TATA Corus turnover to touch USD 25 billion

It is reported that TATA Steel and Corus, will post a turnover of INR 100,000 crore by the end of March 2008. Mr B Muthuraman MD of TATA Steel told media that the group is expected to post a turnover of INR 100,000 crore by the end of the current financial year.

He said “We are looking at a turnover of USD 25 billion this year. The Corus acquisition came into effect on April 3rd 2007 and hence the impact will be on TATA Steel’s balance sheet of FY 2008.”

He said the Corus acquisition in the short term had put pressure on EBIDTA margins but would double in the next five years. He said that “The second wave of synergies between TATA Steel and Corus will help towards doubling the EBIDTA margins. Our EBIDTA margin is also set to double from the current level of 12% to 13% to 26% in next five years as a result of the Corus acquisition.”

TATA Steel to set up coating plant at Gopalpur SEZ

TATA Steel has announced setting up of up a galvanizing and color coating line with a capacity of 150,000 tonnes at an investment of INR 250 crore at the special economic zone proposed by TATA Steel and notified by the Union government at Gopalpur.

Mr B Muthuraman MD of TATA Steel told media that “It would be a multi product SEZ and as a first step, TATA Steel had decided to set up the galvanizing line. TATA Steel was looking to rope in partners to develop the infrastructure for the project.”

He said “We are looking for partners who will promote infrastructure within the SEZ. It will be a multi product SEZ, and the project should take about 24 months to be implemented.”

POSCO’s Bhumi puja to be stalled by protestors

SNS reported that the activists of Rastryia Yuba Sanghthan and Nab Nirman Samiti took a vow at Kunjkothi village to stop the proposed Bhumi Puja of Posco steel project scheduled for April 2008. They resolved to turn their agitation against the project into a national movement to foil the plan of the government and the company for start of work.

Mr Amarnath Bhai Sarvodaya leader cum former chairman of All India Sarvodaya Mandal while addressing a gathering criticized police and hired goonda attack on peaceful demonstrations in the month of November at Balithutha.

Mr Amarnath declared that Sarvodaya leaders have decided to make POSCO issue as national movement so hundreds of Sarovodaya leaders and activists will congregate at the project site in March,

MSL completes acquisition of Seamless Plant in Romania

Maharashtra Seamless Limited announced that its acquisition of seamless plant in Romania on has been completed on asset sale basis without any liability.

The release added that the plant, capable of making seamless tubes of diameter up to 7” with an annual capacity of 200,000 tonnes will be relocated at a strategic location in India and that the total project cost including complete modernization is estimated to be in the range of INR 300 crores to be operational within 2 years.

DP Jindal group is one of the leading and prominent business houses in India in Pipe business having a group turnover of INR 3000 Crores and Market capitalization of approximately INR 6000 crores. The group is well diversified into manufacturing of Seamless Pipes, ERW Pipes, Wind Power Generation, Offshore Oil & Gas Drilling and projects exports. The group is also having a Joint Venture with Tenaris, the largest manufacturer of Seamless Pipes in the world and also having a marketing collaboration with Noble Drilling, US, the second largest drilling company of the world, for Indian operations.

POSCO approaches SC for starting work on steel project

It is reported that POSCO has approached the Supreme Court for permission to build the integrated plant at Paradip in Orissa even as it awaits environment clearance for mining activity. After a brief submission, the court posted the hearing after two weeks

Mr Mukul Rohatgi, appearing for POSCO before a bench headed by Chief Justice K G Balakrishnan, said that clubbing of environment impact assessment for plant and mining was not feasible as the mines have not yet been allotted. He said that “The Ministry of Forest and Environment has only taken a decision for diversion of forest land for plant and has not allotted mines as yet. It is also not known where the mines would be allotted and there are possibilities that it could be miles away from the plant and therefore, simultaneous clearance was not conducive.”

Supreme Court appointed Central Empowered Committee has approved the diversion of forest land for the project but has put a condition that the project could start only after it gets environmental clearance on the mining aspect.

Government to set up national electricity fund

It is reported that Indian government is planning to set up a national electricity fund with a corpus of INR 100,000 crore for investment in the transmission and distribution sector. The proposed NEF will provide much needed financial support to state distribution companies, through equity and interest free or concessional loan for new projects and strengthening of existing power transmission and distribution infrastructure.

As per report, the central government will be contributing INR 51,000 crore spread over five years to this fund, of which INR 20,000 crore will go towards equity and the rest will be provided as interest free debt. State governments will also contribute INR 10,000 crore from their own funds towards the equity of projects. In addition, Power Finance Corporation and Rural Electrification Corporation will mobilize debt funds from the market and provide concessional loans amounting to INR 39,000 crore.

In addition, the Government will also consider relaxing external commercial borrowing guidelines to allow PFC and REC to borrow cheaper funds under the automatic route, besides giving access to long term SLR funds specially dedicated to the NEF. It is expected that the funds will allow tariffs to be kept low so that there is no backlash to the reforms projects.

Government approves model concession agreement for ports

It is reported that the Union Cabinet has approved the model concession agreement for public-private partnership projects for major ports in the country, which will thereafter replace the Model License Agreement of March 2000.

Under the model concession agreement port projects will be put up for bids through a new upfront tariff system under which the ceiling of the tariff will be fixed first, after which the bidding will be on a revenue share basis.

The proposed model concession agreement will benefit as under
1. Enhanced bank ability of private sector projects in the major ports on account of improvements effected in the model as compared to MLA 2000
2. Standardization of financial and commercial terms for award of concessions for port projects
3. Speedy decision making
4. Equitable and efficient allocation of risks between the contracting parties
5. Protection of user interests through adherence to performance standards

Meghalaya gets clearance for uranium mining

PTI reported that the union ministry of environment and forests has allowed Uranium Corporation of India Limited to commence uranium mining in Meghalaya after giving environmental clearance to set up a proposed Uranium Mining and Processing Plant of the UCIL.

The clearance has been given for an annual production capacity of 375,000 tonnes of uranium ore by opencast mechanized method and processing of 1500 tonnes per day of ore processing plant involving total land requirement of 351 hectare at Mawthabahn in West Khasi Hills district.

However, the clearance is subject to implementation of certain conditions and environmental safeguards which has been intimated to the UCIL.

Indian container throughput soars in 8 months

Port World reported that booming export volumes have raised India's container throughput from April to November 2007 by a dramatic 22.16% YoY.

Data from the Indian Ports Association indicated that India's 12 major ports handled 58.26 million tonnes or 4.53 million TEUs of containers during the first eight months of the current fiscal year as compared to 46.75 million tonnes or 3.59 million TEUs during April to November 2006.

M&M pulls out of JV with Renault and Nissan - Report

PTI reported that Mahindra & Mahindra is understood to have pulled out of the tripartite joint venture with Renault and Nissan, barely a year after the parties announced plans to set up INR 4,000 crore car manufacturing plant in Chennai.

The report cited some sources as saying that M&M decided to part ways from the joint venture, in which it held 50%, with the remaining shared equally between the other two, as it was unhappy with the French firm Renault and Japan's Nissan firming up multiple partnerships in India for different ventures.

Industry sources said M&M was peeved at the fact that Renault decided to go with Bajaj Auto for a small car project, despite the fact that the partners have a joint venture to produce the mid sized-sedan Logan in India. Nissan has firmed up an agreement with Ashok Leyland for three separate joint ventures for light commercial vehicle manufacturing in India,

The tri lateral joint venture was supposed to have a manufacturing plant, spread over 1,100 acre at Oragadam south of Chennai, with a capacity to produce 400,000 cars and utility vehicles. The facility was scheduled to be commissioned in 2009 and was also meant to manufacture power trains for Renault and Nissan.

Jaiprakash Power plans USD 1 billion IPO

Bloomberg reported that Jaiprakash Power Venture Limited has hired Deutsche Bank AG and Enam Financial Consultants Ltd to sell shares for the first time. As per report, ICICI Securities Ltd, JM Financial Ltd, JPMorgan Chase & Co and SSKI Securities Ltd will also arrange the sale that may raise more than USD 1 billion.

The report quoted Ms Sunita Joshi, executive general manager at parent Jaiprakash Associates Limited as saying that “We have hired bankers for the share sale.” She declined to elaborate.

Mr Manoj Gaur executive chairman had said in October 2007 that the group will raise funds to boost electricity generation in line with a government plan to double power investment in five years to plug a shortfall.

Jaiprakash joins JSW Energy Ltd and Reliance Power Ltd in planning power IPOs recently.

IDG Ventures to invest in renewable energy sector

It was recently reported that IDG Ventures India, which manages a fund of USD150 million with interests in technology companies, is now looking at renewable energy and payment solutions as major areas of opportunity.

Mr Sudhir Sethi founder & MD of IDG Ventures India said “Renewable energy consumption in emerging economies like India is set to grow to a much bigger scale due to a shortfall in energy requirements. We believe that many a company will start investing on technologies to address the shortfall, and this will become an interesting area for us to invest.”

He said the company was in talks with a few prospective candidates and was expecting to close a deal soon. According to Mr Sethi, IDG Ventures was looking at primarily companies who are into solar energy space, since wind energy was more capital intensive.

According to a report by Ernst & Young, India has become the third most attractive market in the world for renewable energy, owing to national and regional government support for both foreign and local investment in renewable technologies. The renewable energy policy of the Centre aims at generating 10,000 MW through renewable and a non-conventional source by 2012. Globally, India ranks 5th in terms of exploitable hydro potential and 4th in wind power generation.

Punj Lloyd appoints Mr Baveja as chief of sourcing

Punj Lloyd Ltd has informed BSE that with effect from December 31st 2007, Mr Ashok Baveja has joined Punj Lloyd Group as Group President (Global Sourcing).

Indonesian tin exports decline in December 2007

ITRI reported that latest provisional figures from Indonesia’s trade ministry show a continuing fall in tin shipments in the months of December 2007.

Mr Hartojo Agus Tjahjono export director for mining products told Bloomberg in an interview in Jakarta that December shipments were 3,330 tonnes. The figure comes from surveys of tin prior to export which have been carried out under the new export licensing system that came into force last February.

He added that the total volume surveyed from February 23rd 2007 to the end of the year was 86,305 tonnes. The comparable monthly figures for October and November were 13,509 tonnes and 8,295 tonnes. We would guess that actual shipments in December were higher than the volume checked by the surveyors, as there was a backlog of tin ready for export at the end of November.

Vietnam reduces import tariffs on scrap

VNS reported that the Vietnam’s import & export tariffs of 1,741 categories of goods have been readjusted as of January 1st 2008 to comply with the ASEAN harmonized tariff nomenclature and with the nation’s WTO commitments. The new tariff structure was stipulated under Decision No 106/2007/QD-BTC, recently issued by the Vietnam’s ministry of finance.

The import taxes levied on over 1,700 categories of goods were reduced by between 1% and 6% points. Import sectors included farm produce, fresh fruits, coffee, tea, cooking oil, processed meat, alcohol, beer, cigarettes and cement among others.

Export tariffs were increased in continued implementation of the country’s target to restrict exports of mining resources and unprocessed products.

Particularly, export taxes on titanium surged from 10% to 20%. It increased from 5% to 7% for other processed metals and from 10% to 15% for other unprocessed metals.

By contrast, export taxes on metal scrap edged down from 33% to 30% and tariffs on lead scrap also inched down from 40% to 37%.

Mechanical steel tubing prices continue slide in US

Purchasing.com reported that spot prices for mechanical steel tubing accelerated their slide in December 2007 indicating that the world market has moved from tightness in 2006 to oversupply in 2008.

This has surprised some industry analysts who expected higher prices in the wake of reduced imports in the first 11 months of 2007 and proposed cost driven price hikes by several North American mills. The tube makers have cited rising prices for key raw material, hot rolled sheet.

However, mechanical steel tubing demand has been erratic in a downslide. That’s because square, rectangle and round mechanical steel tubing is used primarily in such metal worked product applications and fabrications as motor vehicle parts and office furniture.

Since most analysts expect continued weakness in the appliance and automotive sectors in 2008, they also say there’s little chance that demand or prices are about to escalate for mechanical tubing. And, although the weak dollar has kept foreign made mechanical tubing away from domestic shores, there is substantial new capacity in China and India.

Baffinland scouting for partner in Mary River iron project

It is reported that Baffinland Iron Mines Corp has hired investment bankers to seek a minority strategic partner or partners in its Mary River iron ore project on northern Baffin Island. Baffinland said that it can not guarantee that any investment be an outside party will come from the search.

Baffinland currently has full ownership of Mary River iron ore project with 95.1 million shares outstanding.

The search comes after Mitsubishi Corp, the company's first strategic investor since 2005, decided not to participate in the latest financing, as was announced last October. Mitsubishi, formerly held 6.2% of Baffinland's stock, but saw its interest decline to about 4% after a USD 30 million share issue in September.

Mr Gordon McCreary president and CEO of Baffinland in a release said that the company was seeking a strategic partner that shares its vision which focuses mostly on the European market.

Baffinland began a USD 150 million exploration investment at the Mary River project in 2004. During the first quarter the company expects to start a study exploring whether it can boost production to 30 million tonnes per year at the project.

Both CIBC World Markets Inc and Citigroup Global Markets Inc will work as co financial advisers in the search.

Brazil Tubarão plans new port to resume slag exports

BNamericas reported that ArcelorMittal Thubarão plans to build a new port in Espírito Santo state, which will allow the company to resume exports of blast furnace slag as the port owned by Brazilian group Vale, has become busy with Vale's own iron ore and pellet shipments.


Mr Paulo Lana special sales manager told BNamericas "We exported 2 million tonnes of this product between 2000 and 2003, but there was a reaction from the Brazilian market and, as a result, we stopped sales abroad to meet demand from the local market.”

Mr Lana said that "The port will have an exclusive dock to ship abroad the steelmaking waste, but the port itself will also ship steel products," the executive added. The new port will be an extension of Tubarão's barge terminal in Espírito Santo state and ready to start shipping in 2011 or 2012.

ArcelorMittal Tubarão is part of Brazilian steelmaking group ArcelorMittal Brasil, owned by European ArcelorMittal.

Yusco and Tang Eng cut 300 series SS prices

YIEH reported that Taiwan’s Yieh United Steel Corp and Tang Eng have decided to cut stainless steel 300 series export prices for January 2008.

The fall in nickel prices made Taiwan’s stainless steelmakers to reduce their prices for January shipment. Yusco said it will cut USD 200 to USD 250 per tonne from the export prices of its stainless steel 300 series, but 400 series will raise by USD 60 USD 100 per tonne.

The raw material chrome prices are still going up; however, considering the current strong competition from South Korea and China and Taiwan’s weak market, Yusco and Tang Eng still decided to reduce prices and meanwhile the production will be also cut.

US imports of pig iron and sponge in 9 months dip by 20% YoY

YIEH reported that American pig iron import in January to October, 2007 totaled 4.43 million tons decreasing by 22.2% YoY than as compared to 5.69 million tons in January to October 2006.

US’s sponge iron import reached 2.13 million tons in the first 10 months, decreasing by 20% YoY than 2.66 million tons of the same period of 2006.

Main export country of pig iron to America from January to Oct is as following
1. Brazil exported 2.92 million tonnes
2. Russia exported 992,600 tonnes
3. Ukraine exported 282,400 tonnes.

Main export country of sponge iron to America from January to October is as following
1. The Republic of Trinidad and Tobago exported 1.16 million tonnes
2. Venezuela exported 867200 tonnes
3. Turkey exported 36600 tonnes.

Toyota becomes No 2 carmaker in US

It is reported that Toyota overtook Ford Motor last year as the number two carmaker in the US. Toyotas sold 2.62 million vehicles in the US in 2007, up by 2.7% YoY as compared to previous year while Ford’s sales slumped by 12% to 2.57 million units.

Ford, 104 year old Detroit based company still controlled by the descendants of founder Mr Henry Ford, has held the number two spot behind General Motors for more than seven decades.

Much of Toyota’s growth last year its 50th anniversary in the US came from a 69% rise in sales of its Prius petrol electric hatchback. Its Camry sedan remained the top selling passenger car for the ninth of the past 10 years.

Toyota is also set to topple GM from its 77 year reign as the world’s biggest carmaker. GM, which celebrates its centenary this year, sold 3.82 million vehicles in the US last year, 6% fewer than in 2006. GM noted that its market share grew in most other regions.

1 killed in pipe line explosion near US Steel Great Lake plant

The Detroit News reported that a contractor died Saturday afternoon when a gas line exploded and caught fire on industrial Zug Island.

Mr John Armstrong spokesman of US Steel’s Great Lakes Works plant informed that 4 other RJ Stacey employees were working on the line at the time of the 1:30 PM blast and they were taken to an area hospital as a precautionary measure. He did not know the extent of their injuries.

A DTE Energy subsidiary company is located on the island and supplies highly combustible coke gas to the Great Lakes plant. The two are separated by a fence and the blast occurred on the Great Lakes property. As per report, the men were preparing a gas line serving blast furnaces so they could work on a parallel coke gas line, when the first line blew. The fire was quickly extinguished and the gas lines capped, he said.

A cause remains under investigation. An investigation into the cause of the blast will include representatives from RJ Stacey, U.S. Steel and the Michigan Occupational Safety and Health Administration.

Peru's Antamina copper and zinc output plunges

Platts reported that Copper and zinc output at one of Peru's main producers, Cia Minera Antamina plunged in November from a year earlier amid what sources described as mechanical problems and maintenance issues. According to the Peruvian energy and mines ministry, Antamina’s copper output fell nearly by 34% in November 2007 from the same month a year earlier while its zinc output fell by 47% in the same period.

Mr Gonzalo Quijandria a company spokesman told Platts that he did not want to comment on the decline's causes, nor on whether the slower output will continue. He also declined to comment on the mine's output projection for the year.

Yet a worker at this mine nested in the middle of the Peruvian Andes contacted by Platts and asked not to be identified, said that there may have been several issues behind the November decline including plant maintenance that is carried out every six months and which can last for nearly five days in some cases. The source also said that equipment that transports mineral from the crusher to the concentrator was also broken down but is already back up. He added that labor problems that led to a strike across Peruvian mines in early November did not affect Antamina’s operations, though some workers did take part in protests.

Antamina is owned by Xstrata 33.75%, BHP Billiton 33.75%, Teck Cominco 22.5% and Mitsubishi 10%.

Hyundai Motor to start building a plant in Brazil in 2008

Korea’s largest automaker Hyundai Motor Co announced that it will start building an auto assembly factory in Brazil this year, in addition to a previously announced plan for a plant in Russia. The new investment plan was disclosed by Mr Kim Dong Jin company vice chairman in a speech to the company’s new employees in Seoul.

Mr Kim said that "Hyundai Motor is now searching for a site in Brazil for the plant construction. The plant in Brazil, which would be Hyundai’s first plant in South America, will have an annual production capacity of 100,000 units and aims to begin mass production in 2010, without specifying financial terms.”

Mr Kim said the automaker posted an operating profit of between KRW 2.4 trillion and KRW 2.5 trillion last year, or some 5.5% operating profit margin. He added that "This year, Hyundai Motor aims to post an 8% operating profit margin to match that of Japan’s Toyota.”

Hyundai is aggressively expanding its overseas manufacturing plants to offset damages from labor strikes at home and reduce risks from the strong local currency. It has plants in the United States, China, India and Turkey and is building another plant in the Czech Republic. Along with its affiliate Kia Motors Corp., Hyundai plans to become one of the world’s top five automakers by 2010. It now ranks sixth in the world.

Brazilian exports exceed USD 160 billion

According to the figures disclosed by the Brazil’s ministry of development, industry & foreign trade, Brazilian exports generated USS 160.65 billion in 2007, exceeding the government forecasts of USD 155 billion in foreign sales for the year. There was a 16.6% increase in comparison with the value for 2006. Imports, in turn, grew by 32%, almost double and reached USD 120.61 billion.

The ministry said that with greater expansion of foreign purchases, the Brazilian trade surplus dropped almost by 14% YoY in comparison with the total for 2006, to USD 40.04 billion. Its Bilateral trade totaled USD 281.23 billion in 2007 up by 22.7% YoY.

Manufactured products answered to foreign sales of USD 84 billion, basic products for USD 51.6 billion and semi manufactured products for USD 21.8 billion and the shipments of all categories grew by 27.6% for basic, 11.4% for manufactured and 11.2% for semi manufactured products.

In the case of basic products, iron ore increased by 17.5% YoY. Among semi-manufactured products the highlights were for iron leagues up by 74.7% YoY and cast iron up by 13.6%.

With regard to destinations, according to the Ministry of Development, there has been an increase in exports to the main economic regions, mainly to the European Union, which posted growth of 29.7%, followed by the other countries in the Mercosur (which includes Argentina, Paraguay and Uruguay, as well as Brazil by 23.6%), Asia by 19.4%, Africa by 14.6%, the Middle East by 10.9%, Eastern Europe by 10.3%, the countries in the Latin American Integration Association except for the ones in the Mercosur by 8.5% and the United States by 1.8%.

South Korean GDP to reach USD 1 trillion in 2008

According to economist Korea’s growth domestic product is expected to pass USD 1 trillion in 2008. It said that the nominal GDP was an estimated USD 970 billion last year and that despite slower growth, Korea’s GDP has risen an average of USD 85 billion a year for the past four years.

Mr Song Tae Jung a researcher at LG Economic Research Institute said that "Only about 10 countries have a nominal GDP larger than one trillion dollars. The Korean economy has been growing very fast, although the gains have been partly helped by the strengthening of the domestic currency since 2001."

Mr Joo Won of Hyundai Research Institute’s said that "A larger GDP means that Korea accounts for a bigger share of the world economy.”

According to World Bank data from 2006, USD 1 trillion of GDP is equivalent to 2.1% of the world economy and similar to the size of the Brazilian economy, which ranked 10th in the world that year. The United States had the world’s largest economy with USD 13.2 trillion in GDP, followed by Japan with USD 4.3 trillion and Germany with USD 2.9 trillion. China came in fourth with USD 2.6 trillion dollars and the United Kingdom, France, Italy, Canada and Spain rounded out the top ten.

In 1970, Korea’s nominal GDP was a little over USD 8 billion dollars but grew to USD 64 billion in 1980. Six years later, Korea broke the USD 100 billion mark and then recorded USD 264 billion in 1990.

ADB says economic growth in East Asia to ease to 8% in 2008

According to a new report issued by the Asian Development Bank, economic growth in emerging East Asia will ease to 8% in 2008 from 8.5% in 2007. According to the December issue of Asia Economic Monitor, the risks are tilted more to the downside than before on expectations of a sharper slowdown in the US economy, further tightening of global credit, an abrupt adjustment in exchange rates and continued rise in oil and commodity prices.

The report further added that economic growth in the Chinese mainland, the region's growth engine, will slow to 10.5% in 2008 from 11.4% in 2007 if government measures to cool the economy begin to take hold. Growth in Association of South East Asian Nations is expected to slightly moderate to 6.1% in 2008 from 6.3% in 2007.

The report said that even as growth slows in emerging East Asia, inflation is rearing its head in many economies and that price pressures are likely to remain in 2008.

Mr Jong Wha Lee, head of ADB's Office or Regional Economic Integration said that "Slower growth but rising inflationary pressures despite appreciating currencies pose major challenges for the region's policymakers.”

The AEM is a semi annual review of emerging East Asia's growth, financial vulnerability, and emerging policy issues. It covers the 10 members of the Association of South East Asian Nations, South Korea, and China's mainland, Hong Kong and Taiwan.

Power supply to steel makers in Pakistan shut off

The News reported that all steel melting units across Pakistan have been closed down for 15 days with immediate effect while markets will remain closed for two hours from January 8 to save about 800 MW of electricity. As per report, the step has been taken to cope with the unprecedented power deficit that currently stands at 2,000 MW to 3,500 MW.

Mr Tahir Basharat Cheema director general energy management and conservation department of Pakistan Electric Power Company said that “It took the decisions to close down all steel melting units for 15 days to save 450 MW of electricity.”

The Pakistan Electric Power Company took these steps following refusal both by gas utility companies and water regulator to supply gas and water in view of severe shortage. Both gas utility companies, Sui Southern and Sui Northern, have expressed their inability to provide gas to power plants, saying their first three priorities include domestic consumers, cement industry and fertilizer companies. Indus River System Authority too told that it could not release water to the hydel power units in view of the dangerously low level of stored water in Terbela and Mangla dams, which currently stands at 1.7 million acre feet.

In addition, power supply to textile mills will remain cut off for five hours per day. Markets, commercial plazas and other commercial concerns would also remain closed for two hours.

The massive reduction in power generation by IPPs is the main problem as they are generating only 3800 MW of electricity against 5800 MW as agreed in the power purchase agreement.

Arabtec acquires 55% stake in Gulf Steel Industries

It is reported that Arabtec Holding has acquired 55% stake in a leading structural steel fabrication company Gulf Steel Industries FZC.

Gulf Steel Industries FZC specializes in the design, fabrication and erection of structural steel works and was established in 2005 in Hamriyah Free Zone in Sharjah in response to the increasing demand for quality structural steel buildings and products. It is built on 269,000 square feet are and is equipped with modern and technologically advanced machines that are skillfully operated by qualified and experienced personnel capable of delivering 24,000 tonne per year of high quality structural steel materials.

Mr Riad Kamal CEO of Arabtec Holding said "Acquiring a majority stake of Gulf Steel Industries complements Arabtec's business integration strategy and allows Arabtec to penetrate additional market segments. Gulf Steel Industries is a well reputed company and has been contributing to the overwhelming construction activities in the UAE."

Selected projects of Gulf Steel Industries include Tecom Towers at Sheikh Zayed Road in Dubai which won the first prize in Strucad International Structural Steel Design and Drawings competition, Automated Car Park in Dubai, warehouses and factory buildings in Dubai, Sharjah and Ajman.

Cargo shipping line launched between Iran and UAE

IRNA reported that the first shipping line was established between this Iranian island in the Persian Gulf and the United Arab Emirates to transit different cargos between the two sides.

The Kish UAE shipping line comprises a 1,000 tonne vessel with a capacity of 50 cars or 40 containers within a distance of 100 miles between Kish and the UAE in 12 hours three times a week.

Mr Ahmad Karami MD of Kish Shipping Company told IRNA that the line is launched to organize transit of goods for those who are active in different businesses in the Kish Free Trade Zone. He said “Establishing of the shipping line would lessen risks of transit of goods by non standard boats through the waterway.”

UAE will keep dollar peg for at least a year

Bloomberg reported that the United Arab Emirates will keep its dirham currency's peg to the US dollar for at least 12 months. Sultan Nasser Al Suwaidi governor of central bank told Bloomberg "In 12 months I can say to you that the UAE will maintain the peg.”

He added that “We have come to the conclusion that the inflation problem does not lie with the peg against the US dollar.”

Gulf countries are struggling to control surging inflation, without being able to raise interest rates because most peg their currencies to the dollar, they have been obliged to cut rates in line with the US Federal Reserve.

Price rises in the UAE, the second-largest Arab economy, were 9.3% cent in 2006, the highest since at least 1988. UAE matched a 25-basis-point Fed cut this month to ensure investors would not make higher returns in their dollar pegged currencies than they would get in US deposits.

Gulf rulers agreed at a summit in Qatar in December to retain dollar pegs and keep any talks on currency reform secret.

Mansha Group power plants achieve financial closure

The News reported that financial closure has been achieved by Pakistani Mansha Group’s Nishat Power Project and Nishat Chunian Power Project of 200MW each. The signing ceremony was held at the Private Power and Infrastructure Board office.

Lenders of both the projects are a consortium of commercial banks including Habib Bank Ltd, Allied Bank Ltd, United Bank Ltd, Standard Chartered Bank (Pakistan) Ltd and Faysal Bank Ltd being financial advisor and lead arrangers.

The projects are being set up at the Kasur district near Lahore. The sponsors of Nishat Power Project are Nishat Mills Ltd and those of Nishat Chunian Power Project are Nishat Chunian Ltd, both owned by Mian Mohammad Mansha. The estimated cost of both the projects is $204 million each and they are targeted to be commissioned by June 2009 and December 2010, respectively.

Mansha Group had signed the Implementation Agreements and Power Purchase Agreements of both these projects in the last quarter of 2007.

Iran to open oil bourse

IRNA reported that Iran will open oil bourse during the Ten-Day-Dawn ceremonies, marking the 29th anniversary of the victory of the Islamic Revolution.

Mr Davud Danesh-Ja'fari Iranian minister of economy and finance while speaking to reporters on the sidelines of a one day conference on opportunities and challenges of oil, gas, and petrochemical industries of Iran and Iraq said that "Ground has been prepared for inauguration of oil bourse. It will start working during the Ten-Day Dawn festivities.”

Eni plans to invest TND 500 million in Tunisia

Tunisian news agency TAP quoted Mr Paolo Scaroni CEO of Eni as saying that Italian energy group Eni will invest USD 410 million in new projects in Tunisia over the next four years.

Mr Scaroni met Tunisian Prime Minister Mohamed Ghannouchi on Friday to discuss energy projects. They discussed the future of the Transmed natural gas pipeline that runs from Algeria through Tunisia and into Sicily.

It said in a statement that they also spoke about development of two oil and gas fields in the Gulf of Hammamet. It said "The meeting was an occasion for both sides to discuss the company investment program in Tunisia over the next four years and which is expected to be worth TND 500 million.”

Iran to grant loan for power plant construction

Mr Parviz Fattah Iranian energy minister announced that the Iranian government will give a loan from Oil Stabilization Fund for power plant construction.

Talking to MNA, he said that the government will give banking facilities to domestic companies.

He assured that the private sector will build the plants which will be economical adding that the ministry will supervise the sector’s activities.

Gazprombank shows interest in Red Sea gas exploration

It is reported that Gazprombank a subsidiary of Russian energy giant Gazprom is interested in participating in the Red Sea gas exploration when Saudi Arabia floats tender for the project.

Mr Boris Ivanov adviser to the chairman of Gazprombank said "We are also studying what we can do in collaboration with Saudi Aramco. Gazprombank would definitely be interested in any Saudi initiative for exploring gas in the Red Sea.”

Mr Ivanov disclosed that two Russian investment funds in the energy and real estate sectors collectively worth USD 6 billion are targeting Saudi investors. Mr Ivanov said the Russia Energy Fund and the Russia Real Estate Fund were valued at USD 5 billion and USD 1 billion respectively. He said "We worked hard to launch these two funds which were facilitated by the good political relations between Russia and Saudi Arabia.”

He said Gazprombank would explore the possibility of establishing its presence in the Kingdom where, besides the oil and gas sector, there were tremendous opportunities in the light of the economic cities and other mega projects that had been launched or are in the pipeline. He said "There is a great deal of interest among Saudis. We have received various commitments that are being evaluated. We are also short listing companies that will help us manage the fund.”

Iran readies tenders to build 19 nuclear plants

It is reported that bidding for the contracts to build 19 nuclear plants in Iran is set to start shortly.

Mr Kazem Jalali, a spokesman for parliament's national security committee said recently that "The contract for building 19 power plants will in the near future be put on an international tender.”

Mr Jalali said each of the plants would have a capacity of 1,000 MW.

The MP's remarks come just a week after Tehran and Moscow confirmed Russia had delivered the first shipment of nuclear fuel to Iran's Bushehr nuclear power station. Bushehr, which is nearing completion, will be Iran's first nuclear power station.

The US and other Western powers such as the UK and France have been pushing hard for a third UN sanctions resolution against Iran over its nuclear program but have so far been unable to convince fellow Security Council members Russia and China to back it.

Chinese steel export prices jump up in last week

Last week, Chinese domestic market prices continue to grow and this is also the case with export offers.

Export quotations for HRC, CRC, wire rod and rebar have jumped up by average USD 20 per tonne while those for HR plate and HDG remained firm.

Laiwu Steel unveils 2008 targets

Laiwu Steel plans to achieve sales revenue of CNY 60 billion in 2008, profits and taxes of CNY 8.6 billion including profits of CNY 5 billion.

Laiwu Steel plans to produce 12.15 million tonnes of steel, 11.3 million tonnes of pig iron and 12.03 million tonnes of finished steel.

It also plans to complete obligation indices tasks of energy saving and emissions reduction ordered by the state. It would save 137,000 tonnes of standard coal, discharge SO2 and COD of 1.8 kilograms per tonne and 0.01 kilograms per tonne respectively.

It has also listed targets in the area of safety as “No serious casualty accident, serious equipment accident, serious fire accident, serious traffic accident and serious environmental polluting accident.”

Chinese HR export price trends in last week

Export offer for Chinese hot rolled steel coil has been raised again following the increase in domestic market prices. This is probably the start of another wave of rise.

Spot market price of commercial 4.5-11.5mm in 1500mm width HRC has jumped to CNY 4750 per tonne in Shanghai up by CNY 200 per tonne from middle December. 1800mm wide material is being quoted at CNY 4920 per tonne while that for 2.75mm HRC has reached CNY 5000 per tonne.

Now export quotations for commodity grade HRC in 4.5mm to 11.5mm are prevailing at USD 685 to USD 690 per tonne on FOB basis for end February or early March shipments up by USD 20 per tonne from the level in late December.

As per the market signals, HRC prices are going to cross USD 700 FOB very soon. The cost pressures coupled with export taxes is likely to take them further up, which remains to be seen as yet.

Chinese CRC export prices move up following HR hike

Chinese cold rolled steel export price has picked up again, reflecting the rise in spot market price and the strong yuan versus US dollar but basically following up the increase in the prices of HRC. As per market sources, there is still room for price increase in both domestic and export market.

In Shanghai, 1mm CR coil by Baotou Steel is being offered at CNY 5450 per tonne up by CNY 100 per tonne from the last week of December. Price for 1mm CR sheet by Anshan Steel remained unchanged at CNY 5580 per tonne.

As per reports, export quotations have gone up to USD 720 to USD 725 per tonne on FOB basis up by USD 20 per tonne from end December.

Apart from the improvement of domestic price, the weaker US dollar has been a great force working to shoot up CRC export prices. Exporters have to ask for a higher export price in US dollar term so as to offset the related loss.

Chinese semis export during January to November

China exported 6.310 million tonne of semis during January to November 2007 period. The exports were made to 50 countries, but almost 75% of the volume was accounted by 5 countries including South Korea, Vietnam, Taiwan, Thailand and Indonesia.

The details of exports during November and January to November 2007 are as under
Chinese semis export during January to November

In million tonnes

The above volumes include following product categories
1. Common carbon billets
2. Common carbon slabs
3. High carbon billets and slabs
4. Stainless steel billets and slabs
5. Alloy forging billets and slabs with weight of more than 10 tonnes
8. Other alloy billets and slabs

Liangang sets targets for 2008

Basing on the analysis of the current market condition, Liangang has announced production and performance plans for 2008 as following.

1. 4.55 million tonnes of crude steel
2. 4.30 million tonnes of hot metal
3. 4.34 million tonnes of finished steel
4. 1.35 million tonnes of coke
5. 7.66 million tonnes of sinter

It plans to realize sale income of CNY 18 billion Yuan and profits of CNY 1.86 billion.

China to make Dalian a shipping and logistics center

Xinhua reported that China plans to make Dalian into a major harbor along the northeast coast as well as a shipping and logistics center for northeast Asia by 2020. Under a Liaoning provincial government plan, by 2020 the harbor would move 500 million tonnes of cargo annually, including 20 million 20 foot equivalent units.

Mr Wang Jun a professor at Dalian Maritime University said “Making Dalian the shipping and logistics center of northeast Asia will facilitate the forging of a free trade zone of China, the Republic of Korea and Japan. Compared with Busan and Yokohama, Dalian has fewer regular sea routes linking to other international ports. However, located on the east coast of the Eurasian land mass and the southern tip of the Liaodong Peninsula, Dalian stands out for its geographic advantage, convenient transportation and open economy.”

Mr Xia Deren mayor of Dalian mayor has proposed a free trade zone composed of China, the ROK and Japan, which covers an area of 50 square kilometers, including Dagushan Peninsula, where the Dayaowan Bonded Harbor Area, the only bonded area in northeast China, has been established.

Northeast Asia is among the world's key economic areas. Besides Dalian, the region is also has several other major port cities including Busan in the ROK and Yokohama in Japan. To make Dalian a logistics center, Liaoning Province will streamline the port resources along its coast. It will also invest more in road, rail and air facilities. By the time Dalian's shipping center status is consolidated in 2020, the port cluster in Liaoning will have an annual cargo handling capacity of 1 billion tonnes, including 35 million TEUs.

China to support mining institutes in Bolivia

BNamericas reported that China's government is helping the Bolivian government create a research institute in Oruro and a mining school, both of which are just starting up.

An official from Bolivia's mining ministry told BNamericas that "The organizations will be directed by the Universidad de Oruro and the ministry. The project is already in motion thanks to financing from the Chinese government.”

Most of Bolivia’s tin production comes from the Oruro department and Bolivia is the main source of China’s imports of tin concentrates.

Ningbo Port sets 2008 targets

It is reported that due to improvements to infrastructure, Chinese port of Ningbo can handle more than 10 million twenty foot equivalent units a year. Mr Tong Mengda chief economist for the state owned Ningbo Port Group said that 2008 container throughput will hit 10.6 million TEUs while total cargo throughput will be some 360 million tonnes.

2007 already saw the port handle more than nine million TEUs which is a 31% jump from 2006 throughput levels. 2007 also saw the seventh consecutive year that Ningbo has had the largest growth among all major coastal ports in China.

Ningbo Port Group is expected to issue a dual Shanghai and Hong Kong initial public offering of shares in 2008. Credit Suisse and JP Morgan are handling the port operator's Hong Kong listing, while the Bank of China International will manage both its Hong Kong and Shanghai offerings.

Ningbo port, in the coastal province of Zhejiang south of Shanghai, is at the crossroads of the north south shipping route and the Yangtze River. It is made up of several ports; the Beilun seaport, Zhenhai estuary port, the old Ningbo harbor which is now an inland river port, Daxie and Chuanshan.

Qingdao handled more than 9 million TEUs in 2007

China’s 3rd largest container port Qingdao has handled more than 9 million TEUs till December 13th 2007 up by 23% YoY, making it one of the top 10 container ports in the world.

As this year closes, the port’s Qingwei container terminal is expected to see its throughput grow by 31.6% to 250,000 TEU. The Riqing container terminal’s throughput is estimated to reach 430,000 TEUs up by 70% YoY.

Uzbekistan Railways to upgrade locomotive fleet

It is reported that the state owned Uzbekistan Railways has signed an agreement with Russia’s Transpromresurs to upgrade its diesel locomotive fleet for USD 54 million.

The entire project worth USD 83 million provides for the construction of a locomotive assembly facility with a capacity of 292 locomotive sections a year based on the Uzbekistan Railways' maintenance subsidiary.

The project is to be financed by the European Bank for Reconstruction and Development and the Uzbek Company.

Experts believe that with a stable growth of 7% on average, the total cargo traffic will reach 70 million tonnes by 2012.

Gazprom aims for 10% of French gas market - Report

Reuters reported that Russia's gas export monopoly firm Gazprom wants 10% of the French gas market within four or five years and has no current acquisition plans in Europe.

The report quoted Mr Alexander Medvedev vice chairman of Gazprom in a newspaper interview with French daily La Tribune as saying that "This year (2007) we delivered around 500 million cubic meters of gas directly to final French consumers. It's a volume that will grow. We hope to reach a 10% market share within four to five years.”

He added that "The French market is among the top five for Gazprom.”

Asked if Gazprom had any acquisition plans in Europe, Mr Medvedev said that "There is no concrete plan at the moment, but we would consider such a possibility, if certain conditions are met.” He added that the acquisition price needed to be reasonable, the buy strategic and in line with regulators' demands.

Mr Medvedev also said that Gazprom did not plan at this stage to swap assets with Gaz de France. He added that "We are trying to assess how to cooperate efficiently all the more since the ongoing merger between GdF and Suez will create a leader in liquefied natural gas."

He said it was too early to provide details on future cooperation between Gazprom and French oil group Total to develop the Astrakhan gas field. He added that "We are still in preliminary talks. The Astrakhan field presents specific technical difficulties and we are looking at the technological details of this cooperation. It's too early to give details on the form this cooperation will take."

Turkmenistan to pump gas to Iran

The Turkmen News Agency reported that Turkmenistan undertakes resumption of pumping high quality natural gas to Iran through the newly constructed Caspian Sea gas pipelines. The exported gas will be in accordance with international standards.

According to the report, the Turkmen district bordering the Caspian Sea and the Balkan area to the west will take over the mission of pumping gas into Iran.

Caspian Sea gas pipelines, with a diameter of more than a meter and an atmospheric capacity of 750, can allow the movement of 20 billion cubic meters of gas annually.

Turkmenistan has intensified gas export to Iran in the wake of the low gas flow resulting from a cold spell which recently hit northern Iran.

Earlier the gas flow was suspended because of technical problems. To make up for the shortage, Iran's oil ministry has had to devise alternative measures.