RINL inks MoU with RITES for rail network

Rashtriya Ispat Nigam Limited announced that it has signed a 5 year MoU with Rail India Technical & Economic Services Ltd for design and implementation of the railway network required as a part f its ongoing 6.3 million tonne and beyond. The agreement was signed by Mr AK Banerjee ED projects of RINL and Mr Jeevan Gupta ED of RITES.

The scope of MoU is as under

1. The job involves laying of Railway lines within the VSP’s land boundary for the incoming raw materials in the raw material yard and out going finished products in the finished product yard for the expansion and shall be handling an additional traffic of about 8.5 million tonnes. The total tonnage to be handled is likely to double with the plant expansion to 6.3 million tonne capacity.

2. RITES shall also be involved in the design of railway lines at captive mines of VSP both at Jaggayapeta and Madharam.

3. RITES shall be extending the services to obtain the clearance of ministry of railways for the detailed project report prepared by principal consultant MN Dastur & Co.

4. They will also be supervising the work and assure quality control to facilitate obtaining the fitment certificate of railways for movement of traffic.

CPI (M) urges centre to finalize NMP for securing iron ore

CPI (M) has asked the government to finalize a National Mineral Policy in order to ensure balanced development of the sector, restrict export of scarce resources and empower the centre to regulate supply of minerals including iron ore by one state to another.

Mr Basudeb Acharia senior CPI (M) leader said that "The manner in which iron ore, is being exported, plundered and looted, a day will come when our national stock will be exhausted. As it is, the present stock will last us only 20 more years."

He said that unlike in the coal sector, the centre had no control over the supply of iron ore within India. Mr Acharia said that as a result, states like Jharkhand are refusing to give the ore to West Bengal for the modernization of the IISCO plant.

He added that "In order that such situations do not arise in future, a comprehensive policy is of utmost importance. We want balanced development of the sector."

Government updates on SAIL expansion plans

Dr Akhilesh Das union minister of state for steel informed Indian parliament that “In order to maintain its predominance in the Indian steel sector and to face global competition, Steel Authority of India Limited has drawn up an expansion plan covering its 5 integrated steel plants and special steel plants.”

Mr Das said that SAIL proposes to increase production of hot metal from present level of 14.6 million tonnes per annum in 2006-07 to 26.2 million tonnes per annum by 2010-11 at a present indicative cost of INR 54,000 crore.

He added that “Besides capacity enhancement, the growth plan adequately addresses the need of SAIL plants towards eliminating technological obsolescence, energy saving, enriching product mix, pollution control, developing mines & collieries to meet higher requirement of key inputs, introduce customer centric processes and have matching infrastructure facilities in the plant to support higher production volumes.”

Changes in policy for leasing of coal blocks

Dr Dasari Narayana Rao union minister informed Indian parliament that Indian government is contemplating changes in the present policy for leasing of lignite or coal blocks.

He said that “In order to make the policy for leasing of lignite and coal blocks more transparent and objective in the context of increasing number of applications and declining number of coal and lignite blocks, the government is contemplating to introduce a system of auctioning through competitive bidding for allocation of such blocks by making necessary amendments in the mines and minerals development and regulation Act 1957.”

He added that “The government proposes to transfer the entire resource raised through competitive bidding to the concerned state government where the coal block is located.”

Under the existing provisions of the Act, prior approval of the central government is necessary before state governments can grant mining lease in respect of coal lignite and other minerals included in the first schedule of the Act.

Steelmakers seek reclassification in iron ore tariffs

BL reported that India’s domestic steel industry has found the Railway Budget 2008-09 balanced and forward looking and complimented the union railway minister for leaving iron ore and coal freight charges untouched.

Mr Y Siva Sagar Rao joint MD & CEO of JSW Steel Limited said that “However, a reclassification in rail tariff is required for the supply of iron ore to domestic steel industries as it becomes a value added product for the development of the nation.” He added that a couple of companies are handling full rakes for serving customers and to increase rail co efficient, steel industries must be given some special incentives on steel transportation.

Mr J Mehra CEO of Essar Steel Holdings said that “Developing exclusive freight corridors for iron ore and coal will meet growing needs of emerging sectors like steel and power. In time availability of rakes must be ensured and monitored as all the steel plants are expanding and railways’ share in both finished goods and raw materials will be increasing, a special attention to rake availability must be given.” He added that the steel industry has been expecting some relief from numerous additional levies like congestion surcharge imposed during past two years on iron ore movement.

Railway Budget 2008-09 evoke mixed responses in Jharkhand

Ranchi Express reported that Railway Budget 2008-09 has evoked a mixed response from businessmen and industrialists in Jharkhand and termed it as pro people.

Mr Manoj Naredi president of Federation of Jharkhand Chamber of Commerce & Industries said that passengers would be benefited from the fare reduction. He added that "But we had expected more, especially for this region. So would the mineral based industries gain from 14% reduction in freight charges?"

Mr Naredi rued the union railways ministry for ignoring the demands of Jharkhand based various organizations. He said that FJCCI for long has been demanding a Shatabdi train from Ranchi to Patna and Ranchi to Kolkata during daytime. It also wanted the ministry of introduce new trains from Ranchi to Guwahati to cater to the needs of people working in tea gardens of Assam.

TATA and Ford to be finalize Jaguar Land Rover deal soon – Report

The Times reported that American car maker Ford is expected to finalize the deal with Indian conglomerate TATA for the sale of luxury brands, Jaguar and Land Rover by next week. The Times in a report said that "Ford and TATA, which have been in exclusive talks since the beginning of 2008, are expected to sign a deal worth up to USD 2 billion next Wednesday or shortly afterwards."

According to the report, Ford is expected to seal the sale of Jaguar and Land Rover to TATA, next week after it recently agreed to pump hundreds of millions of pounds into the pension fund to smooth the process. It added that the deal is expected to be welcomed by unions, who believe that there is no immediate threat to British jobs or manufacturing.

The Times also said that Ford has pledged to pump in GBP 300 million into the pension fund to clear its deficit. It added that "It has also given assurances over the long term supply of engines and some other components to the two marques to ease union fears about their future. The two marques had to be sold together because Ford had merged a number of their operations and supplies. The official announcement is being timed for after the Geneva Motor Show, so that the two companies can try to promote their products at the key European showcase."

On January 3rd 2008, Ford had named TATA as the preferred bidder for Jaguar and Land Rover.

HZL raises zinc prices

Indian zinc major Hindustan Zinc Limited announced that it has increased its zinc prices by 4.5% to INR 115,100 per tonne (USD 2,892) effective immediately.

HZL also increased lead prices by 3.7% to INR 147,400 per tonne.

Private wagon makers welcome Railway Budget

It is reported that private wagon makers are happy over union railway minister’s proposal for almost doubling the procurement size and also increasing the number of high margin stainless steel wagons compared to mild steel wagons.

Mr Ramesh Maheshwari president & CEO of Texmaco said that “The stainless steel wagons constituted marginal orders in relation to the total wagon orders in 2007-08 but in 2008-09, it could be substantially higher. Indian Railways’ decision that from now on only stainless steel coaches would be procured is also regarded favorable for Texmaco as it has a 30% of share in domestic wagons market and also produces coaches."

Mr Umesh Choudhary MD of Titagarh Wagons said that the price gap between the lower end wagons and higher end wagons is increasing and the price divergence could as high as 50% or more.

Mr A Mondal MD & CEO of Stone India Limited said that “The Railway Budget is positive and will augur well for the railways and our company. There are many things in the Railway Budget that are positive. We have put many of our patented products in the railway system. There are several advanced electronics products that we have developed for the Indian Railways.”

Mr Lalu Prasad Yadav union railway minister had earlier said that Indian Railways is planning to procure 20,000 wagons in 2008-09 against little over 10,000 wagons in 2007-08.

NTPC ties up with Nordic Bank for EUR 68.56 million loan

PTI reported that National Thermal Power Corporation Limited has signed an agreement with Nordic Investment Bank for loan of EUR 68.56 million to part finance the capital expenditure of its projects.

The loan has a maturity period of 12 years including availability time frame of 3 years. The loan carries a floating rate of interest linked to Euribor and is without sovereign guarantee.

Government updates on RINL expansion plan

Dr Akhilesh Das union minister of state for steel informed Indian parliament that centre had approved the expansion plan of Visakhapatnam Steel Plant at an estimated cost of INR 8692 crore for increasing its liquid steel capacity from 3 million tonnes to 6.3 million tonnes per annum by the 2009.

Mr Das said that, while considering the proposal for expansion, an assessment has been made in respect of the international market, export trends and internal consumption vis a vis the projected rate of return on the investment.

He added that “Assessment of returns on the investment for Expansion Phase I has already been made in the project report. The entire capital cost of the expansion plan will be met by the VSP from internal resources and extra budgetary resources at an incremental debt equity ratio of 1:1.”

IOC gets shareholders nod for merger with BRPL

Indian Oil Corporation has announced that its shareholders have approved the merger of its subsidiary Bongaigaon Refinery & Petrochemicals Limited with itself.

The scheme of amalgamation of merger of Bongaigaon Refinery & Petrochemicals Limited with IOC was approved by shareholders, secured creditors and unsecured creditors during their respective meetings held on February 22nd 2008.

Earlier in November 2006, the board of directors of IOC had approved the merger with Bongaigaon Refinery & Petrochemicals Limited by recommending a swap of 4 equity shares of INR 10 each of IOC for every 37 equity shares of the same value of Bongaigaon Refinery & Petrochemicals Limited.

Indian Railways plans to mop up INR 7,200 crore in 2008-09

It is reported that Indian Railways is planning to mop up INR 7,200 crore funds from the market though Indian Railway Finance Corporation and Rail Vikas Nigam Limited in 2008-09. Thus, in 2008-09, the market mobilization of funds is almost equivalent to the gross budgetary support of INR 7,874 crore.

Indian Railway Finance Corporation would have to raise a record INR 6,907 crore in 2008-09. Rail Vikas Nigam Limited has also been budgeted to raise INR 293 crore in 2008-09.

Indian Railway Finance Corporation mobilizes funds from the market for buying rolling stock and providing it on long term lease to the Indian Railways. In the current fiscal, it budgeted to raise INR 5,000 crore, which has now been lowered to INR 4,750 crore in the revised estimates.

Mr R Kashyap MD of Indian Railway Finance Corporation said that “As on date, we have raised INR 4,250 crore from the domestic market, at weighted average cost of 9.3% in the current fiscal. The average tenor for the borrowings is 10 years.” He added that, till December 2007, it had raised INR 3,200 crore at an average cost of 9.5% and weighted average tenor of 12 years.

In 2006-07 fiscal, Indian Railway Finance Corporation had raised INR 4,000 crore. It had brought down its total cost of borrowing to about 8.22% supported by two bond issues in the external markets. Out of the INR 4,000 crore, it raised INR 2,900 crore from the domestic market and about INR 1,100 crore from the external market.

VSEC promises better wage and jobs for VSP oustees

It is reported that Visakha Steel Employees’ Congress, assuring better wage revision package and jobs for the oustees of Visakhapatnam Steel Plan, has urged the VSP employees to vote for ‘Lion’ symbol in the recognized union elections slated for March 1st 2008.

Mr Mantri Rajasekhar general secretary of Indian National Trade Union Congress said that Visakha Steel Employees’ Congress and its allied unions strove hard for the welfare of the steel plant employees throughout the current tenure.

He added that Visakha Steel Employees’ Congress is successful in getting payment of salary dues, five bonuses, silver jubilee increments, promotions in different categories, house building advance wages and other payments and facilities.

OCL India Limited to merge with Dalmia Cement

It is reported that OCL India Limited has decided to go ahead and demerge two of their businesses namely steel and realty business with Dalmia Cement Mehalaya Limited.

Every shareholder, who had their holding in OCL India, would get 3 additional shares of the real estate division, 3 shares of their steel business and for every 100 shares of Dalmia Cement Mehalaya Limited, shareholders will get about 61 shares of OCL India.

The delivery is going to be after the March 5th 2008, which is set as a record date for these two demerged entities. March 6th 2008 is set as record date for the cement division.

Subhash Projects bags contract from Bangalore Electricity

Subhash Projects & Marketing has bagged multi million orders from Bangalore Electricity Supply Company.

The orders include

INR 123.72 crore order for supply and erection of equipments or materials for execution of Swarna Jyothi Scheme with associated extension and improvement of 11kV and LT line works in partial turnkey basis in Tiptur Division.

INR 20.73 crore maintenance contract of Swarna Jyothy Scheme, Tiptur Division

INR 62.51 crore orders for supply and erection of equipments or materials for execution of Swarna Jyothi Scheme with associate extension and improvement of 11kV and LT line works in partial turnkey basis in Chitradurga Division

INR 8.16 crore maintenance contract of Swarna Jyothy Scheme, Chitradurga Division

INR 48.47 crore orders for supply and erection of equipments or materials for execution of Swarna Jyothi Scheme with associated extension and improvement of 11 kV and LT line works in partial turnkey basis in Hiriyur Division

INR 9.09 crore maintenance contract of Swarna Jyothy Scheme, Hiriyur Division

Shriram Pistons plans manufacturing facility in Rajasthan

Projects Today reported that Shriram Pistons & Rings Limited is planning set up a manufacturing facility at Pathredi in Rajasthan with an investment of INR 600 crore.

The proposed plant is being set up to double its capacity and to produce high end products suitable for automotive engines that conform to Euro IV and Euro V emission norms.

Shriram Pistons manufactures pistons, piston rings and engine valves catering to most vehicle and engine manufacturers in India.

NALCO floats alumina sale tender

ET reported that National Aluminum Company Limited has issued an alumina sale tender.

NALCO did not specify the quantity, but a source said the amount is 12,500 tonnes. The tender will close on March 10th 2008.

Vale posts 62.9% YoY surge in 2007 earnings

Worlds biggest iron ore miner Brazilian Companhia Vale do Rio Doce has completed in 2007 the fifth consecutive year of extraordinary growth in its activities. This process was sustained by continuous improvement in operational and financial performance, greater diversification of its asset portfolio and globalization of its operations.

In 2007 Vale broke nine different production records
1. Iron ore - 296 million tonnes
2. Pellets - 17.6 million tonnes
3. Finished nickel - 247,900 tonnes
4. Copper - 284,200 tonnes)
5. Bauxite - 9.1 million tonnes
6. Alumina - 4.3 million tonnes
7. Aluminum - 551,000 tonnes
8. Kaolin - 1.3 million tonnes
9. Cobalt -2,500 tonnes

Financial performance

In million USD

Item wise sales

In ‘000 tonnes

Destination wise sales

In ‘000 tonnes

In the last five years Vale has invested USD 40.7 billion, of which USD 20.6 billion in acquisitions and USD 20.1 billion in maintenance of operations, research and development and project execution.

The completion of twenty large projects, successful acquisitions and increased productivity were responsible for an expansion of our total output at an average annual rate of 11.6% between 2003 and 2007. In parallel to this quantitative growth, nickel, copper, metallurgical and thermal coal, platinum group metals and cobalt were added to our portfolio.

MEPS forecast steep hike in global steel prices in 2008

UK based MEPS said that US mills appear to be busy with delivery lead times stretching out to early April as customers need to replenish stocks and there is a lack of imported steel at present, although this could change later in the year. MEPS added that “Inventories at the service centers have declined but business is not so robust. However, profit margins are said to be holding. Mill transaction prices have soared since our January report, driven by volatile input costs and higher energy and transport charges. The major steelmakers have all announced further, substantial hikes for second quarter supplies.”

MEPS said that “Canadian mills have solid forward order books. Transaction prices continue to advance at a rapid rate as delivery lead times move out to April. Producers have tabled further increases of CAD 30 to CAD 50 per tonne for period two. Imports are effectively non existent. This, together with recent mill consolidations and production outages, has caused supply tightness. However, service centre business is slow, creating a great deal of competition at the distribution level, where resale values are under threat. With the rising steel prices and strong Canadian dollar, manufacturing companies are feeling extreme pressure.”

MEPS added that “Supply was badly restricted in China in late January and early February by inclement weather. Since the return from the New Year holidays, domestic prices have undergone further positive developments in a climate of good demand and low stock levels. In Japan, flat product demand is strong from auto and electrical appliance makers but the distribution sector is weak. Nevertheless, inventories are gradually reducing. Quayside stocks of imported flat products, at the end of January, declined for the fourth consecutive month as overseas suppliers’ diverted goods to their domestic markets or more lucrative export ones. Buying activity has picked up because of expectations of significant price hikes planned for the second trimester. Market prices are already moving up as a result.”

MEPS further added that “After weeks of speculation, POSCO finally announced it would ramp up South Korean prices for hot and cold rolled coil and also heavy plate destined for non shipbuilding applications, effective February 1. The company said it may have to go for further increases after April 1 when the higher costs of iron ore and coking coal will kick in. Values continue to rise in Taiwan, where sales are robust. Domestic mills are expected to boost values inline with the international situation for second quarter business.”

MEPS said that “Excellent growth rates in industrial output continue to provide good levels of demand for Polish steelmakers. Although strip mill prices are stable this month, Mittal Steel Poland has announced increases for March. The Czech and Slovak market is firm with some shortages reported. Imports are scarce and customers are ready to accept planned price hikes in the second trimester. West European mills are also benefiting from a lack of competitive third country imports. Low inventories at distributors need to be replenished. Buyers are accepting that prices must go up as producers try to recover higher input costs.”

Vale Xstrata tie up - Talks break down on marketing rights

It is reported that the talks between Brazilian Vale and Anglo Swiss Xstrata PLC have hit serious obstacles over a dispute over marketing rights held by Xstrata’s largest shareholder Glencore International AG.

As per reports, Glencore, which owns a 35% stake in Xstrata and holds long term agreements to market a significant portion of Xstrata's mining output, wishes to significantly expand its market agreements to cover Vale products other than iron ore.

On the other hand, Vale is reported to be objecting to the role of Glencore in a combined company.

As per report, negotiations have veered away from price, which previously had been a sticking point and the two sides are more or less happy with a price.

Vale said on January 21st 2008 that it is in talks to possibly buy Xstrata. Vale is reported to have secured loans of an estimated USD 50 billion from a pool of about eight banks. A marriage of the two companies would diversify Vale from dependence on iron ore by boosting its presence in copper and nickel.

JFE Steel to raise capacity at Japanese plant

MarketWatch reported that JFE Steel Corp will boost its production capacity at its key steel making plant in western Japan to better meet growing demand for high grade steel products on a global basis.

JFE, a unit of JFE Holdings Inc, said that it will spend about JPY 50 billion to launch new facilities for slabs, an intermediate steel product, at its plant in Fukuyama. It said that the new facilities, slated to kick off production by September 2010, will help boost annual crude steel output by 1.5 million tonnes at its facilities in the Fukuyama area to 13 million tonnes.

Canada to concludes AD investigation for plates from Romania

It is reported that Canada Border Services Agency has concluded its re investigation of the normal values and export prices of hot rolled carbon steel plate and high strength low alloy steel plate originating in or exported from the Republic of Bulgaria, the Czech Republic and Romania.

This re investigation is part of the Canada Border Services Agency’s enforcement of the Canadian International Trade Tribunal's injury finding of January 9th 2004.

Nickel rises to 3 months high as BHPB mine halts output

Bloomberg reported that Nickel rose to the highest in three months after a strike at BHP Billiton Ltd's Cerro Matoso mine in Colombia halted production.

Ms Samantha Evans a spokeswoman of BHP Billiton said that we cannot say how long the operations will be affected by the strike which began yesterday.

She said the strike notice came after a breakdown of talks on a new two year labor contract at the plant that employs some 3,000 people directly and indirectly.

Nickel for delivery in three months advanced USD 1,349 or 4.6% to USD 30,549 a tonne. Earlier it traded at USD 30,900 a tonne, the highest intraday price since November 19. Nickel has risen 16% in 2008 lagging behind copper and aluminum as demand from stainless steel mills is recovering.

Sylvania extends Samancor chrome mine fines treatment deal

Sylvania Resources Limited announced that it has signed a further amendment to the Service and Supply Agreement with Samancor Chrome Limited to treat ROM fines from three new sites at Samancor Chrome’s current South African mining operations.

Attributable PGM production will increase by approximately 6 000 oz/pa, or 8% of current production in the short term increasing to approximately 33% of production in five to six years as current dumps are depleted.

The contract amendment agreed with Samancor Chrome provides that an estimated 300,000 tonnes of ROM fines a year will be made available to Sylvania for treatment. These ROM fines have an average grade of 1.4 gram per tonne. Chrome ore recovered from ROM fines treatment will be returned to Samancor Chrome at a nominal charge.

Plant extensions to treat ROM fines at Lannex and Mooinooi are planned at a total capital cost of approximately ZAR 110 million. This will be funded from available cash resources. It added that an additional chrome treatment plant with a capacity of 50,000 tonne per month has been purchased from Samancor Chrome, at a market related price reflecting a saving on the construction of a new plant.

Mr Terry McConnachie CEO of Sylvania said that “We are very pleased to be awarded this additional contract to treat ROM fines from Samancor Chrome’s Broken Hill, Spitzkop and Buffelsfontein East mining operations for PGMs and chrome. This further consolidates our symbiotic relationship with Samancor Chrome in terms of which it benefits from very cheap chrome and we benefit from the PGMs extracted. It also marks a substantial step forward for Sylvania in its growth as a specialized, low cost, high margin producer of PGMs, primarily from tailings located throughout South Africa’s prime, PGM and chrome rich Bushveld Complex.”

Samuel Manu Tech to acquire Omega Joists Inc

Samuel Manu Tech Inc announced that it has acquired the assets and all business operations of Omega Joists Inc. The transaction is structured as a purchase of the principle assets of Omega Joists Inc. The purchase price is CAD 27 million, subject to certain adjustments for working capital items. Funding for the acquisition came from Samuel's existing revolving credit facilities.

Omega is a recognized leader in the design, engineering, manufacturing and supply of open web steel joists used primarily in the commercial and industrial building products industry in Western Canada.

This acquisition complements Samuel's existing roll forming capability at its Roll Form Group operations in Edmonton, Alberta, Mississauga, Scarborough and Cambridge, Ontario and in Iuka, Mississippi.

Mr Mark Samuel chairman & CEO of Samuel Manu Tech said that "We are excited to welcome Omega Joists, their management and employees to our group of metal processing companies. We consider this to be a great fit with our roll form operations, allowing us to package the sale of open web steel joists with our existing deck, siding and other building products."

Samuel Manu Tech Inc is one of the leading North American industrial products and technology company producing a wide range of steel, plastic and related industrial products and services from locations in Canada, the United States and Mexico.

ThyssenKrupp orders annealing and pickling line for US plant

SMS Demag announced that ThyssenKrupp Stainless USA LLC in Mobile USA has placed an order in November 2007, for the complete supply of a hot strip annealing and pickling line for the works at Calvert in Alabama.

This annealing and pickling line is an integral part of a new cold rolling mill for stainless steel that is being erected by ThyssenKrupp Stainless in the USA. The essential purpose of the line is to process hot strips. The works will produce stainless steel strips that have been adapted specifically to the requirements of customers in the USA. The annealing and pickling line is designed for an annual production of 750,000 tonnes.

The main purpose of the line is to manufacture hot strip for the production of cold strip. The hot strip will additionally be utilized for tube and pipe production, apparatus engineering and in the offshore industry.

The cold mill in which the annealing and pickling line will become operational is an integral part of a joint works of ThyssenKrupp Stainless and ThyssenKrupp Steel. It will commence production in 2010. ThyssenKrupp Stainless is investing around EUR 840 million in new production capacities for stainless steel.

JFE Steel eying upstream operation in Asia and Brazil

Mr Hajime Bada president of JFE Steel told reporters that JFE Steel is studying potential upper stream operation in several countries including Asia and Brazil.

Mr Bada said that the firm tries to expand the high value supply to meet growing demand in developing areas. He added that JFE Steel has already showed the willingness to build blast furnace in Thailand and keeps studying the market and infrastructure availability.

ArcelorMittal Galati ordered to compensate Dunarom

AP reported that a court ruled ArcelorMittal Galati to pay USD 5.6 million in compensation to Romanian transporter Dunarom Trading Company.

As per report the High Court of Justice ruled that ArcelorMittal Galati had contributed to Dunarom's bankruptcy in 2003 after it unilaterally decided to cancel its contract with the transporting company.

As per report, the court's decision, which came three years after a lawsuit was filed, is final.

Arcelor Mittal Galati is part of ArcelorMittal SA, the world's largest steel maker.

LME appoints Ms Liz as commercial director

The London Metal Exchange has announced the appointment of Ms Liz Milan as director commercial and Mr Craig Hewett as deputy director. They will head up a new department combining all LME marketing and commercial activities and will assume their roles with immediate effect.

Ms Liz has been with the Exchange since January 2005, initially as head of physical operations and appointed steel project director in October 2006. Prior to the LME, Ms Liz worked in physical steel trading and LME client liaison work for a number of companies including Mitsubishi, Stemcor and Sempra Metals Ltd.

Mr Craig joined the LME in 2000 as head of marketing and was appointed Head of LME Data in July 2005, launching the Exchange's own direct data product, LMElive in January 2008. He began his career in sales working in a number of positions for Xerox products and services.

Mr Martin Abbott CEO of LME said that "Ms Liz and Mr Craig bring many years of wide and diverse experience to their new roles and I am confident that they will make a valuable contribution to the Exchange's commercial strategy, approach and operation. I look forward to working with Liz and Craig in this new context as we go forward."

LME is the world’s premier non-ferrous metals market and achieved volumes of almost 93 million lots in 2007 an increase of 7% YoY on 2006 figures and equivalent to USD 9,500 billion in monetary terms.

EU steel industry reaffirms commitment to R&D to reduce CO2 emissions

It is reported that the European Steel Technology Platform has decided to launch a second phase of the Ultra Low CO2 Steelmaking research program.

ULCOS II will be the world’s most ambitious Research and Development effort to reduce process related CO2 emissions in steelmaking. The current ULCOS project brings together steelmakers, companies in the steel supply chain, research laboratories and universities to devise the breakthrough technologies that can bring about enhanced reductions in CO2 emissions from steelmaking, with almost EUR 30 million of funding already allocated from the EU's research program including the Coal and Steel Research Fund managed by the European Commission. The next phase will require significant levels of investment the first industrial scale demonstration is estimated at EUR 300 million.

Mr Janez Potočnik European Science and Research Commissioner said that “The European Commission is committed to encouraging industry to reduce its CO2 emissions and research plays a vital role in that. The European Steel Technology Platform and the work of the ULCOS programme are good examples of an industry working to develop appropriate technologies to maintain its future competitiveness."

Mr Michel Wurth chairman of European Science and Research Commissioner’s Steering Committee said that “This important decision shows that the European steel industry is strongly committed to making its contribution to the fight against climate change and the reduction of greenhouse gas emissions. In addition, it demonstrates that it is capable of living up to this responsibility and at the same time seeking to improve its competitiveness”.

The European steel industry has cut emissions by 50% over the last 40 years. As carbon based technologies approach their physical limits with respect to energy efficiency, the steel industry has decided to invest in long term R&D to come up with breakthrough technologies to decrease CO2 emissions in steelmaking even more drastically. It was for this reason that the European Steel Technology Platform was launched, with the support of the European Commission, at the beginning of 2003. ULCOS, carried out by a consortium of 48 European partners, is the most important collaborative project implemented under the umbrella of FP6 and the Research Fund of Coal and Steel.

Nucor purchase of David J Joseph Co gets approval in US

Reuters reported that US antitrust authorities have approved Nucor Corp's purchase of scrap processor David J Joseph Co.

The Federal Trade Commission said that Nucor would buy the processor for about USD 1.44 billion to get improved access to raw materials.

Georgsmarienhütte commissions laded furnace

SMS Demag AG announced that it has successfully taken into operation the 140 tonne ladle furnace supplied to Germany’s Georgsmarienhütte GmbH.

The order awarded to SMS Demag consisted of manufacturing, erection and commissioning of plant and equipment for the secondary metallurgical field. The supply scope included a 140 tonne ladle furnace with a transformer capacity of 25 MVA, the water supply and treatment system, a stirring gas control station and the ladle transfer car.

The existing ladle furnace at the Georgsmarienhütte works was modernized as part of this new plant building project. SMS Demag has supplied a common dust collecting facility for the two ladle furnaces, carbon injection systems, a T&S lance, a transfer station for the two ladle furnaces, and the electrical and automation systems.

Georgsmarienhütte GmbH produces steel bars, semi finished products and bright steel from quality steel and high grade structural steel and delivers predominantly to the automotive industry as well as its suppliers. Georgsmarienhütte’s aim of achieving increased production in addition to improving the metallurgical treatment possibilities was optimally realized by the acquisition of this new plant.

Industrie Riunite Odolesi to install Tenova EFSOP

Tenova announced that Industrie Riunite Odolesi has chosen to install its EFSOP® Holistic Optimization™ system as their preferred process control tool for the EAF meltshop at Odolo in Italy.

Optimization of the 75 tonnes electric arc furnace will be based on standard parameters which include reducing electrical energy, oxygen and natural gas consumption along with increasing yield and productivity.

Tenova Scope of Supply will also include post combustion optimization and TGI’s off gas water detection technology for increased safety within the furnace environment. EFSOP® will also tune at the finest levels the KT Oxygen Lances and PC burners already on site at the facility to provide EAF optimal continuous improvement. The sale of EFSOP® to IRO SpA is the tenth Tenova Goodfellow sale in the Italian steel market.

The EFSOP® System is part of a wider project handled by Tenova Meltshops BU which will also supply new bimetallic power conductive arms and a new regulation system for the TDR H.

With half a century of operations, Industrie Riunite Odolesi has progressed from the ancient handicraft of tradition to the new industrial strength of technological progress. The main production line includes billets from continuous casting and steel for reinforced concrete. Since 1990, IRO has used the Tempcore technology which consists of superficial heat treatment of the bar during lamination.

Tenova Goodfellow Inc is a Canadian company based in Mississauga in Canada and is an integrated member of Tenova.

Minor fire at SDI Roanoke Bar Division

It is reported that a wood and metal cooling tower that was undergoing demolition caught fire at Steel Dynamics Roanoke Bar Division. No one was injured in this fire. Damage estimates have yet to be released.

The tower was in the process of being demolished by an outside contractor when a cutting torch being used to cut metal piping inadvertently ignited 30 year old redwood fins. The fire department was called after it was immediately determined the fire could not be controlled with three fire extinguishers in the vicinity.

When firefighters arrived, they found part of one building on fire. At first, it was believed that asbestos was burning inside the plant. After the fire was extinguished, it was determined that there was no asbestos danger to crews or the community.

The plant used to be called Roanoke Electric Steel but was renamed Steel Dynamics Inc Roanoke Bar Division. In April 2006, Steel Dynamics Inc and Roanoke Electric Steel merged and Roanoke Electric Steel became a wholly owned subsidiary of SDI.

Petrobras joins Mitsui for pipeline in Brazil

It is reported that Brazil Petrobras signed a partnership with Japan’s Mitsui & Company Limited and Brazil Camargo Correa SA to develop the conceptual and basic engineering for an ethanol pipeline that will be built between Senador Canedo Municipality and Paulinia where Petrobras' Paulinia refinery is located.

As per report Petrobras will conduct detailed engineering and construction, which is expected to take two years. The USD 1.6 billion project includes a second section that will connect the Tiete to Parana waterway to Paulinia's ethanol terminal.

This ethanol pipeline will start in Senador Canedo and run through Uberaba, Riberao Preto, Paulinia and Guararema. The 1,150 kilometer pipeline will be built with 180,000 tonnes of carbon steel pipe, which will be able to transport 6 billion liters of ethanol. About 12 million cubic meters per year of ethanol will be transported between Paulinia and Guararema cities.

POSCO to increase 400 series SS price in February 2008

YIEH reported that South Korean POSCO is increasing prices of its stainless steel 400 series due to higher chromium price.

As per report POSCO increase the stainless steel 400 series coil and flat products price will be increased by KRW 150,000 per tonne. POSCO adjusted their 400 series price in June 2007

Grupo Simec 2007 net profit decline by 24% YoY

Mexico based steel producer Grupo Simec SAB de CV announced results for the Q4 of 2007 and full year of 2007. Its Q4 net profit declined to MXN 163 million from MXN 187 million while sales rose to MXN 5.824 million from MXN 4.898 million.

Grupo Simec said that its net profit decreased by 24% YoY to MXN 1,824 million in 2007 from MXN 2,399 million in 2006. Net interest income was MXN 273 million in 2007 as compared to MXN 47 million in 2006 due to larger cash balances during this year. Net sales increased 3% YoY to MXN 24,106 million in 2007 from MXN 23,515 million in 2006, largely due to higher shipments. Total sales outside of Mexico in 2007 increased by 7% YoY while total Mexican sales decreased by 7% YoY.

Grupo Simec also said it executed an agreement to acquire 100% of the shares of Corporacion Aceros DM, SA de CV and certain of its affiliates on February 21st 2008.

Simec owned by Mexico's Industrias CH is a mini mill steel producer that makes an array of non flat structural steel products. The company describes itself as the largest producer of special bar quality steel in North America.

BSRM to invest BDT 500 crore in new steel plant

The daily Star reported that Bangladesh Steel Re Rolling Mills is planning to invest BDT 500 crore in building a new steel mill and a billet factory in Chittagong during the next five years in an effort to double its share of the rebar market in Bangladesh.

Mr Aameir Alihussain director of Bangladesh Steel Re Rolling Mills said that that the two new factories will be a BDT 260 crore billet factory with a capacity of 0.6 million tonnes of billets and a rolling mill for rebar production costing around BDT 260 crore.

Mr Alihussain said that “At present Bangladesh Steel Re Rolling Mills holds around 12% of the market for quality rod. Until this year the rod market had been growing at 8% to 12% a year, although demand has been dampened somewhat in the last 12 months due to weakness in the construction sector and a sharp increase in rod prices.

He added that "Now the trend is that people construct high rise buildings in Dhaka and Chittagong which is not possible without using quality rod. As the building of high rise buildings will rise in coming years we want to meet the demand with our product.”

Midwest and Murchison to fight for Oakajee port tender

It is reported that the Western Australian government has given Midwest and Murchison Metals nine weeks to submit tenders to build a port at Oakajee.

Mr Alannah MacTiernan planning and infrastructure minister of Western Australian said that an announcement of the successful tender by mid 2008 should allow construction to commence by late 2009 and port operations to start by 2012.

As per report, the timetable for tenders was welcomed by both Murchison and Yilgarn Infrastructure, which is proposing to build the port for Midwest. Both companies are confident of having adequate iron ore resources to justify the expenditure on an AUD 1.5 billion port.

Eskom to enters wind energy

It is reported that South African power utility Eskom has invited request for proposal applications for a commercial wind energy generation facility and associated infrastructure.

Eskom Holdings Ltd is proposing to establish the commercial wind power generation facility in the Western Cape Province of South Africa for a cluster of 100 MW wind turbines, alternatively a cluster of 200 MW wind turbines. The minimum requirement of the wind turbine must be 2 MW per unit.

Eskom engaged an expression of interest in July 2007 to pre qualify contractors. Due to scope changes it was decided to reissue a request for proposal for the national and international markets, whether or not they participated in the EoI process. The closing date for the Request for proposal is April 15th 2008

Eskom is establishing renewable forms of energy in order to diversify the energy mix that will eventually help it to meet the country’s growing electricity demand.

Taiwan's pipe producers facing difficult times

YIEH reported that after Taiwan Chung Hung Steel has made its domestic price announcement for March shipments, Taiwan’s pipe mills began to worry about the future market situation.

The average rate of Taiwan Chung Hung Steel's price has risen by about 18% this month, causing Taiwan’s pipe mills to increase its new black pipe price about TWD 3,500 to TWD 4,000 per tonne. Therefore, the new price will be about TWD 27,500 to TWD 28,000 per tonne the highest level in the history.

Moodys cuts Griffin Coal ratings to Ba3

Thomson Financial reported that Moody's Investors Service has cut Australia based Griffin Coal Mining Company Pty Ltd's corporate family and senior unsecured ratings to 'Ba3' from 'Ba2', with a stable outlook.

Moody said that the downgrade reflects lower earnings and profitability in 2007 relative to initial forecasts and the outlook for lower production levels, earnings and cash flows, than forecast. It added that the company carries extended risk surrounding the completion and commissioning of its major coal carbonization project.

Moody however, said that Griffin has strong reserves and contracts, and is proceeding on time and within budget with its Bluewaters I and II projects, which when successfully completed will provide strong revenue streams to replace from 2010 Verve Energy's expiring contract.

ArcelorMittal to spends USD 1.72 billion for buying Carlo Tassara stake

AP reported that ArcelorMittal SA will spent about USD 1.72 billion buying back shares from its second biggest shareholder, a French investor who backed Mittal Steel's acquisition of Arcelor that combined the world's No 1 and No 2 steelmakers.

As per report, ArcelorMittal SA said it had bought back 25 million shares from Carlo Tassara International, a holding company controlled by French financier Mr Romain Zaleski. Mr Zaleski's stake in ArcelorMittal was second to the Mittal family's 43% shareholding.

He openly favored the Mittal Steel’s offer over Arcelor's attempt to stave off the bid by combining with Russian steelmaker Severstal. His support for the hostile turned friendly Mittal Steel takeover of Arcelor was part of the turnaround that finally saw the deal go ahead in July 2006 after a takeover battle.

Mr Zaleski became the biggest single shareholder in Arcelor a month earlier, overtaking the Luxembourg government by building up a 8% stake.

Port of Tauranga H1 profit down by 4.7% YoY

New Zealand's Port of Tauranga announced that its H1 net profit down by 4.7% YoY on lower cargo volumes, but said it expected its full year result to exceed last year. The port's net profit after tax was NZD 20.5 million for the July to December 2007 as compared with NZD 21.5 million a year earlier.

Trade for the period was 6.518 million tonnes, which is 5% down on last year. The reduction is largely due to coal imports being down 384,811 tonnes on last year's volume, which was partially offset by a 66% increase in grain and palm kernel expeller imports. Log exports were similar to last year and on a more positive note, container volumes were up 8% YoY at 274,158 TEUs.

Mr John Parker chairman of Tauranga said that “Despite total cargo volumes falling 5% in the first half, the outlook was more positive with tight control of costs and strong growth in container shipping.” He added that the “Half year result is considered a robust performance, representing a normalized 4% increase in earnings on reduced trade. Management has continued a strong focus on costs whilst continuing to maintain best in class productivity.”

Mr Mark Cairns CEO of Tauranga said that "The future outlook for the Port remains positive with the very strong performance in the container terminal over the last quarter and also with encouraging signals from log exporters, who are reporting price increases into Korea and China, along with a fall in bulk shipping charter rates."

Saudi Arab to award Landbridge rail contract by June 2008

Reuters reported that Saudi Railways Organization announced that it would name the winner of its estimated USD 5 billion project to build a 1,100 kilometer railway track on 30 year build and operate basis across the Saudi desert linking the Gulf and Red Sea coasts by June 2008.

Mr Mohammad Afzal Khan advisor to the president of the Saudi Railways Organisation told newswire Reuters by telephone from Dammam that "We will know the winner by June.”

He added that "The group which asks for the minimum grant from the government and meets the financial models will be the preferred bidder."

Mr Khan declined to say how much the project would cost, but said the consortiums would have to put in 20% equity with the remainder coming from bank loans and the government grant.

Four groups of Saudi and international firms are vying for conytract.

1. Kuwaiti logistics firm Agility leads one consortium with US firms KBR, General Electric and Saudi Arabia's Al Rajhi Bank.

2. Saudi Binladin Group heads a group including Japan's Mitsui & Company, India's Ircon International, Germany's Siemens, Deutsche Bank and Deutsche Bahn, according to the SRO website.

3. Rajhi Investment leads the group with Mada Company for Industrial & Commercial Investment. Other members include Canada's SNC-Lavalin and Saudi Arabia's Samba Financial Group.

4. The fourth consortium, led by Saudi family owned business Al-Muhaidib & Sons, includes South Korea's Samsung Engineering & Construction and French bank BNP Paribas.

The so called Saudi Landbridge project includes a 950 kilometer line between the capital Riyadh and the Red Sea port of Jeddah, as well as a 115 kilometer link between the industrial city of Jubail and Dammam, the oil hub on the Gulf coast. The Landbridge is one of the projects Saudi Arabia is using to tap a regional economic boom powered by a quadrupling of oil prices in the past six years to develop infrastructure, tourism and industry.

Libya inks JV for oil refinery and aluminum smelter

Arabianbusiness.com reported that Libya African Investment Portfolio has signed a JV agreement with UK based Klesch and Co to invest in building a new 300,000 barrels per day capacity oil refinery, and a 725,000 tonnes per year Aluminum smelter in Libya. The deal represents an investment of approximately USD 8 billion.

The complex is scheduled for completion in 2011 and will use the latest technology allowing it to optimize the production of finished goods. Both parties also confirmed their interest in jointly developing the mining and refining of Bauxite in Western Africa.

Mr Abdulfatah Sharif of Libya African Investment Portfolio said that "We are delighted to have signed this agreement. We welcome the investment and the development of our infrastructure and are extremely impressed with the Klesch organization.”

Mr Gary Klesch said "We welcome the opportunity to work alongside the Libyan Government in developing their downstream capabilities and firmly believe in the long term growth prospects of the country and are supportive of their economic development plans.

DP World Adelaide invests AED 121 million for port expansion

Gulf News reported that global terminal operator DP World is investing AED 121 million in the expansion of the quay and other facilities in Adelaide Port, where it operates a container terminal.

The investment includes 2 new Post Panamax Cranes planned for commissioning by 2009, 4 new generation Noell Straddle Carriers due for delivery in 2008, upgrade and redevelopment of hard stand, other heavy lift equipment for use in terminal and depot and the development of regional intermodal hub.

Mr Andrew Towers GM of DP World Adelaide said that "We have recorded 28% growth in container throughput to 255,000 TEUs in 2007 up from 202,000 TEUs in 2006. We are investing AUD 35 million in upgrading facilities including buying cranes, other equipment and expanding the terminal's quay by 149 meters alongside the existing 510 meters, which will satisfy our needs till 2012."

Mr Towers said that "Adelaide Port is running at nearly full capacity. By 2012, we might need to construct a third terminal to handle the demand. We are investing AUD 800,000 in building an eco friendly office for its management just near the terminal. DP World's taking over the terminal is good for the South Australian economy. They are willing to invest in infrastructure and employees."

DP World currently operates 5 container terminals in Australia's major ports like Sydney, Melbourne, Brisbane, Adelaide and Perth in Western Australia. It acquired the management of Adelaide port through DP World's global acquisition of CSX World Terminals in 2004 while the rest came under its management through the acquisition of P&O.

China may join IPI project – Pakistan

Mr Farrukh Qayyum secretary of the ministry of petroleum of Pakistan said that China may join the IPI gas pipeline project. He added that Islamabad has no objection to the Chinese proposal of transporting gas from Iran to China through its land.

Pakistan and China are currently repairing the Karakoram Highway, which connects Pakistan to China, following one of the ancient silk routes along the Indus. Chinese authorities said that they are ready to lay a pipeline along this highway to transfer Iran's gas through Pakistan.

Mr Qayyum said that the possibility of Iran, Pakistan and China cooperating on such a venture is very high. He pointed out that while the Pakistan India section of the agreement is not yet finalized, Pakistan is ready to sign a bilateral agreement with Iran if it becomes necessary.

Aramco and Total likely to build refinery despite high costs

Khaleej Times reported that France's Total and Saudi Aramco are likely to go ahead with plans to build 400,000 barrels per day refinery in Saudi Arabia despite escalating costs.

An official at Aramco said that "All the indications are good. There is definitely willingness on both sides to go ahead and finalize the deal." He added that Total and Aramco would take a final investment decision on the plant in May or June 2008.

The estimated cost of the new refinery and a similar plant Aramco is planning with US firm Conoco Phillips has risen above USD 10 billion from initial estimates of around USD 6 billion. Both refineries will be complex and capable of processing heavy oil into oil products such as gasoline for export.

Saudi Arabia is planning 4 new plants as it looks to boost domestic refining capacity by as much as 1.6 million barrels per day from 2.098 million barrels per day. But rising costs for equipment and labor have hit the energy sector worldwide, forcing project cancellations and delays and raising industry concern about the new Saudi plants.

As future projects to expand oil output come online, Saudi Arabia will produce more of the heavy crude that most refiners find difficult and expensive to process.

Work on Dubai Metro main power station completed

Dubai Roads & Transport Authority has announced that the main power station for Dubai Metro has been completed and the Jebel Ali depot work is 55% finished.

Mr Mattar Al Tayer chairman & executive director of RTA, after a visit to a number of sites including the depot, an inclined section of the Red Line near Jebel Ali Free Zone and an elevated station at Jebel Ali Industrial Area, said that Work on the project is progressing rapidly.

Mr Al Tayer reviewed progress on the construction of the Red Line at the gradient near the Free Zone where technical trials will be conducted over a 4 kilometer test track. He added that “The trial run is crucial to ascertain the operational readiness of the trains and ensure functionality of all control systems under various conditions.”

Mr Al Tayer also inspected the Metro station at Jebel Ali Industrial Area. He was briefed by Engineer Mr Abdul Majeed Al Khaja on the progress of work on the station, which is 33% complete.

It is expected that 62 trains, each consisting of 5 carriages and capable of carrying 645 passengers, will have been delivered by the time the Red and Green Lines start operating. The depot contains a rail operation control centre that will ensure the safety of doors, brakes and motors and has facilities for servicing air conditioners and other systems. It also includes maintenance workshops and train washing and cleaning bays.

Stations are being built in an oval shape and the roofs have been designed to resemble large seashells, symbolizing the UAE’s fishing and pearl diving traditions. The power station covers an area of 3,659 square meters and has an output of 80 to 100 megavolt amperes.

Sohar Aluminum to start work on its new smelter by June

Reuters reported that Oman's Sohar Aluminum is on track to start up its 350,000 tonne per year smelter by June 2008.

An official at Sohar Aluminum said that "The project will come on stream by June 2008 and we aim to export most of the output. We are still discussing if we could later expand the output of the smelter and how we can secure gas supplies."

The USD 2.4 billion Sohar Aluminum is 20% owned by Alcan while, Oman Oil Company and the Abu Dhabi Electricity & Water Authority each hold a 40% stake.

Pakistan to set up coal based power plants at Ketti Bandar

Daily Times reported that Pakistan has proposed to set up coal based power generation plants at Ketti Bandar in Karachi due to easy access to water.

Government official said that Sindh Province is going to have a third port at Ketti Bandar after Karachi Port and Port Qasim as government has approved PC 1 for setting up the Ketti port. He added that ports & shipping ministry has prepared a master plan and sought views from different ministries regarding the activities of the port.

The official said that as Sindh has the biggest reserves of clay, granite and coal, the Ketti Port will help setting up plants for granite and coal. He added that "This would not only help utilize these reserves but also help in boosting trade activities at the port. Pakistan is importing clay from China at present and with the setting up of Ketti port, Pakistan dependence on Chinese clay will be abolished."

Meanwhile, water & power ministry has proposed to set up coal based power plants at Ketti Bandar as the Thar coal reserves are only 12 kilometers away. The other option of liking the Thar coal reserves for water availability was under consideration as the road link from Mir Pur Khas could be enhanced to sea beach for the availability of water.

Sindh Coal Authority is demanding to fix 9.5 cents upfront indicative tariff for the electricity generated through coal power plants in Thar. However NEPRA has said that 7.65 cents per kilowatt hour upfront indicative tariffs for coal power plants was reasonable and it should be announced.

Thar coal deposits are said to meet requirements of Pakistan for many years and would generate about 100,000 MW of electricity.

DME to launch two new future contracts

Dubai Mercantile Exchange has announced that it is launching two new financially settled contracts for Brent and Oman crude oil. This follows the successful launch of the exchange’s benchmark Oman crude oil futures contract in 2007 amid record volumes and open interest in January 2008.

Dubai Mercantile’s new Brent contract will be cash settled against ICE’s Brent Crude Futures Contract, while its new Oman contract will be cash settled against the DME’s benchmark Oman Crude Oil Futures Contract. In addition to being cleared at the NYMEX Clearinghouse, the new contracts will also be available for block trading, recently introduced by the Dubai Mercantile.

Mr Gary King CEO of Dubai Mercantile said that “We will launch financially settled contracts for Brent crude and Oman crude in the very near future. These two new contracts were designed after extensive consultation with our global customers. We are confident that these new contracts will prove as successful as our flagship physically delivered Oman Crude Oil Futures Contract and greatly add to overall liquidity and price transparency.”

Dubai Mercantile is the first futures market in the Middle East, backed by the New York Mercantile Exchange and the governments of Oman and Dubai, to launch a physically settled Oman sour crude contract on June 1st 2007 in an effort to provide a futures link to crude supply from the Middle East.

Dubai Mercantile also announced that it will delist its Brent Oman Financial Spread Contract and Oman Financial Spread Contract upon launch of the new contracts.

Al Manal awards contract for La Vista Residence project

It is reported that Al Manal Development has appointed Zahrat Al Safa Construction Company and Al Qandeel Contracting Company to build their AED 250 million La Vista Residence project in Dubai Silicon Oasis. The construction work is expected to begin in March 2008 and would be completed by August 2009.

Mr Juma Al Ghurair chairman of Al Manal Development said that La Vista Residence is a family orientated community which provides a good location next to schools and shopping malls in the Dubai Silicon Oasis. He added that “We are delighted to select reputable and reliable companies such as Zahrat Al Safa Construction Company and Al Qandeel Contracting. We have every confidence that the construction will proceed smoothly and up to the high standards of quality that both companies are noted for.”

La Vista Residence project comprises of 7 residential buildings each with eight storeys high, offering a total of 832 residential units. Zahrat Al Safa Construction Company will work on the first 5 buildings, while Al Qandeel Contracting Company will build the remaining 2. Once completed, the project will offer studio, one and two bedroom apartments and will be located in a prime area in Dubai Silicon Oasis very close to Emirates Road, New Ring Road, Dubai Land & Academic City.

Moody issues annual sovereign report on Oman

Moody's Investors Service has explained in its new sovereign credit report on Oman that the country's investment grade A2 foreign and local currency government bond ratings with a stable outlook primarily reflect the very strong public finances, with the maintenance of a wide fiscal surplus and ongoing accretions to net official assets on the back of buoyant oil receipts. The ratings were last changed in July 2007 when they were upgraded from A3. Other A2 rated countries include Bahrain, Botswana, Chile, Korea and Poland.

Mr Tristan Cooper VP & senior analyst at Moody's said that "The favorable trend in Oman's government finances has continued. Moody's estimates that the overall fiscal surplus was around 10% of GDP in 2007 and that the level of net official foreign assets approached 80% of GDP at 2008 end. We project another wide fiscal surplus in 2008 given that average global oil prices are expected to exceed USD 90 per barrel, their highest ever annual average."

Mr Cooper said that, while the short to medium term outlook for Oman's public finances is therefore very sound, Moody's has some concerns with regard to the longer term prognosis in light of two factors. He added that "The first concern relates to inflation, which has risen significantly in recent years, reaching a 16 year high of 8.3% in December 2007. Rising costs and popular demands for expenditure increases to offset the effects of inflation, coupled with an ambitious public investment plan, are contributing to a marked loosening of fiscal policy. This will erode fiscal flexibility."

Mr Cooper further added that "Secondly, there are growing uncertainties over the long term for the country's hydrocarbon sector. Oman's crude oil production peaked in the late 1990s and has since been on a declining trend. While there is hope that the fall in crude production will finally be halted this year and possibly reversed, remedial action is increasingly costly. Meanwhile, Oman's gas production is failing to keep pace with burgeoning gas demand, constraining the growth prospects for the country's energy intensive industrial sector."

Oman Cement 2007 PAT dips by 12.47% YoY

Oman Cement Co has posted a profit after tax of OMR 18.017 million for the year 2007 down by 12.47% YoY as compared to earnings of OMR 20.584 million during 2006. Profit before tax was OMR 20.445 million in 2007 down by 12.35% YoY as against OMR 23.326 million in 2006.

The board of directors also proposed a dividend of 27% of the capital, corresponding to OMR 0.270 per share, which is subject to shareholder approval. The board also decided to submit its recommendation to the extraordinary general meeting seeking approval to split the nominal value of the shares from OMR 1 to OMR 0.1 and split each share into 10 shares.

Chinese CRC export price continues to rise

It is reported that Chinese CR steel coil export prices are up substantially this week, reflecting the strong rise in home market prices.

Steel producers are said to be raising export prices in succession. Offer for 1.0 CR coil is prevailing at USD 855 per tonne to USD 860 per tonne FOB, a sizable rise of USD 50 per tonne to USD 60 per tonne from USD 800 per tonne to USD 810 per tonne in early February 2008.

A Tangshan based steel producer told Mysteel that it has been almost fully booked for both CRC and HRC allocation within a day and the transaction prices average at USD 850 per tonne FOB for 1.0mm CRC.

Traders said that the demand in the EU and USA has been improved greatly with the recovery of steel price. A trader in Shanghai even disclosed that he has already made large quantity of position for shipments to the United States of America.

Current transaction is descried to be so hot that some traders are regretting for failure of booking material in a timely manner. Under the current situation, the export prices for 1.0mm CRC are expected to reach USD 900 per tonne FOB in the near future.

(Sourced from MySteel.net)

List of top Chinese steel makers in 2007

As a sign that consolidation is making some headway, China's top 20 steelmakers accounted for 250 million tonnes in 2007 out of total production of 489 million tonnes a little more than half of the country's total output, compared with less than 50% in 2006.

2007 output in million tonnes
Change is YoY as compared to 2006
Source- China Iron and Steel Association

* In 2007, Shagang bought controlling stakes in three other mills, Anyang Yongxing Iron and Steel, Jiangsu Xinrui Special
Steel and Jiangsu Yonggang Group. Output is consolidated.

** In August 2005 Anshan and Benxi merged their raw materials purchases, marketing, foreign trade and financial statements to form Anben Iron and Steel Group, but have not exchanged equity or cash. If fully merged, the two would have had a combined output of 23.59 million tonnes in 2007.

*** The Shandong provincial government plans to merge Jinan and Laiwu, to create Shandong Iron and Steel Group, which would rank just behind Anben based on 2007 output of 23.24 million tonnes. The new group may ultimately take over Rizhao, a fast-growing private mill in the province.

(Sourced from Reuters)

Canadian review of AD on Chinese steel pipe nipples and adaptor fittings

On October 31st 2007, the Canadian International Trade Tribunal, pursuant to subsection 76.03(3) of the Special Import Measures Act, initiated an expiry review of its finding made on July 16th 2003, in Inquiry No. NQ-2002-004, as amended on June 8th 2007, in Interim Review No RD-2006-006, concerning carbon steel pipe nipples and adaptor fittings, in nominal diameters up to and including 6 inches or the metric equivalents, originating in or exported from the People’s Republic of China.

As a result, the president of the Canada Border Services Agency initiated an investigation on November 1st 2007 to determine whether the expiry of the finding is likely to result in the continuation or resumption of dumping of the goods.

The investigation has now been completed and the president has determined that the expiry of the finding is likely to result in the continuation or resumption of dumping of the goods from the People’s Republic of China. A statement of reasons containing additional details concerning the determination made by the president will be issued within fifteen days.

The tribunal will now conduct an inquiry to determine whether the expiry of the finding is likely to result in injury or retardation to the Canadian industry and will make its decision by July 15th 2008.

Bayi commissions its new BF

Bayi Iron & Steel in Urumqi, in far western China's Xinjiang Autonomous Region, has commissioned its first 2,500 cubic meter blast furnace this week

With a total investment of CNY 10 billion, the blast furnace has started construction from November of last year.

A second furnace of identical size will be blown in by June.

By that time, the steelmaker will boast steel capacity of over 8 million tonnes per year.

Dalian Commodity Exchange to launch coking coal futures

Reuters reported that the Dalian Commodity Exchange, one of China's three main futures bourses is aiming to launch coking coal and rice futures as it rushes to expand its product offerings.

Mr Wang Weiyun director of Dalian Commodity Exchange said coking coal and rice contracts have shot to the top of the exchange's agenda and are pending China Securities Regulatory Commission approval and will be launched this year.

Mr Wang said "This symbolizes our first step toward migrating into a comprehensive futures exchange. We are studying coking coal contracts instead of thermal coal, because China's coking coal prices have internationalized while those for thermal coal are still under state control."

The report added tat market players and exchange officials believe that futures will help with hedging risks after widespread outbreaks of pig disease and other factors spurred pork prices to record highs in 2007, stoking nationwide inflation.

Dalian's commodities exchange, founded in 1993 has survived two rounds of government clampdowns on irregularities among Chinese futures exchanges in 1994 and 1998, and has since diversified from agricultural contracts by adding industrial products and plastics futures. Its turnover rose by 54% YoY to 371 million contracts in 2007, while the contract value rose 128% YoY to CNY 11.98 trillion (USD 1.68 trillion).

Iron ore price negotiations – CISA viewpoints on result

CISA make the following viewpoints on result of 2008 benchmark ore price talks.

1. China Iron & Steel Association and China's steelmakers recognize the price settled between Vale and Baosteel which conforms to international iron ore trade rule and the convention.

2. On account of ore price jump, Chinese steelmakers are faced with increased costs. It's thus hoped the steelmakers would advance tech content of the steel products by reinforcing scientific progress and technical innovation and raise proportion of high value added products by making more high end products on the mean time, strengthen management and reduce consumption of energy and resource for boosting the competitive edge.

3. With fuels and materials such as iron ore, coke, coking coal and crude oil all rise in price, steel prices in China and the globe as a whole would keep high perched this year.

4. It is desired by steel industry growth to build a long term and reliable iron ore and coking coal supply chain. Chinese steelmakers should further expand cooperation with the left world enhance overseas investment or stake taking to ensure material supply sources.

(Sourced from MySteel.net)

5 Chinese steelmakers set construction steel prices for March shipments

It is reported that at a price setting conference on February 27th 2008, five steelmakers in North China, Shougang, Tangshan Steel, Xuanhua Steel, Chengde Steel and Tianjin Steel has fixed construction steel prices for March shipments as follows.

1. Wire Rod price up by CNY 520 per tonne on the basis of February prices
Price of Q235 6.5mm high speed wire rod is raised to CNY 4850 per tonne.

2. Rebar price up by CNY 500 per tonne
Prices of HRB335 16mm to 25mm rebar are lifted to CNY 4830 per tonne.

All price listed below include 17% VAT freight cost for haulage to Beijing.

Tianxin ink refined ferrous powder supply pact with Handan

Tianxin Mining Industry Company Limited announced that it has signed a 10 year supply agreement with Handan Iron & Steel Group to supply at least 300,000 tonnes of refined ferrous powder this year and 800,000 tonnes annually in future years.

The released added that refined ferrous powder is an ingredient in the manufacture of iron and steel for which there is a large demand in China. With two mines whose reserves total more than 350 tonnes, concentrating mills in Hebei and Shanxi Provinces in the Northern China plain and employing more than 300 people, Tianxin Mining has grown into one of the country's most prominent mining companies.

Mr Lin Jia Zhen president of Tianxin Mining Industry Company Limited said "We in the future will develop copper, silver, gold and molybdenum resources. The prospects for solid, significant growth for our Company remain excellent. He said that 2008 international iron ore prices have risen by 65% while prices in China are increasing at the same level.”

Pugang Luojing produces first plate

It is reported that Pugang Luojing produced the first steel plate on February 27th 2008 with a thickness of 28mm, reflecting that Pugang possesses terminal products again seven months after the move.

As per report Luojing heavy plate mill adopted width automation, board control, accelerated cooling etc world’s advanced technology; the performance is reliable and stable, easy to maintenance and can produce high quality, multi specification plate products.

Luojing Project has completed the trial production in the first phase by now and the construction of the second phase will start up soon.

China Yudean to acquire 7.5% stake in Whitehaven Coal Ltd

It is reported that Chinese power supplier Guangdong Yudean Group will buy 7.5% stakes in Australia's Whitehaven Coal Ltd to ensure consistent coal supply.

Whitehaven Coal Ltd said in a statement the Chinese company has agreed to pay about USD 63.68 million for a 7.5% stake through Yudean's wholly owned Upper Horn Investments Ltd unit.

Whitehaven said under the terms of agreement, Upper Horn will fund the future development of the Narrabri Coal Project, located in Australia’s New South Wales in keeping with its ownership percentage.

Chinese power companies are now seeking investment opportunities in Australia's mining sector to ensure surging domestic need, home to the fastest growing major economy in the world.

Baosteel raise March purchase price for scrap

China's biggest steelmaker Baosteel has raised the purchase prices for scrap in March 2008 by CNY 370 per tonne. Latest heavy scrap price stands at CNY 3160 per tonne.

1. Medium scrap price stand at CNY 3100 per tonne
2. Medium scrap price stand at CNY 3070 per tonne
3. Small scrap price stand at CNY 3030 per tonne
4. Gradeless scrap price stand at CNY 2930 per tonne
6. Light scrap price stand at CNY 2735 per tonne

Prices listed above are exclusive of 17% VAT.

(Sourced from MySteel.net)

Chinese province wise coke production in 2007

China produced 298.436 million tonnes of coke in 2007 up by 17.6% YoY as compared to 253.772 million tonnes in 2006.

Shanxi took the first spot with 88.220 million tonnes accounting for 15.3% of China’s total coke production. Top 5 provinces accounted for 61.1% share.

Province wise detail is as under

In million tonnes

(Sourced from MySteel.net)

Xinyu Steel ranks first in ship plate output

It is reported that ship plate output of Xinyu Steel in 2007 reached 1.36 million tonne in 2007 up by 100% YoY making it a market leader in SBQ plate segment.

As per report, its maximum thickness has been 80mm and the highest grade is E40. In addition, the delivery status could be hot rolled, controlled rolling, TMCP and normalizing.

Xinyu Steel quality has been improved substantially through more scientific development and technology innovation. It plate has been quite famous both home and abroad. It has won the classification of nine countries: ABS, LRS, CCS, DNV, GL, KRS, NKS and RIS.

Xinyu exports its ship plate to South Korea, South East Asia and the EU.

Chende dominates in vanadium and titanium resources

It is reported that Mr Li yiping GM of Chende xinxin Vanadium and Titanium Company Limited said Chende's competitive edge lies in abundant vanadium and titanium resources.

Statistics show that the vanadium and titanium magnetite reserves in Chende area totaled 8 billion tonne and the average content is 18% to 30%. Its mine features low exploration cost, flat embedding, easy exploration and grinding, which is a great advantage for large scale exploitation.

Chende has controlled nearly a billion tonne reserves through sole proprietorship or share participation. It takes the priority of exploring the newly founded mine resources. The integration of private mines is mainly realized by means of equity participation.

Norilsk to develop coking coal field in Siberia

Norilsk Nickel, the world's largest producer of the metal said that it plans to develop a 5.5 billion tonne Siberian coal field and has asked BHP Billion to join the project.

The deposit is located 460 kilometers north of the nickel, copper and palladium producing factory town of Norilsk in the Krasnoyarsk region. It is 120 kilometers from the nearest settlement and does not have transport or power infrastructure.

Mr Maxim Finsky vice president of Norilsk said the company paid USD 1.37 million at an auction for the Syradasaiskoye deposit. The deposit may produce 12 million tonnes per year of coking coal used as a raw material by steelmakers from 2016. He said that "There's a 23 million tonnes deficit in coking coal in Europe that currently gets covered by Australian imports. The plan is to sell most of the coal in Russia, but also export to Europe."

Mr Finsky said Syradasaiskoye would become Norilsk's first coal project. The company looked at the site with Melbourne-based BHP, the world's biggest mining company and has offered it a minority stake in the project.

Mechel to adopt electronic trading system for purchases

Mechel announced that it has started a project to develop and implement an electronic trading system and that along with eTradeCommunity, it is jointly realizing a project to develop and implement the Mechel procurement electronic trading system to automate the process of competitive purchases by Mechel’s subsidiaries.

Trading operations at Mechel Procurement’s electronic trading site which will be opened on Mechel OAO’s corporate web site will be carried out by 14 of Mechel's subsidiaries.

The release added that the system will use electronic digital signature technology as the instrument for confirming legal force of electronic documents, which will significantly optimize the contracting process and subsequent interactive work with partners.

The Mechel Procurement electronic trade system is designed to automate managing the processes of placing purchase orders and controlling goods, works, and services for Mechel’s subsidiaries. Procurement will be carried out strictly in the form of an auction with the primary selection criteria being price. The use of a tender system or sole provider will be possible in exceptional cases.

Mr Mukhamed Tsikanov senior vice president on economics and management of Mechel OAO said that “The objective that will be achieved as the result of this system implementation is neutralization or lowering of human factor in trading and purchasing operations. This product is another effective tool for controlling expenditures and developing constructive relations both with providers of material resources and users of our products. Using such an electronic trade site will enable Mechel to significantly reduce Mechel’s subsidiaries’ costs of trading and purchasing operations, thus increasing the efficiency of the group’s business.”

Problem of Ukrainian debt for gas remains unresolved

Itar-Tass reported that the problem of Ukraine’s debt for Russian gas remains unresolved.

Mr Alexei Miller CEO of Gazprom while replying to a question that if there has been any reply from Kiev to Gazprom’s latest warning said that Moscow will believe the work to resolve the problem has begun the moment the debt has been settled. He said “May Ukraine pay the money first.”

NLMK bid for Maxi yet to be approved

Interfax reported that Russian Federal Anti Monopoly Service is ready to allow Novolipetsk Steel to acquire 100% of Maxi Steel Group.

Russian Federal Anti Monopoly Service had recently refused NLMK's request to buy the mill developer for not submitting all the necessary paperwork.

Gazprom and Buryatia sign agreement of cooperation

Gazprom has announced the signing of the agreement of cooperation between Mr Alexey Miller chairman of the company’s management committee and Mr Vyacheslav Nagovitsyn president & chairman of the government of the republic of Buryatia.

Mr Alexey Miller chairman of Gazprom management committee and Mr Vyacheslav Nagovitsyn president & chairman of the Government of the Republic of Buryatia have signed the agreement of cooperation.

The Agreement envisages the following joint activities:

1. Implementation of the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia Pacific countries

2. Development of programs and execution of projects for gas supply to and gasification of the Republic of Buryatia with compressed and liquefied gas based on relevant investment projects

3. Supply of hydrocarbon feedstock to industrial consumers and the population

4. Development and introduction of gas and energy saving technologies

5. Preparation and approval of regional fuel and energy balances considering efficient utilization of indigenous resources
6. Creation of an integrated system of environmental monitoring.

While executing joint projects in Buryatia the Government of the Republic is intent to assist Gazprom in creating a favorable investment and taxation environment needed to ensure the Company’s efficient operation in the region.

Severstal to continue gold mines buyout

FIS reported that Severstal will be interested in purchasing small gold deposits in Russia and will further develop its resource base. The company considers several development options for its gold mining business. The first is the purchase of Brownfield and Greenfield.

According to the report, Severstal is interested in deposits with reserves up to 100 tonnes of precious metal, but not less than 50 tonnes as it has any ambition to become the gold mining market leader.

Recently Severstal bought Ireland's gold miner Celtic Resources for 162 million pounds and before that Neryungri metallic and Mine Aprelkovo for USD 258 million. Last autumn the company purchased the rights for gold mining on several prospective deposits in Russia.

RCC to make cobalt and nickel

FIS reported that Russian Copper Company acted as initiator of the creation of a new player in the market of metallic nickel and cobalt production, Russian Nickel Company.

Russian Nickel Company was composed of the enterprises that hold licenses on the development of the Kulikovskaya group of deposits in the Chelyabinsk region and Belininskoye deposit in the Altai Krai. Aggregate proven reserves of these deposits amount to over 440,000 tonnes of nickel. Hydrometallurgical technology will be developed for the processing of ores of these deposits.

Basic design is to be completed in 2008, after which construction of an extracting and processing plant will begin in the Chelyabinsk region. Startup of an analogous plant in the Altai Krai is scheduled for late 2009. The plants' design is being created by Finland's Outotec. Each enterprise in the first phase will have the production capacity of 10,000 tonnes of nickel and 1000 tonnes of cobalt per annum.

Naftogaz denies having debts to Gazprom

Interfax reported that Ukrainian national energy provider Naftogaz Ukrainy has once again denied the existence of any confirmed debts for gas to Gazprom.

Naftogaz said in a statement that "The company once again confirms its preparedness for constructive cooperation and dialogue with its partners from Gazprom. Naftogaz's position remains unchanged and is always prepared to honor all formally and documentarily confirmed obligations in gas relations. All disputes between Naftogaz Ukrainy and UkrGazEnergo should be solved within the framework of the relationship between the two companies."

It said Naftogaz is willing to continue negotiations to work out a scheme for supplying natural gas to Ukraine in line with agreements between the Ukrainian and Russian leaderships.

Naftogaz said it has paid about UAH 3.87 billion to UkrGazEnergo, including UAH 0.52 billion paid on February 14th 2008, UAH 0.9 billion paid on February 19th 2008 and UAH 2.44 billion paid on February 26th to 27th 2008.

Norilsk to develop titanium deposit in Tambov region

Itar-Tass cited Mr Viktor Borodin spokesman for NNC as saying that Norilsk Nickel Company is planning to develop the titanium deposit Tsentralnoye in Tambov Region together with the VSMPO-AVISMA Corporation.

Mr Borodin said "We are prepared to discuss the matter with the OboronImpex Company and find possibility of cooperation with the VSMPO-AVISMA in the development of that deposit."

Mr Maxim Finsky deputy general director of Norilsk Nickel Company had earlier said that "We have a license for geological prospecting at the Tsentralnoye deposit. This is one of major titanium deposits in Russia and the world. We estimate its reserves at 1,600 million tonnes of iron ore sands with a content of ilmenite amounting to 27 million tonnes, that of rutile to 5.5 million tonnes, zirconium 4.9 million tonnes and titanium oxide 20 million tonnes."

He said that "We have devised a special technology for the mining and enrichment of those sands and a subsequent production of concentrates from them. We intend to organize the manufacture of end products such as conditioned titanium slags, steel semi product, ferrotitanium, artificial rutile and titanium pigment. This is a large scale project. We shall be possibly implementing it in conjunction with some strategic partner. We have already held a series of consultations with the VSMPO-AVISMA."

The VSMPO-AVISMA is the world's major manufacturer of titanium products. 80% of the output is exported. The world's major aircraft construction companies are the main users of these. In 2008, the Company is planning to boost the production of titanium sponge by 6% up to 36,000 tonnes a year and 44,000 tonnes a year by 2012. Receipts in 2006 ran at USD 1,000 million and net profit amounted to USD 204 million.

Hungary to get10 billion cubic meter of gas in South Stream project

Interfax cited President Mr Vladimir Putin president of Russia as saying that at least 10 billion cubic meters of gas will be pumped across Hungary under the South Stream project.

Mr Putin said this involves not only the construction of a trunk pipeline with a handling capacity of at least 10 billion cubic meters of gas across Hungary, but also the construction of a large storage facility for storing 1 billion cubic meters of gas.

He said that "All parameters of an intergovernmental agreement were finally negotiated during Mr Dmitry Medvedev's first deputy PM Russia working visit to Budapest."

Russia to shut its refineries in March 2008

Reuters reported that Russian key exporting refineries have scheduled down time for crude units in March, including Khabarovsk refinery, a supplier to Asia and diesel output will be affected at two.

According to Energy Ministry data Khabarovsk which exports 90% of its output to Chinese and Singapore markets will shut one distillation unit from March 10th 2008 while Rosneft's Novokuibyshev in European Russia will shut a unit from Ma