Baosteel would face more challenges in 2008 and the supply and demand relationship and competition environment may transfer. He said Baosteel should take part in mergers in Chinese iron and steel industry actively, in order to collect more wisdom and energy and to start a new complexion.
Mr Xu Lejiang noted that domestic capacity was overmuch significantly at present, while the concentration in iron and steel industry was declining year by year. Meanwhile, the rise of prices of resources, energy and ocean freight have brought great cost pressures on the sustaining development of iron and steel industry. He believed that energy saving and emission reduction have already become an important mission of steel enterprises.
Additionally, provisional stockholder conference of Baosteel approved the plan of acquiring Luojing Project on December 27th 2007. After the completion of the merger of Luojing Project, Baosteel would become the one of the biggest medium heavy plate producers in China with a capacity of 3.4 million tonnes per year.
New tax to slow China's ferroalloy export growth in 2008
As per an official with the China Ferroalloy Industry Association, the Chinese government's recent announcement of a higher export tax policy for domestically produced ferroalloy products will slow China's ferroalloy export growth in 2008
The official said that "Due to the state having canceled the preferential electricity rates for Chinese ferroalloy plants in October 2007, Chinese producers have to raise export prices this year. This, together with the higher export tax policy for the Chinese ferroalloy sector, would surely slow down China's ferroalloy export growth this year.”
Figures from China's General Administration of Customs show that China exported 2.407 million tonnes of ferroalloy products during the first three quarters of 2007 up by 48% YoY. The total value of Chinese ferroalloys exports during the period hit USD 2.93 billion up by 66% YoY.
Yuan hits New Year with a record high
Chinese yuan cracked the 7.3 mark against the US dollar and raced to a new post revaluation high with a tightened monetary policy. The currency ended the day at 7.2934 at the China Foreign Exchange Trade System in Shanghai further from its central parity rate of 7.2996, also a record high for the central parity.
The yuan has picked up its rate of appreciation since October. The currency gained 2.3% in the last two months of 2007, leading last year's whole year appreciation to 6.87%, far above the forecasts of 3% to 5% made by some economists. The 2007 growth almost doubled the increase in 2006.
The currency has gained a total of 13.3% since China dropped its decade long link to the greenback and shifted to a basket of currencies including the Korean won and the Japanese yen in July 2005.
Shenhua produces 250 million tonnes of coal in 2007
The Economic Daily quoting Mr Chen Biting chairman of Shenhua reported that Shenhua Group is likely to have produced more than 250 million tonnes of coal in 2007 up by 23% YoY as compared to 203 million tonnes it produced in 2006.
The official production figures for 2007 are not immediately available.
Shenhua Group, the parent of China Shenhua Energy, is the country's largest coal producer.
Chinese SS mills cut prices for January 2008 due to low demand
Interfax China reported that China’s major stainless steel mills have decreased core product prices for January 2008 in response to low demand from the domestic market.
Taiyuan Iron & Steel Group Corporation Limited said that due to the bearish sentiment of the domestic stainless steel market, it would decrease the ex works prices of 304 series hot rolled stainless steel sheet and 304 series cold rolled stainless steel sheet by CNY 2,500 to CNY 29,900 and CNY 31,900 a ton respectively with effect January 1st 2008. Furthermore, it cut the ex works price of 316 series hot rolled and cold rolled stainless steel sheet by CNY 3,000 to CNY 54,300 and CNY 57,200 a tonne respectively, though increased the ex works prices of 430 series hot rolled and cold rolled stainless steel sheet by CNY 100 from January 1st 2008.
TISCO produced 2.02 million tonnes of stainless steel in 2007 up by 82.05% YoY. However, the figure was still lower than the 2.4 million tonnes it estimated in early 2007, due to reduced production during the year.
Other major stainless steel mills followed the same price adjustment policies as TISCO, including Baoshan Iron & Steel Group, Ningbo Baoxin, Zhangjiagang POSCO and Qingdao POSCO.
However, domestic market prices have fallen far below the ex works prices due to slack demand and high stockpiles. For instance, 304 series cold rolled stainless steel sheet of 2mm thickness traded in Shanghai at CNY 29,800 a tonne, CNY 2,100 or 6.58% lower than the ex works price of CNY 31,900 a tonne offered by major steel mills. Major stainless steel mills had previously agreed to cut production by 40% for the month of January 2008 to combat the falling prices of stainless steel products on the domestic market.
Panzhihua inks iron ore pact
Shanghai Securities News reported that Panzhihua Steel has signed a strategic cooperation agreement with Wenxing and Sichuan Jinwei Group to develop local pyrite ore mine in 2 stages.
In the first stage, it will construct a 1 million tonnes of ore dressing and affiliated equipments to produce 300,000 tonnes of high grade sulfur ore concentrate and another 1 million tonnes of ore dressing project as well as an appropriate sulfuric acid mill will be develop in the second stage.
Wengxing boasts total pyrite ore reserve of 910 million tonnes with potential economic value of over CNY 80 billion.
China should set up energy base in Inner Mongolia - Experts
According to a survey report, co conducted by senior researchers from the National Development & Reform Commission, Development Research Center of the State Council, Chinese Academy of Sciences and the Ministry of Finance, experts suggested China to set up a state energy base in Inner Mongolia autonomous region to ease its energy thirst.
Mr Duan Lianao initiator and writer of the report said that "To plan and establish strategic energy bases at state level in the spirit of giving priority to energy saving and diversifying energy consumption with the utility of coal at the core is the fundamental solution to meet China's huge energy demand."
Statistics show that Inner Mongolia is home to an abundance of resources, including coal, oil, natural gas and wind. It has proven coal reserve of 676.34 billion tonnes. It also has proven oil reserve of 700 million tonnes and the proven natural gas reserve of the Ordos Basin in Inner Mongolia accounts for 40% of China's total reserve. Inner Mongolia has made itself outstanding by its geographic significance and rich energy resources. Spanning northeast and northwest China, it is close to several manufacturing bases and large markets of China, such as Hebei, Liaoning, Jilin and Heilongjiang provinces.
In recent years, more and more electricity has been delivered from Inner Mongolia to the eastern cities like Beijing and Shanghai, where the economy is more developed. According to the country's development plan, Inner Mongolia will be built into China's largest power base by 2010.
Mr Jiang Yuezhong expert with Chinese Academy of Social Sciences said that "With the soaring international oil prices, building strategic energy bases is our inevitable choice. Moreover, Inner Mongolia itself will benefit from the process of construction."
Foreign analysts predicted that China's oil consumption would climb at an annual pace of 3% in the coming years and the dependence on imports would reach 50% by 2020.
China exceeds target of closing small coal fired plants by 43%
China’s National Development & Reform Commission said that China exceeded its 2007 target of closing small coal fired generators by 43%, amid increased efforts to save energy and cut emissions. It added that a total of 553 such generating units, with a combined capacity of 14.38 million kilowatts, had been closed by December 27th 2007.
China had set a target of eliminating 10 million kilowatts of obsolete capacity. The output of the shuttered plants will be replaced by large, efficient generating units to save 18.8 million tonnes of coal and cut sulfur dioxide emissions by 290,000 tons and carbon dioxide emissions by 37.6 million tonnes every year.
China has been building large scale power plants to save energy and reduce emissions. It plans to close small, inefficient coal fired generators with a total capacity of 50 million kilowatts by 2010.
Valin Lianyuan steel output up by 4.85% YoY in 2007
Valin Lianyuan Steel said that it has produce 4.54 million tonnes of steel in 2007 up by 4.85% YoY, 4.27 million tonnes of iron up by 3.54% YoY and 4.33 million tonnes of steel billet up by 5.82% YoY. The sales income reaches CNY 1.6 billion and the export income is USD 0.22 billion.
In order to grasp the price information in international market, Liangang established a high efficient marketing team, adhere to grasp the domestic and foreign markets at the same time. Through the innovative marketing strategy, the export volume of steel reached 390,000 tonnes.
In 2007, Liangang’s cold rolled plates and galvanized sheet successfully entered into Europe, South America and Africa. At present, Liangang’s products are exported to more than 20 countries.
Ansteel’s output reaches more than 16 million tonnes in 2007
It is reported that the output of pig iron in Angang has reached 16 million tonnes on December 29th 2007 and on December 30th 2007, the steel output also exceed 16 million tonnes. It is estimated that the sales income reached CNY 80 billion, achieving a historic leap.
Additionally, Ansteel relied on technology equipment level and the rising management level, BF utilization factor, BF ore consumption, and other technical and economic indicators all hit a new historical level, some major technical and economic indicators enter into top three in domestic industry.
Chinese tax revenue up by 31.4% YoY in 2007
Xinhua reported that China's tax revenue has exceeded CNY 4.94 trillion in 2007 up by 31.4% YoY.
Mr Xiao Jie head of State Administration of Taxation said that the increase was one of the largest in any year since the reform and opening up policy adopted in 1978. He ascribed the increase to stable economic growth and surging industry profits. He also forecasted that tax revenue would rise further in 2008, driven by strong economic momentum.
Three Gorges project generates 61.6 billion KWH in 2007
Xinhua reported that China's Three Gorges hydropower project has generated 61.6 billion kilowatt hours of electricity in 2007 up by 25% YoY. To date, it had transmitted 207 billion kilowatt hour of electricity to 11 provinces, municipalities and autonomous regions since it started operation in July 2003.
According to China Three Gorges Project Corporation, currently 21 turbines were operational with a total installed capacity of 13.3 million kilowatt and 5 more turbines would be added by 2008 end. The USD 22.5 billion project was launched in 1993 in the mid section of China's longest river Yangtze.
Originally, its plan called for the 26 turbo generators to produce 84.7 billion kilowatt hour of electricity annually upon its scheduled completion in 2008. It was now to be expanded further to include 6 more turbines by 2012.
Tibet bans exploitation of placer iron ore resources
It is reported that the government of Tibetan Autonomous Region issued a notice to forbid the exploitation of placer iron resources including heavy placer minerals, effective since January 1st 2008, to vindicate the normal exploration and development order of mineral resources, protect ecological environment and propel social stability and harmony.
The notice also regulates that all regional governments should organize an all around investigation over sand plants of their districts under jurisdiction within the time limit and urge full removal of all the enterprises exploring sand iron resources and their equipments away from mines and resume the environment of mining areas that have suffered ecological damages.
It is learned that this is the first ban of Tibetan Autonomous Region Government since the prohibition of placer gold last year.
Severstal changes SeverCorr executive management team
Severstal announced that Mr John Correnti CEO of SeverCorr and other founding senior managers of the next generation steel mill located at Columbus in Mississippi State of US will transition executive management of SeverCorr to Severstal. This is following the company’s previous announcements that it will consolidate SeverCorr as a Severstal company and that it intends to purchase the ownership interests in SeverCorr held by Mr John Correnti and other members of the executive management team.
Severstal has appointed a new senior management team at SeverCorr and will leverage its track record of operational excellence and its experience in successfully acquiring and integrating high quality assets in both North America and Europe to ensure long term success at the mill.
Mr James Hrusovsky has been appointed the new CEO of SeverCorr and will be based at Columbus. He was formerly COO of Severstal North America Inc, the company's other US business, and has over 26 years of industry experience in both strategic and operational roles.
Mr Sergei Kuznetsov CFO of SNA with twelve years of industry experience has been appointed the new CFO of SeverCorr. He will have financial management and reporting responsibilities for both SeverCorr and SNA and will remain based at Dearborn in Michigan.
Mr Alexey Mordashov CEO of Severstal said “John Correnti and his team have been tremendous partners and we wish them the very best in the future. In a relatively short period, they built from scratch one of the most technologically advanced mills in the steel industry that is strategically located to serve the fast growing Southern region of the US. Severstal remains committed to John’s vision and to SeverCorr’s employees, customers, partners and the Golden Triangle region and state of Mississippi. We are fully focused on delivering a seamless and cooperative transition. With the new management team in place, we are well positioned to lead SeverCorr into the next stage of its development and deliver value to all stakeholders.”
Mr John Correnti said “We are proud of what we have accomplished at SeverCorr and I want to thank everyone who has helped make it possible. As SeverCorr moves from an entrepreneurial venture into an operating steel mill, it made sense for me and other founding senior managers to transition executive management responsibilities. Severstal was a valuable partner in getting this mill to where it is today.”
The transition of the executive management team and anticipated change of ownership structure is not expected to have any impact on SeverCorr’s operations. Other senior operational management of SeverCorr remains in place. SeverCorr will continue its successful production ramp-up and the Phase II expansion, which will more than double the mill’s output to 3 million metric tons, is on-track to be completed by late 2010.
Palmary extends offer period for ConsMin
Consolidated Minerals announced that Palmary has extended its offer for the manganese miner by yet another week. Palmary's offer was due to expire on January 1st 2008 but will now close on January 8th 2008.
A second announcement was released which revealed that Palmary has also increased its relevant interest in ConsMin to 89.87% up from 88.86% on Monday.
Palmary has said it would decide whether to proceed to compulsory acquisition of the remainder of ConsMin's shares after its offer period expires.
Last month, Palmary increased its takeover offer from AUD 4.70 cash for every ConsMin share to AUD 5.00 cash, valuing the company at AUD 1.15 billion. The directors of the Consmin stated their intention to unanimously accept Palmary's offer by selling 100% of their shareholdings to Palmary.
CIS plate export prices may reach USD 900 per tonne
YIEH reported that due to the price increase of raw materials and freights and blooming global shipbuilding industry, the Russian and Ukraine’s medium heavy plate export prices are holding steady.
It is expected that Ukraine plate market will continue grow strongly in 2008, as the CIS prices of medium heavy plate will be around FOB USD 900 to USD 950 per tonne.
Besides, Ukraine’s Azovstal said it has received many orders from European shipbuilding mills.
Komatsu to build its first assembly plant in Russia
FIS reported that the world's construction machine building leader is planning to invest USD 60 million into the construction of the plant making excavators and loaders. The plant is to be put into operation in 2010.
During the first year it will assemble 3,000 excavators and 7,000 loaders and reach the full capacity in 2011-2012.
The Yaroslavl region's government will provide tax benefits and participate in the provision of engineer infrastructure for the enterprise.
Kazakhstan to double crude supplies via Aterau Samara pipeline
Interfax reported that Kazakhstan is ready to double crude exports through the Aterau-Samara pipeline and suggests expanding the Caspian Pipeline Consortium project.
The report quoted Mr Nursultan Nazarbayev president of Kazakhstan as saying that "We have discussed broader possibilities of Kazakh crude exports through the Aterau-Samara pipeline. We may enlarge the supplies from 10 million tonnes to 20 million tonnes.”
He added that "We have basically agreed to expand the Caspian Pipeline Consortium, in particularly, involve Kazakhstan in the Burgas-Alexandroupolis project. In order to make the Caspian Pipeline Consortium successful, we should enlarge the crude deliveries to 67 million tonnes as soon as possible.
He added that Kazakhstan will guarantee the supplies of 17 million tonnes it has been asked for.
Mr Nazarbayev also said that "We have also discussed atomic energy cooperation, the joint construction of a power plant in Aktau and further integration of our atomic energy industrie.” He added that the basic agreement has been reached and departments will settle the formalities by next summer.
Mr Nazarbayev said that "An agreement concerning a prospective route for cargo transit between Western Europe and Western China" will soon be signed in Orenburg. This is an important project of the Shanghai Cooperation Organization. A minister told me that the agreement would soon be reached in Orenburg.”
Russia to export fuel oil to North Korea
Mr Alexander Losyukov Russian deputy minister of foreign affairs announced that Russia is soon to export fuel oil to North Korea in exchange for the latter's actions on deactivation of nuclear objects.
North Korea pointed to the delay in Russian fuel oil supplies as a reason for the postponement of its actions on the deactivation of nuclear objects. The delay is expected to last until the beginning of next year.
Chinese firm to build cement plant in Amur Area
FIS reported that Chinese corporation Heshen intends to construct a plant making over 900 thousand tons of cement per annum and is currently conducting a feasibility study of the project.
Russia's OGK 6 raises USD 857 million in share issue
Reuters reported that Russian power producer OGK-6 had raised around USD 857 million in a secondary offering of shares which were majority bought by gas export monopoly Gazprom.
OGK-6 in a statement said that it had sold 5.531 billion shares, or 46.68% of the total issue volume, at a price of RUB 3.8 per share. OGK-6 initially planned to sell up to RUB 11.85 billion shares.
Analysts have said that the initial plan for the share sale broke down because not enough investors were ready to become the strategic partners of the state controlled gas export monopoly.
OGK-6 confirmed that Gazprom bought 5.526 billion shares in the offering, or 46.63 percent of the issue, which will allow it to get control of OGK-6.
The funds from this sale would provide for the firm's investment needs until the fourth quarter of 2008 or the first quarter of 2009, when the second part of the sale can be held.
Purchase of 50% of Tomskneft's shares cost RUB 90.5 billion
RCCNews reported that Gazpromneft purchased 50% of Tomskneft VNK shares from OC Rosneft. Gazpromneft's subsidiary Gazpromneft Finance acted as the deal's counterparty.
Unofficial sources said that the sum of the deal amounted to RUB 90.5 billion, the deal itself may be closed by the end of 2007. After its closing Gazpromneft will be able to include the results of Tomskneft's performance in its financial statements by US GAAP.
