Steel takes 36% share in infrastructure investments

Associated Chambers of Commerce & Industry recently said that Indian firms have invested INR 419,334 crore or nearly 81% of the investment till April to December 2007 period in developing core, physical and service infrastructure.

Mr Venugopal N Dhoot president of Assocham said that out of the total investment of INR 419,334 crore in 28 sectors, INR 341,308 crore was parked in infrastructure projects.

The sector wise investments are

In INR crores

Jindal Saw inks MoU for expansion of Nashik plant

BS reported that Jindal Saw Limited has signed a MoU with government of Maharashtra to expand its seamless tube manufacturing facilities at its integrated plant at Malegaon MIDC in Nashik. The MoU was signed by Mr VK Jairath secretary department of industries government of Maharashtra and Mr VS Konnur president & CEO of seamless business Nashik plant.

Jindal Saw’s expansion plan includes increasing its seamless tube manufacturing facility from the present 75,000 tonnes to 220,000 tonnes per annum, entailing an investment of about INR 350 crore. The expansion will be completed by August 2008.

The main equipment, precision quality finishing mill with the state of the art technology is being imported from SMS Germany and other supporting equipments are being procured from USA, China, South Korea and Austria.

Mr Vilasrao Deshmukh chief minister of Maharashtra said that “Jindal Saw has contributed immensely to the development of the state by setting up the plant in Malegaon MIDC in Nashik. I am happy to note that Jindal Saw has planned to bring in fresh investment in its existing plant in Nashik to increase seamless tube manufacturing facility.”

Mr Indresh Batra MD of Jindal Saw Limited said that “Maharashtra government’s efforts of providing a congenial business atmosphere are appreciated by the business community. We are grateful to the government for promising all necessary help to expedite the implementation of the expansion project. Industrial promotion subsidy will help the unit to be more competitive in the market.”

The products basically cater to oil & gas sector, automobile sector, power generation & varied mechanical components. 30% to 40% products are exported to US, Middle East, South East Asia etc.

Hooghly Met Coke plans metallurgical coke plant in Orissa

BS reported that TATA Steel’s subsidiary Hooghly Met Coke & Power is planning to invest INR 1,000 crore to set up another 1.6 million tonne capacity metallurgical coke plant in Orissa.

As per report, Hooghly Met Coke & Power is in the process of scouting of land for the proposed project. Final call on the new project, including the site selection, will be done in September 2008.

Mr Binay K Singh MD of Hooghly Met Coke said that, inability to get additional land at Haldia has forced us to plan for the second facility in Orissa.

He added that “We are planning to set up a second metallurgical coke plant having the same capacity and at the same investment that we have made in our West Bengal plant. We would have ideally expanded our existing plant and had asked for 200 acres from the West Bengal government. But since the land has not been given, we have started scouting for sites in Orissa.”

Hooghly Met Coke’s existing plant in Haldia is located on the premises of a closed Hindustan Fertilizer Corporation unit. Hooghly Met Coke, meanwhile, has just started its commercial production. The Haldia plant consists of eight modules of 200,000 tonne capacity each and all of them will go on stream by October 2008.

Castings prices to surge due to higher input costs – Report

BL reported that prices of castings are likely to go up in the next 2 to 3 months due to increase in input costs.

According to Mr V Mahadevan MD of Ennore Foundries Limited and also president of the Institute of Indian Foundrymen, this can be attributed to steadily increasing prices of raw materials and power.

He said that “Though we are doing our best to improve our efficiency to cut cost and increase productivity, it may be difficult for the industry to absorb the increase in production cost entirely. I believe that the Indian foundry industry will utilize this opportunity to become an Asian hub for supply of high quality castings for these industries.”

Mr Mahadevan said that “Globally, 70% of the castings is consumed by the automotive industry. In India, 30% to 40% of the total production goes to the automotive industry. Indian foundry industry may see at least a USD 1 billion investment in the next 3 years in capacity expansion and modernization of existing facilities.”

Currently, with over 4,750 foundries, India is the fourth largest casting producer in the world after China, the US and Japan. The industry is growing at 10% to 15% annually. As a result of booming automobile industry and especially the auto ancillary industry, the demand for the automotive castings is also witnessing an unprecedented growth. In 2006, India produced a record 7.17 million tonnes of castings and in the next 3 years, India may move to the third position, beating Japan.

CARE retains AAA (SO) rating on SAIL’s long term bonds

It is reported that CARE has retained AAA (SO) rating to the long term bonds of erstwhile Indian Iron & Steel Company which now appear in the books of Steel Authority of India Limited upon IISCO’s merger with SAIL for an outstanding amount aggregating INR 640 million.

The payment of interest and repayment of principal on these bonds are secured by an unconditional and irrevocable guarantee from the ministry of steel and government of India through a structured payment mechanism. The rating is based primarily on credit enhancement for bond issue in form of guarantee from government of India.

NTPC to invest USD 40 billion over next 5 years

It is reported that National Thermal Power Corporation Limited would be investing up to USD 40 billion over the next 5 years to transform itself into an integrated regional energy player, from being just a national power utility.

NTPC is eyeing a 50,000 MW plus capacity by 2012. Its current operating capacity is 28,644 MW, with 18 coal fired plants totaling 23,209 MW and 8 gas based stations adding up to 5,435 MW. Plans include developing hydro power capacity of 9,000 MW by 2017, of which 2,471 MW is currently under implementation. It is also eyeing nuclear power capacity of 2,000 MW by 2017 and non conventional power of 1,000 MW.

As per report, NTPC is eyeing an entry into the LNG value chain, besides plans to beef up its presence in newly diversified areas, including hydropower, coal mining, power trading, oil and gas exploration and consultancy services.

It also plans to spread out operations across Asia and Africa, with upcoming projects in South Asia, Africa and possibly West Asia, besides plans to bag coal assets in countries, including Indonesia, Mozambique and Australia.

NTPC has entered into a JV with Singareni Collieries for coal mining, another with BHEL for equipment manufacturing, and an alliance with Transformers & Electricals Kerala for repairs and maintenance.

Kolkata Port proposing to buy 2 dredgers

It is reported that union shipping ministry is considering if Kolkata Port Trust could be allowed to acquire 2 trailer suction dredgers to facilitate its maintenance dredging Hooghly River.

Dr AK Chanda chairman of Kolkata Port Trust said that “Dredging Corporation of India, responsible for maintenance dredging in Hooghly almost entirely, might find it hard to meet the rising requirement in the Hooghly river, as DCI had to undertake dredging at many other ports and channels.”

He pointed out that “2 of Kolkata Port Trust’s own 3 dredgers were old and must be replaced without further delay. Kolkata Port Trust has 2 other dredgers, both grab dredgers, for undertaking dredging within the dock. However, one of them, deployed in the Kolkata Dock System, too is very old and therefore needs to be replaced soon.”

Dr Chanda said that “We will certainly go for the best option. In the case of new acquisition, there was another problem, the delivery time could extend to 3 to 4 years.”

Dr Chandra emphasized the need for doing something urgently to meet the requirement. He felt that the proposed mega alliance in dredging with participation of the Shipping Corporation of India and a few major port trusts, including Kolkata Port Trust should help mitigate the problem to some extent. The mega alliance, when commissioned, should give preference to the participating ports.

RINL foundation day celebration on February 18th

It is reported that Visakhapatnam Steel Plant is specially organizing an exhibition on the occasion of Rashtriya Ispat Nigam Limited formation day on February 18th 2008.

The exhibition will be inaugurated by Mr PK Bishnoi CMD of RINL at the training & development center lawns.

To mark the occasion, Mr Bishnoi will distribute Jawahar Awards, Srujan Vikas Award and other awards to the employees for their outstanding performance.

MES builders in J&K threaten strike against rebar price hike

It is reported that MES Builders Association of Jammu & Kashmir has threatened to launch an indefinite strike in case the steel prices were not regulated by the government. It expressed serious concern over what they said the incessant increase in the steel prices.

Mr Muhammad Yousuf Wani chairman of MES Builders Association of India (Kashmir Wing) said that the builders were incurring huge losses due to increase in prices of steel products. He added that “The iron ore costing INR 30 per kilogram is now available at INR 40 per kilogram, which is too high.”

Mr Wani said that the prices of construction material has already shot up and are becoming unaffordable for the people. He added that the association would go on an indefinite strike if the steel prices were not reduced forthwith.

Mr Noor Ahmad Khan secretary of MES Builders Association said that the government should regulate the price mechanism of the steel so that the contractors do not have to face off and on price hikes.

MSMC plans 540 MW coal based power plant at Chandrapur

Projects Today reported that Maharashtra State Mining Corporation in 51:49 JV with a private company is planning to set up a 540 MW coal based power project at Nagbhid block in Chandrapur district. The project will entail an investment of INR 3,000 crore.

The project has been given in principal approval from the state government and hence the tenders inviting proposal for partnership from private parties have been floated, which will be opened by March 14th 2008.

MSMC will provide coal, land and other government related facilities, while the private partner will look into the investment. The power plant to be spread over 500 acres of land will start work as soon as the company is finalized and is scheduled for completion within 2 years.

L&T to build two heavy lift vessels for Rolldock

Exim News Service reported that Larsen & Toubro Limited has signed an agreement with Dutch heavy lift shipping company Rolldock, under which L&T will build 2 heavy lift vessels for Rolldock. The agreement was signed by Mr RB Urikouth joint GM at L&T and Mr Diederik Legger MD of Rolldock.

The vessels, of 20,000 DWT each, will be built at L&T’s shipyard in Hazira. The first vessel will be delivered by the second half of 2011 and the second early the following year.

Port of Rotterdam keen on picking up stake in Indian ports

BL reported that Port of Rotterdam Netherlands has shown interest in acquiring equity stakes in Indian ports.

Mr Camiel Eurlings Dutch minister of transport, public works & water management said that the issue came up for a review at his meeting earlier this week with Mr TR Baalu union shipping minister, who gave positive response and promised to look into it. He added that “During my discussion with Mr Baalu, we agreed to constitute a bilateral working group to explore opportunities for co-operation in the fields of capacity creation in the port sector, undertaking dredging and developing inland waterways in India.”

Mr Pieter Struijs president & director at Port of Rotterdam said that that the Rotterdam port authority was already having a stake in a port in Oman and providing assistance in port management. Something similar could be worked out for Indian ports also. The management of port would be on the model of landlord port. He added that “We are not interested in cargo handling and other day to day port operations.”

Mr Eurlings also discussed with Mr Nirupam Sen minister for commerce & industry West Bengal, the scope of Dutch investments in the state’s maritime sector.

Later, Mr Sen said that four areas had been identified for probable Dutch cooperation and these included the development of a deep sea port, development of inland waterways, dredging of the waterways with the use of the dredged spoil for land reclamation and ship building and ship repairing. He felt it should be possible to reclaim about 2,000 acres in Nayachara Island through disposal of the spoil to be dredged out of the capital dredging at Balari under Kolkata port’s River Regulatory Scheme.

Expert committee recommends Bharti Shipyard at Mangalore

It is reported that Mangalore will soon have a shipyard near Tannirbhavi in Old Mangalore Port area, if everything goes as planned. As per report, the expert committee in its recent meeting held in Mumbai recently has decided to recommend for an INR 95 crore ship building yard near Tannirbhavi in Old Mangalore Port area in Mangalore by Bharti Shipyard Limited.

The expert committee has agreed to recommend the project in the meeting under Coastal Regulation Zone Notification, 1991 subject to the following conditions
1) Brackish water flow to the Mangroves to be maintained
2) 50 meter buffer to be provided around the mangroves
3) A detailed mangrove management plan along with conservation measures and afforestation activities should be provided
4) During construction and operation of the project there should be no disturbance to the mangroves
5) Details of the quantity of dredging and the disposal of dredged material including reclamation should be provided
6) No ground water should be drawn for the project

The project involves development of a ship building yard at Gurupur river estuary on a land that is near to Tannirbhavi village in Bolur Gram Panchayat. The site is located at Kudroli West, about 7.5 kilometers south of Mangalore Port. The activities include construction phase, dredging, reclamation, solid waste, steel tailings, paint washing and effluent, launching of ships, ship running aground and oil spill.

The shipyard which will be developed in two phases requires 90 acres of land. The onshore shipyard facilities will be developed in an existing 28.3 acres of land belonging to the Mangalore Port. Nearly 53 acres of area need to be reclaimed for the project. The water requirement of the project would be around 200,000 liters per day.

Mr K Venugopal Shetty of Bharti Shipyard Limited said that 50% of the process of acquisition of land had already over and remaining acquisition and project work would be done gradually. He added that the opposition from the fishermen in the region had been settled amicably.

Simplex Infra bags Mumbai Metro order

Simplex Infrastructures Limited has announced that it has received the prestigious first phase of the Mumbai Metro order with contract value of INR 406 crore.

The order involves civil construction of 10.7 kilometer long Viaduct on the Versova Andheri Ghatkopar elevated corridor for the Mumbai MRTS Project.

Other corridors in the first phase include a 38 kilometer long Colaba Mahim Charkop and 14 kilometer long Bandra Kurla Mankhurd routes.

Solar energy project in TN to attract private capital

Mr Ajit K Gupta adviser to union ministry of new & renewable energy said that the ministry has come up with a new project called “Grid Connected Solar Photovoltaic Power project” in the use of solar energy that would attract investments on a big scale from the private sector.

The project involves establishing solar powered units and a nation wide target of 50 MW of power generation has been set in the private sector. The Tamil Nadu government has been quick to act on the proposal and evinced interest in establishing two units of 5 MW each.

The project would create confidence in the new technology and on its commercial applications. The Ministry is considering the use of bio fuel to light up remote hamlets in the southern districts in association with the Tamil Nadu Energy Development Agency.

Iron ore price negotiations – Nippon agrees to 65% hike

According to several media reports Japan's Nippon Steel has agreed to a 65% rise in the price it will pay for iron ore under term contracts.

Chinese website Umetal late on Sunday said that "An international steel mill has concluded 2008 iron ore negotiations. The 2008 iron ore price will rise by 65%."

Mr Li Xinchuang vice president of the China Metallurgical Industry Planning and Research Institute confirmed to Reuters a price had been set but did not confirm which companies nor what price level.

Mr Chen Xianwen deputy general director of the China Iron and Steel Association, said on Sunday said that a deal would be announced this week while declining to confirm the price or parties to the deal.

But it is surprising that Chinese steelmakers, which were in the run to set benchmark prices, have made this announcement, which has not been confirmed by iron ore majors. Therefore it could also be a tactics to limit the increase in the on going talks

The first agreement between the large iron ore suppliers and the major steelmaking blocs usually sets the benchmark globally for the contract year. With the Japanese contract price set, users of iron ore in Europe, North America and China are under pressure to agree on a similar price, even though their own negotiations have not wrapped up.

Vale Xstrata tie up - Vale may add more cash to its offer

The Sunday Express, citing sources close to Vale, reported that Vale is looking to revise its informal offer for Xstrata PLC so that it includes more cash.

The paper reported that Vale is preparing an offer of between GBP 40 to GBP 43 per share consisting of two thirds cash and one third in shares, whereas the original approach was mainly in shares.

In December, Xstrata confirmed it was in talks with other industry participants regarding consolidation. Vale has since announced that it was in talks with Xstrata, but the iron ore producer has yet to make a formal offer.

Iron ore price negotiations - Rio and BHP decline to comment

Bloomberg reported that Rio Tinto Group and BHP Billiton Ltd., the world's second and third largest exporters of iron ore, declined to comment on reports Nippon Steel Corp agreed to a 65% increase in prices.

Mr Ian Head spokesman for London based Rio said today by phone from Melbourne that “We do not comment on speculations.”

Ms Samantha Evans spokeswoman for Melbourne based BHP said today by phone that “We just do not comment on iron ore negotiations.”

Japanese crude steel production in Q1 to dip by 1.4%

According to the reports from Japanese Ministry of Economy, Trade and Industry, the output of Japanese crude steel will be around 30.44 million tonnes in the Q1 of 2008, down by 1.4% QoQ about 434,000 million tonnes from last quarter.

The figure is also is more than 29.86 million tonnes forecast by Japanese Ministry of Economy, Trade and Industry higher than 579,000 tonnes.

Salzgitter to raise steel prices from April 1st 2008

Thomson Financial reported that Salzgitter AG will increase steel prices from April 1st 2008 in response to higher raw material and transport costs, following its European peers.

A Salzgitter AG spokesman said that prices for flat bar steel are due to rise by about 15% on average, those for heavy plate will be lifted by an unspecified percentage and steel girder prices will be EUR 25 to EUR 30 per tonne higher.

Rivals ArcelorMittal and ThyssenKrupp AG have recently announced they will lift selling prices in April.

ArcelorMittal to raise steel prices 10% to %15 in Europe and US

The Wall Street Journal reported that ArcelorMittal will raise steel prices by 10% to 15% in the US and Europe, hit by higher costs and strong demand worldwide.

Mr LN Mittal CEO of ArcelorMittal said that prices could go even higher if mining companies impose as expected, steep increases for iron ore. Mr Mittal was quoted as saying that “'We plan to pass these costs to customers. It all depends on the negotiations for raw material prices.”

P&G Steel announces addition of 1000 ton stamping press

P&G Steel Products announced the addition of a 1000 ton mechanical transfer stamping press in their Buffalo at New York facility. With a bed size of 120” by 48”, this press will enable P&G to supply a greater range of heavy duty stampings, CNC machined products and production welded assemblies. In addition to the press, P&G is adding a heavy duty Sesco feedline capable of handling coil stock up to a thickness of 0.5”. A 46” double spindle, vertical Gardner Grinder will also be added. They are currently looking to fill all 3 shifts on this equipment.

The equipment additions are in response to a new customer and 4 year agreement. This work being transferred to P&G, is a testament to their commitment of providing cost effective, quality assured manufacturing solutions for their customers. The agreement is worth in excess of USD 10 million and positions P&G at a time when the Ontario market continues to expand and is looking to source more in the USA given the favorable currency rates.

P&G Steel Products is a family owned metal stamping company located in Buffalo, NY. With over 25 presses, robotic welding capabilities and CNC production machining, P&G serves a variety of industries including automotive, appliance, HVAC, recreational vehicle and heavy truck.

Corus raises strip products prices in Europe

Following the announcement of Corus Strip Products UK on February 12th 2008, Corus Strip Products IJmuiden announced that it will increase its base prices in Europe with effect from April 1st 2008 for hot rolled, cold rolled and hot dipped galvanized products by up to EUR 100 per tonne depending on the product.

Corus is confident that this price increase is fully supported by current market conditions.

A Corus spokesman comments that "Throughout Europe we see a healthy steel strip market with strengthening demand and normalizing import and inventory levels.”

He added that "The level of increases of raw material cost are yet to be determined but they will have an effect on the market dynamics and further price increases can therefore not be excluded."

Sumitomo Metals develops a new titanium alloy SSAT 35

Sumitomo Metal Industries Ltd announced that it has developed a new titanium alloy SSAT 35, which offers an optimal balance between workability and strength.

Workability has always been a key weakness of titanium alloys, but Sumitomo Metals has developed a new alloy that offers a major improvement in this respect. It also helps customers reduce handling and processing costs, as well as helping Sumitomo Metals reduce its production costs.

SSAT 35, with its optimal balance of strength and workability can be manufactured using the cold-rolled method. Its ease of handling should ensure wide usage, in everything from aircraft parts to the shafts of golf clubs. Commercial production has now become feasible, and Sumitomo Metals is working to educate customers concerning commercial application. Pure titanium currently accounts for about 90% of Sumitomo Metals' titanium sales, but going forward the Company will work to make SSAT 35 a core titanium alloy product.

Emergency coal purchase will cost Eskom ZAR 11 billion

It is reported that Eskom will buy an additional 45 million tonnes of coal at significant extra cost to replenish depleted coal stockpiles, a plan that expected to have a ripple effect on generating costs and electricity prices. The emergency move could cost the utility as much as ZAR 11 billion, but Eskom said that it has no choice if it is to make headway in relieving SA’s power crisis.

Under contract, Eskom pays on average R100 a ton for coal. But the 45 million additional tons would have to be bought at export prices of ZAR 150 to ZAR 250 a tonne, Mr Dames said that this means the additional coal could cost as much as ZAR 11 billion.

In an update on the power situation, Mr Brian Dames executive of Eskom addressing the utility’s coal problems was the highest priority now. The 45 million tonnes of coal would be over and above Eskom’s running requirements, which are 125 million tonnes a year and would be added systematically over the next two years in a bid to raise coal reserves at power stations to at least 20 days supply.

Mr Dames, who is the new head of Eskom’s primary energy, generation and enterprise cluster, admitted the procurement would have a significant effect on operating costs, giving impetus to higher electricity prices. He said that “The coal is going to cost much more than we are paying contractors, so it will definitely have an effect on generating costs. We still need to inform the regulator (the National Energy Regulator of SA).”

But Eskom had no other option he said that “Coal is a very real threat. We do not have a choice. It is the right thing to do. Eskom’s inability to meet national demand during the past month has been ascribed in part to critically low coal reserves, and problems with coal quality. Current stockpiles are at 10 days’ supply on average, with some power stations’ reserves as low as two days. The practice in the past was to maintain stockpiles at 20 to 32 days’ supply. While the purchase plan had a two year timeframe, Mr Dames said Eskom needed to move swiftly over the next three to five months, to bring 6 million tonnes of coal to plant to get stockpiles back to satisfactory levels.

Congo seeks USD 10 billion investments for iron ore projects

Bloomberg reported that Israeli and Indian investors will spend as much as USD 10 billion developing what the Democratic Republic of Congo says is Africa's biggest iron ore project.

Mr Victor Kasongo vice minister of mines for Congo in a phone interview from Kinshasa said that the operation will take two to three years to start with initial iron ore output of 15 million tonnes a year. He added that annual production will eventually climb to 50 million tonnes. This will be the biggest iron project in Africa and one of the top three in the world.

Mr Kasongo said that the iron ore will be transported 2,150 kilometers to Congo's Atlantic coast for export. He added that a steel mill will be part of the project but declining to name the investors. Credit Suisse said that Iron ore prices by 9.5% in last year's annual contracts with steelmakers and may rise as much as 70% this year.

Western Canadian starts strategic review

Western Canadian Coal Corp signaled that it is up for sale last week by saying it is starting a strategic review process that could also result in alliances and acquisitions.

It said that "The company also believes the strategic review is timely for shareholders, considering that recent business analyst reports indicate that US dollar coal prices are expected to increase next year to record price levels.”

Western Canadian said it has set up a steering committee to make recommendations on strategic alternatives. It also warned that there is no assurance that the committee will make any recommendation regarding a potential transaction or any other strategic move.

Western Canadian Coal, after the CAD 40 million private placement of convertible debentures, is aiming to move forward with its Falls Mountain and Brule developments in northeastern BC. The release added that Western Canadian Coal hopes to grow annual production from 3.4 million tonnes to over seven million through continued development of its Wolverine properties and Brule and Falls Mountain projects, while reducing costs.

Western Canadian Coal Corp produces metallurgical coal from the two mines northeastern British Columbia. It also has interests in various coal properties in northern and southern British Columbia and a 50% interest in the Belcourt Saxon Limited Partnership.

Van Dieman to start Scotia tin mine project in Tasmania in March

Van Dieman Mines has confirmed that its Scotia tin sapphire mine project in Tasmania will be in production by the end of March 2008. The project, which will produce some 700 tonne per year of tin in concentrates had been delayed mainly due to permitting issues.

A second project, the Endurance mine, with a similar capacity is due on stream at around the turn of the year. Concentrates from both mines will be supplied to Thaisarco in Thailand. The company controls further deposits in Tasmania which it plans to develop later.

Van Dieman also announced changes to its board of directors, with former Marketing Director Mr Ken Frey replacing Mr Clive Trist as Managing Director and CEO.

TenarisHydril – A new website for premium connections

Following the integration of Hydril's premium connection business into its tubular business, Tenaris announced that it has launched a new website for its expanded range of premium connection products and services.

The TenarisHydril line combines Tenaris and Hydril's renowned high performance premium connections products and technology to provide a single, unique offer for customers covering a comprehensive range of demanding drilling applications worldwide.

The website highlights our industry-leading TenarisBlue® and Wedge Series 500™ technologies, and features an Application Guide and a Casing and Tubing Performance Data Utility. Customers can also identify where they can receive support from our worldwide network of licensed threading and repair facilities.

Experts hear views of villagers on SSI plant in Thailand

It is reported that villagers opposing the construction of Sahaviriya Group's iron smelting plant at Bang Saphan in Thailand claimed they had taken a significant step in their two year long struggle to convince the government of the environmental problems the project could bring.

Mr Supoj Songseang leader of tambon Mae Rampueng conservation group led some 100 villagers from five local conservation groups to demolish a bunker in front of opponents' headquarters located next to the project site. He said that ''We have broken the wall of fear. We are no longer afraid of any violent attacks from the project's supporters because the public has now realized that our struggle is justified and is purely aimed at saving the country's vital natural resources and our livelihood.”

Mr Supoj said the groups, from the four tambons that would be directly affected by the steel factory if it is allowed to be set up, would now focus their attention on studying the impact of industrial development and disseminating information to the public, instead of wasting their energy on countering the firm and its supporters. The opponents set up a barracks like post at Ban Don Samran four months ago when conflict between them and the project's proponents began to magnify.

Mr Supoj believes that demolishing the bunker and re focussing the group's actions would help ease tensions in the district and change the public's perception toward the protesters as being the instigators of the previous violent clash.

The announcement came on the same day as prominent academics from the Chiang Mai based Institute of Alternative Education held a public hearing to gather local opinion about the THB 90 billion project.

Around 300 villagers attended the forum. The villagers took turns to explain how they could be victimised by the smelting plant's possible impact to academics, legal experts and media representatives. They said the project, comprising 10 smelting and steel processing factories, incinerators, landfills, power plants, and a deep-sea port, would devastate the area's marine resources, particularly pla tu since Mae Rampueng cape is one of the country's largest spawning grounds for the fish.

Mr Sureerat Taechutrakul owner of Rachavadee resort in tambon Thongchai, said the expansion of the plant would badly hurt tourism which generates huge revenue for the locals and business operators here.

Konecranes supplying 3 coil lifting cranes to Holland

Hoist.com reported that Konecranes UK has won two contracts to supply three SMD 40 tonne coil lifting cranes to customers in Holland. The orders are worth in excess of GBP 1.1 million.

Konecranes said that one crane is going to Schavemaker Logistics, a division of the Schavemaker Group and the other two are ordered by Laura Metaal Holdings BV.

The cranes will have 28 meter spans carrying a Spacemaker winch trolley, specially designed to lift steel coils using lifting tongs, with a total weight up to 35 tonne.

Laura Metaal Holdings will take delivery in May and Schavemaker Logistics in June.One more

Euro Inox new brochure about SS use in renovation

Euro Inox announced that a new publication shows that stainless steel is also a good choice for updating and upgrading existing buildings.

The release said that typically, it is associated with modern architecture. However, stainless steel helps to make historic buildings fit for future use while maintaining and underlining their original character. The examples include, among other, archaeological sites, which are kept accessible to the public without compromising their protection for future generations.

Listed buildings can be put to modern use with their historic character maintained and even underlined. Also buildings, which are just a few decades old, often need to be given a new lease of life to become attractive again for today’s demanding users. Finally, stainless steel is also successfully used to fill gaps and close voids in the urban landscape, where it merges with its built environment.

The 28 page brochure is available free of charge from Euro Inox,

CEZ not to make a new offer for coal miner MUS

Thomson Financial reported that Czech power group CEZ is not making another offer to buy coal mining company Mostecka Uhelna after the talks failed late last year.

Daily Hospodarske Noviny quoted Mr Vladimir Schmaltz as saying that "Negotiations over the purchase of MUS failed and no other offer is on the table. We have turned to a new scenario, which is gas.”

Czech media reported last month that negotiations failed due to price demands from the miner's 49% minority shareholder.

CEZ launched talks with MUS last year to acquire the brown coal sites and end disputes over long term coal contracts between the two, giving the power producer better access to the coal supplies it is seeking to help it expand its generating capacity.

Indonesia police arrest Koba Tin official

Reuters reported that Indonesian police have arrested a PT Koba Tin official and a former employee over an alleged illegal mining case in Bangka Belitung island in Indonesia's key tin source.

As per report investigation has stopped smelting and export activities at Koba Tin, the second biggest tin miner and producer in Indonesia.

Mr Djuhandani Rahardjo chief of Central Bangka police told Reuters that Central Bangka police arrested the company's manager who was responsible for receiving tin ore and a former employee late on Friday. Mr Rahardjo said that "Police found evidence of their involvement in illegal mining by the firm. They facilitated illegal miners to sell tin sands to the firm. They knew tin ore sold to Koba Tin came from a mining area that does not belong to the firm."

A crackdown on illegal mining in Bangka island in October 2006 forced dozens of small smelters to cease business, raising concerns about supplies and helping ignite a tin price rally. This is the second case of alleged illegal mining involving Koba Tin after three directors, including president director Anuar Sidek, were cleared in August 2007 of charges of illegal mining on Bangka-Belitung.

Northland reports iron resource at Tapuli

Northland Resources Inc announced the first NI 43-101 compliant iron resource and highly encouraging preliminary metallurgical results for its 100% owned Tapuli magnetite project, 5 kilometer from the Stora Sahavaara magnetite deposit at Norrbotten District in northern Sweden. The resource has been modeled using a cut off of 15.0% Fe:

Northland Resources in a statement said that initial metallurgical test work has produced excellent early results. The work, performed on a composite drill core sample taken from seven drill holes from across the resource, indicates that a high grade concentrate up to 69% Total Iron and less than 0.03%S, can be produced using a simple flow sheet that comprises magnetic separation only and does not require a flotation stage.

Highlights
1. Total Indicated resources are 54.4 million tonnes with an average grade of 27.7 % Fe.
2. Total Inferred resources are 47.6 million tonnes with an average grade of 26.3 % Fe.

Mr Buck Morrow president of Northland said that "The news is our third resource calculation on a significant magnetite body in the last 12 months. Our work has significantly expanded the historic resource of 60 million tonnes at 29% iron which was defined by the SGU in the late 1960s. The early results of the metallurgy are some of the best we've received to date from our projects and the Tapuli metallurgical flow sheet looks straightforward. We can now move to the detailed engineering and planning stage with Tapuli and Stora Sahavaara. An aggressive winter drilling program is now taking place at Tapuli. In addition to taking large diameter core samples for further metallurgical testing, we will continue our drilling at both projects over the next 12 months with the aim of moving tonnes into the measured resource category and of expanding both resources. Both magnetite bodies remain open for expansion."

Northland is a well structured, debt free junior exploration company with a portfolio of high quality iron, gold and base metal exploration projects in Sweden and Finland.

AK Steel retiree plan case proceedings starts

It is reported that future health care for Mr John L Wagner and nearly 4,900 retirees and their families at AK Steel's Middletown Works will be decided by US Magistrate Judge Mr Timothy Black by the end of the month.

As per report Mr Black opened a two day hearing in US District Court in Cincinnati into the fairness of a proposed USD 663 million settlement of a 20 month old, class action lawsuit filed by AK retirees who challenged the steel maker's decision to make them pay more for their health benefits.

In the course of the packed hearing, Mr Black closely questioned attorneys for the retirees who've challenged the proposed settlement. At one point, Mr Black asked Mr Glenn Whitaker one of the lawyers for the objectors, what would happen if he rejects the proposed settlement.

Mr Whitaker said that AK would sweeten it because it would relieve the company of the uncertainty of paying for the retirees' future health care, a cost estimated at more than USD 1 billion. he added that "If the court pushes the process, AK Steel will put more money into the settlement.”

Mr Wagner is one of the retirees who objected to the settlement reached last October. It created an employee run trust known as a voluntary employees beneficiary association that would assume the company's obligation for health care for the retirees and their families, a group estimated at more than 8,000, with money from the steel company.

Bangladeshi experts want coal policy to be finalized

It is reported that Weekly Economic Times organized a workshop for the North Bengal Mineral Resources Reporters Forum at Press Institute of Bangladesh. Coal experts Eng Mainul Hasan, Eng Kamrul Islam, journalists Ataus Samad and Iqbal Sobhan Chowdhury, among others, addressed the inaugural session of the workshop with Economic Times editor Shawkat Mahmud in the chair.

The experts at the workshop stressed that Bangladesh should finalize its coal policy at the earliest saying the existing gas reserves would start getting exhausted from 2015. Bangladesh would have to create alternative sources of fuel before complete exhaustion of the gas reserves.

Mr Tamim chief adviser special assistant for energy and power minister told reporters on the sidelines of a workshop that “The country will start facing gas crisis from 2011 and it'll take a severe turn in 2015. Though it'll take 30 to 40 years more to finish the entire gas reserves, but we need to go for mining coal quickly to avert the possible crisis.”

Referring to debate on coal extraction method, Mr Tamim said had Bangladesh thought about its huge coal resources before intervention of foreign companies, there would have been no controversy or debate in this regard. It's unfortunate that we start thinking about one thing after foreigners intervene in it.

Mr Tamim said that “We must realize the necessity of coal as an alternative source of fuel.” Asked when the pending coal policy will be finalized, he said the government was now studying the draft of the coal policy. It's very difficult to say about the timeframe of its finalization, but I hope it'll be finalized during this caretaker's time.

Erdemir posts 2007 financial results

Turkish Armed Forces Pension Fund Oyak controlled Eregli Demir Celik Fabrikalari has posted the income statement for tax purposes on the Web site of the Istanbul Stock Exchange last week

It has said that its net income in 2007 was YTL 639.6 million (USD 534.3 million) and sales were YTL 4.04 billion.

Erdemir had recorded a profit of YTL 684.9 million in 2006 and thus its profit in 2007 has reduced a bit.

Emirates Techo Casting to set up unit in Chennai

BS reported that UAE based leading steel castings maker Emirates Techno Casting has chalked out a INR 500 crore investment plan for India over the next three years to manufacture valves, castings and corrosion prevention systems.

As per report, it is setting up a valve manufacturing unit on a 5 acre area at the Mahindra World City in Chennai at an investment of INR 100 crore in the first phase.

Mr Faizal E Kottikollon president & CEO of Emirates Techno Casting said that “The new plant, being set up under a new arm called JCF Valves & Controls India, will cater to the valves requirements in power, oil and gas sectors in India.”

Iran launches oil exchange

Iran has launched an oil exchange with the first trade made in a petrochemical product but planning to expand to include transactions in crude in future. The bourse will also trade other oil products and industrial pipes used in the energy industry. The opening ceremony was held in Tehran via a video conference to the southern island of Kish where the new bourse is based.

Mr Gholamhossein Nozari oil minister of Iran said that "We have been a good seller of crude oil and now we have a higher objective to have a share in the oil trade. The objective is to make transactions transparent, create competition and motives for investment. And so that we can reach out to international markets as a big oil producer as well as an oil trader,”

He added that “Trading of oil products in the first phase of the exchange can make us more competent and ready to begin the supply of crude oil in the second and long term phase.”

The bourse has been planned for years but has faced repeated delays. When plans were first mooted, some analysts speculated Iran might use it to undermine the importance of the US dollar by pricing crude in euros or other currencies. An official said trading would be in Iranian rials and other currencies approved by the central bank but gave no details. The bank has been seeking to diversify Iran's reserves away from the dollar because of US sanctions on the Islamic Republic.

Iran claims to rank second in the region after Saudi Arabia in terms of production of petrochemicals at 22 million tonnes a year. But it has failed to gain a significant share in the world export market because of state control of its petrochemical industry and state subsidies.

Eversendai eying MEA and India for growth

StarBiz reported that Malaysia based structural steel construction firm Eversendai Corporation Sdn Bhd is bidding for new jobs worth about MYR 1.8 billion in Middle East and India.

Mr Datuk AK Nathan MD of Eversendai said “We are in expansion mood and moving into new markets to bring Eversendai to greater heights and the coming years look brighter than ever. We are planning to set up a fabrication factory each in Vietnam and India, investing about MYR 80 million to MYR 100 million in total.”

Eversendai got its first break in the Middle East more than a decade ago when it was awarded the structural steel work for the renowned Burj Al Arab hotel development project. It recently secured structural steel packages for 6 landmark towers namely Dubai Tower, Al Shams Sky Tower, Feature Tower by Al Habtoor, Princess Tower, Tiara Towers and Tiara United Towers, in Qatar, Abu Dhabi and Dubai totaling about AED 550 million. The scope of work includes connection design, detail engineering, supply of steel materials, fabrication and erection works.

Mr Nathan said that “Work has started on some of the building structures and will start on others from next month. We have started work on connection design and material procurement on all the projects in hand. We have proved our ability to deliver projects on time without compromising on quality or safety.”

To date, it has successfully undertaken and completed numerous building and infrastructure jobs in Thailand, Indonesia, Hong Kong, Bahrain, Abu Dhabi, Qatar, Saudi Arabia, the Philippines, Singapore and Dubai. In Malaysia, Eversendai was involved in the construction of landmarks such as the Petronas Tower 2, Suria KLCC, Kuala Lumpur Tower, Menara TM and the Kuala Lumpur International Airport.

Dubai to invest USD 20 billion in South Korea

Mr Mohammad Al Shaibani head of Investment Corporation of Dubai, during a meeting with Mr Lee president of South Korea, announced that Dubai is seeking to invest up to USD 20 billion in South Korea. Mr Al Shaibani said that "My country is planning to set up a fund of USD 20 billion to invest in South Korea."

Meanwhile, Mr Lee sad that "The world has changed greatly since I visited Dubai in the late seventies, and I feel that South Korea has lot to learn from Dubai. As the chairman of an investment firm, I ask for your cooperation in making large investments in my country."

Mr Lee, a former CEO of Hyundai Construction and Engineering, has been pledging to form a business friendly government, seeking ways of boosting foreign investment in South Korea. Mr Lee has been striving to induce investment from Dubai. Last month he appointed Mr David Eldon chairman of Dubai International Financial Centre Authority as co chairman of a special committee under his transition team.

Gulf Automobile to set up pickups units in Saudi Arabia

Gulf News reported that Abu Dhabi based Gulf Automobile Industry Corporation will manufacture 150 horsepower pickups in Saudi Arabia through a USD 104 million JV with a Saudi industrial investor.

Mr Nasser Hamad Al Hajeri chairman of Gulf Automobile said that it is setting up a factory in Dammam Industrial City 2, which will have a capacity to produce 15,000 pick up units annually.

He added that “The production at the 109,000 square meter factory will start by the beginning of 2009. It has orders for 150 units, mainly from the UAE, Saudi Arabia, Qatar and Yemen.”

Since the launch of its pick up in November 2007, Gulf Automobile has about 100 of its vehicles on the roads in the UAE and Saudi Arabia at present.

Neelum Jhelum hydroelectric project launched in Pakistan

It is reported that Mr Pervez Musharraf President of Pakistan has recently launched the PKR 130 billion Neelum Jhelum hydroelectric project aimed at producing 969 MW power and helping the country meet its increasing energy requirements.

Under the project water from the Neelum river will be diverted through a 47 km long tunnel. A power house will be constructed at Chattar Kalas and the water will be released in river Jhelum. The project will produce 5.15 billion units of electricity annually.

Mr Musharraf terming it a very important project said that it will have far reaching strategic implications and added that it will be completed with the Chinese assistance in eight years. He described it as yet another symbol of the Pak China friendship and said it will contribute towards the economic progress of Pakistan.

Mr Musharraf said that the ongoing power shortage in the country needs to be addressed swiftly. He suggested that Pakistan has immense coal reserves at Thar and described these as one of the largest in the world, which could be utilized to generate electricity. He pointed that China was meeting 70% of its energy needs through coal.

Mr Musharraf said that currently there was a need for generating energy to meet the short term requirements and said the recent discoveries of gas in NWFP and Sindh will help produce thermal energy. He added that under the short term planning 2000 MW of electricity will be produced by the end of this year, while another 3500 MW will be generated by the end of next year.

GCC to invest USD 700 billion in infrastructure sector

ArabianBusiness.com reported that Gulf Cooperation Council states are set to spend USD 700 billion on modernizing infrastructure and social services between now and 2010.

Federation of the GCC Chambers in its latest report said that UAE and Qatar in particular are putting billions of dollars into infrastructure projects, with the bulk going towards road and bridge works and utilities projects.

The report also said that the rise in oil revenues has increased both public spending and the volume of imports. The projects under progress across the GCC states are worth around USD 2 trillion, but many are at risk because of rising costs. It added that "Imports of the GCC states have jumped from USD 330.5 billion to USD 409.4 billion."

Mr Salah Al Shamsi, the former chairman of FGCCC and chairman of the Federation of UAE Chambers of Commerce, described inter GCC trade and investment as very low. He added that trade between the GCC states does not currently exceed 9%, while investment is only 7%.

Turkey opposes GdF inclusion in Nabucco gas pipeline

Reuters reported that Turkey has opposed Gaz de France's inclusion in the Nabucco gas pipeline project over France's positions on Armenian genocide claims and Ankara's European Union bid.

Turkish official, who declined to be named, said that in normal conditions Turkey would be glad to accept Gaz de France as a partner given its experience and success in the energy sector. He added that "Turkey avoids using energy as a political instrument, it has no such aim. But France has unacceptable positions on the incidents of 1915, which should be left to historians, and on the European Union and other joint projects."

The Turkish energy ministry official said that 6 partners was enough for the project but that a seventh partner, from a gas producing country, could join. He added that Turkey was in favor of Turkey's Botas constructing the pipelines as far as Ankara, from where Turkey wants the Nabucco project to begin. It could construct these pipelines in cooperation with other companies.

The EUR 5 billion pipeline is designed to pass via Turkey and the Balkans to Austria and is a key plank of the European Union's plans to reduce its dependence on Russian gas imports. It is planned for completion in 2012.

UAE likely to revalue currency – Report

It is reported that United Arab Emirates is likely to revalue its currency against the flagging dollar in a bid to bring down inflation and meet criteria for a single Gulf currency.

Dubai Chamber of Commerce & Industry said that it is most likely that the UAE central bank will revalue the dirham against the US dollar in line with other GCC currencies. It added that "This will help to some extent in alleviating inflationary pressures whilst retaining adherence to the dollar peg stipulated as an integral part of the convergence criteria necessary for a Gulf monetary union in 2010."

The DCCI said that while GCC states have met several convergence criteria in preparation for monetary union including levels of public debt, budget deficits, interest rates and foreign reserves, the criteria set for inflation rates have not been satisfied. It added that "The disparities in inflation rates undermine the convergence of economies in real terms, especially with regards to interest and exchange rates."

GCC leaders decided at their annual summit in Doha in December 2007 that their currencies, except for Kuwait's, would remain pegged to the greenback despite its depreciation. GCC states, which are US allies, are experiencing high growth rates of between four and eight percent because of rising oil revenues that have boosted liquidity to new levels.

Gulf Cooperation Council member states Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE have set 2010 as the target date for adopting a monetary union and single currency. Oman has said that it will not join, at least at the initial stage.

PetroSteel won USD 62 million contract from Saudi Kayan

MEED last month reported that PetroSteel, a 50:50 JV of Rafid Group and Singapore's Rotary Engineering, has won a major contract worth USD 62 million to erect storage tanks at the multi billion dollar Saudi Kayan Petrochemical Company complex in Jubail.

Under the terms of the engineering, procurement, fabrication and erection contract, PetroSteel will install 24 steel storage tanks at the complex.

With an overall cost of about USD 8 billion, Saudi Kayan is thought to be the largest standalone petrochemical complex ever built in one go.

Emal awards transmission contract to Prysmian

ArabianBusiness.com reported that cables company Prysmian has been awarded a USD 33.4 million EPC contract by Emirates Aluminum Company for the supply and installation of high voltage cables and systems, currently under construction in the Taweelah Area in Abu Dhabi.

Under the contract, Prysmian will supply 22 kilometer of 400kV cable, including one cable circuit, interconnection between the Transco network in Taweelah and the Emal smelter and 20 kilometer of 220kV cables, 21 cable circuits and connections within the Emal smelter. The first cable connection is scheduled for the end of 2008, while the last will be energized in January 2010.

The Emal project is targeted to be the largest single site Greenfield aluminum smelter in the world with associated power generation facilities at the Khalifa Industrial Port. When complete, the new smelter will have a total annual capacity of 1.4 million tonnes. The initial construction management contract for the new facility was awarded to engineering firms SNC Lavalin of Canada and Worley Parsons of Australia.

In the Middle East, Prysmian has facilities in Dubai and Abu Dhabi, Qatar, Bahrain and Kuwait. It is also working on transmission projects in Fujairah and Qatar as well as on Qatar's Ras Laffan project and the Pearl GTL. It is also providing fire protection power cables to the Burj Dubai as well as submarine medium voltage power cables to the Palm islands.

OPEC could dump dollars for euros – Report

MEED reported that OPEC could switch the pricing of oil from dollars into euros within a decade.

Mr Abdullah al Badri secretary general of OPEC said that it could adopt the euro to combat the decline of the dollar. He added that "Maybe we can price the oil in the euro. It can be done, but it will take time. The change could happen within a decade.”

Mr Badri said that "In oil exchanges in New York, Singapore or Dubai, you can see the currency is the euro or the yen. But as long as we see the final sign in dollar that means the pricing is in dollars. It took two world wars and more than 50 years for the dollar to become the dominant currency. Now we are seeing another strong currency coming into the frame, which is the euro."

It may be noted that OPEC is under pressure from its members, who have seen their earnings decline sharply since 2000 due to its use of the dollar. The US currency has fallen 44% in value against the euro in that time. Some OPEC members, notably Iran and Venezuela, have been calling for the group to study the declining dollar's effect on their economies. Iran has already begun pricing most of its oil in euros.

Chinese steel exports in January 2008 down by 5.4% YoY

According to an official statement issued by China's General Administration of Customs, China exported 4.14 million tonnes of finished steel products in January 2008 down by 5.4% YoY.

Chinese steel exports in January 2008 dipped by 13% MoM as compared to 4.14 million tonnes in December 2007.

Chinese import of finished steel products also dropped by 3.4% YoY to 1.43 million tonnes in January 2008.

Chinese steel market might reverse the trend anytime

MySteel reported that most steel varieties have shown notable price uptrend at the beginning of the Chinese Lunar New Year but insiders warn that increasing uncertainties are casting shadow over the prospect of China's steel sector this year, such as spiking raw materials costs, heavy steel stock and output reduction etc.

Mr Xu Lejiang chairman of Baosteel Group cautioned at an internal meeting that the steel market might reverse the trend anytime. His concern has been echoed by leading steel consultancies in China.

A number of domestic steel traders are upbeat about steel price direction after the holiday in light of tight supply. A quarter of the traders polled by Xinhua News are looking for price rally for construction steel, while only 6% of them are holding opposite view.

They suggest that Beijing has announced to adopt tightening monetary policy from Q4 of 2007. In this case, the credit squeeze is unlikely to ease greatly in Q1. However, the capital demand of the steel market has expanded substantially as a result of escalating steel prices and rising output. Moreover, the market steel inventory is expected to add up notably in days to come. However, it remains unclear when and to what extent the market demand would revive post the holiday.

The cost pressure from iron ore, coking coal and other ingredients is set to affect steelmakers in the long term. Baosteel estimates that the profit margin would be further squeezed by spiking input costs and the market competition is to become increasingly furious.

An unprecedented severe blizzard has paralyzed the transport network in central south China before the New Year Holiday. The strained power supply has affected the production of some 50 steel mills in China at least. Market analysts predict that domestic steel capacity utilization is set to be checked at the beginning of this year.

ArcelorMittal shrugs off Chinese threat on global scenario in 2008

FT reported that aid after announcing results for 2007, ArcelorMittal sees that the threat of Chinese steel exports undermining the health of the global steel industry has been greatly reduced.

Mr LN Mittal CEO of ArcelorMittal said the smaller amounts of Chinese made steel entering world markets would contribute to a relatively strong year for the steel industry in 2008, in spite of the pall over the world economy.

He said "I do not see any possibility of a downturn for the steel industry this year. I think the sector will be able to weather any crisis."

Mr Mittal said that behind the lower threat of Chinese exports were higher costs affecting Chinese steel mills and slowing production increases. He said "The YoY rise in Chinese steel production is now about 9%, while quite recently it was 20%."

He added that "Also, the Chinese government is putting pressure on the industry to rein back exports, and this is having an effect."

China remains largest SS producer in world 2007

According to information from the Stainless Steel Council of China Special Steel Enterprises Association, China’s stainless steel production in 2007 totaled 7.2 million tonnes up by 36% YoY as compared to 2006.

The association said the production of 300 series stainless steel accounts for 58.1% which is at 4.19 million tonnes down by 4.2% YoY from the year of 2006. The production of 400 series and 200 series are up by 3.2% YoY and 1% YoY respectively.

Besides, China’s export of stainless steel in 2007 was 1.3 million tonnes up by 44.8%YoY.

China overtook Japan as the world's biggest stainless steel producer in 2006.

Chinese rebar prices on up trend after holiday

It is reported that rebar and wire rod prices in China have been improving since the first working day in the Chinese New Year. Construction steel prices have rebounded and it is likely to see another round of increase in the coming weeks.

On Shanghai market, HRB335 grade 20mm rebar wass being quoted at CNY 4350 per tonne, HRB400 grade material at CNY 4450 per tonne an increase of CNY 100 per tonne from the low point in January. While commercial and hi speed wire rod prices increase by CNY 4350 per tonne and CNY 4480 per tonne, some higher quotations are even at CNY 4500 per tonne and CNY 4550 per tonne respectively.

With regards export market, some steel producers have raised rebar offer to USD 750 per tonne FOB to USD 755 per tonne FOB from USD 740 per tonne FOB to USD 750 per tonne FOB in late January and early February. While those 6.5 to 8mm SAE1008 wire rod with boron element was being quoted at USD 755 per tonne FOB to USD 760 per tonne FOB.

As per insiders, if the trend continues, export quotations are likely to approach USD 780 per tonne FOB to USD 800 per tonne FOB veryy soon.

China iron ore imports in January 2008 rise to record levels

Reuters reported that China's iron ore imports reached 36.81 million tonnes in January 2008 up from 34.2 million tonnes in December 2007 to monthly record high levels.

The report said the record monthly arrivals of iron ore came as Chinese steel mills faced tough 2008 price negotiations with the world's top miners, which are seeking major price increases due to strong demand in China.

According to the traders in China that Australian and Brazilian miners were reducing iron ore shipments to China in the first quarter due to port congestion and weather, but added that the price negotiations were also a factor.

An iron ore trader based in Beijing said "Iron ore imports will drop in February and March. There's always a time lag. What arrived in January was mostly shipped in November."

China's steel industry's profits hit record high in 2007

According to China Iron and Steel Association, China's iron and steel industry achieved record high profits in the past year despite rising iron ore prices. After tax profits from across the industry topped CNY 190 billion in 2007 a rise of 45% YoY as compared with 2006.

China Iron and Steel Association said that “Even though most of domestic steel mills experienced a fruitful year, profit margins were heavily squeezed by rising high iron ore prices. The rising raw materials prices drove up product prices, resulting in China's steel product composite price index jumping by 113.49 points over the year up 8.16% from the previous year.”

The association said the average CIF iron ore price in Chinese ports for December 2007 was around USD 125.28 per tonne up by 81.83% YoY with a peak exceeding USD 190 per tonne. Steelmaking costs for Chinese steel mills' grew by 31.05%YoY in 2007. Expansion of Chinese steel production and increasing freight rates sent iron ore prices soaring to breath taking highs over the year, with the average domestic iron ore price growing 94.15% on an annual basis to CNY 1,179.25 per tonne in December 2007.

The growth was also influenced by increasing imported iron ore prices. In addition, other raw materials, including coal, coke and electricity, experienced price rises. As a result, domestic steelmakers saw their profit margins dropping to as low as 5.63% in December, 1.64% points lower than the year's average. Nonetheless, the CISA's figures show that over 2007, China consumed 518.83 million tonnes of steel products of which 501.96 million tonnes were domestically produced.

China approves Formosa Plastics SS plant

It is reported that China has given approval to the Formosa Plastics Group to build a stainless steel plant in China.

As per report, Economics Ministry of China approved Formosa Plastics' application to invest in the China plant recently. Taiwan still bans direct trade with China and firms must seek Taipei's approval to invest.

Formosa Plastics plans to team up with the Fuxin Special Iron & Steel Co at Fujian Province in China, with Formosa Plastics and Fuxin each investing USD 100 million. Equipment for the plant will be shipped to Fujian from Taiwan. The plant's managerial personnel will be Taiwanese.

Chinese trade surplus a January 2008 up by 22.6%YoY

According to China General Administration of Customs China recorded a trade surplus of USD 19.49 billion in January 2008 up by 22.6%YoY. It said China's exports in January stood at USD 109.66 billion up by 26.7%YoY, while Imports were up by 27.6% at USD 90.17 billion.

Customs said that the figure compared with a surplus of USD 22.7 billion in December 2007, adding that January's figure was the first time since May 2007 that the surplus dropped below USD 20 billion.

In January 2008, China imported 13.94 million tonnes of crude oil up by 1.8%YoY, while crude oil exports totaled 180,000 tonnes down by 40.8%. It imports 3.23 million tonnes of oil products in the month up by 16.7%YoY.

China imported 4.24 million tonnes of coal in the month down by 9.9%. Iron ore imports in January stood at 36.81 million tonnes up by 2.7%YoY. Copper imports rose 4.6% to 239,000 tonnes during the month.

Handan Steel plans 11.5 million tonnes in 2008

It is reported that Hebei based Handan Steel will strive to produce 11.5 million tonnes of steel and harvest sales revenue of over CNY 54.4 billion in 2008.

Handan Steel plans to produce more than 3.6 million tonnes of value added and new products in 2008. Besides, it also plans to cut energy consumption to 620 kilograms of coal equivalent per tonne of steel.

Handan Steel produced 3.1 million tonnes of value added products in 2007 and 610,000 tonnes of new products.

IMF predicts 10% growth for China

The International Monetary Fund expects the Chinese economy to grow by 10% is 2008.

Mr Dominique Strauss-Kahn MD of IMF said on weekend that although there was some impact from the US sub prime mortgage crisis on China, the IMF still hopes China's economy to expand by 10% in 2008.

Chinese Prime Minister Mr Wen Jiabao met with Mr Dominique Strauss-Kahn Thursday afternoon in Beijing, and the two exchanged views on the Chinese economy and other issues of common interest.

Shenhua to pay 62% more for coastal transport in 2008

Interfax China reported that Ningbo Marine Company will raise this year's domestic coal waterway shipping fees for China Shenhua Energy by 62% as compared to last year after both parties inked a new coal delivery contract at the beginning of the month.

According to the deal, Shenhua Energy will hire five of Ningbo Marine's vessels, two 65,000 DWT ships, two 40,000 tonnes ships and one 27,000 tonnes ship, to deliver coal from northern Chinese ports to power plants in the southern and eastern provinces of Guangdong, Jiangsu and Zhejiang.

Ningbo Marine said revenue from the Shenhua deal is expected to go up 96% in 2008 as compared to CNY 250 million as part of rises that are forecast for its total coal shipping business.

A report released by the National Development and Reform Commission in 2007 regarding the country's coal industry said the country's coal transportation capacity will increase by only 60 million tonnes this year, significantly less than last year. The low increase is expected to lead to increasingly severe transportation bottlenecks between consumers and key coal producing regions such as Shanxi Province, Shaanxi Province and the Ningxia Hui Autonomous Region.

An analyst with the China Coal Trade Association's information center, said China coal shipping sector will expand rapidly this year, as coal suppliers and consumers look for additional ways to transport coal, Hao Xiangbin. This is expected to lead to a coal trade boom in waterway linked cities.

Air Liquide to build ASU for Shenhua Ningxia Coal in China

It is reported that Air Liquide has just signed a contracts to design and build very large air separate gas with a production capacity of over 3,000 tonnes of oxygen per day with Shenhua Ningxia Coal in China.

Mr François Darchis senior VP in charge of Global Engineering & Construction and a member of Air Liquide’s Executive Committee declared “These new contracts in developing economies strengthen our international leadership. They demonstrate our expertise in oxygen production technologies, to an extent previously not possible. They came in 2007, which was a record year for Air Liquide Group’s Engineering & Construction, with a very high order book.”

Air Liquide Engineering designs, develops and builds gas production units for the Group or for its customers. After the acquisition of the Lurgi group in 2007, it comprises 3,200 employees, spread over ten Engineering & Construction centers, covering its major markets. Together with R&D and Advanced Technologies, Engineering is one of the Group’s engines for growth.

China suffers USD 15 billion loss from snow disaster

According to Chinese official the recent snowstorm across southern China has cost at least USD 15 billion.

Mr Li Liguo vice minister of civil affairs of China said that “The timing of this disaster, the regions involved, and its scale, have caused a major economic loss. The storms hit the mainland during Chinese New Year, the peak travel season at the most populated areas as well as at main distribution regions for transportation, electricity, coal, and many other materials.”

Mr Zhang Yuxiang chief economist and director general of the Department of Market and Economic Information of the Ministry of Agriculture of China said that agriculture has suffered a loss of historical proportions. The widely affected area, lengthy duration of the snowstorm, heavy snow, and the wide range of agricultural damage have all contributed to the severe loss. Current supply and demand in the marketplace will improve.

About 120 billion square meters of agricultural area are affected of which 16.8 billion square meters were completely destroyed. There are 173 billion square meters of forest damage, and 354,000 houses and buildings collapsed. The direct economic loss is USD 15.5 billion. Seven southern provinces suffered the most severe damage from the snowstorm.

Swire Pacific orders for 8 China vessels

It is reported that Swire Pacific Limited offshore unit has ordered eight vessels from China's Qingdao Qianjin Shipyard for about USD 100 million as rising oil prices boost demand for exploration and drilling support ships.

Its Hong Kong based parent said that Swire Pacific Offshore Holdings Limited will receive the ships between 2010 and 2011. The order is the firm's first with a mainland shipbuilder.

The offshore unit plans to expand its fleet as rising energy demand pushes oil firms to increase exploration and sink deeper wells. Swire Offshore, based in Singapore, provides support services.

Chinese cement industry profit in 2007 up by 60% YoY

Reuters reported that China's cement makers, producing nearly half the world's total, may have posted a more than 60% profit increase in 2007 at CNY 24 billion owing to booming infrastructure and real estate sectors.

The National Development and Reform Commission said total cement output rose 13.5% YoY in 2007 at 1.35 billion tonnes. Exports of cement dropped by nearly 9% YoY to 33 million tonnes in 2007 after Beijing cut tax rebates for exports amid a broad move to curb energy consuming sectors.

The report said under an industry reshuffle to boost efficiency, China last year shut down small, obsolete plants with 52 million tonnes production capacity but added bigger plants with more than 80 million tonnes capacity. It said cement prices have been rising since last November to a peak at over CNY 600 per tonne.

China has about 5,000 cement producers, a number the government aims to slash drastically in the coming years.

Russian antitrust body blocks NLMK buy of Maxi group

Russian Federal Anti Monopoly Service said that it would not to allow steelmaker Novolipetsk to increase its stake in an indebted peer Maxi Group to 100% adding that it might fine Novolipetsk for its acquisition of the firm.

The service said Novolipetsk did not inform it before buying a controlling stake of 50% plus one share in Maxi Group in December.

Mr Alexei Ulyanov head of the service's industry monitoring unit, said in a statement that "The deal was one of the biggest in ferrous metallurgy last year. Performing such big deals without the anti monopoly service's approval is absolutely inadmissible. We are considering further actions toward the company, such as fines.”

NLMK paid USD 600 million for the controlling stake in Maxi Group, which produces 2.4 million tonnes per year, but has said it could not refinance its debt of USD 1.8 billion due to the global liquidity crisis.

TMK Artrom and TMK-Resita post strong performance for 2007

TMK announced that it has achieved significant improvements in the financial and operating performance of its Romanian subsidiaries for the year 2007 mostly due to ongoing technical upgrading program.

TMK-Artrom revenues jumped by 79% YoY to USD 214.3 million and EBITDA rose by 20% YoY to reach USD 25.8 million as compared to 2006 results. TMK-Artrom pipe mill shipped 155,800 tonnes of seamless pipes to its customers, representing a 61% increase on previous year shipments. A new cross piercing elongator pipe rolling mill was commissioned at TMK-Artrom in 2007

Revenues at TMK-Resita increased by 43% YoY to reach USD 205.6 million and EBITDA grew to USD 21 million up by 79% YoY. TMK-Resita, shipped 314,200 tonnes of billets to third parties up by 21% YoY. A continuous caster was put into operation at TMK-Resita in 2007

Mr Konstantin Semerikov CEO of TMK’s “The early finalization of the TMK-Resita privatization contract shows that the Romanian authorities see TMK as both a reliable partner and a serious investor. The impressive performance of our Romanian mills underlines the efficiency of our Strategic Investment Program, aimed at strengthening our position in the global seamless pipe market, increasing the efficiency of production processes, and raising product quality. Our Romanian plants have achieved great results in this direction, creating a state of the art vertically integrated pipe manufacturing complex within the EU, positioning itself as a reliable supplier of pipes for industrial applications, including for the mechanical engineering and automotive components industries.”

NLMK to correct technical mistakes in Maxi acquisition

Novolipetsk Steel in a release said that it has noted the information in mass media regarding the Federal Antimonopoly Service refusal to grant NLMK permission to acquire Maxi Group.

NLMK release added that “As per report, FAS rejection of NLMK’s request to acquire Maxi Group was caused by technical mistakes and lack of information about agreeing the transaction on acquiring 50% plus 1 share of Maxi Group in the filing.”

The release said that “NLMK will correct aforesaid technical mistakes and will submit duplicative request to the FAS.”

The release added that “NLMK will not dispute possible administrative fines. The FAS refusal does not deal with the structure of the acquisition.”

Russia might accuse China of dumping long products

It is reported that Russia may undertake the investigation into China's dumping of steel pipe products if Chinese and Russian government could not reach any consensus after mutual negotiation about trading in April 2008.

According to information from Russia, the export of long product from China to Russia represents the soaring trend since last August. Moreover, the long product exported from China to Russia has reached to about 215,000 tonnes in the first eleven months of 2007 up by 5.7 times from the same period in 2006. Hence, Russia requested that the long product export from China must be limited under the quota around 50,000 tonnes per year.

In 2007, China totally exported the long products to Russia nearly 224,000 tonnes which accounted for 20% of import of long product in Russia. It could make around USD 500 million losses for Russian steelmakers. Thus, the anti-dumping policy could ultimately be approved and make the profit up by 3% to 5% for Russian long products in the future.

Ukraine increases exports of rolled steel to Russia in 2007

Ukrainian Journal Staff reported that Ukraine increased exports of rolled steel products to Russia by 18% YoY to 2.6 million tonnes in 2007, while imports from Russia jumped 38% YoY to 1.3 million tonnes.

Mr Andriy Fedoseyev president of Metal Traders Association of Ukraine said Ukraine exported 2.2 million tonnes of rolled steel products to Russia in 2006, which was 16% more than in the previous year.

Demand for rolled products in Ukraine to grow 21% YoY

Ukrainian Journal Staff cited Mr Andriy Fedoseyev president of Metal Traders Association of Ukraine as saying that demand for rolled steel products in Ukraine will grow 21% to 11.5 million tonnes in 2008.

He said the domestic market will expand on the back of growth in the engineering sector and construction, adding that steel consumption will increase with the acceleration of reconstruction and equipment updates in light of Ukraine's accession to the World Trade Organization.

Oriel Resources boosts ferrochrome capacity in Russia

It is reported that Oriel Resources has launched the remaining two furnaces at its Russian ferrochrome smelter after a short delay relating to high raw material prices and now expects capacity to hit 148,000 tonnes a year.

DiPOS launches new sheet service centre at Ivanovo

FIS reported that presentation of the new works equipped with hi tech equipment to make components for cars, household equipment, ventilation systems etc was held in the DiPOS service metal center in the city of Ivanovo.

Investments into the works' construction and equipment totaled about RUB 800 million.

The works will be Russia's first production complex capable of making metal sheet blanks of practically any form.

Its opening has been awaited by Renault, Ford, General Motors, Toyota, Nissan and other world renowned companies.

Indian GAIL to supply gas to Russian households

It is reported that GAIL India Limited, India largest transporter and marketer of gas, has signed an agreement with Russia based Itera Oil & Gas Company for cooperation in supplying gas to households in Russian cities and vehicles.

As per report the agreement between the two companies also involves exploring setting up of gas based petrochemical projects in Russia and production of oil and gas in Russia and Central Asia.

Mr UD Choubey chairman & MD of GAIL said in a statement that the cooperation agreement was a significant step for GAIL in using its expertise in setting up and operating gas based petrochemical projects and compressed natural gas distribution in Russia with a major private company from the country.

Itera is a major player in exploration and production activities, gas transmission and distribution, and petrochemicals in Russia. It also has stakes in many exploration and production projects in Asia and Africa.

Rusinvestpartner to establish JV with Metals of Eastern Siberia

FIS reported that Rusinvestpartner is to establish a JV with Metals of Eastern Siberia Corporation, the holder of licenses on the development of a rare earth metals deposit in Buryatiya.

Market participants believe the JV may produce metals for structures of the state owned Rostekhnologii for production of special alloys.

'Metals of Eastern Siberia'is a subsidiary of IFC Metropol holding the licenses on a beryllium deposit with the reserves of 1.4 million tonnes and Talinsk lignite deposit.

Novorossiysk Port handling in January 2008 down by 15.5% YoY

It is reported that in January 2008 the cargo turnover in Novorossiysk commercial sea port totaled 4,855,900 tonnes which is a 15.5% YoY decrease in comparison with January 2007. Container turnover in January 2008 increased by 29.1% and totaled 96,600 tonnes.

As per report, oil and products handling through the Sheskharis terminal in January 2008 totaled 3,457,600 tonnes which is 17.9% YoY less than during last year's similar period. Dry bulk handling in January 2008 decreased by 7.1% YoY and totaled 1,388,900 tonnes. General cargo handling increased by 6% YoY to 619,300 tonnes.

Volume ferrous metals totaled 494,000 tonnes down by 1.5% YoY, non ferrous metals totaled 78,300 tonnes, pieced cargo totaled 31,700 tonnes, scrap metals totaled 9,600 tonnes down by 19.3% YoY and reefers totaled 5,500 tonnes.

Break bulk handling totaled 522,400 tonnes which is 2.5% less than during last year's similar period. Grain handling increased by 6% and sugar handling decreased by 22.7%. Bulk handling decreased by 49.9% and totaled 150,600 tonnes. Mineral fertilizers handling totaled 123,900 tonnes increase by 7.4%, ore totaled 26,700 tonnes decrease by 69.7%.