Steel ministry to prepare SOP for re rolling mills

PTI reported that Indian steel ministry is planning to prepare a standard operating manual for steel re rolling mills to help them adopt environment friendly practices. As per report, steel ministry has invited Expression of Interest from consultants for developing a base document on standard operating practices and standards maintenance practices for steel re rolling mills.

The consultants having executed at least five turnkey projects as consultants during last ten years on steel re rolling mills including mill reheating furnaces can submit their bids to the National Project Coordinator within a fortnight.

Equipment manufacturers, consultants and training institutes for steel re rolling mills are eligible to participate in the tendering process. Preference would be given to organizations having experience on developing standard operating practices and standards maintenance practices.

The selected consultants will also be responsible for developing customized standard operating practices and standards maintenance practices for five steel re rolling mills.

The standard operating practices and standards maintenance practices would be used for improving working of five steel re rolling mills as part of the United Nations Development Program's global environment facility project for energy efficiency enhancement.

JSW Steel posts 20% YoY growth in crude steel in Apr to Dec 07

JSW Steel Limited announced that it has posted 20% YoY growth in crude steel production during April to December 2007. The release added that its hot strip mill has produced 2.007 million tonnes during April to December 2007 showing a capacity utilization of 107%.

In million tonnes
Change is YoY

During 3rd quarter of 2007-08 growth in Crude steel production was 15%.

In million tonnes
Change is YoY

Galvanized production was lower due to planned shutdown from November 12, 2007 for converting the one of the galvanizing lines into Galvalume line for further value addition.

JSW has also commissioned RH Degasser at its Vijaynagar works, which will enable to produce belier quality of special grade steel.

Survey work of POSCO plant to exclude Dhinkia

Statesman News Service reported that the district administration has made elaborate arrangements to start socio economic survey work of POSCO project areas excluding Dhinkia, which has been the stronghold of anti POSCO movement.

As per report, the revenue inspector office, which was forcibly closed by anti POSCO faction, for over one year now will open. District administration has made all arrangements to initiate the survey work. The district administration has formed 12 teams consisting of five officials with additional tehsildars, revenue inspectors, and amins under the team leader of Kujang tehsildar. The survey work will continue for 15 to 20 days.

The police have also been put on alert to ensure that the survey work takes place without any hassle or trouble. It is learnt that 18 platoons of police force has been deployed in POSCO project areas.

It may be noted that following the submission of five point charter of demands by the United Action Committee, a body of project affected villagers, the district administration and POSCO authorities had pleaded for permission to start survey work to assess and arrive at a conclusion on the charter of demands.

The UAC decided to cooperate with the district administration in survey work after discussion with villagers. They have however, restricted the entry of POSCO officials and also banned the land demarcation process during survey work.

TATA's leadership program reaches out to Corus - Report

It is reported that TATA Administrative Service, the famous leadership development program of the TATA Group, is being rolled out in Corus.

TATA Administrative Service, conceived by late group chairman Mr JRD TATA in the 1950s, was set up to groom select employees and provides managerial resources to all group companies. This initiative is now reaching out to the 30,000 odd employees at Corus.

Though TAS has been opened for all the TATA owned companies, this is the first time that a formal presentation has been made because Corus has a large number of employees.

Mr Satish Pradhan executive VP of TATA Sons said that “You need to have people from diverse parts of the group for integrative mechanism. This is taking management process to the next level.”

JSW Energy to dilute 10% stake to raise USD 1 billion

It is reported that JSW Energy will submit its offer document to market regulator SEBI next week to offload 10% equity stake for mopping up over USD 1 billion.

An official of JSW Energy said that "We will file the offer document early next week to SEBI and hope to raise over USD 1 billion through diluting 10% equity stake in the primary market." He added that it is in discussions with merchant bankers to determine the price band for the issue.

This would be the second initial public offering among the utilities after Reliance Power Limited's proposed USD 3 billion issue, which opens for subscription from January 15th 2008. GMR Energy is also mulling debut in the market and a decision in this regard is expected within a fortnight. More companies, including Sterlite Energy and Essar Power, are also reported to be readying to hit the capital market.

JSW Energy currently runs 2 units of 130 MW each at Vijaynagar and operates 100 MW captive power plant at JSW Steel's plant.

JSW Energy subsidiary Raj West Power is executing a 1,000 MW lignite based power plant at Barmer in Rajasthan. Another subsidiary, JSW Energy Ratnagiri is executing a 1,200 MW coal fired plant in Ratnagiri in Maharashtra. It is also executing a 600 MW power plant at Bellary and has signed a MoU with the Gujarat government to implement a 1,000 MW power plant in Junagarh.

JSW Energy also has plans to put up power projects in West Bengal, Jharkhand and Andhra Pradesh. It has embarked on hydroelectric projects in Himachal Pradesh and Assam.

Private capital must for industrialization - Mr Jyoti Basu

Mr Jyoti Basu Communist Party of India (Marxist) patriarch has echoed Mr Buddhadeb Bhattacharjee chief minister of West Bengal’s sentiments that private capital is a must for industrialization despite the party’s ideology.

Mr Basu said that “Socialism is still a far cry. We have to remember that we are working within the capitalist system and private capital has to be used for industrialization. Since 1977, we have taken up the responsibility of workers. But, at the same time, we are also telling them to be responsible.”

Mr Basu said “In the existing situation, we have no option but to accept private capital. But our government will continue its social welfare programs to uplift the poorer sections of society.”

ADAG to foray into power equipment

Mr Anil Ambani chairman of Anil Dhirubhai Ambani Group said that it is slated to make a foray into power equipment manufacturing and is in talks for a partnership with global majors.

Mr Ambani, while announcing the initial public offering of group company Reliance Power, which is being billed as India’s largest and could raise up to INR 11,700 crore, said that “We are currently in dialogue with 2 or 3 global majors for co operation for large scale power equipment manufacturing, including turbines.”

Mr Ambani said that there could be some developments over the next couple of months on the company’s plans to enter equipment manufacturing. The proposed move is aimed at ensuring timely and large-scale availability of equipment at competitive rates, as one of the biggest constraints he faced for large and small power projects is the availability of quality equipment not just technology but also in pricing, competitiveness and delivery.

He said “This is the largest portfolio of power generation within a group and geographical area anywhere in the world. In fact, under the 11th Plan period, Indian government has envisaged adding 80,000 MW of power.”

BHEL NTPC JV to make power plant equipments also

Bharat Heavy Electricals Limited announced that it has signed a JV agreement and National Thermal Power Corporation on December 17th 2007 for establishment and operation of a company for taking up EPC business.

BHEL release added that “Its board of directors in its meeting held on January 7th 2008 has further decided to modify the scope of operation of the said JV Company to include manufacturing and supply of equipments for power plants and other infrastructure projects in India and Abroad.”

L&T bags INR 1,300 crores contract from Cairn India

Larsen & Toubro Limited announced that its Engineering and Construction Division has been awarded two major contracts for the construction of civil works and the consolidated construction works for the Northern Area Development Project located near Barmer in Rajasthan as Cairn India and its joint venture partners ONGC get ready for first oil production in 2009.

The scope of work covers the development of infrastructure facilities, the construction of 18 well pad structures, detailed engineering and construction of all civil and electromechanical works at the Mangala and Raageshwari Fields, Offsite infrastructure facilities, supply, installation and commissioning of 33 KVA high voltage power line system and the telecom network. The project completion schedule is estimated to be 18 months.

The Mangala processing facility will cover some 400 acres in the Thar desert in Rajasthan. The construction team will have to move approximately 6 million cubic meters of rock and soil to prepare the site for development. The main access road to the Mangala site has already been constructed.

Mr K Venkataramanan president EPC & member of board said "L&T is proud to be associated with Cairn in being able to leverage our own strengths to boost India's needs of fuel resources. Our technology and dedicated team will be able to deliver the job, on time".

Cairn Energy India Pvt Ltd has drilled more than 140 wells and has made more than 20 discoveries to date in Rajasthan. The Government of India has given its approval for the Field Development Plans for the Mangala, Aishwarya, Saraswati and Raageshwari Fields. The initial focus will be to bring Mangala onstream at the earliest opportunity which is currently scheduled for 2009 with the other fields following. Cairn has a resource base of 3.6 billion barrels of oil equivalent in place.

Moody may downgrade TATA Motor post Jaguar acquisition

Credit ratings agency Moody's said that it may cut the ratings of TATA Motors if it buys Ford's Jaguar and Land Rover units, saying the acquisition could create substantial challenges for TATA. It added that it had placed on review TATA Motors' Ba1 corporate family rating Ba1 is one rung below investment grade for possible downgrade.

Ms Elizabeth Allen investors service VP of Moody's said that “If TATA acquires these two businesses, it will face considerable execution and integration challenges. TATA Motors enjoys a strong position in India's low to mid end vehicle segments but the acquisition of Jaguar and Land Rover would expose the company to the luxury product category as well as to broader geographies."

Ms Allen said that "These are areas in which TATA lacks experience and such a transaction would materially increase the business risk profile. At the same time, in the long term this potential acquisition could elevate TATA from a major Indian player into a global automobile manufacturer improve its technology base and broaden its product range. Nonetheless, the challenges in the near to medium term are substantial."

TATA Motors is India's largest maker of commercial vehicles such as trucks and buses and second largest passenger vehicle manufacturer. TATA Motors Limited was recently named front runner by Jaguar to acquire its British Jaguar and Land Rover units.

IOC's Paradip to Haldia pipeline to go on stream in 6 weeks

Mr Sarthak Behuria chairman of Indian Oil Corporation recently said that its 330 kilometer long Paradip to Haldia crude oil pipeline will go on stream in 4 to 6 weeks. The INR 1,178 crore pipelines were originally slated to be commissioned in March 2006.

He admitted that IOC had run into rough weather at the last point connection in Paradip. The work on setting up a single point mooring and storage facility at Paradip was stalled due to issues ranging from technical problems to the replacement of the contractor, and this delayed the pipeline project.

IOC is expecting a net positive impact of USD 1 a barrel on its gross refining margin. In another development, the IOC chairman was scheduled to call on the West Bengal chief minister later today. But the agenda of his meeting was not divulged.

Mr Behuria said that “IOC is keen on setting up a petrochemical unit at the proposed petroleum, chemical and petrochemicals hub at Nayachar, but we haven’t received any communication from the government of West Bengal so far.”

Crude from vessels would be stored at Paradip and pumped through the pipeline to Haldia. Apart from ensuring assured supply of crude, the pipeline project will reduce the transportation cost of crude substantially.

TATA Motor seeks to assemble small car in Thai hubs

It is reported that, even before it has formally unveiled INR 100,000 car in its home market, TATA Motors is already looking to assemble it in other auto hubs and has submitted an application to Thailand’s Board of Investment for an investment of around INR 800 to INR 900 crore to assemble the INR 100,000 car in Thailand and also build a component hub around it. As per report, TATA Motors is planning to roll out around 100,000 cars annually in its Thai assembly plant.

TATA Motors spokesperson said that “Yes, it is true that TATA Motors has submitted a proposal, the details of which are confidential at this stage.”

The TATA proposal is part of Thailand’s eco car project which has also attracted proposals from a host of Japanese car makers such as Nissan, Suzuki, Toyota, Honda and Mitsubishi. The non Japanese carmakers in the fray are TATA Motors and Volkswagen. BoI will reportedly take up the TATA Motors’ proposal next week.

TATA Motors already has a presence in Thailand in the commercial vehicle space. It is not clear whether TATA Motors (Thailand) Company, a 70:30 JV between TATA Motor and Thailand’s Thonburi Automotive Assembly Plant, was granted Board of Investment tax incentives in 2007 to assemble and manufacture parts for 35,000 pickups a year. The JV will manufacture and assemble one ton pickup trucks in Thailand. Production will begin in March 2008.

TATA Motors is already in discussion with partner Fiat to assemble the car in a host of emerging automotive hubs like Brazil, Argentina and Mexico. It may also roll out the car in parts of Europe.

Bidding for port projects to gain momentum

With the new model concession agreement for private participation in ports getting the final Cabinet nod, work towards inviting bids for long pending port projects is likely to speed up. These include such projects as the deep draft iron ore berth and deep draught coal berth at Paradip port, four multipurpose berths at Kandla port and container terminals at Tuticorin and Ennore.

The port authorities can now adhere to the MCA norms and straightaway approach the inter ministerial public private partnership appraisal committee for a final approval without having to acquire an in-principle approval.

In the ownership norms stipulated by the MCA, the members of consortium bidding for a project are required to hold 51% equity for at least 3 years of the terminal commencing operations. Even after 3 years, the consortium is not allowed to completely exit the operations.

Further, the lead member of the consortium is mandated to have a 50% holding within the share of consortium members. To ensure compliance with competition and security norms after the winning bidder takes over terminal operations, the MCA has stated that any changes or transfer of share within the consortium can only be done along with the Port authorities’ approval.

The new MCA also has a detailed chapter on force majeure which classifies different categories of events beyond the control of both the port authorities and private developer that could affect the operations. Under the new MCA, port tariff ceilings would be fixed upfront. Companies interested in operating the terminals would then be asked to submit competitive bids. The tariffs would be revised periodically and linked to inflation.

Additionally, the new MCA regime has allocated risks to both port authorities and developers. Port authorities have to get the relevant in-principle clearances while handing over the project site. The concessionaire is required to submit proof of financial closure of the project at stipulated time, or face a reduction in concession period and penalty payment.

Update on Mumbai Trans Harbor Link

The Mumbai Trans Harbor Link project involves the development of a 22.5 kilometer long six lane expressway connecting Sewree in south central Mumbai with Sheva in Navi Mumbai. The width of the dual carriageway will be 28 meter and vertical clearance will vary from 9.1 meter to 25 meter. In phase II of the project, a rail corridor will also be set up.

The INR 4,000 crore projects will be developed on build own transfer toll basis with Maharashtra State Road Development Corporation being the grantor of concession. Jean Muller and BCEOM are project consultants working in conjunction with their Indian counterparts, Crisil and Stup Consultants.

The project aims to connect Mumbai and the southern part of Navi Mumbai. The northern part of Navi Mumbai has greater connectivity to Mumbai and has seen rapid development that has not percolated towards the south.

Dr Naqvi wins National Mineral Award for Excellence 2006

It is reported that Dr Syed Mahmood Naqvi former acting director of National Geophysical Research Institute has been selected for the National Mineral Award for Excellence 2006 in the field of Geosciences.

The award recognizes his contributions in the field of Precambrian geology, geochemistry and crustal evolution.

A senior scientist of the Indian National Science Academy at present, Dr Naqvi has worked on the rocks older than 2,500 million years for the past 43 years to come up with interesting findings on the evolution of the earth’s early stages. His book on Precambrian Geology of India is most cited from India. He has also authored Geology and Evolution of Indian Plate recently.

6 more railside cargo complexes to come up by March 2009

It is reported that, encouraged by the success of the rail side cargo complex launched jointly by the Indian Railways and Central Warehousing Corporation in Whitefield near Bangalore as early as 2000, both the organizations decided to have more such complexes and accordingly signed a MoU in 2003 to launch 22 complexes all over India.

Fourteen of them have since become operational while the work on 2 others, to be located at Dankuni in West Bengal and Dehri on Sone in Bihar, is to start shortly.

Indian Railway sources hope that the work on the remaining 6 will start by April 2008 and all of them will become operational by March 2009. While the Railways is providing the land, goods sheds and lines to help the cargo complexes come up, the actual operation is being undertaken by CWC which is providing total logistics solutions to those choosing to use these complexes geared to cater to both rail-borne and road transport traffic.

Vale suspends shipments from Itaguaí to conclude repairs

Vale announced that during the next few weeks the Itaguaí maritime terminal in the Brazilian state of Rio de Janeiro will stop operations in order to reconstruct its structure damaged in an accident in December 2007.

Vale released said that “Since mid December, as we had publicly announced, Itaguaí has been operating with limitations since two of its dolphins were damaged. The terminal is expected to return its regular operations by the beginning of February, after the completion of the repairing work. The stoppage of Itaguaí represents an average daily loss shipment of 60,000 tonnes of iron ore to the Company.”

Itaguaí, with annual shipload capacity of 25 million tonnes of iron ore, is Vale’s smallest maritime terminal dedicated to iron ore shipments. Vale also operates the Ponta da Madeira maritime terminal, in the Brazilian state of Maranhão, Guaíba Island maritime terminal, in the state of Rio de Janeiro, and the Tubarão Port, in the state of Espírito Santo.

Nippon Steel to appoint Mr Muneoka as new president - Report

Nikkei, without citing sources, reported that Japan's largest steelmaker Nippon Steel Corp plans to promote executive vice president Mr Shoji Muneoka to president, replacing Mr Akio Mimura who took the helm as president in April 2003.

As per report, Mr Mimura will become chairman with representative rights.

The report added that the appointments are set to take effect on April 1st 2008.

POSCO Q4 profit to fall due to dip in SS prices

Reuters reported that POSCO is expected to report an 11% fall in quarterly profit as customers, hoping for a further drop in prices of SS, continue to hold back orders and the shutdown of a major blast furnace for one off maintenance also dragged down the quarterly sales volumes.

According to the average of estimates from seven analysts surveyed by Reuters POSCO's net profit is forecast to drop 11.4% to around KWR 840 billion for October to December 2007. Its sale is expected to fall by 1.9% to KWR 5.3 trillion.

Last month, POSCO said it started in early December to cut monthly stainless steel output by a fifth, responding to slower demand, after cutting it by 135,000 tonnes in the third quarter. It also cut the price of stainless steel, which accounts for nearly a quarter of sales, by 10% per tonne in December.

POSCO's total production in the December quarter was around 400,000 tonnes than a year ago due to a 55 day shutdown of one of its biggest furnaces for maintenance.

As per report, customers have delayed orders for stainless steel, anticipating that prices would fall further due to the tumbling cost of nickel.

Analysts said that “Despite forecasts for modest growth in 2008, POSCO is facing uncertainties such as raw material prices and the impact of the subprime crisis. POSCO's earnings should be steady and stable in 2008 but the momentum will be a bit slower than in 2007.”

Rio Tinto to buy three new iron ore carriers

Rio Tinto will purchase three 250 000 DWT ore carriers to transport iron ore from its mines in the Pilbara in Western Australia and potentially from Simandou in Guinea to customers in China and elsewhere. These vessels will play a critical role in consolidating Rio Tinto Iron Ore's leadership position in the global market and will help Rio Tinto build upon its natural freight advantage in Asian exports.

The vessels, to be built by Namura Shipyards in Japan would be delivered from late 2012. The cost of the three vessels will be about USD315 million. Rio Tinto has also reserved rights on another two vessels of similar size.

Mr Sam Walsh CEO of Rio Tinto Iron Ore said "Competitive freight and freight management are important levers in our growth plans. These very large ore carriers will assist us in continuing to provide our customers with better delivery options well into the future while locking in low, long term freight rates for the benefit of our shareholders."

Mr David Peever MD of Rio Tinto Marine said "These fit for purpose vessels are designed for maximum loading at Rio Tinto's iron ore ports. The timely acquisition of these vessels and the related options provides us with maximum flexibility in developing our future marine strategy."

Mr Peever said that the Group, through Rio Tinto Marine, manages a freight portfolio with a strong focus on long term, low cost freight positions. "During 2008, we will be considering commercial options and partnerships to further leverage our very sizable freight business."

To maintain and increase its share of this growth, Rio Tinto Iron Ore is expanding the capacity of its Pilbara iron ore operations to 220 million tonnes by 2009, supported by long term contracts, hybrid contracts and spot sales.

ArcelorMittal to modernize Vanderbijlpark HSM in South Africa:

It is reported that the Siemens Division Industry Solutions has received an order to equip the cooling section of the hot strip rolling mill of ArcelorMittal South Africa Limited at Vanderbijlpark with new process and basic automation. Delivery, installation and commissioning of the new automation system are scheduled for July 2008.

Siemens is supplying the process and basic automation for the laminar cooling line in the run out area of the 2050 millimeter hot rolling mill. The heart of the automation solution is a strip cooling model based on a physical description of the thermodynamic processes during cooling. Temperature curves and phase components along the entire strip are calculated in real time. The current data are transferred to a model predicative cooling line controller. This makes it possible to monitor the entire strip cooling process over time and not only the coiler temperature as is the case with other methods.

For the rolling mill's entire range of products, the operator will thus be able to monitor the microstructure changes in phase transitions during the cooling process. This will not only ensure constant quality for the whole strip but will also enable reliable attainment of the required metallurgical properties of the steel within a set of tight tolerances. Moreover, the strip cooling model will enhance the flexibility of the rolling mill. Different kinds of steel can be produced at any time and new types of steel can be included in the production program without the necessity of making changes to the software or model parameters.

ArcelorMittal Steel South Africa is the largest steelmaker on the African continent with an annual output of 7.3 million tonnes of crude steel from 4 production facilities. Its facility at Vanderbijlpark near Johannesburg produces around 3.5 million tonnes of crude steel used primarily for making flat steel products.

Reliance Steel & Aluminum sells Encore Coils Business

US based Reliance Steel & Aluminum Co announced that it has sold the assets and business of its subsidiary Encore Coils division of Encore Group Limited to Samuel Son & Co Ltd. Terms were not disclosed.

Reliance acquired the Encore Group of metals service center companies including Encore Metals, Encore Metals (USA) Inc, Encore Coils and Team Tube in Canada effective February 1st 2007. The Encore Metals and Team Tube divisions of the Encore Group, which Reliance will retain, specialize in the processing and distribution of alloy and carbon bar and tube, as well as stainless steel sheet, plate and bar products through 12 locations.

The Encore Coils division processes and distributes carbon steel flat rolled products through its five facilities located in Western Canada. For the year ended December 31st 2007, the net sales of Encore Coils were approximately USD 50 million.
Mr David H Hannah chairman & CEO of Reliance said, "The most important part of the Encore Group to us is its specialty metals business, which we will retain. The Encore Coils business did not fit well for us because we do not have any similar facilities nearby that could help support this relatively small business. The sale of the Encore Coils business to Samuel allows us to exit this market without disrupting the Encore Coils customer base."

Reliance Steel & Aluminum Co, headquartered in Los Angeles, California, is one of the largest metals service center companies in the United States. Through a network of more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the United Kingdom, it provides value added metals processing services and distributes a full line of over 100,000 metal products. These products include galvanized, hot rolled and cold finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 125,000 customers in various industries.

Dry bulk freight shipping rates to peak off in 2008

After months of continuing to set new records, the Baltic Dry Index benchmark for the price of shipping bulk commodities, slumped to the lowest in more than three months recently.

In a recent Barron's report, Mr Jonathan Chappell analyst of JP Morgan Securities said that tight supply and demand in the drybulk market could mean that day rates for the first quarter. He added that '' 2008 will be a little better than 2007, which was a record year. But capacity increases in 2009 and further could bring rates down.”

Late last month, Mr Tim Tiberio analyst at Oppenheimer in an Associated Press report said that ''Charter rates for Supramax and Handymax vessels may continue to [decline] in 2008 until the extra supply is made up with returning demand, expected in the first half of next year.''

The same AP report also cites Ms Natasha Boyden analyst at Cantor Fitzgerald as saying that 2008 may see a bigger than expected decline in drybulk rates, continuing into 2009 and 2010 as a number of new vessels are expected to flood the market. She said ''The biggest factor in the slowdown of the market will be the order book. With so many ships expected to be built, we are now seeing 2008 as the peak year.''

Drybulk capacity expansions continue, including news today that Star Bulk Carriers Corp has agreed to acquire a total of nine dry bulk vessels, while Eagle Bulk Shipping announced it would buy four new vessels for USD 42.3 million.

Taiwanese tube mills increases export prices

YIEH reported that Taiwan’s China Steel Corp and Chung Hung Steel increased the prices by TWD 700 per tonne and TWD 800 per tonne respectively for January to February 2008. Therefore, the domestic black pipe mills all raised the export price in order to offset the high raw material costs.

The raise in price is around USD 20 to USD 30 per tonne to America and USD 30 to USD 40 per tonne to South-East Asia.

South Korean shipyards to ride the boom in 2008

It is reported that soaring prices of raw materials such as oil and coal have been a huge pain for many companies in South Korea but rising demand for energy resources has been a boon to the South Korean shipyards. The high price of oil has done little to cut the strong demand for shipping, which in turn means increasing demand for shipbuilding.

Shipyards in South Korea, the world's largest shipbuilding nation, have received record orders in recent years as demand has surged for vessels to transport raw materials to China and goods to the rest of the world. The shipbuilders have enough orders to keep them busy for about four years. South Korean ship builders are estimated to have acquired about 40% of the global shipbuilding orders from shipping companies for 2008 and analysts said their booming business will continue into next year.

Hyundai Heavy Industries Co, the world's largest shipbuilder has won orders valued at USD 24.6 billion to build 208 ships in the first eleven months of the year, the first time for a shipbuilder to acquire orders of such value in less than a year. It added that last year, the shipbuilder clinched orders valued at USD 19 billion to build 161 vessels.

Samsung Heavy Industries Co, the world's second largest shipyard, and Daewoo Shipbuilding & Marine Engineering Co, the third largest, are expected to see orders they receive for the year top the USD 20 billion mark.

Mr Lee Seung woo an analyst at Shinyoung Securities Co said that "Demand from shipping companies will not dwindle and local shipyards are expected to have another heyday in their business next year on continued shipbuilding orders. The shipbuilding industry would not be affected by the aftermath of subprime mortgage concerns."

Mr Seo Dong Phil an analyst at Hana Investment & Securities Co said that the challenge is not China's stock market, but China's economy. He added that "There is no chance that the Chinese economy will face a slowdown next year and shipbuilders and steelmakers will be in a good position to benefit from economic growth there.”

Mr Lee Jae won an analyst from Tongyang Investment and Securities, said that "South Korean shipbuilders are gearing up their efforts to find a new growth engine. Although short-term prospects in the market are positive thanks to strong demand for vessels, the shipbuilders cannot guarantee their future without increasing production efficiency adding that demand for ships may continue to grow faster than capacity expansion.”

H beam prices soaring in East Asian areas

It is reported that East Asian producers of wide flange beams intend to raise the export price to South East Asian market by at least USD 20 per metric tonne sue to strong demand, increasing freight and scrap prices.

As per report the current transacted base price for H beams are around USD 800 to USD 810 per ton CFR Singapore.

However, the market price quoted by Singapore mills in Q1 is higher than this range and even the Korean source is reported by the market participators at the price of USD 850 per tonne. Even for the Chinese metric sized H beams, the price has climbed to around USD 800 per tonne which are forcing buyers not to place any order now.

Vinto to contribute USD 20 million revenues to Bolivia

Bolivia state news agency ABI quoted Mr Evo Morales president of Bolivia as saying that the Vinto metallurgical complex is expected to contribute over USD 20 million in revenues to Bolivia by the one year anniversary of its nationalization.

The report said that CMV was expropriated from Sinchi Wayra, a subsidiary of multinational company Glencore International, on February 9, 2007. Before it was nationalized, the complex contributed barely USD 3 million per year to Bolivia.

Mr Morales also invited the company's employees to present ideas on how to strengthen its development. He added that "I will wait for the managers to bring employee demands. I hope they visit us and tell us where it's necessary to strengthen the Vinto metallurgical complex.”

CMV operates in Oruro department and produces 12,000 tonne per year of tin billets.

Japanese special steel demand to hit record highs

According to the forecast from Japan’s ministry of economy, trade and Industry, Japanese demand for special steel is expected to reach a all-time high of 1.85 million tonnes in the first quarter 2008.

Among them, the domestic demand will hit 1.31 million tonnes, increasing by 0.3% QoQ compared to the fourth quarter 2007.

The export demand will reach 539,200 tons, up by 9.9% compared to the previous quarter.

Dongbang Steel starts new wire rod mill

South Korea's Dongbang Steel has announced to start the second wire rod mill's test operating again and the new mill mainly produces for home appliances, automobile and CHQ. It is estimated that monthly output is 500 tonne to 700 tonne.

Dongbang Steel’s first mill mainly produce stainless steel wire rod used in kitchenware, with a capacity of 500 tonnes in a month.

SA April coal trades at AUD 96.50 for April 2008 loading

Mining Weekly reported that Richards Bay coal for April 2008 loading traded up to USD 96.50 on globalCOAL. Traders have said fundamentals for coal remain tight, continuing the theme of 2007.

The report added that April 2008 loading 75,000 tonnes cargoes traded at USD 95.75 and then at USD 96.50, while a May loading Richards Bay cargo sold for USD 95.50.

Physical Newcastle coal 15,000 tonnes for February 2008 was bid and offered at USD 89.50 again on globalCOAL.

Earlier this week March 2008 Newcastle coal traded at USD 90 a tonne and Germany's RWE sold 50,000 tonne of delivered basis January generic coal at USD 126.50 a tonne to an undisclosed buyer.

Thyssenkrupp begins hiring for Alabama plant

ThyssenKrupp announced that it is accepting applications for professional jobs at the projected USD 3.7 billion steel mill that the company is building near Calvert ThyssenKrupp expects to employ 2,700 people overall at the complex, about 30 miles north of Mobile.

As per report, ThyssenKrupp has posted listings for several dozen positions on its Web site, instructing applicants to submit resumes and cover letters through the site. Fields in which the company is seeking to hire managers and specialists include information technology, accounting, logistics, purchasing and industrial engineering. Some positions require experience in steelmaking.

Mr David Scheid VP of human resources for the stainless steel division said that "That's really just the initial start. We'll be adding, over the next three years, some additional positions." He added that resumes will be reviewed and the company will contact qualified applicants for interviews.

Mr Andy Ritter VP of human resources for the carbon steel division said that “ThyssenKrupp's carbon and stainless steel divisions have so far hired almost 50 workers, basing them at an office on Downtowner Boulevard west of Interstate 65.” Mr Ritter said the company still isn't sure what will be the breakdown between hourly and professional positions among the 2,700 jobs, describing plans as evolving. Annual wages for all jobs are supposed to average between USD 40,000 and USD 50,000.

As per report, ThyssenKrupp is already sorting through more than 5,600 resumes collected by the Mobile Area Chamber of Commerce and AIDT. Alabama Industrial Development Training officials said that they expect to announce screening for hourly job applicants in the next two weeks.

Taiwan's wire rod market remains firm

YIEH reported that affected by the export tax raise for wire rod by China’s government, the grade K reached to CFR USD 740 per tonne. The price is about TWD 24,050 per tonne which is higher than Taiwan’s domestic rebar and hot rolled price.

Stimulated by the news, Taiwan’s wire rod mills also raised prices to TWD 24,500 to TWD 25,000 per tonne. The price remained at high levels last week but demand is not strong enough.

Drop in container traffic at US ports

Shipping Gazette quoting port tracker report released by National Retail federation and Global Insight reported that the traffic at major US container ports dropped below last year’s level for the fourth month in row to November and the trend is believed to be due to the weakness of the US economy.

The port surveyed included Houston, Savannah, Charleston, Los Angeles/Long Beach, Oakland, Tacoma, Seattle, New York/New Jersey and Hampton Roads. These ports together handled 1.46 million TEUs in October 2007 down by 1.3%MoM from September’s 1.48 million TEUs and 3.5%YoY from 1.51 million TEUs in October 2006.

The report added that the November figure is estimated at 1.36 million TEUs down by 3.5%YoY from a year ago. August was down by 1.4% and September was down by 1.9% YoY. The retailers brace for a slower Christmas and therefore manage their inventories carefully to avoid unplanned discounts.

Macquarie pours investment into Busan New Port

It is reported that Australia's Macquarie group, through its Macquarie Korea Infrastructure Fund is planning to invest some AUD 277 million in South Korea's Busan New Port Container Terminal.

The proposed investment means Macquarie Korea Infrastructure Fund will pay some AUD 71 million to take up a 30% equity stake in Busan New Port Container Terminal, making it the operator's largest shareholder. The terminal company's other shareholders include the CMA CGM Group, Korea Marine Transport Co and Hyundai Development.

Busan New Port Container Terminal has a concession to develop, operate and maintain the second and third phase developments at the Busan New Port. The concession, awarded by South Korea's Maritime Affairs and Fisheries Ministry, sees Busan New Port Container Terminal running the developments for almost thirty years.

Macquarie is to spend the remaining AUD 206 million to provide 100% of subordinated debt used by Busan New Port Container Terminal to finance construction and development of phase 2-3. Construction of the new facilities, which include four berths and which aim to have the capacity to handle 2.7 million TEUs per year, is already underway. They are due to come on stream by early 2012.

The Macquarie Korea Infrastructure Fund was developed specially for South Korean infrastructure investments. Busan New Port Container Terminal will be the fund's first investment in South Korean ports.

US wire rod prices likely to increase

It is reported that American mills have announced to raise the prices of wire rod by USD 44 per ton for February 2008 shipments and it is believed that the price in January 2008 will raise as well.

There are very few offers in the US market as Chinese mills have hiked the export tax on wire rod. On the other hand, Turkey’s mills are also reluctant to offer due to soaring price of scrap which has soared by around USD 20~ USD 30 per ton.

Currently domestic prices of low carbon wire rod are prevailing at USD 672 to USD 694 per ton and USD 728 to USD 750 per ton for high carbon wire rod. The import prices were higher than domestic but still competitive due to low stock levels for domestic availabilities.

Singapore economy to slow down in 2008

According to a central bank poll issued recently, Singapore's economic growth is expected to slow next year, with inflation likely to accelerate due to rising rents, wages and global oil prices. The central bank had in October said it expected economic growth of 4% to 6% in 2008, slowing from the expansion of 7.5 % to 8% it projected for this year.

The Monetary Authority of Singapore's quarterly survey of 18 economists, conducted late November, showed a median gross domestic product growth forecast of 6.3% in 2008, lower than the previous poll's forecast of 6.5%. That's down from the 8% growth expected for this year.

The latest survey suggests services and manufacturing will continue to support economic growth even as the manufacturing sector is exposed to a slowdown in the US. According to the survey, the financial services sector is expected to grow 9% next year, while construction and manufacturing are expected to expand 13.5% and 6.8% respectively.

The economists polled also expect the economy to grow a median 7.7% on year in the fourth quarter of 2007, lower than the third quarter's growth of 8.9%. On the inflation front, the survey said that consumer price inflation is likely to rise to 3.7% in 2008 from 2% this year.

El Izz may setup steel complex in Algeria

Algerian media reported that Egyptian industrial group El Izz Steel will launch within three weeks a geotechnical study for a USD 1.25 billion steel complex project in the industrial estate of Bellara at El Milia in Jijel province of Algeria.

As per report, the Algerian Engineering and Consulting department has been chosen to carry out the study in January, while a foreign engineering department will be entrusted with the design of the steel producing complex.

PSRM call for rescheduling power load shedding

APP reported that Pakistan Steel Rerolling Mills Association has appealed that instead of haphazard power interruptions the load shedding must be properly planned and managed to prevent losses of production to industries.

A spokesman of the association, in a press release, stated that load shedding must be scheduled for early morning and evening hours to enable the re-rolling mills to afford maximum possible production in between the power shut downs.

He said “Gas and electricity are major input for the production of mild steel products. All this is resulting in huge losses and wastage of high prices steel material. More than 30 light engineering industries are also dependent on steel products.”

Middle East Tube declares lock out

Israeli Globe reported that Middle East Tube is shutting down its plant after staff launched industrial action two weeks ago as part of a labor dispute.

METCO, which is controlled by B Gaon Holdings Ltd and Mr Sami Shamoon produces and markets steel tubing for use in water, sewage, fuel and gas pipelines and it ended 2006 with turnover of ILS 305 million.

Danube to invest AED 100 million in the UAE steel industry in 2008

Danube Building Materials has announced its plans to invest AED 100 million in the UAE steel industry in 2008 to make steel as one of the largest segments of its business as a part of its plan to leverage the burgeoning demand within the UAE construction sector, which currently expends 5 million tonnes of steel products on an annual basis.

Danube’s foray into the steel industry will involve large scale imports of steel products from Turkey, China, Taiwan, Korea, South Africa, Ukraine, Russia, India, Saudi Arabia and Iran, which will then be processed as per customer requirements.

Mr Rizwan Sajan chairman of Danube Building Materials said “The building blocks of the UAE’s economic development are the significant core industrial and infrastructure sectors such as the steel industry, which creates an intersectional relationship between traders, manufacturers and suppliers.”

He said that “Fuelled by the continuous increase in the demand for steel products, both long and flat products, and the presence of an extremely diversified business network in the UAE and across the GCC, we have made a strategic decision to dedicate more focus to this particular segment in an attempt to fully leverage the surging demand for steel and steel-based products in the country. Through this movement towards supporting an important model for the development levels of societies, we are looking forward to increasing our contribution in upgrading the steel industry, thereby reiterating the UAE’s standing as one of the fastest growing economies in the world.”

He added that “Our dedication towards supplying the huge demand for steel products goes beyond merely satisfying the volume requirements of the market. More importantly, we are keen on delivering steel products of outstanding quality in a bid to maintain the strong reputation we have built up in the market. This is certainly an exciting time for us at Danube, as we foresee a tremendous amount of effort being exerted for this phase of our continuous expansion, which we are certain, will be rewarded in the future.”

Danube is one of the largest building materials suppliers in the UAE and the region with an extensive portfolio of over 10,000 products ranging from MDF, plywood, timber, laminates, veneers to sanitary fittings, hardware, ironmongery, steel, aluminum and glass among others. In 2004, the company began its operations in Jebel Ali with a 19,000 square meter warehouse cum office, which serves as its regional hub and caters to booming markets in UAE, Oman, Bahrain and India.

Price of I beam decline in Iran due to high inventory

YIEH reported that Iranian domestic I beam price are falling due to the high stocks in the country and cold winter weather as the demand declines.

Price started to fall since last November and continues to drop because of the earlier imports on strong demand. The record now is about 853,000 tonnes for the year compared to 192,000 tonnes for the previous year. Also, the cold weather makes the construction activities down.

UAE economy to show 16.5% nominal growth in 2007

Emirates Business 24/7 reported that United Arab Emirates’ economy is due to grow by 16.5% in nominal terms in 2007, exceeding International Monetary Fund expectations. Although final figures for 2007 are not yet in, Gross Domestic Product is expected to reach AED 698 billion compared with AED 599.2 billion in 2006.

The IMF had predicted that the GDP of UAE would reach AED 679.1 billion in 2007. In 2006, the UAE economy grew by 23.5% in nominal terms and 9.4% in real terms. But inflation remained high, with the IMF predicting it would reach 8% in 2007, slightly lower than the 9.3% recorded in 2006.

The UAE’s non oil sector is also expected to grow by 21% in 2007, making up 65% of GDP. The UAE has the world’s 5th largest proven reserves of crude oil with 97.8 billion barrels and ranks 4th among the members of the OPEC.

Indians in UAE can transfer money quickly from February

It is reported that Indian expatriates in the UAE will be able to send money to any part of India using UAE’s postal system from February 2008 as International Express Money Orders, powered by Universal Postal Union, will enable single transfers of up to USD 2,500 under a new deal between Emirates Post and India Post.

Mr Ibrahim Karam Ali Bin Karm CEO of Emirates Post said that “The new facility represents a boon to Indians in the UAE, as India Post will guarantee quick delivery of the money to every remote corner of India. We have fixed affordable charges to enable thousands of UAE residents to avail of the secure International Express money order endorsed by the UPU.”

12 orders addressed to one beneficiary will be allowed per year under the agreement. Amounts of less than INR 50,000 will be paid in cash, with higher amounts payable by cheque. Money paid over UAE post office counters can be sent directly to a residence within 2 days or collected from any authorized post office in India on the same day. Money orders sent from India through India Post will be payable at post offices in the UAE on the day of transfer.

India is believed to have the most widely distributed post office system in the world, with a network of 155,333 post offices reaching across remote areas of the country.

Aramco on course to hit 2009 output target

Khaleej Times reported that Saudi oil giant Aramco is on track to hit its oil production capacity target of 12 million barrels per day in 2009.

Mr Amin Al Nasser senior VP of exploration and production of Aramco said that the start of Aramco's 500,000 barrels per day Khursaniyah oilfield was delayed a few months to the first quarter this year from December 2007. Other expansion plans in the world's largest oil exporter through to 2009 remain on schedule. He added that "We are going up to 12 million barrels per day in 2009. A 250,000 barrels per day expansion at the Shaybah oilfield and the development of the 100,000 barrels per day Nuayyim field will add another 350,000 barrels per day of capacity by the end of 2009."

Aramco's total output capacity does not include the Saudi share of capacity in the neutral zone between the kingdom and Kuwait. Saudi Arabia is aiming for total output capacity, including the neutral zone, of 12.5 million barrels per day in 2009. Aramco aims to boost gas output capacity to 12 billion cubic feet per day in 2011 from 9.5 billion cubic feet per day.

Malaysia to build dams in Iran

Mr Rasoul Zargar deputy energy minister for water affairs of Iran said that Malaysian companies will invest in construction of Bakhtiyari and Khersan 3 dams. He added that "These are two big electric dams and preliminary talks on their construction are taking place."

Being the tallest dam in the world, the 315 meter high Bakhtiari Dam will be built on a river with the same name in Lorestan Province. The other dam, Khersan 3 will have an electricity production capacity of 300 MW since current public financing is not sufficient for all Iranian water projects.

On the issue of exporting water to Kuwait, Mr Zargar remarked that since Iran's President Mr Ahmadinejad recently attended the Persian Gulf Cooperation Council, implementation of this project seems more likely than ever before. Implementation of the project is expected to be reviewed following further discussion with Kuwaiti officials in Tehran.

Dubai to introduce property index to control rentals

The Emirates Business reported that Dubai is planning to introduce a new index, setting a range of appropriate rents for properties across the city to control soaring rental prices that are fuelling inflation.

The Emirates Business daily quoted the Real Estate Regulatory Authority as saying that the new index would come into effect on January 15th 2008, setting minimum and maximum rents that landlords can charge for properties in particular developments.

Dubai has already set an annual rent cap of 5% for 2008, tighter than last year's 7% cap and the 15% ceiling of 2006. The caps are aimed at controlling rents that have soared as more expats arrive to live and work in Dubai while real estate developments have been delayed.

Dubai does not currently have a property index, which means that tenants pay often very different rates for the same types of properties as rents for new arrivals have risen rapidly in recent years. The index will not just provide a guide to house hunters concerned that they are being charged over the odds; landlords are obliged to set rents within the stated limits or report to a rental dispute committee, the newspaper said.

Dubai's population, which is more than 85% comprised of foreigners, is growing at an average of 7.9% a year and may rise to 1.9 million by 2010 from 1.4 million now.

Dana Gas exceeds 2007 production goals in Egypt

Dana Gas has announced an exit rate of 32,000 barrels of oil per day equivalent for 2007, exceeding company expectations. The early production from 2 new discoveries has contributed substantially to the favorable production rate and brings significant development potential to Egypt.

The Al Baraka discovery well has produced the first oil ever in Upper Egypt. In the short period of four months from discovery to first production, the first shipment of oil was delivered to the Assyut Refinery on December 27th 2007. The Dabayaa 2 delineation well was drilled on the eastern side of the West Manzala concession in the Nile Delta to appraise the Dabayaa 1 discovery well in the Lower Abu Madi Sandstone formation.

A new discovery was made in the Upper Abu Madi formation, and the well has added over 8 million cubic feet of gas per day and 240 barrels of condensate per day to Dana Gas's production.

Dr Hany Elsharkawi director of Dana Gas Egypt has expressed its pride in producing the first oil in Upper Egypt and the rapid hook up of the Dabayaa 2 well. He said “We are excited about our recent successes, which confirm our confidence in the development opportunities in both the Upper Nile and Lower Egypt concessions.”

Mr Rashid Saif Al Jarwan GM of Dana Gas said that “The year 2008 will be a busy one for Dana Gas, with an active exploration and drilling program continuing in Egypt, as well as the startup of our major projects in the UAE and Northern Iraq. We are also actively evaluating a number of other interesting opportunities in the Middle East and North Africa.”

China to cut number of steel exporters – Reports

It is reported that Chinese authorities have finalized the qualification standard for steel exporters and may release the same shortly, which will lead to reduction in steel traders by almost two third.

As per reports, the prescribed minimum of export volume is 10,000 tonnes and the qualified steel exporters should be members of China Iron & Steel Association.

According to statistics from CISA, there were 11,661 steel exporters in China in 2006. It is estimated that the quantity was over 10,000 in 2007, among which there were only hundreds of steel producers while the rest are all trading companies, some of which are merely exporting 1000 tons per year. Mr Zhang Ping of Umetail.com said that “About 1,000 steel exporters would remain in the market finally.”

Mr Ping indicated that along with the rise of steel cost and decrease of profit, Chinese steel export would definitely decline even if there is no qualification administration policy in 2008.

There are many export oriented steel enterprises and small sized steel enterprises in provinces Shandong, Hebei, Shanghai, Hubei, Liaoning and Guangdong and most steel enterprises there are not willing to export steel products any more due to high cost and strict policies.

Chinese steel exporters have turned increasingly pessimistic following the market talks about the possible qualification limits. The worries about raising up threshold for steel exporters have started from last July, when numerous steelmakers and traders flocked to landing orders from overseas markets in light of the greasy profits.

Shougang CR complex at Shunyi begins trial runs

Shougang Group announced that its CNY 6.4 billion 1.5 million tonne CR complex has come into trial production. Mr Zhu Jimin chairman of Shougang disclosed that the mill rolled out first sheet in November 2007. Its foundation was laid in July 2005.

Shougang Group’s CR project is the group's first large scale and continuous producing CR mill and is located at Liqiao Town in Shunyi district of Beijing. It is designed with 1.5 million tonnes of CR products including 700,000 tonnes of CRCA and 800,000 tonnes of HDG for automobile, household appliance and construction sectors.

China shuts 120,000 tonnes ferroalloy capacity in Inner Mongolia

According to an announcement from China’s National Development and Reform Commission a second batch of 45 Chinese ferroalloy plants shut down their inefficient and outdated production units’ end of 2007.

According to NDRC the 45 ferroalloy plants had 91 outdated production units with a total capacity of 120,000 tonnes located in the Inner Mongolia region.

In October China had announced the first batch of 204 ferroalloy plants with a total of 302 outdated production units which were to shut down production by the end of 2007. These plants were located in the Hunan, Guangxi, Gansu, Guizhou, Sichuan, Shanxi, Yunnan, Shaanxi, Henan, Fujian and Qinghai regions.

Sinotrans Buys 20% of Jiangyin Port for CNY70mn

It is reported that Hong Kong listed shipping company Sinotrans Limited has acquired 20% stake in the Port of Jiangyin based in Jiangyin City in the eastern province of Jiangsu for approximately CNY 70 million.

The port plays an important role in the economic zone of nearby cities like Suzhou, Wuxi and Changzhou in Jiangsu. Its new port area saw an annual cargo throughput of 65,000 TEUs in 2006. In February 2007, the port started operating its first international shipping route from Jiangyin to Pusan, a port city in South Korea, which is expected to save the time and cost for freight between the two cities by two days and CNY 1,000 per TEU.

Besides, the port is offering transport service on more than 20 domestic routes to cities such as Shanghai in Eastern China, Guangzhou and Xiamen in Southern China, Quanzhou in southeastern China.

The new tie up is deemed to enlarge Sinotrans' market share in the mainland, especially in the Yangtze River Delta, one of the mainland's three economically fastest growing regions.

Mr Zhang Jianwei chairman of Sinotrans said that “Sinotrans will work hand in glove with other partners to improve Jiangyin Port. It is an important part of Sinotrans' Yangtze River strategy. For the moment, the company is still considering actively participating in the development of other ports along the river."

Jinchuan to buy Tyler Resources for CAD 214 million

Reuters reported that Tyler Resources Inc, developer of Mexico's largest untapped copper zinc deposit, has agreed to be acquired by China's largest nickel producer Jinchuan Group Limited for about CAD 214 million in cash.

Jinchuan offered CAD 1.6 for each share in Tyler Resources and Tyler Resources has signed a definitive support agreement. The transaction is expected to close in mid March.

According to the company's Web site the Bahuerachi property, Mexico's largest undeveloped copper zinc resource, is Tyler's primary asset.

Mr Li Yongjun chairman and president of Jinchuan said "Jinchuan looks forward to building on the efforts expended thus far to aggressively progress Bahuerachi through development and into production.

Although Jinchuan is primarily a nickel producer, it has been active recently in seeking feedstock for its copper operations. It is China's fifth largest copper producer.

Chinese government has been encouraging its state owned metals, mineral and resources companies to consider overseas takeovers as a way of securing raw materials for the world's fastest growing major economy.

Bagang purchased Xinjiang Shuangxin

It is reported that Bagang has successfully purchased Xinjiang Shuangxin lifting equipment manufacturing company recently. According to the agreement, Bagang company will pay CNY 14.98 million to acquire the whole company.

It is learnt that Xinjiang Shuangxin lifting equipment manufacturing company was set up in January 2004 in 100 acres area and has an automatic H beam production line. Its main operation is for the production and installation of steel structure, the annual production capacity is 10,000 tonnes.

After the purchase, Bagang will accelerate to upgrade the original equipment, the annual processing volume of steel structure is expected to reach 25,000 tonnes, the market share in Xinjiang steel structure market is increased to 15% from 5%, become the leading enterprise in Xinjiang steel structure industry.

Heilongjiang province closes 273 small collieries

According to the China provincial safety watchdog Northeast China's Heilongjiang Province, abundant in coal resources has closed 273 small coal mines in 2007 and plans to close another 100 small ones in 2008.

An official with Heilongjiang Provincial Work Safety Bureau said that the province has seen increasing coal output in recent years, but the pits are also posing big threats to miners' safety.

Early last year, the province launched a drive to close small coal mines or restrict them from expansion. The province also enforced supporting policies to subsidize those collieries that stopped coal production and started other businesses.

According to an earlier report of the State Administration of Work Safety, China closed 10,412 coal mines in the last three years amid efforts to improve workplace safety and to check extravagant use of natural resources.

NDRC unveils 2nd list of obsolete capacity in Calcium Carbide, ferroalloy, coke

It is reported that China's top planning body National Development & Reform Commission has published the second closure list of outdated capacities in calcium carbide, ferroalloy and coking industry in its official website.

In calcium carbide industry, the list covers 20 enterprises, including 15 in Shanxi, 3 in Inner Mongolia and 2 in Gansu.

In ferroalloy industry, 45 companies are involved, all of which are located in Inner Mongolia.

In coking industry, for coke from machinery oven, the list totally includes 60 companies, 34 in Shanxi, 5 in Jiangxi, 1 in Henan, 5 in Heilongjiang, 1 in Sichuan, 1 in Inner Mongolia and 13 in Yunnan; for semi-coke, coke from beehive oven and coke from primitive oven, 86 enterprises are in the blacklist, including 3 in Yunnan, 8 in Xinjiang, and 75 in Inner Mongolia.

Tisco succeeded in producing Mn18Cr18N stainless steel

It is reported that Tisco succeeded in producing Mn18Cr 18N stainless steel in early 2008 and every performance index reaches the average level of imported products after the test.

Mn18Cr18N stainless steel is used in important components of nucleus dynamotor and firepower dynamotor, whose generating electricity volume take 80% of total output.

LaiWu Steel No.2 coke oven put into production

It is reported that LaiWu steel No.2 coke oven officially put into production on December 28th 2007 ahead of 32 days to according to the plan.

LaiWu steel No 2 coke oven is designed by Shandong metallurgy and design institute, to produce 600,000 tonnes coke per year. The project is another one for LaiWu steel after the No 4, No 8 and No 1 coke ovens.