NMDC iron ore output up by 12.5% YoY in 9 months

National Mineral Development Corporation has produced 20.1 million tonnes of iron ore during April to December 2007 period up by 12.5% YoY as against 17.87 million tonnes in April to December 2007 period. It also surpassed the target set in the MoU by 6% YoY.

NMDC sold 19.86 million tonnes of iron ore during April to December 2007 period as up by 13.5% YoY as against 17.49 million tonnes during April to December 2006 period. It earned net profit of INR 2234.01 crore up by 38.8% YoY as compared to INR 1609.20 crore.

Making a presentation at the performance review meeting chaired by Mr Ram Vilas Paswan union minister for steel, chemicals & fertilizers, NMDC chairman Mr Rana Som said that transport bottlenecks and threats from Maoists has led to shortfall in dispatch of iron ore.

Mr Som said that NMDC will set up an investigation & exploration centre at Raipur. He added that the centre will assist state governments in mineral exploration activities free and recruitment for the centre has already started.

Complimenting NMDC for getting ‘Navaratna’ status and continued excellent performance, Mr Paswan said that, it should complete all its expansion projects in a time bound manner. He also assured NMDC that he will take up the issue of availability of railway rakes with the concerned ministry. He asked the company to expedite the complementation of its activities under the corporate social responsibility.

ArcelorMittal team to finalized blueprint on Indian steel project

Ranchi Express reported that ArcelorMittal has constituted a team of experts from across the world to finalize the blueprint for its 12 million tonne integrated steel projects in Jharkhand and Orissa.

Dr Sanak Mishra CEO of ArcelorMittal India said that the team is made up of some 20 experts drawn from the company's global operations including Europe and Brazil and is headed by Mr Pierre Gugliermina chief technical officer of the company. He added that "We wish to bring in the best of technology for both our Jharkhand and Orissa plants. The technical team's observations would therefore be extremely important."

India Steel to raise USD 27 million via private placement

India Steel Works Limited has announced that its board has approved raising USD 27 million through a private placement of 36.55 million shares to a foreign investor.

India Steel is a manufacturer of stainless steel bars.

RINL VSP gets award for e governance

It is reported that Rashtriya Ispat Nigam Limited’s Visakhapatnam steel plant has been given an award for its e governance by the union government.

The award was presented by Mr A Raja union minister for communications & IT.

Restrictions sought on iron ore exports

Tamil Nadu Chamber of Commerce & Industry has appealed for restrictions on iron ore exports from India.

Mr S Rethinavelu president of the chamber said that during the last one year, the price of steel rod has gone up by over 20%. He added that major players in steel rod manufacturing are government owned companies and the prices are hiked without any control.

Mr Rethinavelu said that however, iron ore is exported without any restriction to Japan and China at a low cost and domestic steel corporations are allowed to hike the cost of steel products. China and Japan, while keeping their ore deposits in tact, are allowed to thrive on imports from India. He added that there was a need to reduce the basic excise duty on steel products.

India’s ferroalloys industry demands import duty hike

BS reported that India’s INR 5,000 crore ferro alloys industry has demanded a 2.5% rise in import duty to fend off the

In million tonnes

In the last budget, the government had reduced the import duty on ferro alloys well below the World Trade Organization’s recommended level of 7.5% to 5%. Consequently, the import of noble alloys and ferro alloys, which are primarily used in the production of steel and stainless steel, will estimatedly jump by 40% to INR 1,000 crore this financial year.

The reduction in custom duty has resulted in the opening the flood gates for imports of ferro alloys. Ferro alloy imports stood at INR 263 crore, in terms of value, when the duty was reduced to 20% from 25% in 2003-04. By 2006-07, the value of imports went past INR 700 crore when the customs duty was 7.5%. Thus, imports have increased by over 166% in the last 3 years.

Spotting an opportunity, FACOR is planning to set up 500,000 tonne stainless steel facility in Nagpur at an investment of INR 1,250 crore.

Announcing its overall INR 2,750 crore investment plan, Mr RK Saraf CMD of FACOR Group, said that “The purpose of this plant is to utilize the 140,000 tonnes of ferro chrome produced by FACOR in house. Therefore, after 3 years, when this stainless steel plant goes on stream, FACOR will no longer remain as a ferro chrome exporter.”

Mr Saraf, also the president of IFAPA, said that the import duty on ferro alloys may go up to zero per cent. For the survival of the ferro alloys industry, IFAPA has also demanded zero import duty on metcoke with low ash of 12% and phosphorus of 0.01% content from 5%.

CONCOR Q3 2007 net up by 16% YoY

Container Corporation of India has posted a 16.46% YoY increase in unaudited net profit for October to December 2007 quarter to INR 1.93 billion as against INR 1.65 billion in October to December 2006 quarter.

Income from operations grew up by 12.85% YoY to INR 8.43 billion as compared to INR 7.47 billion. While, total income for the quarter was up by 15.26% YoY to INR 8.85 billion as compared with INR 7.68 billion.

For the 12 months ended March 31st 2007, CONCOR recorded an audited net profit of INR 7.04 billion, income from operations of INR 30.37 billion and total income for the year of INR 31.22 billion.

CONCOR is a multi modal logistics provider for India's export and imports, domestic trade and commerce, working under the ministry of railways. Its core businesses are container shipping and terminal or warehouse operations. To provide container handling services, it liaises with customs, gateway ports, railways, truckers, consolidators, forwarders and shipping lines.

IMO to unveil new code on ships recycling

It is reported that International Maritime Organization will be unveiling a new convention on re cycling of ships that will provide legally binding and globally applicable ship re cycling regulations next year.

Mr Efthimios Mitropoulos secretary general of IMO said that “The new IMO instrument will include regulations for the design, construction, operation and preparation of ships so as to facilitate safe and environmentally sound recycling, without compromising their safety or operational efficiency.” He added that the working practices and environmental standards in the re cycling facilities currently leave much to be desired.

Mr Mitropoulos said that “India’s own ship repair facilities have seemingly fallen victim to such a trend, as attempts to introduce higher health, safety and environmental standards have resulted in a downturn at some of the leading facilities. This would suggest that there will be no serious impediment to India ratifying the new treaty. And of course when India does become a party to the new convention, it will have access to the potentially large market of ships that comply with the convention.”

The new regime governing ship recycling in India, as recently decreed by the Supreme Court, is remarkably similar to the requirements of the draft text of the IMO Convention.

Mega coal SPV may score first hit in Mozambique

FE reported that Coal Ventures International, the mega special purpose vehicle formed to hunt coal assets abroad, is likely to secure its first block in Mozambique. It is also looking for blocks in Australia, Canada, Zimbabwe South Africa, US, Indonesia and New Zealand.

The mega SPV promoted by Steel Authority of India Limited, Coal India Limited, Rashtriya Ispat Nigam Limited, National Mineral Development Corporation and National Thermal Power Corporation Limited invited global expressions of interest for appointing merchant bankers that would help in acquiring coal assets overseas.

Around 20 banks responded to the EOI. The company has funds worth USD 2.7 billion, comprising USD 1.8 billion debt and USD 900 million equity which will be used to acquire coal assets abroad.

Sources close to the development said that a six member technical team that visited Mozambique on January 28th 2008, which has identified a 230 square kilometer long block, of which a 20 square kilometer patch is assumed to have coal reserves.

CVI will decide on the block after a techno feasibility study, which will be possible after May once the monsoon is over. The Bere port in Mozambique can be used to bring coal to India and both Ercon and Rites are constructing railway tracks for connecting the mines with the port.

Vedanta targets aluminum refinery ahead of schedule

It is reported that Vedanta Aluminium Limited has targeted to commission phase I of its new 500,000 tonnes per annum aluminum complex in Orissa one year ahead of schedule.

Phase I of 250,000 tonnes per annum and the associated captive power plant was on track and would begin production by June 2008, as against the originally envisaged mid 2009. Equipment deliveries are progressing on schedule and plant erection work has commenced. The plant is taking shape in Jharsuguda district.

Hindustan Zinc Limited, now part of the Vedanta Resources group, also expects to commission the 88,000 tonnes per annum debottlenecking project and associated captive power plant at the Chanderiya zinc smelter in Rajasthan. In December 2007, a new stream of 170,000 tonnes per annum was added at the same location.

Regarding commercial power, Vedanta Group expects to have a total wind power capacity of 124 MW by March 2008. Around 70 MW is already in place, spread over Gujarat and Karnataka. Meanwhile, the EPC contract for the 2,400 MW coal based power plant in Orissa, implemented by Sterlite Energy, has been placed and construction is in full swing.

Foundation stone laid for DVC's Durgapur power project

Mr Sushilkumar Shinde union minister of power has laid the foundation stone for Damodar Valley Corporation's 1,000 MW coal based power project near Waria railway station at Durgapur in Bardhaman district of West Bengal on February 11th 2008.

The 1000 MW power project is scheduled for completion by 2012.

ArcelorMittal hopes Brazil model will give India plans a boost

ArcelorMittal’s flagship and largest plant in Latin America offers a window into the company's future in India especially as it grapples with how to power those ambitions. The plant in Tubarao has achieved energy efficiency by co generating power from gas emitted during steel production. Now, it is promoting the Brazilian model for its two planned steel mills in the states of Orissa and Jharkhand, which, if implemented, will bring the largest foreign direct investment into India.

Last year, Mr LN Mittal president & CEO of ArcelorMittal announced that it will invest USD 20 billion in two steel plants in India. It had identified sites for the plants and was discussing sourcing for iron ore with the state governments and a license for coal mining was expected within a few months.

In Brazil, the Tubarao plant produces 7.5 million tonnes of flat steel and generates 440 MW of power, selling a surplus of about 100 MW. That has allowed ArcelorMittal to become self efficient in energy.

Mr Guilherme Correa Abreu an environment management specialist at the company said that while the plant's power generation has been an expensive proposition, the arrangement has brought stability in operation and helped avoid price fluctuations in power. The plant also boasts of the longest running blast furnace, set up 25 years ago. While ArcelorMittal controls 10% of world’s steel production, mostly through a chain of mergers and acquisitions, it has yet to set up a steel plant from scratch.

Brazil and India recorded 7.3% and 9.3% production growth, respectively in 2007. India is the 5th largest steel producer and Brazil ranks 9th. But according to a 2007 Boston Consulting Group report, it takes 5 man hours to produce a tonne of cold rolled steel in Brazil as compared with 38 hours in India for the same due to a lack of technology and quality control. Brazil has the lowest cost in steel production and vast resources of iron ore.

Suzlon Energy bags order from Spanish bank

Suzlon Energy Limited has announced that its subsidiary Suzlon Wing Energy A/S Denmark has signed a new order with the Spanish Saving Bank Unicaja for 102.9 MW of wind turbine capacity. The order calls for delivery of 49 units of Suzlon S88 2.1 MW wind turbines translating to 102.9 MW.

L&T order book likely to surge by 30% by March 2008

Mr YM Deosthalee CFO of Larsen & Toubro said that it is likely to see its order book increase by an additional 30% by March 2008, translating into a revenue growth of about 25% over the next 3 to 5 year period. He added that, in the current fiscal, L&T is likely to see its revenues rise by 35%.

Mr Deosthalee said that it is targeting to increase the share of sales from international orders to total sales, from the current level of 16% to 20% by 2009-10. He added that “We are expecting more growth from the Middle East. If inflation is managed the way it is being done today, there is no need to increase interest rates. If there is some dip in growth RBI may look at reducing rates marginally. In the monetary policy the RBI has indicated to banks to reduce rates. If that does not happen, RBI will ask banks to do it.”

According to Mr Deosthalee, industries like auto, which are dependent on retail borrowing, are the only ones to have been hit by the interest rate hike. Those companies that are adding capacity have not been affected, as there are other avenues to raise funds. He added that “I am sure the finance minister may do something for retail investment to flow into the infrastructure sector. We are also expecting ECB relaxation for infrastructure.”

Nathpa Jhakri output surpasses 6000 million units - Report

BL reported that Nathpa Jhakri hydro power station has become the first single hydro power station of India to surpass 6000 million units of electricity generation on February 7th 2008. This highest generation has been achieved besides all odds which the plant faced like adverse hydrology, flash floods and high silt contents.

Besides benefiting the beneficiaries and country as a whole, this would bring higher revenues to equity partner of Himachal Pradesh with 12% free power and 22% power on account of their energy share.

Mr RP Singh director electrical of public sector Satluj Jal Vidyut Nigam Limited said that the generation during the current period has also surpassed the MoU targets entered into with the ministry of power.

Mr Singh hopes that the power station will be able to meet the MoU targets of 6400 million units for the year 2007-08. He added that Nathpa had established spectacular achievements during the financial year 2006-07 and recorded net profits of INR 732.71 crore as well as paid dividends of INR 235 crore to the equity partners for its performance during the financial year 2006-07.

Since 2003 the power station has been energizing the northern states namely Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, J&K, Chandigarh and the home state Himachal Pradesh with valuable power.

Japanese group bags USD 250 million Petronet order

BS reported that Petronet LNG has awarded a USD 250 million contract to a consortium led by Japan’s Ishikawajima Harima Heavy Industries for building two liquefied natural gas storage tanks at Kochi, with a production capacity of 5 million tonne.

An official at Petronet said that “The letter of intent for building the two LNG storage tanks have been awarded to IHI consortium on a nomination basis.”

Petronet had initially shortlisted 3 consortia, two led by French companies Sofregaz and SN Technigaz and the third by IHI for the engineering, procurement and construction contract to build the Kochi terminal.

The official said that it has now been decided to divide the entire work into 3 packages, including LNG storage tanks, jetty, offshore and onshore work. He added that “While the storage tanks have been awarded to IHI, fresh financial bids have been invited from the three consortia for the remaining work.”

The total cost of the Kochi LNG terminal is estimated at USD 900 million. The project is already lagging by nearly two years on delays in firming up LNG supplies and signing of concession agreement with Kochi Port Trust.

Petronet is also in the final stages of negotiations to import 2.5 million tonne per annum LNG from the Chevron operated Gorgon project in Western Australia for 25 years. It is hoping to sign sales and purchase agreement for importing LNG from Australia in a few months and likely to start receiving supplies from 2013.

Electrification of Tiruchi broad gauge sections in full swing

It is reported that electrification work of the Villupuram Tiruchi broad gauge section is in full swing, with the railway authorities carrying out the project in stretches.

Sanctioned by the Railway Board in July 2006, the electrification project is being carried out by the central organization for railway electrification at an estimated cost of INR 96.67 crore.

The wiring works has been completed up to Ariyalur railway station, where a traction sub station is to be established. Besides Ariyalur, traction sub stations will also be set up at the Tiruchi and Vriddhachalam junctions.

With the mast erection works completed up to Tiruchi railway station, the next stage of wiring works from Ariyalur to Tiruchi has now commenced.

GAIL proposes extending Dabhol Bangalore gas pipeline to Goa

GAIL India Limited has proposed extending its planned Dabhol Bangalore gas pipeline to Goa to meet the fuel needs of the state.

Mr UD Choubey CMD of GAIL made a proposal for extending the Dabhol Bangalore line to Goa during a meeting with Mr Digambar Kamat chief minister of state.

Mr Choubey said that "Our board has already given an in principle approval for laying of the 730 kilometer long Dabhol Bangalore gas pipeline at an estimated investment of INR 2,500 crore. We have proposed to extend this to Goa by laying a spur line of about 120 kilometer.” He added that depending on the source and customer tie up, the 30 inch Dabhol Bangalore pipeline shall be designed to carry 16 million standard cubic meters gas per day.

The route of the proposed Dabhol Bangalore pipeline is from R-LNG terminal of Ratnagiri Gas and Power Private Limited at Dabhol in Maharashtra up to Bangalore. The pipeline will pass through Ratnagiri and Kolhapur districts of Maharashtra and Belgaum, Dharwad, Haveri, Davangere, Chitradurga, Tumkur and Bangalore districts of Karnataka. With this pipeline, natural gas from RGPPL's R-LNG Terminal can be supplied to industrial clusters in Maharashtra and Karnataka and with the extension, even to Goa.

3390 hectares taken so far for Jayamkondam project

BL reported that the district administration has so far acquired a total of 3,390 hectares of land for the Jayamkondam Lignite Power Project being executed by the Neyveli Lignite Corporation.

As many as 11,489 land owners have given their property for the project, of which 10,325 have been awarded compensation to the tune of INR 36.56 crore. Among them, 9,882 have filed petitions seeking higher compensation for the property.

Mr VM Xavier Chrisso Nayagam district collector said that the compensation to the tune of INR 1.14 crore, awarded to 1,164 land owners, had been deposited with the government accounts. Although their land extending to a cumulative 88.70 hectares had been acquired for the JLPP, the disbursement could not be immediately effected as they were residing either outside the district or abroad.

US steel import permit in January increase by 15% MoM

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of January totaled 2,474,000 net tons. This was a 15% increase from the 2,137,000 permit tons recorded in December 2007 and a 25% increase from the December preliminary imports total of 1,977,000 net tons.

Import permit tonnage for finished steel in January was 2,024,000 net tons, an increase of 28% from the preliminary imports of 1,583,000 net tons in December.

For January 2008, the largest volumes of finished steel import permit applications for countries outside of North America were China 254,000 net tons, Korea 214,000 net tons, Japan 112,000 net tons, Germany 80,000 net tons, India 71,000 net tons and Turkey 69,000 net tons.

Finished steel import permit applications for Chinese steel 254,000 net tons were up by 42% in January compared to the preliminary imports total for December. Product categories that experienced particular increases compared to the December preliminary imports, were
Rails Standard up by 150%
Heavy Structural Shapes up by 147%
Reinforcing Bars up by 137%
Sheets & Strip - All Other Metallic up by 105%
Line Pipe up by 34%
Galvanized Hot Dipped Sheets & Strip up by 31%

Mr Andrew G. Sharkey III president & CEO of AISI said that “Even though imports are at a fairly moderate level early in 2008. We continue to closely monitor several product areas that show notable increases in the January SIMA data.”

ThyssenKrupp breaks ground on the site of its steel and stainless steel facility in Alabama

ThyssenKrupp Steel USA, LLC and ThyssenKrupp Stainless USA, LLC, broke ground on the site of its USD 3.7 billion carbon and stainless steel processing facility at Calvert in Alabama. The groundbreaking marks the beginning of construction of the 3,500 acre plant. Permit applications required to begin construction were approved by State and Federal agencies, allowing ThyssenKrupp to remain on schedule for the commencement of operations in March 2010.

The facility will include a hot strip mill which will be used primarily to process slabs from ThyssenKrupp's new steel plant in Brazil. It will also feature cold rolling and hot-dip coating capacities for high-quality end products of flat carbon steel. The facility will have an annual capacity of 4.1 million metric tons of carbon steel end products. In addition, a stainless steel melt shop will be built with an annual capacity of up to one million metric tons of slabs, which will also be processed on the hot strip mill. A cold rolling facility is to be built, which will be designed initially to produce 350,000 tons of cold strip and 125,000 tons of pickled hot strip. In addition, the stainless steel plant will provide ThyssenKrupp Mexinox in San Luis Potosi (Mexico) with its required pre material.

In May, ThyssenKrupp announced that it will build a new state of the art carbon and stainless steel processing facility in Alabama. Since that time, the company has opened a project office in Mobile, awarded several site preparation contracts to Alabama based companies and placed an order for the hot strip mill and cold rolling complex. ThyssenKrupp has also held four Community open house meetings throughout the Mobile area to inform approximately 2,000 residents about the new plant.

Along with construction, the company's next focus will be on developing a first rate workforce to help operate the facility producing 5.1 million metric tons of high end products each year. ThyssenKrupp will work together with the Alabama Industrial Development Training office to train and recruit workers for the facility. When fully operational, 2,700 permanent jobs will be created, including opportunities in management, engineering, equipment operations, logistics, production, maintenance and administration. Throughout the construction and operation of the new facility, ThyssenKrupp is committed to meet the most stringent environmental protection standards. The plant will employ the most technologically advanced protection measures. It will use clean-burning natural gas and electricity not coal to fire its process heaters and furnaces. The process equipment will also be designed with extensive energy recovery and re use technologies.

Once operational, the new facility will process carbon and stainless steel for high value applications by manufacturers in the United States and throughout North America. The plant will serve industries including automotive, construction and household appliances.

Mr Ekkehard D Schulz chairman of the executive board of ThyssenKrupp AG said that "The global steel industry is undergoing a dynamic consolidation process. We are taking our own individual approach, with a clear forward strategy to further position ourselves as a global player in the steel markets of Europe and North America. This is the type of project that represents a very long term commitment. We will be in Alabama for decades to come, providing good jobs for many generations."

Mr Karl Ulrich Koehler chairman of the executive board of ThyssenKrupp Steel and member of the executive board of ThyssenKrupp AG added that "This new processing facility will allow us to strengthen our position in North America. It will create major advantages in terms of quality, costs, and access to a customer base with a demand greater than current supply."

Mr Juergen H Fechter chairman of the executive board of ThyssenKrupp Stainless and member of the executive board of ThyssenKrupp AG said that “Our investment in Alabama is a central element of the ThyssenKrupp Stainless strategy. The NAFTA stainless steel market has great potential and we are committed to significantly expanding our business in this growth region.”

US last week steel production decrease by 0.3%YoY

US domestic raw steel production was recorded 2.118 million net tons while the capability utilization rate was 88.8 % in the week ending February 9th 2008 as compared to production of 2.126 million net tons in the week ending February 9th 2007 when the capability utilization then was 89.5%. The current week production represents a 0.3% decrease from the same period in 2007.

Production for the week ending February 9th 2008 is down by 0.7% from the previous week ending February 2nd 2008 when production was 2.134 million net tons and the rate of capability utilization was 89.5%.

Adjusted YTD production through February 9th 2008 is 12.514 million net tons at a capability utilization rate of 87.1%which is 8.7%YoY increase from the 11.511 million net tons during the same period in 2007 when the capability utilization rate was 87.2

AISIs estimates are based on reports from companies representing about 75% of the US raw steel capability.

ThyssenKrupp, Salzgitter to test Baffinland's iron ore this summer - report

Handelsblatt reported that ThyssenKrupp AG and Salzgitter AG will this summer test Canadian iron ore supplied by Baffinland Iron Mines Corp in an attempt to reduce their reliance on the three large iron ore suppliers.

The report that did not cite where it got the information said other European steel producers will be supplied as well. It said if the iron ore proves suitable to be turned into steel, some 16 million tonnes of iron ore could be shipped to Europe in a few years time.

Rising costs in raw materials threaten to end the steel boom the industry has witnessed for the past years. Analysts this year expect price increases in iron ore of up to 40%. Brazil's Vale and Rio Tinto as well as Australia's BHP Billiton control some two thirds of global iron ore supply.

ArcelorMittal USA to increase steel plate prices by USD 80 per short tons

Platts reported that ArcelorMittal USA will increase spot market prices for its steel plate products by USD 80 per short ton, effective with shipments from March 30th 2008.

Ms Shelby Pixley CEO of Arcelor Mittal USA Plate said that the price hike covers all as rolled carbon and HSLA plate up to 3 inches thick. The price increase also includes wide coil plate.

Ms Pixley said both domestic and global plate demand is strong, but raw material costs are also rising. The current spot price of shredded auto scrap a major feedstock for plate mills is USD 397 per long ton in the Midwest, up USD 82 since the beginning of the year.

The current Platts assessment for grade A36 carbon plate is USD 830 to USD 840 per short ton ex works US Southeast, following a USD 30 per short tons pice increase last month.

Heidtman Steel Products adding quality-control equipment

It is reported that Heidtman Steel Products Inc expects to add new USD 500,000 equipment to its service center in Cleveland that will provide customers with flatter steel that's better inspected.

Heidtman Steel buys flat rolled steel coils for its customers from the ArcelorMittal plant next door and then provides additional processing. That includes sending the coils down a pickling line where a series of hydrochloric acid baths remove rust. The coils are then usually slit into narrower strips.

Mr Greg Glenn vice president for Toledo based Heidtman's eastern region said that “A defect inspection system, which costs about USD 500,000, will be added to the pickling line, probably in early July.” He added that it will take hundreds of pictures of the coils as they pass down the line, providing a better and more efficient inspection than just relying on the human eye.

Mr Glenn said also, a tension leveler that includes a series of large rolls to further flatten the steel should be in place by the end of the year. The tension leveler could cost from USD 1 million to USD 5 million depending on what kind is purchased and where it's attached to the line,

Heidtman already installed a leveler at its Granite City, Ill., plant. It's being prepared for service. The company also has one at its joint venture in Monroe, Mich.

Mr Glenn hopes the new equipment at the Cleveland service center, just west of Interstate 77, will attract more customers. It operates now at about 50% capacity.

Allegiance must explain share trading losses

Zinifex Australia Limited announced that it called on the directors of Allegiance Mining NL to make full and immediate disclosure to shareholders about the company's alleged USD 7.9 million losses from leveraged share trading.

Reports in media quote Allegiance directors acknowledging and approving the leveraged share trading during the last 12 months and claim the executive responsible was subsequently sacked. It is also unclear about what governance controls were in place with the Chairman describing the share trading as a little flutter while another director was quoted as saying "we didn't realise the scope of these losses."

We believe further disclosure on the share trading is urgently required by Allegiance to ensure the market is properly informed, particularly in view of the Allegiance directors' previous decision not to disclose this share trading to their shareholders in the Target's Statement.

In particular, Allegiance directors should advise shareholders about the extent of speculative trading and any governance mechanisms put in place by the Board to protect shareholders' funds. Zinifex believes these disclosures should be made as a matter of urgency as the answers may reflect on the confidence of Allegiance shareholders who are currently considering an unconditional offer from Zinifex. The all cash premium offer of USD 1 per share from Zinifex will be paid within five business days of the receipt of an offer acceptance.

The Offer is scheduled to close at 7.00 PM on February 22nd 2008.

Warren Steel Holdings completes vacuum tank degasser

Warren Steel Holdings announced that it completed the hot commissioning of its vacuum tank degasser and related systems.

Warren Steel said the system is fully operational and it has begun shipping degassed material to its customers. The low pressure environment of the degassing operation allows the company to remove excess gases from molten steel. Warren says the process provides tighter chemical composition control, microcleanness, and inclusion morphology.

Applications include forging, seamless tube and pipe, automotive, aerospace, and bearing, as well as applications requiring special bar quality chemistries.

Nucor's ratings unchanged on company plan to buy major supplier DJJ - S&P

Standard & Poor's Ratings Services said its 'A+/A-1' ratings and stable outlook on Nucor Corp are unaffected by the company's announcement that it is purchasing the David J Joseph Co for about USD 1.44 billion in cash.

S&P said that the acquisition strategically benefits Nucor by ensuring improved access to adequate supplies of scrap, its primary raw material and through access to DJJ's logistical and transportation capabilities.

S&P said that it expects the transaction to be funded primarily through cash on hand and will have a modest impact on Nucor's consolidated financial profile.

DJJ is one of the leading US scrap companies and a major supplier to Nucor.

Caterpillar Q3 profit up by 11% YoY to USD 975 million

US construction and mining equipment maker Caterpillar has posted profit of USD 975 million for October to December 2007 quarter up by 11% YoY on strong international sales. Revenue rose by 10% YoY to USD 12.14 billion.

Mr Jim Owens CEO of Caterpillar said that "While we expect anemic growth in the US economy, we continue to see positive conditions for our sales in most of the rest of the world."

Caterpillar said that sales in North America fell by 11% YoY, while sales in the rest of the world went up by 31% YoY.

Work starts on USD 586 million Cape Town container terminal

Transnet Port Terminals, formerly South African Port Operations, has started work on its ZAR 4.2 billion (USD 586.7 million) expansion of its Cape Town container terminal as part of a five year plan to increase capacity.

South Africa's Engineering News Online reported that the upgrade of the country's second largest container terminal forms part of the parent company Transnet's ZAR 28 billion investment plan for port related projects, within an overall ZAR 78 billion investment scheme over the next five years,.

Transnet Port Terminals said the expansion is expected to relieve mounting pressure at the country's ports by enabling the terminal to increase throughput from 740,000 TEU a year to 1.4 million TEU by the end of 2012.

Mr Oscar Borchards executive of Cape Town container terminal said that the main contractors have started work. He said that "Initial work will entail refurbishing the quay and deepening the berth and the Ben Schoeman basin to 15.5 metres.”

He added that a consortium, made up of Southern African construction firm WHBO and Cape Town based Civil & Coastal will be responsible for deepening the berth, while Danish subcontractor Rohde Nielsen will do the dredging to allow for bigger vessels. Other construction activities in 2008 include a crane erection site to assemble of the first two new Liebherr ship-to-shore cranes and in the terminal's conversion from straddle carriers to a rubber tyre gantries crane operation. Durban's Pier One is the only South African terminal using high tech RTGs.

New Mazda Atenza incorporates high efficiency crash box

Mazda Motor Corporation new Atenza adopted high efficiecy crash box which uses Sumitomo Metal Industries, Ltd steel materials and it is the first time the crash box is equipped with Mazda's vehicle.

Crash boxes absorb the energy produced in a collision and help make an automobile lighter and safer. Sumitomo Metals and Toyoda Iron Works Co Ltd. jointly developed the world's best performing high efficiency crash box in 2005. The impact resistance of the developed product is more than twice that of previous products. Going forward, the Company will aggressively market its high efficiency crash boxes to Mazda for other vehicles and other automakers.

In order to win the leading reputation from customers, Sumitomo Metals will do more than just supply materials. The Company will also strengthen cooperation with customers to improve the added value of components used in automobiles and other applications. Going forward, Sumitomo Metals will satisfy customer needs by providing comprehensive solutions.

Ion ore market may be balanced in 2010 - analyst

Reuters reported that sharp rises in iron ore prices are likely to come to an end in the next two years as supply and demand comes into balance, more producers emerge and Chinese domestic output increases.

Mr Magnus Ericsson chairman of research firm Raw Materials Group in a presentation to the Indaba African mining conference in Cape Town said that demand for iron ore, which is used to make steel has soared and stretched global supplies in recent years, largely due to the rise of energy hungry China as a global economic superpower. He said that "The market will be tight in 2008, it will be tight in 2009, but that will change in 2010.”

Mr Ericsson added that the emergence of smaller producers and the growth of Chinese iron ore production could take the steam out of the demand driven market, which is currently dominated by a handful of producers.

Chinese steel mills are currently negotiating with iron ore miners over prices for the year beginning April 1. Miners are widely expected to win a sharp increase in prices this year, but it is unclear whether that will be sustainable. Slowing Chinese demand could lead to more slack in the global iron ore market, as Beijing's policy to control steel exports takes effect and rising costs forces small or losing making mills to quit.

Anglo Inyosi to complete ZAR 14 billion project pipeline over the next ten years

Mr Ben Magara CEO of Anglo Coal last week said that the company’s recently established black economically empowered subsidiary, Anglo Inyosi Coal, had implemented a development project pipeline that would require capital expenditure of ZAR 14 billion over the next ten years.

Mr Magara told delegates attending the annual McCloskey South African Coal Exports Conference in Cape Town, that this project pipeline included the construction of four new mines and the creation of 2 500 jobs by 2015. The projects earmarked for construction included Zondagsfontien, Heidelberg, Elders and New Largo.

Mr Magara added that the commissioning of these four mines, with a combined resource base of 1,891 million tonnes, together with the Kriel colliery, would boost Anglo Inyosi Coal’s saleable production from 10.5 million tonnes to 45 million tonnes by 2015. The approximate ten million tonnes of coal currently being produced by the company was the product of Anglo Inyosi’s only operational mine, the Kriel colliery.

Located near Bethal, in the eastern part of the province of Mpumalanga, the Kriel colliery was established to supply coal to Eskom’s Kriel power station. With regard to the next mine that is expected to come on stream, Mr Magara said Anglo American had approved the development project of the Zondagsfontien coal mine in December last year.

Mr Magara stated that an amount of ZAR 4 billion had been approved for the construction of a mine and a washing plant however the company was awaiting approval for the mining licence before starting construction. He added that the company expected to see production coming on stream by the end of 2009. The Zondagsfontein coal project would be a multiproduct operation, delivering six-million tons a year of coal from its underground mine and opencast pit over a life of 20 years, consisting of three million tons a year of thermal export product and three million tonnes a year of domestic product.

Inda says carmakers to push 2008 steel distributor sales

According to Mr Christiano da Cunha Freire president of industry association Inda, demand from Brazilian automobile manufacturers, among other sectors will boost the sales of local steel distributors in 2008.

Mr Freire told BNamericas that “Looking at 2008 and at January, I can say that it was the strongest [performance] for the month of January in history” adding sales have increased by more than two digits but volumes are not yet compiled. By comparison shipments reached 251,000 tonnes in the first month of last year.

According to Mr Freire, steel demand for this year will also be strong from the agriculture and road equipment sectors plus the civil construction segment. He added that "Sales by distributors are expected to reach some 3.6 million tonne in 2008.”

Steel distributors buy large quantities of metal from producers and resell in smaller amounts. Inda boasts members such as Comercial Gerdau, controlled by Porto Alegre based long steelmaker Gerdau and metal products maker Mangels.

Venezuela to have largest oil reserves

According to Mr Hugo Chavez president of Venezuelan, his country will have the largest amount of proven oil reserves in the world by the end of 2009.

Mr Chavez told lawmakers that Venezuela's certified oil reserves will stand at 313 billion barrels by the end of 2009 which could guarantee energy supplies to many countries.

Mr Chavez said that Venezuela's oil reserves currently stand at 100 billion barrels, adding that the Latin American country had 76 billion barrels of proven reserves when he took office in 1999.

Venezuela is the world's fifth largest oil exporter which supplies crude oil to several Caribbean countries under the president's PetroCaribe initiative. The country's main petroleum deposits are located in the vicinity of the Orinoco River and also Lake Maracaibo in the Gulf of Venezuela.

Malaysia's GDP projected to grow by 6% to 6.5% despite rising oil prices

According to Mr Tan Sri Nor Mohamed Yakcop second finance minister of Malaysia, Malaysia’s stock market is not only buoyed by speculations about the upcoming elections but is ultimately driven by strong economic fundamentals.

Mr Yakcop said that “There is, of course, a bit of sentiment but it wouldn’t have performed so well without confidence in the overall strength of our economy and leadership.” He added he is optimistic about achieving at least 6% growth in gross domestic product this year. This is because growth for the third quarter was on the uptrend at about 6.7%. Given this, we were able to achieve higher than 6% in the last quarter.”

Mr Yakcop said that “For this year, our forecast is about 6% to 6.5%. This is despite uncertainties in the US market and rising crude oil prices.” He added that the sub prime crisis in the United States had become a full fledged housing crunch problem coupled with consumption inflation. But we have been through these problems before. Our stock market reflected this by shooting past 1,500 points. Four years ago, it was hovering around 790 points with a market capitalization of around MYR 40 billion and our per capita income was around MYR 15,819.

He pointed out that “Today, market capitalization is almost MYR 1.2 trillion and per capita income has risen to MYR 22,345. This means that in the last four years, we have created an increased wealth of 86.5% or over MYR 500 billion in our stock market.”

Export price of HRC in Turkey to get higher

Erdemir, the steelmaker of HRC in Turkey announced that it prepares to defer its HRC export due to blast furnace maintaining. However, it seems to wait for higher price with capacity curtailment.

So far, Erdemir's tender price at USD 710 per metric tonne is far lower than Indian export price, which has reached at USD 850 per tonne FOB. That is the main factor that why there are no Turkish exports of HRC in the global market at this moment.

Although Erdemir attempts to wait for higher price by reduced capacity, global clients are concerned about price uncertainty that could be fallen soon in recent weeks.

On the other hand, HRC import market in Turkey has temporarily braked owing to no offer at this moment from Russian producers. Thus, venture in Turkey is usual that the offer price is about USD 800 per tonne CFR.

Ducab set to invest AED 125 million in copper rod facility

Khaleej Times reported that Ducab, a power cables manufacturer equally owned by the governments of Dubai and Abu Dhabi, is investing AED 125 million to commission a copper rod factory in the UAE capital as part of its expansion activity.

Mr Andrew Shaw MD of Ducab said that the factory is owned by the German manufacturer Contirod and would be the first copper rod making facility in the UAE. He added that the factory would start operating in June 2008 with an annual capacity of 120,000 tonnes of copper cable per year.

Ducab currently has a 35% market share of the low and medium voltage cable in the UAE. Ducab would hit its target of 50% growth for 2007 or AED 2.2 billion from AED 1.6 billion recorded the previous year, due to increased domestic sales and exports to other Gulf markets, the biggest of which is Saudi Arabia.

Ducab's expansion project also covers plan to increase its slow voltage production by 50% to another 30,000 tonnes of cable and the launch of a new range of fire resistant cables. It has allotted AED 660 million for a 2 year expansion plan since last year. The projects involve the building of infrastructures and efforts to increase production capacities in its factories in Dubai and Abu Dhabi and acquisitions in Gulf countries and the whole Middle East.

UAE's capacity for electricity would grow 60% to 26,000 MW in 4 years, with Dubai currently having the biggest demand growth of as much as 14% per annum.

Northern UAE to invest USD 15 billion in power & water –FEWA

Khaleej Times reported that UAE's four northern emirates will spend USD 15 billion to increase power and water supplies over the next decade.

Mr Safwat Radwan an engineer at Federal Electricity & Water Authority said that "We will need 25% of that amount to improve existing power and water facilities.'' He added that FEWA plans to boost current installed capacity of 1,200 MW to 2,000 MW for the northern emirates of Ras Al Khaimah, Ajman, Umm Al Qaiwain and Fujairah by 2018.

FEWA will start tenders in May 2008 for eight 100 MW gas turbines that are expected to cost about USD 350 million each. Each power plant will be joined by a desalination plant. Abu Dhabi, Dubai and Sharjah, the remaining three emirates, each have their own utility company.

The seven emirates that make up the UAE are using petrodollars to develop new industries such as manufacturing and real estate to reduce dependence on income from oil and gas exports, boosting demand for power and water.

Turkey’s GDP for 2007 expected to exceed USD 500 billion

Turkey's GDP will be USD 501.5 billion in the event that the growth rate for the fourth quarter is equal to that of January to September 2007 period with the help of increasing inflation.

In addition the GNP per capita, which was expected to be USD 6,625, will grow to USD 7,139 as a recent census showed the population below expected levels. Although growth is at a standstill, the GDP will increase to USD 7,075 per capita in the last quarter.

The growth rate in the last quarter may be low and thus may decrease the annual growth rate average. Thus, if the average growth rate for 2007 is below 3.5%, the GNP will then exceed USD 500 billion.

The GDP is in all likelihood expected to exceed USD 7,000 per capita. The annual average growth must drop below 1.8% for GDP per capita to fall below USD 7,000. However, considering the current situation, such an outcome is impossible. An economic slowdown of more than 4.4% is needed to record a 1.8% growth rate in the last quarter of 2007.

According to several growth rate possibilities in the last quarter and the annual average growth rate, the latest projected amount of population and the annual average dollar price as well as the recent growth rate in the last quarter and the GNP per capita for 2007 are shown in the table.

Petrogas gets PDO contract to develop 18 small oil fields

Petroleum Development Oman has announced that it has warded a contract to Petrogas Rima LLC to develop a cluster of 18 small oil fields in the Rima area of south Oman. Oman Oil Company will also participate in the service contract as a partner with Petrogas.

Petroleum Development Oman, in a statement said that "The 15 year service contract is aimed at raising, in a quick and cost effective way the production levels of these fields, which contain more than 500 million barrels of oil in the ground and are currently producing about 2,000 barrels of oil per day."

EIIC reveals USD 5 billion Dounya Parc Algerian project

Emirates International Investment Company has revealed their latest foreign development, a USD 5 billion urban park project called Dounya Parc at Algiers’s first Assises du Tourisme exhibition. The development is being developed by EIIC’s subsidiary Société des Parcs d’Alger.

The 6.6 million square meter project will be a central metropolitan park, with 25% dedicated to high quality commercial and residential development. EIIC is looking to enhance the natural environment and will create trails and throughout the park and interior of the site, with additional attractions such as an equestrian centre, golf course, children’s playgrounds, nature and hiking trails and vista points. EIIC will also be planting a green belt of 1 million trees around the periphery of the park, as well as plant Mediterranean trees, olive groves and several themed gardens.

Mr Khayyam Turki CEO of Dounya Parc said that “We designed Dounya Parc to both preserve the nature of the site, but to also address the urban development of the surrounding areas. This multi use unique site will encompass modern, state of the art infrastructure and offer advanced technological services, yet still keep in harmony with nature.” He added that the project will soon enter the initial construction phase and expected to be completed in 2012.

Omanoil signs aviation fuel agreement with Jet Airways

AME Info reported that Oman Oil Marketing Company has been awarded a contract to supply jet fuel to India’s largest domestic carrier Jet Airways for their entire fleet of aircrafts landing at Muscat International Airport.

Mr Saif Al Jasry GM aviation & marine fuels at Omanoil said that “Our comprehensive supply and logistics network, backed by our partnerships with Air BP offers the ability to provide products and services that meet the requirements of customers like Jet Airways in addition to the technical and engineering expertise needed for such a specialized industry. With the general increase in economic activity in the Oman coupled with the nation’s sustained efforts to develop a robust tourism industry, we are confident that we will continue to provide our international expert offering to new airlines landing in the Sultanate.”

Mr Shibedev Banerji GM of Mazoon Travels and the GSA for Jet Airways in Oman said that “This the first time Jet Airways operates in Oman with a total of two flights per day to India and we are proud to be associated with a premier Omani fuel company that has profound local knowledge and understanding of the industry. We look forward to growing our operations in the Sultanate with their support.”

UAE Masdar begins work on USD 22 billion green city

Abu Dhabi Future Energy Company has announced that it would cost USD 22 billion to develop a no carbon urban district it is planning in the United Arab Emirates. The new urban district to be called Masdar City will eventually be home to 50,000 people and 1,500 businesses. Abu Dhabi will invest USD 4 billion of equity in the project and borrow some of the rest.

Mr Sultan al Jaber CEO of Masdar said that USD 22 billion project would provide a launching pad for 1,500 firms involved in innovation, research and development. He added that "The details of the incentives to be offered to the investors in the city would be announced in due course of time."

The city, to be built in over 8 years, will contain light industry, producing new products in advanced energy and sustainability. The firms focused on energy, and sustainability will interact, innovate and excel in the Masdar free-zone in the sub-sectors of renewable energy.

Mr Al Jaber said that "Sub sectors including advanced energy, sustainable transportation, green efficiencies, etc will have innovation hubs creating new technologies and solutions, as well as a commercialization unit for the rapid deployment of these solutions."

The city will establish Abu Dhabi as the global hub for carrying out these activities, providing a platform for collaboration in creating new energy solutions. The free zone will also host world class research laboratories conducting research and development in the renewable sector.

"We are creating an array of financial vehicles to finance the USD 22 billion development. We will monetize all carbon emission reductions. Such innovative financing has never been applied on the scale of an entire city."

Under the Kyoto Protocol, rich countries can meet their domestic greenhouse gas emissions goals by buying carbon offsets from emissions cutting projects in developing nations, in a scheme meant to reduce climate change.

Iran to create ME largest trade, tourist center by 2010

Mehr News Agency reported that the largest commercial, recreational and tourist complex throughout the Middle East named Khalij e Fars, costing some USD 500 million will be inaugurated by the early 2010 in the city of Shiraz in southern Iran.

Mr Hosseini MD of the project said that the complex will be constructed according to the cutting edge global standards observing all the quake related regulations.

Khalij e Fars Complex with 500,000 square meter built up area constitutes a 7 star international hotel with helicopter special landing cap, 2,500 shops, roofed parking space, two funfairs, cinema, healthcare center, and a 15,000-square-meter hypermarket.

The project is a JV by Iran and the United Arab Emirate’s Royal City Building Company.

Abu Dhabi eyes AED 1 trillion investment in real estate sector

Khaleej Times reported that Ms Shaikha Lubna Al Qasimi economy minister of UAE said that the construction sector contributed AED 40 billion to Abu Dhabi's GDP last year and real estate sector is expected to attract AED 1 trillion investment in the long term.

Ms Qasimi said that real estate and construction sectors were poised to become the nation's new growth drivers. She added that "These two sectors will combine to contribute around 23% in country's economy by 2010 from 16% in 2006."

Ms Qasimi said that Abu Dhabi has earmarked a staggering 51% of its budget for non oil segments for construction projects in the next 5 years. She added that "There are currently AED 5.9 trillion of major projects being implemented across the GCC. UAE's steel demand is expected to surge from 5 million tonnes in 2007 to 10 million tonnes in 2010. In order to secure resources are available to ensure project continuity, there is a need for strategies to be prepared."

Chinese firm wins SAR 2.2 billion port deal in Saudi Arabia

Khaleej Times reported that China's Harbor Contracting & Engineering Company has won a SAR 2.2 billion contract to build port facilities at Saudi Arabia's Ras Al Zour. The port will serve nearby fertilizer and aluminum smelting complexes.

Saudi Port Authority had issued a letter of intent to China Harbour for the engineering, procurement and construction contract. China Harbour has partnered with the local Rafid Group on the project to form China Harbor Engineering Arabia Company. The facilities will be completed in 2010.

It is the second big contract win in Saudi Arabia for the company in recent months, and provides further evidence of the increasing influence of Chinese companies across the region.

The Chinese group fought off competition from Belgium's Dredging International with the local Huta Group and a JV of the Dutch Royal Boskalis Westminster with Archirodon Construction. The 3 groups submitted bids in July 2007 and the contract was originally expected to be awarded in August 2007.

Australia remains China's largest iron ore supplier in 2007

According to statistics recently released by the General Administration of Customs that China's iron ore imports from Australia increased by 14.81% YoY to 145.61 million tonnes in 2007, accounting for 38.01% of the country's total iron ore imports over the year, and allowing Australia to maintain its lead as the largest single iron ore exporter to China.

The runners up included Brazil, India and South Africa, who exported 97.63 million tonnes, 79.37 million tonnes and 12.23 million tonnes respectively, to China in 2007.

The below table shows China's iron ore imports for both December 2007 and the entire year.

(In million tonnes)

Review of China's stainless pipe capacity expansions in 2007

The review of China stainless pipe capacity expansion for 2007 is as follow.

1. Jiangsu Wuxi Huixin Stainless Pipe Company started operation in April

Huixin Steel is a Taiwan-based steel company, whose parent corporation ranks among world top three and as Taiwan's largest in stainless steel pipe production. Its first phase project in Xishan development zone, Wuxi city of Jiangsu Province is aimed to make 40,000 tonnes per year product of this kind.

2. South China based Japanese stainless pipe maker expanded output by 30% in summer

A South China based Japanese stainless pipe plant expanded capacity by 30% in summer, mainly making pipes applied in auto exhaust system. Prior to this, the plant's pipe output was some 500 tonnes per month.

3. Taigang stainless seamless pipe project completed at end of 2007

China's largest stainless steel producer Taiyuan Iron & Steel Co began building the world's largest stainless seamless pipe project in 2007, at cost of about CNY 800 million with a planned capacity of 50,000 tonnes per year. The project started construction as of Mar and was finished by year end.

4. China Baofeng Started up 15,000 tonnes per year stainless pipe item

China Baofeng Special Steel Company Limited got a plant in Songyang Industrial Park in Zhejiang Province to make 15,000 tonnes stainless seamless pipe per annum. It is further considering adding welded pipe production in the second phase, slated for operation in June 2008.

5. Zhejiang Taigang Stainless Steel Group Company Limited sent 10,000 tonnes per year stainless pipe project into operation in August 2007.

Zhejiang Taigang Stainless Steel Group Company Limited plunged CNY 150 million setting up 15 drawing lines to make stainless seamless pipes of various standards and materials in Cangnan. Diameter of the products will range from 20mm to 325mm. The company was named Zhejiang Jugang Pipe.

6. Zhejiang Longda Stainless Steel Company Limited added 6 lines that were brought into operation in September 2007

Zhejiang Longda Stainless Steel Company Limited located in Songyang Industrial Park, ran a two phase item: first have 9 drawing lines with 10,000 tonnes per year capacity, and the second 4 cold drawn lines scheduled to operate this August 2008 and produce stainless pipes with diameter ranging from 18mm to 114mm.

7. Tsing Shan Holding Group is constructing a 250mu stainless pipe mill

Tsing Shan Steel Pipe Co and Zhejiang Tailang Pipe Co, both belonged to Tsing Shan Holding Group, have monthly output of 800 tonnes to 1000 tonnes respectively. And another subsidiary Zhejiang Longgang Pipe Company has planed to operate the abulding stainless pipe mill in Longgang Industrial Park within 2008.

8 Zhejiang Dada Stainless Steel had 9 lines operated in June

Zhejiang Dada Stainless Steel Company Limited has the first phase project commissioned in June with designed capacity of 10,000 tonnes. Aside, the second phase item, expected to have over 10 large, medium and small caliber welded pipe lines is in the pipeline to raise the company's total capacity to 20,000 tonnes per year.

9. Zhejiang Jiaxing Shangshang Stainless Pipe Co Comes on Stream

Zhejiang Jiaxing Stainless Shangshang Pipe Plant came on stream, with a capacity of 40,000 tonnes per year pipes with diameter ranging from 6mm to 732mm, wall thickness of 1mm to 40mm and length of 18000mm at most. The product will mainly be 300 series austenitic.

10. Yinlai Pipe added 9 machine tools in November

Zhejiang Yinlai Steel Pipe Company Limited was set up in Feb and the phase 1 was commissioned in December 2006, incl. 9 lines with capacity of 8000 tonnes per year and is producing seamless pipes with a diameter of 6mm to 159mm. Slated for operation in November, the phase 2 is to add 9 machine tools, 4 rolling mills and 4 cold drawing mills so as to raise monthly output by 300 tonnes.

11. Jiangsu Yonghe had 9 welded pipe lines started

JiangSu YongHe Pipe Industrial Company Limited introduced in 9 pipe lines from abroad in first phase project that started trial production from October and came into official operation in November. Its monthly capacity reached 1000 tonnes.

12. Zhejiang Pengye third-phase project started production in October

Zhejiang Pengye Steel Pipe Company limited has its third phase project start operation in October incl. 8 production lines and one of them is a 830 broaching machine. The products are mainly large caliber stainless seamless pipes with largest diameter up to 830mm and the monthly capacity, 400 tonnes.

13. Huzhou Baohua sent 4 lines on stream

Huzhou Baohua Stainless Steel Pipe Company limited added four bright annealing lines, which were put into operation by end of September or early October mainly to make stainless welded pipe.

14. Wenzhou Futian had two new lines

Wenzhou Futian Stainless Steel Company limited added two new lines in October to produce ½ to 6 inch boiler pipes with GMP 249 standard. Its annual capacity reported 600 tonnes.

15. Zhejiang Longda phase 2 adds a 18 inch broacher

Zhejiang Longda Stainless Steel Company Limited ordered an extra 18 inch broacher for the second phase project, which was formerly scheduled for operation in August. The added broacher is expected to produce large caliber stainless seamless pipe with largest diameter of 1000mm and length of 15 meter.

16. Tsing Shan Holding and POSCO found a ferronickel plant

Tsing Shan Holding Group and Zhangjiagang-Pohang Stainless Steel Company Limited jointly invested a ferronickel plant in Henan Province, scheduled to come into operation officially on September 28 with a designed ferronickel output of 300,000 tonnes per year.

17. Walsin Lihwa funded USD 100 million in Changshu, Jiangsu Province

Taiwan based Walsin Lihwa Corp poured USD 100 million to expand Changshu Walsin Specialty Steel Company Limited's annual capacity to 50,000 tonnes. The whole project is slated for completion in 2008, and the company is further considering to develop 2205, 600 and 800 series products to feed the market.

18. Zhejiang Kanglong sets to start second-phase project in 2008

Zhejiang Kanglong has finished factory construction of the second phase and is ordering equipments for producing even-walled stainless seamless pipe for industry use in 2008.

19. Shanghai Sunzone operated 60mm diameter rolling mill

Shanghai Sunzone Steel Pipe Company Limited bought a 60mm rolling mill to produce high quality, even walled 38/32*1.5/1.2 seamless pipes from December.

20. Shanghai Tianbao started up in succession

Shanghai Tianbao Stainless Steel Company Limited has had 9 rolling mills, 7 broachers come on stream since its inauguration in September, with monthly capacity reported at 500 tonnes. The facilities were under trial in December and set to start official operation early 2008.

21. Zhejiang Tengyu Stainless Steel Pipe Company Limited aims at 10,000 tonnes per year welded pipe

Zhejiang Tengyu Stainless Steel Pipe Company Limited started operation from June and has had monthly stainless welded pipe of close to 300 tonnes. The company schedules to own five production lines within three years with a capacity up to 10,000 tonnes per year.

22. TBS 10,000 tonnes per year seamless pipe project sent into operation

TBS's stainless seamless pipe production base in Jinshan district has completed, with total fund of CNY 250 million. Its annual capacity reaches 10,000 tonnes per year.

23. Zhejiang Yida to start 830 cold drawn pipe lines

Zhejiang Yida Special Steel Company Limited will have the imported reducer and the whole set of equipments start in 2008, which is expected to produce 830mm seamless pipe for industry use. According to official source, as China's largest cold drawn pipe line, this set of equipment will cost CNY 10 million.

China to build 97 new airports by 2020

It is reported that China plans to build nearly 100 new airports by 2020 to cater for soaring demand.

The General Administration of Civil Aviation said the proposals will mean eight out of every 10 residents will live within 100 kilometers of an airport within 12 years.

The General Administration predicts passenger traffic will grow by 11.4 per cent a year between now and 2020, and freight traffic by 14%. It said the number of airports serving more than 30 million passengers a year will rise from three now to 13.

Chinese mainland has fourteen 100 million tonnes ports

Chinese secretary of ministry of shipping disclosed that with China’s foreign trade and rapid development of national economy, the throughput of mainland continued to rise. By the end of last year, Chinese mainland 100 million ports have increased to 14 from 12, the global position of Chinese ports is increasingly prominent in the world.

It is learnt that in recent years, Chinese mainland ports industry has greatly developed. At present, China has more than 1400 ports, including 132 open up ports, 35,000 various production berths. In 2006, the mainland ports totally completed throughput of 5.57 million tons of goods, the container throughput of 93.35 million TEUs. Cargo throughput, container throughput for four consecutive years top first in the world.

Official of Traffic Department expressed that the rapid development of Chinese mainland ports industry greatly support the development of nation economy and society, offer strong transportation guarantee for foreign trade growth.

478,000 tonnes of ferroalloy exported through Zhanjiang port in 2007

It is reported that exported ferroalloy through Zhanjiang port rocketed 30.1%YoY to 478,000 tonnes in 2007 valued at USD 490 million up by 110%. The substantial increase is attributed to expanding capacity and swelling demand in home market as well as soaring international price.

Export price surged from USD 644 per tonne in January to USD 1209 per tonne in July and then USD 1322.tonne in December. However, China further raised ferroalloy export tariff to 15% from 10% in June 2007, Zhanjiang port still witnessed obvious increase in ferroalloy exports in the second half of last year, owing to attractive international price. Export volume in the second half recorded 27,000 tonnes, 7000 tonnes more than that in the first half.

SiMn and FeSi are major export varieties, accounting for 86.2% and 8.6% respectively of the total.

Exported SiMn and FeSi through Zhanjiang Port

(In tonne)
316,000 tonnes of ferroalloy is exported to countries or regions in Asia, representing 66.1% of total export volume up by 17.4%.

Destinations of Ferroalloy Exports

(In tonne)

Chinese rebar and wire rod price remain unchanged

Chinese domestic construction steel prices are largely unchanged this week while export offers remain firm. On Shanghai market, HRB335 20mm rebar remain at CNY 4280 per tonne, HRB400 material at CNY 4380 per tonne. Those for commercial and hi speed wire rod are being quoted at CNY 4280 per tonne and CNY 4400 per tonne respectively.

Export price for rebar are prevailing at around USD 730 per tonne to USD 740 per tonne FOB and some steel producers have inked contracts for shipment to South East Asia. It is reported that most products will flow to Vietnam and Singapore where prices are much better than other countries of the area.

A East China based steel mill said its construction steel exports are not bad and its average rebar tonnages for February and March shipment will reach 40,000 tonnes to 50,000 tonnes. However its January delivery is descried to be lower than that in December. However, there is few rebar exports to Middle East due to little profit margin and competitive cargo from Russia and Turkey. Offers destined for there have jumped to USD 790 per tonne to USD 800 per tonne CFR from USD 770 per tonne CFR in last two weeks. But traders who are familiar with Middle East Market indicate that conclusion price for Chinese origin rebar should be at around USD 700 per tonne FOB.

Turkey sources said that local steel mills are offering rebar to Europe at USD 740 per tonne to USD 750 per tonne FOB, April shipment. After successful exports of 150,000 tonne of rebar to the United States at USD 750 per tonne FOB, Turkey steel producers have been trying to raise EU bound offers to the same level. Their offers to such Middle East countries as Syria, Lebanon and Israel are a little bit lower.

While offer for wire rod is much better than that of rebar. Most producers have shoot up price to USD 780 per tonne FOB and transaction prices are reported to be at USD 750 per tonne FOB. There has been more wire rod exports recently thanks to higher market price in South East Asia. Export volume is anticipated to increase for February and March shipments.

China Natural Resources forms JV with Jiangxi Province Coal Group

China Natural Resources has announced that it has, through two indirect wholly owned subsidiaries, entered into an agreement with coal producer Jiangxi Province Coal Group to jointly establish the Guizhou Puzheng Mining Company.

The joint venture company will be established as an equity joint venture company in Guizhou Province of China.

The company, which is to be owned 64% by China Natural Resources, intends to engage in the exploration and mining of coal and other mineral resources in the Guizhou Province and other regions in China.

Mr Li Feilie chairman & CEO of China Natural Resource's said "Coal is the primary energy source for China's booming economy and supplies about 70% of the country's energy need. Coal prices remain strong because of increasing demand. It is our intention to further expand our natural exploitation business into this enormous market."

China Coal is unlikely to join the Hang Seng

It is reported that China Coal is likely to miss out on inclusion in the Hang Seng index, leaving the Hong Kong benchmark unchanged in the first quarter.

As a result of its initial public offering in Shanghai at the start of the month, China Coal has no unlisted share capital, a prerequisite for entry into the Hang Seng.

According to BNP Paribas with a market value of about HKD 210 billion China Coal ranks 54th by 12 month average market capitalization making it a long shot for inclusion in the index.

As per report the index, with a maximum limit of 50 constituents, now has 43 constituents. Hang Seng index Services, which compiles Hong Kong's stock indexes, is expected to announce the results of its first quarterly review this year on Friday. Hang Seng index Services bases its criteria on market capitalization, trading turnover and the proportion of a company's shares that are freely traded.

Mr Ernie Hon an analyst at ICEA Securities said "There are no big counters that qualify at the moment."

In 2007, all seven companies admitted to the Hang Seng operated in mainland China, underscoring the dominance of Chinese companies in Hong Kong's equity market.

NLMK commissions high capacity continuous casting machine

Novolipetsk Steel has announced that it refurbished and commissioned its most productive 2.5 million tonnes per annum continuous casting machine which produces a wide range of high quality slabs of various grades.

The released said this upgrade enables a 1.2 million tonnes, increase in capacity by ensuring higher surface and internal quality of concast slabs and lower operation and maintenance costs.

The continuous casting machine can cast 200mm to 250 mm thick, 900mm to 1850 mm wide and 5100mm to 12000 mm long steel slabs.

The RUB 4.2 billion project has been implemented in cooperation with Siemens VAI as part of the 2nd stage of NLMK’s Technical Upgrade Program.

Gaz de France prefers south stream to Nabucco

It is reported that the South Stream gas pipeline that is constructed by Gazprom and Eni has attracted a new supporter. Gaz de France has rejected Nabucco project from Middle Asia to Western Europe, eyeing South Stream instead. Both competing projects are forecasted to be put into operation in 2013, but Nabucco still lacks the filling resources.

Gaz de France recently the refusal to participate in Nabucco. Recently, German RWE joined that project, which also unites Austrian OMV, Hungarian MOL, Romanian Transgaz, Bulgaria’s Bulgargaz and Turkish Botas. It has also emerged that Nabucco’s inauguration was put off from 2011 to 2013 which the project lost the two year advantage over South Stream, which will run from Russia to southern Europe.

GdF said its complete support to South Stream and expressed the intention to go through the chances of its joining. Gazprom welcomed the news. No negotiations have been held on the issue yet, but the project will benefit from extra consumers of gas.

South Stream is the project to construct a pipeline with the annual capacity of 30 billion cubic meters. Gazprom and Italian Eni implement it pari passu under the respective agreement. The pipeline will run from Russia via the Black Sea to Bulgaria, and then to Serbia, Hungary and Austria or to Greece and Italy.

Armenian railways to run by Russian railways

It is reported that in Yerevan, Mr Vladimir Yakunin president of Russian Railways and Mr Andranik Manukyan Armenian minister of transport and communication signed a protocol on the agreement concerning the project of Armenian railways concession running.

According to the press service of Russian Railways, the agreement will be signed by the end of February 2008.

As per report on January 16th 2008 Yerevan officially announced that the Russian company became a winner in the tender on the concession control of Armenian railways.

Pipe production plummets 91% at Khartsyzsk pipe mill in January

Ukrainian Journal Staff reported that the Metinvest holding's Khartsyzsk Pipe Mill from Ukraine's Donetsk region saw production of large diameter pipes plummet 91%YoY in January to 4,500 tonnes.

Vyksa pipe plant result for January 2008

It is reported that Vyksa Pipe Plant summed up the results of production activities for January 2008.

As per report during the period under review was carried 9526 tonnes of pipes of different assortment and 2050 tonnes of polyethylene pipes with outer coating that higher than the same period last year at 28.7%.

Shipment of pipes of different assortment amounted to 11846 tonnes, including 2008 tonnes of pipe insulation on the outside of that to the 13.8% increase in the same period of 2007.

Outlook for rolled products market in Russia

It is reported that in the end of March 2008 ferrous metals rolled products in Russia will be from 8% up to 19% more expensive.

According to RUSMET’s Center for Analytics’ data, the prices’ bottom was achieved in December 2007 for most kinds of rolled products, while market volumes’ bottom was achieved from November to January depending on rolled product.

And January 2008 became a bifurcation point: in this month prices, except export to far abroad, still at the bottom. But as early as in February the active increase of prices will start and it will last in March also and total prices’ increase in Q1 of 2008 will be as high as:

1. Rebar up by 17%
2. H-beam up by 9%
3. Angle up by 8%
4. U-beam up by 8%
5. Hot rolled sheet up by 19%
6. Tube stripe up by 16%
7. Cold rolled sheet up by 12%
8. Galvanized sheet up by 13%
9. Pre Painted Galvanized Sheet up by 10%.

Prices will rise for all kinds of rolled products, for all directions of supplies and for all Russian rolled products producers. There will be no exceptions, but values of prices’ increase will depend on above mentioned factors.

RCC plans to make nickel and cobalt

FIS reported that Russian Copper Company, which owns the license on the development of the Belininsky nickel and cobalt deposit in the Altai Krai, will start the project on the construction of a mine and concentrating factory.

Russian Copper Company estimates the project costs at about USD 300 million and hopes to start production in 2011. The concentrating factory is projected to have the capacity of about 1.5 million tonnes of ore per annum.

Belininsky deposit has the reserves of 30 million tonnes and the concentration of useful ingredients in the ore 1% to 2%. Cobalt and nickel reserves total about 300,000 tonnes. The development of a comparatively small deposit enables RCC to adjust its innovative hydrometallurgical technology, which makes it possible to produce metal without fire fusion.

Russian transport ministry to allocate RUB 9.3 billion for development of ports in 2008

It is reported that in 2008, Russian ministry of transport will allocate RUB 9.3 billion for the development of Russian ports. Last year RUB 6.3 billion were allocated for modernization of port infrastructure, which made it possible to attract over RUB 45 billion of private investments throughout the year.

In 2008, the largest amount is to be allocated for construction of Ust Luga port. Its automobile and railway ferry terminal is to start running at full capacity, for which RUB 1.4 billion is to be allocated. In Kaliningrad region the same program is aimed at completion of a railway terminal, which is to get RUB 566.5 million. Parallel to this, RUB 2.4 billion will be allocated for modernization of maritime approach channels in Kaliningrad and construction of new approaches in Ust Luga.

Apart from Ust Luga project, federal allocations will cover reconstruction of berths in the port of Vysotsk located close to new oil product terminal of LUKOIL. In 2008 the port of Vysotsk will get RUB 805 million. Besides, RUB 430 million will be spent by the federal budget on reconstruction of port facilities of Olya port, RUB 400 million a port of Novorossiysk and RUB 56 million a port Shakhtersk controlled by Sakhalinugol company. It is also planned to reconstruct maritime canal in St Petersburg.

Odessa port increased its cargo turnover

It is reported that in the early 2008 compared with 2007 Odessa Commercial Sea Port increased its cargo handling by 3.5% up to 3 million tonnes. In the named period dry cargo handling grew by 6.1% up to about 1.3 million tonnes, including general cargo handling by 20.9%.

Ports of Baltic states increase throughput by 0.3% in 2007 to 139.4 million tonnes

Latvian statistics service reports said in 2007, the ports of the Baltic state increased throughput by 0.3%YoY to 139.434 million tonnes. In the reported period the ports of Latvia handled 62.434 million tonnes of cargo, Lithuania - 31.936 million tonnes, Estonia - 44.853 million tonnes. The highest volumes were handled by the port of Tallinn - 36.028 million tonnes. The port of Ventspils handled 31.037 million tonnes, Klipeda - 27.36 million tonnes.

In 2006, the ports of Baltic state handled 138.765 million tonnes of cargo. Latvian ports accounted for 42.9%, Estonian ports - 35.9%, Lithuanian - 21.2%.

Eramet in Kazakh titanium deal to supply Airbus

Reuters reported that French metals firm Eramet had concluded an agreement with its partner UKTMP of Kazakhstan to supply titanium to aerospace firm EADS and its Airbus planemaking subsidiary. The deal was signed during a visit by Francois Fillon PM of France to Kazakhstan recently.

In the Kazakh capital Astana, an aide to Mr Fillon said the deal was worth EUR 850 million spread over 12 years.

EADS said in a statement it had also signed a memorandum of understanding with the Kazyna Sustainable Development Fund for a strategic partnership in the development of the aerospace industry and related services in Kazakhstan.

Russia’s GDP may reach 7% in 2008

Itar Tass cited Mr Alexei Kudrin Finance Minister of Russia as saying that Russia GDP may reach 7% in 2007.

He said Russia can reach 7% growth this year, above his previous estimate of 6.6%. He added that “Russia is very connected with the global economy and a deeper crisis will affect us. Emerging markets had capital outflow of about USD 17 billion a week in January, while a total of USD 9 billion left Russia in the month.”

Mr Kudrin said “Our markets are sensitive to the global crises, so we feel it, but their effect on the economic growth of our countries will probably be minimal.”

According to the Federal Statistics Service gross domestic product expanded 8.1% in 2007 compared with 7.4% in 2006.