Indian government calls for a meeting on steel price increase

It is reported that, a day after domestic steel makers raised prices of their products by INR 1,500 to INR 2,500 per tonne citing rise in input costs, Indian government has asked the steel industry to rein in prices, warning that a failure to do so could attract a price regulatory mechanism.

Mr Ram Vilas Paswan union steel minister said “We have taken it seriously. We want to increase the per capita consumption of steel and as such the rise in prices will have to be reasonable.”

He added that “We will meet the steel makers within a week to ascertain the reasons behind this price rise. If it is not justified, we will ask them to cut prices.”

He warned that “If we realize that despite our deliberations, they continue to increase prices, we will have no options but to tell the government to install a mechanism to contain steel prices.”

He also said there will not be much of an impact if only the public sector steelmakers brought down prices.

SAIL board approves new CR mill at BSL

Ranchi Express, citing public relations department of Bokaro Steel Plant, reported that the board of directors of Steel Authority of India Limited has granted final approval for setting up a 1.2 million tonne Greenfield cold rolling mill at the BSL at an investment of INR 2,500 crore as part of the modernization and expansion plans. The project will be completed by 2010.

This scheme was approved by SAIL board in principle on December 6th 2006.

According to the BSL, public relations department, the new CRM has been on the anvil for around 10 years, but could not be executed due to various reasons. The new state of the art mill will incorporate the advancements made in cold rolling technology in the past decade.

India falters on power capacity addition targets in H1

The Indian government record capacity addition target of 78,577 for 5 years in the Eleventh Plan has suffered a setback in the first 6 months of 1st year, despite the fact that several power projects scheduled to be completed within the Tenth Plan period were to have spilled over from the terminal year of that period into the current fiscal.

According to the Government’s latest estimates against a target of adding 13,152 MW during January to September 2007 to 2008 projects totaling 6,485 MW had been commissioned till end December 2007 resulting in a shortfall of 6,667 MW.

Power Ministry officials said that even though project execution and commissioning picked up pace during the October to December quarter of the current fiscal, there were indications of the possibility of a downward revision in the capacity addition targets for the Eleventh Plan period.

The Indian government has been faltering on capacity addition targets over the last three Plan periods, with achievement hovering around just 50% of the targets set during each of these five year periods.

JSW Steel appoints Mr Y Siva Sagar Rao as joint MD & CEO

JSW Steel Ltd has informed BSE that the members at the Extra Ordinary General Meeting of the Company held on December 28th 2007 have approved appointment of Mr Y Siva Sagar Rao as a director of the company, liable to retire by rotation.

JSW board has also approved appointment of Mr Y Siva Sagar Rao, a Wholetime Director of the Company, designated as “Joint Managing Director & CEO”, for a period of three years, with effect from July 24th 2007, on remunerations, terms & conditions.

HZL increase zinc prices

Hindustan Zinc Limited has increased zinc prices by INR 2,500 a ton to INR 106,700 per tonne. It also raised lead prices INR 1,700 a tonne to INR 121,300 per tonne.

Manaksia plant in Georgia to start in June 2009

Manaksia Limited had announced on January 28th 2008 that its board has approved a new project for manufacturing of steel long products in Georgia at a capital cost up to USD 35 million.

As per further reports, the production capacity of the new unit, to be located near the Poti Port will be 2 million tonnes per annum and is slated for completion by June 2009.

According to a company statement, the Georgia project would be operational in three phases, beginning from September 2008. Once implemented, the unit is expected to generate an EBIDTA margin of over 25% on revenue of USD 140 million at current prices.

Poti is a city in the Samegrelo province in the west of Republic of Georgia. It is situated on the east coast of the Black Sea and therefore serves as one of the three Georgian ports on that sea.

Manaksia Limited has 15 manufacturing units in India and 3 overseas. Manaksia has three international subsidiaries MINL Ltd in Nigeria, Dynatech Industries Ltd in Ghana and Euroasian Ventures FZE in Dubai in addition to Mark Steels Ltd at Purulia in West Bengal. Its metals and metal products contribute to 80% of the turnover, with packaging products and coils contributing 12% and 7% respectively.

Hyundai Motors opens 2nd plant in India

South Korea’s top automaker Hyundai Motor Co has opened its second plant in India to take on growing competition and cementing the country’s position as a global hub for small cars.

The new factory in Sriperumbudur, near the southern city of Chennai, will double capacity to 600,000 units, second only to leader Maruti Suzuki India Ltd’s, planned expansion to 1 million units by 2010-11. Hyundai has spent USD 1 billion on the new plant. An engine and transmission plant, with a capacity of 300,000 units, will be operational later this year.

The plant, which is adjacent to the existing plant, will largely be dedicated to making the new i10 for local and export markets.

Mr Chung Mong-Koo chairman & CEO of Hyundai Motor said that “Hyundai Motor India will play its role of a global manufacturing hub for all of Hyundai’s small car models.”

Hyundai, which along with affiliate Kia Motors, is the world’s 6th largest automaker.

Annual passenger vehicle sales in India are estimated to nearly double to 2 million units by 2010 on rising incomes and new launches.

CEA to draft new contract guidelines for hydel projects

It is reported that union government has asked Central Electricity Authority to draw up a model contract that state owned firms can use when they contract out the setting up of hydroelectric projects in an effort to address delays in many of these usually a result of a contract disputes between the companies and contractors.

The report cited a senior power ministry official as saying that “We are concerned with the delays in projects due to contractors. In order to tide over the problem we have asked CEA to come up with a draft model contract which will be used by all public sector undertakings while awarding work contracts for their projects. The model contract will be ready in a few months.”

He added that once ready, the model contract will be used by PSUs such as NHPC, North Eastern Electric Power Corporation Limited, Satluj Jal Vidyut Nigam Limited, Tehri Hydro Development Corporation Limited and NTPC Limited, which are setting up hydro projects in India.

While the average time taken to develop a new hydroelectric project is around 5 years, many have been delayed because of reasons as varied as late investment decisions, contractual problems, land acquisition problems, geological issues and natural calamities. Hydropower projects are more complex to build and need specialized technology and design compared with thermal power projects. Industry experts believe the problem has been compounded by the lack of good contractors.

Several hydropower projects have been delayed and India has met a little less than half the target of 14,393 MW set for hydropower generation in the 10th Plan. In April 2008, a study by the parliamentary standing committee on energy showed that the increase in project costs due to delays varied from 400% at the lowest to a maximum of 2,500%.

Out of India’s 135,000 MW power generation capacity, only 32,000 MW is generated from hydropower. India is seeking to add 78,577 MW of generating capacity in the next 5 years and 16,553 MW will come from hydro projects.

100% FDI allowed in titanium mining sector

It is reported that Indian government has permitted 100% foreign direct investment in mining & mineral separation of titanium bearing minerals and ores. Indian cabinet has also accepted the hike in the limit for the value addition and integrated activities for titanium mining subject to sectoral regulations, including the Mines & Minerals Development and Regulations Act, 1957.

An official statement said that “The companies will be allowed the 100% FDI for mineral separation only if the value addition facilities are set up within the country, along with the transfer of technology.” It added that companies had to follow the disposal of tailing during the mineral separation in accordance with the regulations framed by the Atomic Energy Regulatory Board.

Until now, up to 74% FDI was permitted in pure value addition and integrated activities. This was permitted provided the level of value addition was maximum as per the prevailing international levels of value addition to the mining products. Also FDI was permitted with the condition that companies should bring in a central or state public sector undertaking which should hold the other 26%.

The present policy is governed by the Beach Sand Minerals Policy of the Department of Atomic Energy since limonite, the titanium bearing mineral, was included as an atomic mineral.

Non major ports to drive capacity addition in India

Mr AK Mohapatra union secretary at ministry of shipping recently said that the capacity of the major ports during the 11th Plan would double to 1,050 million tonnes while, that of the non major ports would increase from the present around 230 million tonnes to 1,087 million tonnes. In other words, the total port capacity in India should cross 2 billion tonnes mark as against the earlier estimate of 1.5 billion tonnes.

Mr Mohapatra gave three reasons why the capacity increase in major ports will be less than that in non major ones.
1. The number of major ports was only 12 as against 187 non major ports.
2. The major ports were mostly old located within the metropolitan cities where the physical expansion was difficult to achieve.
3. The present decision making process in regard to identification, approval and implementation of projects in major ports was not in tune with the kind of growth being projected for the economy.

Mr Mohapatra said that the non major ports would be able to achieve the capacity targets they had set for themselves, more so because of the partnership between the respective state governments and the union government, he also felt that the success of the private participation in the port sector would largely depend on the harmony on the industrial relations front.

Maharashtra to upgrade power distribution network

It is reported that Maharashtra State Electricity Distribution Company Ltd would invest INR 1,100 crore in the next fiscal to upgrade 10 distribution division of the state. The investment would be undertaken in conjunction with United States Agency for International Development.

Maharashtra State Electricity Distribution Company Ltd has identified Nashik, Washi, Thane, Dombivali, Sangli, Akola, Warora, Kolhapur, Aurangabad -II and Congress Nagar in Nagpur division for implementing the project. It has already carried out a pilot project in Aurangabad Urban I division, under the Distribution Reforms, Upgrade Management program of the USAID.

Mr AB Pandey MD of Maharashtra State Electricity Distribution Company Ltd said that 11 substation and 300 transformers would be added under Aurangabad division. Call centre would be upgraded and automated meter reading systems would be introduced for high value customers. Similar plans would be implemented in 10 other division. The bids for project would be opened soon.

Under the DRUM program, Maharashtra State Electricity Distribution Company Ltd has already has signed business partnership MoU with Morgan County Rural Electric Association and the Poudre Valley Rural Electric Association of Colorado, USA for distribution business management and rural electrification.

Elecon Engineering to supply CHP to Tecpro

Elecon Engineering Company Ltd has informed BSE that it has been awarded a prestigious order of to INR 61.50 crore from Tecpro System Ltd of Chennai for supply of CHP Equipments for 2 x 600 MW power plant.

Electrotherm Q3 net profit surges by 71.71% YoY

Electrotherm Limited has posted a robust 81.85% increase in net sales income during the third quarter of the current fiscal ended December 2007 and its net profit after tax has also zoomed by a hefty 71.71 %.

According to un audited results, it has recorded net sales income of INR 381.91 crore during October to December 2007 as compared to INR 210.01 crore in October to December 2006. The profit before tax during October to December 2007 is INR 30.04 crore as against INR 16.26 crore in October to December 2006. The net profit after tax has been computed at INR 19.73 crore for October to December 2007 as compared to INR 11.49 crore during October to December 2006.

A quantum jump in revenue generation from engineering and projects and special steel divisions of the company has been the major contributor to the stellar performance of the company during the third quarter.

CIL BCCL to reinstate 2,000 sacked workers

Ranchi Express reported that Coal India Limited’s Bharat Coking Coal Limited would reinstate some 2,000 employees who were sacked during the last seven years on charges of dereliction of their duties.

The decisions were taken at the high level meeting of the Central Consultative Committee of BCCL that was chaired by the Mr AK Pal CMD of BCCL and attended by among others the representatives of all the Central Trade unions. It was decided to reinstate all the terminated workers who lost their services due to long absences without lave from their duties.

BCCL management and however down certain conditions terminated staff who had worked for not less 225 days during at least three years of their services would be taken back in the regular services.

Indian government to float tender for super critical equipment

ET recently reported that, to achieve the target of 78,000 MW power generations during the 11th plan, union power ministry will float tender inviting interested firms to manufacture equipments based on super critical technology, which is currently made only by BHEL.

The report cited Mr Anil Razdan union power secretary as saying that "Only BHEL is active in manufacturing such super critical equipments, which is not sufficient. We will float a bulk tender for global industries' participation.”

Mr Razdan said that “The equipment supplied by BHEL is not enough for the country's need as the demand is very high and we want to give global industries a chance to take part in manufacturing super critical equipments in the country." He added that addition of more players would create competitiveness, besides leading to an improvement in the quality of the products and providing customers more choices.

As per report, union government targets to complete placement of orders for equipment for the planned 78,000 MW by March 2008.

NTPC board approves Bongaigaon power project investments

National Thermal Power Corporation Limited has recently announced that its board of directors, at its meeting held on January 30th 2008, has accorded the investment approval for 750 MW Bongaigaon Thermal Power Project in Assam at an appraised current estimated cost of INR 43,753.50 million.

CONCOR to begin Rourkela cargo terminal work by April

BL recently reported that Container Corporation of India is hoping to start work on the construction of its domestic cargo terminal at Rourkela by April 2008 and complete it within 6 months. The cost is estimated at INR 5 crore.

CONCOR’s terminal at Rourkela will come up on the railway land over an area of 3 to 4 acres. On completion of civil construction, the reach stackers and other handling equipment will be deployed to facilitate unloading and loading of the containers from the flats, stuffing and de stuffing and storage. There will be storage space for about 200 to 300 containers at the terminal.

The terminal is expected to handle 16 rakes to 17 rakes a month. Right now, CONCOR does handle containers, about 8 outward rakes per month, at the Rourkela railway goods shed, catering mostly to Rourkela steel plant and a number of mini steel units, sponge iron and pig iron producing factories.

Ezz Steel increases production and domestic sales in 2007

Arab steel reported that Egyptian steel major Ezz Steel has achieved a record figure in production during 2007. Its total production of long and flat products amounted to 4.853 million tonnes in 2007 up by 130,000 tonnes as against 4.723 million tonnes in 2006.

As per report, most of the increase came from production of long products which amounted to 6% during the period of comparison.

The total sales of the company during 2007 of long and flat products increased up to 4.832 million tonnes as against 4.739 million tonnes in 2006. Most of this increase in sales came from the increased sales to the local market, as the quantities directed to the local market of long products increased by 22% YoY while the quantities exported to the world markets retreated down to 56% YoY. The quantities of flat products exported to the world markets increased and exceeded 1 million tonnes in 2007.
Ezz Steel's sales to the domestic market covered about 69.7% of the total consumption of long products during 2007 and 61% of the total consumption of flat products.

Its exports to the Middle East and North Africa regions accounted for 82% of its total exports of long products, while its exports of flat products accounted for 72% to European countries and 27% to the Middle East and North Africa countries.

Iran produced 8.5 million tonne sin 10 months

IRNA reported that Iranian steel makers produced 8,431,123 tonnes of steel products in the first ten months of the current Iranian year, which started on March 21st 2007 up by 7% YoY.

Mines and Development weekly wrote in this week's issue that unprocessed steel output amounted to 8,231,200 tonnes in this period.

Performance of some of the major steel makers in Iran during this period is as under

1. Mobarakeh Steel Company produced 3,982,381 tonnes of unprocessed steel and 4,013,920 tonnes of steel products, which showed 3% YoY and 4% YoY growth respectively.

2. Isfahan Foundry too produced 1,789,664 tonnes of unprocessed steel and 2,109,383 tonnes of steel products.

3. National Industries Group produced 144,455 tons of unprocessed steel up by 34% YoY and 823,926 tonnes of steel products.

3. Khorassan Steel Company also produced 376,418 tonn4s of unprocessed steel and 533,389 tonnes of steel products.

London Mining forms JV for Wadi Sawawin iron ore project in Saudi

London Mining Plc announced that it is forming a new joint venture company Saudi London Iron Ltd with Saudi based National Mining Company owned 50% each to develop the Wadi Sawawin iron ore project near the west coast of Saudi Arabia.

Saudi London Iron Ltd is being formed as a joint venture company with each party holding 50% ownership and is the next stage in London Mining's strategy to build a world class portfolio of mines to cater for long term world steel demand. Incorporated in the UK, London Mining has mining, exploration and development projects located in Brazil, Sierra Leone, Greenland and Mexico.

Saudi London Iron plans to utilize Licences held by National Mining, which are to be transferred to Saudi London Iron Ltd, to create a 3 million tonne per annum iron ore mining and palletizing operation to produce high grade pellets.

National Mining holds rights to prospective iron ore producing properties in Saudi Arabia, collectively referred to as the 'Wadi Sawawin Licences as follows
1. Exploration license #65/K dated July 11th 2007
2. Exploration licence #64/K dated July 11th 2007
3. Exploration licence #66/K dated July 11th 2007
4. Exploitation licence Royal Decree 31/M dated June 2nd 2003
These licences are located in the Northern Hijaz region of the Kingdom of Saudi Arabia, 900 kilometer north of Jeddah and 60 kilometers from the Red Sea coast.

London Mining will undertake and fund a Scoping Study on the 3 million tonnes per annum operation. This will be a detailed scoping study with capital and operating cost estimates, and is expected to cost about USD 1.2 million and be complete by the third quarter of 2008. It will look at the following
1. Re estimating the mineral resources, mine plan and capital and operating costs
3. Further pilot plant test work in Brazil on a 30 tonnes sample from the initially proposed mining area
4. Markets overseas and within the Kingdom of Saudi Arabia
5. Logistics and infrastructure

Based on a positive Scoping Study, London Mining will fund a Bankable Feasibility Study which will be carried out by internationally recognized independent consultancy.

Mr Christopher Brown MD of London Mining said "We are very pleased to be taking part with National Mining Company of Saudi Arabia in the Wadi Sawawin project. This provides London Mining with another significant iron ore asset that is less than 60 kilometer from a major port and in a region with cheap power. The port of Duba and a new port planned are within six days' shipping time of Sabic Hadeed's steel plants in Jubail and other major steel plants in the Middle East. There is relatively cheap natural gas for a palletizing plant at Yanbu or Duba and relatively cheap oil for electricity at the mine site. There is already a 1.5 million gallon per day desalination plant at Duba which the Saudi government will add to as industrial demand grows in the region. There has been extensive metallurgical and geological testing including 31 volumes of technical reports, 36,000 tonnes of bulk samples and a major pilot plant built on the coast."

RTA awards 2 contracts for road projects in Dubai

AME Info reported that Dubai’s Roads & Transport Authority has awarded contracts worth AED 1.4 billion (USD 381 million) for its parallel roads project in an effort to reduce congestion on Sheikh Zayed Road. The two roads are expected to carry a total of 18,000 vehicles per hour when complete.

The finished project, scheduled for completion within two years, will create a 108 kilometer corridor extending from Sheikh Rashid Road to the North, terminating at the Abu Dhabi border.

Todini Co will develop phase three of the project, in a deal worth AED 449 million. The deal, to be completed within 600 days, includes construction of a 10 kilometer corridor consisting of six lanes, as well as bridges, tunnels and utilities, signage and street lighting.

Al Nabooda Contracting is to manage phase three (B), of the project in a AED 950 million contract for a 20 kilometer section of road, including the construction of 10 bridges and four underpasses.

The project has been divided into nine phases, with four contracts awarded to date.

Pakistani and Indian ministers to visit Iran for IPI

AFP reported that, Iran announced that the petroleum ministers of India and Pakistan would come to Teheran later this month to discuss Iran Pakistan India pipeline project to transport Iranian gas to India via Pakistan. The talks are due to be held between February 14th 2008 and February 16th 2008.

Mr Gholam Hossein Nozari Iranian oil minister told a news conference that “We have invited the Indian petroleum minister with the Pakistanis to come here and they have accepted.”

Mr Nozari added that “We are making efforts to make it a tripartite deal or it will become a bilateral one.”

In November 2007, Iran gave India a four month deadline to formally agree its participation after finalizing the content of the USD 7.4 billion gas export deal with Pakistan.

Talks on the project to supply gas to India and to Pakistan itself through a 2,600-kilometre pipeline began in 1994 but were stalled by tensions between India and Pakistan. An early October agreement between Iran and Pakistan marked a breakthrough when they agreed to a periodic revision of gas prices every three years instead of a long term fixed price.

Pakistan cement exports hit record levels in January 2008

The News, citing data available with the research department of a brokerage house, reported that Pakistan’s cement exports in January 2008 have hit a record high of 618,000 tonnes breaking the previous record of 575,000 tonnes shipped out in August 2007.

As per the data compiled by the JS Global research, January 2008 cement exports have increased by a massive 152% on YoY basis and by 60% when compared to December 2007. On the other hand, local dispatches stood at 1.6 million tonnes in January 2008 down by 13% compared to January 2007.

Mr Badruddin Fakhri CEO of Galadari Cement said “The cement exports could go up to one million tonnes per month if Karachi Port Trust increases handling facilities at port. Cement exports can earn up to USD 1 billion per annum if required infrastructure is available at KPT.”

He said port Qasim is fast developing cargo handling facilities but KPT too needs speedy developments to facilitate cement exports. Power shortage has been affecting cement production and this could be compensated by further increasing the cement exports. The shortage in local dispatches in the month of January 2008 in the country is due to political uncertainty.

The decline in local cement sales during the period under review was due to the lack of transport available during the first 10 days of the month owing to the political turmoil post Mr Benazir Bhutto’s assassination. Moreover, severe cold has considerably reduced working hours affecting local sales. This decline in local sales was offset by the higher exports during the month resulting in total dispatches of 2.2 million tonnes in January 2008, an increase of 6%YoY.

Qatar approves formation of ICBC branch in Doha

Xinhua reported that the Qatar Financial Center has approved the application of China's largest lender, the Industrial and Commercial Bank of China to set up a branch in Doha. According to Industrial and Commercial Bank of China, it is for the first time that a Chinese bank has been allowed to establish a business outlet in the Persian Gulf region.

Officials of the Chinese bank said that bilateral financial collaboration had become more important because of closer economic and trade ties. The Doha branch will focus on wholesale commercial banking as well as investment banking activities such as asset management, investment consulting and trust services.

As the biggest lender in China, Industrial and Commercial Bank of China has been actively expanding in the global financial market. In 2007, Industrial and Commercial Bank of China bought a 20% equity stake in South African Standard Bank Group for USD 5.46 billion and a 79.93% stake in Seng Heng Bank in Macao.

Industrial and Commercial Bank of China also established subsidiaries in Moscow, Jakarta and Indonesia.

Iran UAE chamber of commerce in the offing

According to Mr Ebrahim Jalili member of the board of directors of Iran’s Chamber of Commerce, Industries and Mines the Iran UAE Trade Council and the Arab countries joint chamber of commerce is soon to be established in Iran.

He said that the Council will play a great role in augmenting the volume of trade between the two nations, adding that the Council will form a confederation consisted of joint chambers of commerce and trade councils with members from Iran, Saudi Arabia, Egypt, Qatar, Bahrain, Kuwait, Syria, and Libya.

According to ISNA, the move is taken based on the demand of a large number of traders who are in transaction with the United Arab Emirates in order to remove the extant obstacles on the way of the two countries for promotion of trade.

Iran and the UAE had booming trade and economic relations through the past years as the worth of trade between the two countries increased to USD 12 billion in 2006 against the USD 8 billion within the past 5 years.

DEWA extends power plant project deadline

Khaleej Times reported that Dubai Water & Electricity Authority will extend the completion deadline for the planned Hassyan Power & Desalination Project by as much as 30 months.

About 20 contractors have purchased bidding documents to build the project.

China launches 10 day push for coal shipments

It is reported that China has started a ten day project for coal shipment on the country's rail lines recovering from the ongoing snow.

China’s ministry of railways said that it will make sure the daily average loading of coal exceeds 40,000 cars during the ten days. There will be a minimum of 1 million tons of coal transported daily on the Datong-Qinhuangdao rail line on average.

The main coal producing regions, such as Shanxi, Shaanxi and Inner Mongolia, have geared up coal shipping to the southern disaster hit areas that are much less rich in resources.

The move aims to rapidly alleviate the hunger for coal needed to generate power in some areas of the country. Power facilities in the eastern Zhejiang, Fujian, Anhui and Jiangxi provinces are partly damaged, while supply in the central Hunan Province and the southwestern Guizhou Province remained unstable. Meanwhile, electricity plants faced a lack of fuel due to the blocked transport of coal in the severe weather.

The freezing weather, the worst in five decades in many places, has hit 19 provincial regions since mid January, paralyzing traffic, straining electrical supply and threatening human life.

Chinese HDG export prices likely to move up after holidays

It is reported that Chinese hot dipped galvanized coil prices are to improve further after Chinese Spring Festival. They have been climbing up slowly, driven by high raw material costs and the rising demand.

Lat week, in Shanghai market, 1.0mm HDG by Anshan Steel was being quoted at CNY 5630 per tonne to CNY 5650 per tonne, 0.5mm cargo by private producers at USD 5950 per tonne up by CNY 30 per tonne to CNY 50 per tonne than last week.

Most traders are more optimistic now and anticipate price to see another round of increase in the next two months. The price for 1.0mm HDG by Anshan Steel is going to approach CNY 6000 per tonne in Shanghai within 4 to 6 weeks as long as it remains above CNY 5600 per tonne.

It is also the case with export offers. Quotations for 1.0mm HDG was prevailing at USD 790 per tonne FOB up and that for 0.5mm HDG was prevailing at USD 830 per tonne to USD 850 per tonne FOB. Steel makers are eager to export materials at better prices so as to get enough profit for supporting stable production and relieve shortage of funds.

9 dead in coal mine blast in Shaanxi Province

Xinhua news agency reported that 9 workers have died when a gas explosion ripped through a coal mine in North West China. 12miners were at work in an underground shaft when the accident occurred at the Xiayukou Colliery in Hancheng city of Shaanxi province.

5 miners made their way above ground, but two later died and the bodies of 7 others were found in the mine shaft later in the afternoon.

An investigation into the cause of the accident is underway.

Anshan Steel increase base prices for March

Anshan Steel has issued price policy for March 2008 as under.

HRC
Up by CNY 100

CR
1. Base price of CR, excluding elevator steel, welded pipe steel, SPCC-YT up by CNY 150
2. Base price of elevator steel up by CNY 80
3. Base price of SPCC-YT steel up by CNY 250
4. Base price of CR chill steel products up by CNY 100

HDG
1. Base prices of HDG of thickness less than 0.8mm up by CNY 50
2. Base prices of HDG of thickness 0.81mm to 1.5mm up by CNY 100
3. Base prices of HDG of thickness 1.51mm to 2mm up by CNY 120
4. Base prices of HDG of thickness above 2mm up by CNY 150

Color coated steel products
Up by CNY 50

CR electrical steel products, excluding 50A-SU7
Up by CNY 150

Medium Plates
1. Excluding H32, D, DH32, DH36, E, EH32, EH36, AH36, Q550CFD, Q690CFD, HQ785T1 and war industrial steel - Base price up by CNY 150
2. Base price of AH32, D, DH32, DH36, E, EH32 and EH36 ship plates up by CNY 200
3. Base price of AH36 up by CNY 250
4. Base price of engineering mechanical steel Q550CFD up by CNY 250
5. Base prices of Q690CFD and HQ785T1 up by CNY 600

Welded HT
Base price up by CNY 600

Seamless steel pipes of diameter less than 133mm, excluding petroleum pipe, pipe line pipe, axle pipe and petroleum drilling pipe
Up by CNY 100

Keep prices of other steel products unchanged

All price are excluding 17% VAT

Monaro Mining ink MoU with Sinosteel

An Australian uranium exploration and development company Monaro Mining NL, which has seven highly prospective uranium projects in the Kyrgyz Republic, plans to accelerate their development following the signing of MoU with Sinosteel Corporation. The transaction contemplated by the MoU will be subject to certain conditions, including approval of the Kyrgyz and Chinese government authorities and regulations and any relevant ASX and shareholder approvals.

Under the terms of the MoU, Sinosteel will work with Monaro to assess and potentially develop each of these projects. The initial agreement is subject, in part, to the results of Sinosteel's due diligence investigation with respect to this transaction and will initially cover the entire portfolio of Kyrgyz licences held by Monaro, though assessment work is expected to result in the selection of a smaller number for feasibility and development studies.

The MoU provides in part for an initial selection and potential development program, comprising the following stages:

Stage 1 Exploration and Technical Assessment

Sinosteel will conduct drilling and other necessary assessment work to select two projects to potentially further develop. Without specifying an exact expenditure commitment, it is anticipated that the expenditures for Stage 1 program would be in the range of USD 3 million to USD 5 million. Upon the completion of Stage 1-which will include the completion of a scoping study on the two selected projects, Sinosteel will receive a 40% interest in those two selected projects. Based on the results of the completed scoping study, Sinosteel will determine whether those two selected projects should proceed to Stage 2.

(a) Sinosteel would also be granted a 40% interest in any project it initially selects but later discards, provided that Sinosteel has already invested a certain amount in such project.

Stage 2 Further Site Work on the Selected Projects

Sinosteel can elect to conduct further exploration and assessment work to enable the completion of a feasibility study for the development of a uranium mine to the +/- 10% project estimate accuracy level. It is anticipated that the expenditures for Stage 2 program would be in the range of USD 4 million to USD 8 million. Upon completion of the Stage 2 program, Sinosteel will increase its interest to 60% in each selected project for which a feasibility study has been completed.

Stage 3 Mining, Processing and Production

After reviewing the results of the completed feasibility study, Sinosteel may determine whether to proceed with mining, processing and production work with respect to a selected project.

The MoU also provides for a development program for the remaining projects. For each such project, Sinosteel may earn up to 60% interest in such project, provided that Sinosteel has expended a specified sum on such project and has completed the Stage 1 requirements for such project.

Mr Warwick Grigor Chairman of Monaro Mining NL said "We are very pleased to have entered into a Memorandum of Understanding with Sinosteel. Strategically and logistically it makes great sense to deal with such a strong Chinese organization with considerable experience in the uranium industry. We look forward to a mutually beneficial relationship being forged that will hopefully, in due course, extend to co-operation on other Monaro uranium assets."

Tangshan 2007 net profit increase by 50% YoY

Tangshan Iron & Steel Co Ltd said it projects 2007 net profit growth of about 50% supported mainly by expanded capacity and increased output of value added products.

It attributed the rise in profits to three factors
1. Tangshan Medium Plate Co Ltd, a subsidiary of the Crop, started production of its medium plate project in September 2006 and brought it into full capacity in 2007.
2. Its proportion of high value added products was improved and products structure was optimized.
3. To work to conduct energy saving projects, develop recycling economy and optimize various main indexes.

Tangshan Iron & Steel Co Ltd posted a 2006 net profit of CNY 1.42 billion and earnings per share of CNY 0.6271.

Taigang Stainless cuts capacity

Reuters reported that China's top stainless steel mill Shanxi Taigang Stainless Steel Co Ltd has shut 10% to 20% of its capacity due to power shortages in Shanxi province.

Mr Chai Zhiyong GM of Shanxi Taigang Stainless Steel Co Ltd said that "We have cut by 10% to 20% over the past two weeks.”

He said that the mill had 3 million tonnes of stainless steel capacity and produced 2.03 million tonnes of the metal in 2007."

China State Shipbuilding 2007 net up by 950% YoY

China State Shipbuilding Company, the listed vehicle of the country's biggest shipbuilder, estimated that net profit jumped between 950% and 1,050% in 2007. In 2006 the company, then known as Hudong Heavy Machinery Company made a net profit of CNY 267.52 million.

China State Shipbuilding attributed the jump to its purchase of CNY 12 billion of ship building and repair assets from its parent through a share placement in September 2007, as well as to strong demand for the ship engines which it makes.

China State Shipbuilding Company will announce full 2007 earnings in coming weeks. Listed Chinese companies are required to make preliminary statements if they expect to report big swings in earnings.

Jinan Steel X65 to X80 plates pass tests for large oil tanks

It is reported that Jinan Steel's X65 to X80 pipeline steel plate and high strength steel plate for JGR610E large oil tank have passed provincial technical identification. The two products are the first of the kind in the province.

As per report the products mainly came from overseas countries in the past. With fast economic development, China demands more and more oil and natural gas, thus National Development and Reform Commission has asked 5 steelmakers including Jinan Steel to develop steel for large oil tank.

So far 37,800 tonnes of X65 to X80 pipeline steel plate have been yielded and applied in some key projects. High strength steel plate for large oil tank has been used in oil reserve base in Zhoushan, in virtue of low cost, stable performance and few resources and energy consumption.

Laiwu Steel ties up with Qingdao Technological University

It is reported that Laiwu Iron and Steel Group Company Limited and the Qingdao Technological University has jointly set up the Energy and Environment Engineering Research Center at the University for a total investment of CNY 350 million.

The center will conduct extensive and deep cooperative study and technical development in the fields of energy saving in the metallurgical industry, energy saving technology of metallurgical facilities, treatment to voices in metallurgical environment, surplus heat utilization, treatment of industrial wastewater, utilization of solid waste resources, ventilation and dust removal, development of energy saving and environmental facilities, clean production and utilization of new energy.

Collision on Yangtze River

Associated Press reported that 15 sailors drowned and another was missing after 2 ships collided on January 30th 2008 on Yangtze River.

One of the ships sank after the pre dawn collision. It said of the 17 on board, 15 died, one was rescued and another was missing.

It did not give any other details.

ESTAR takes control over REMZ LLC

Press Service of Group of Companies ESTAR announced that a joint meeting of the management of Group of Companies ESTAR and REMZ, LLC took place recently and the agenda included assignment of control over buildings and constructions of the first turn starting complex of REMZ LLC to be utilized according to its end use purpose.

The participants of the meeting were Mr Vadim Varshavsky the deputy of the State Duma of the Russian Federation, Mr Andrey Mishin president of Group of Companies ESTAR, Mr Vladimir Kudryashov chairman of the Board of Directors of REMZ LLC as well as the executives of the Management Company ESTAR and REMZ LLC.

Deed of assignment of REMZ LLC to Management Company ESTAR is signed by Mr Kudryashov and Mr Mishin. The parties also discussed technical issues related to the completion of construction of the first turn starting complex objects.

REMZ performed the first smelting on December 17th 2007 and on January 25th 2008 proceeded with serial smelting. Today, REMZ produces continuous cast square billet. In IV quarter of 2008, after the second turn starting with the installation of the rolling mill, the range of products will be widened to include rebars and wire rods.

Russian pipe production in 2007 up by 10.2% YoY

According to the Ukraine Federal State Statistics Service, in December 2007 steel pipe production declined by 7.5% as compared with the same period of 2006.

All in all, in 2007 steel pipe production grew by 10.2% as compared with 2006 to 8.706 million tonnes including 3.125 million tonnes of seamless pipes.

Rusal forecasts 8% annual growth for global aluminum demand

Interfax cited Mr Alexander Livshits director for international and special projects of UC Rusal, while speaking at a forum organized by investment bank Troika Dialog, as saying that Global demand for aluminum will grow 7% to 8% annually in the next few years.

He added that "Demand for aluminum will grow by 7% to 8% per year, and we are happy with this. Demand from Asia is expected to remain strong for both aluminum and aluminum products.”

Mr Livshits said UC Rusal's major projects included the construction of the Boguchany and Taishet aluminum smelters. The company also plans to start production in coming months at the Alscon smelter in Nigeria, the launch of which was postponed several times last year.

He said Rusal has enough of its own alumina, and there's also enough for export. He added that Rusal is tackling the issue of electricity supplies for existing and future smelter capacity by entering into long term contracts for supplies and with its own generation assets.

CEZ eying Ukrainian coal for Varna plant

According to Mr Viktor Poltavetz mining industry minister of Ukraine officials from Czech utility company CEZ have visited Kiev and Doneck on January 21st 2008 in an attempt to negotiate the supply of 1 million tonnes of Ukrainian coal with 1.2% sulphur content to CEZ thermal power station at Varna.

CEZ Bulgaria declined to comment while the talks are ongoing. The company has admitted that that power station's coal stocks are down to 60,000 tonnes.

Nizhniy Tagil lowers industrial accidents rate by 24% in 2007

It is reported that Nizhniy Tagil Iron & Steel Works managed to lower its industrial accidents rate by 24% in January to December 2007, while the frequency of accidents went down by 19%. There was not a single fatal accident, either.

The spokesperson for Nizhniy Tagil Iron & Steel Works reported that these improvements were possible due to meeting all the industrial safety regulations and preventive measures. Some 20,000 metallurgists underwent safety training last year, while the company’s Labor Protection Department’s experts carried out nearly 2,500 inspections in the production shops.

Evraz announces financial calendar for 2008

Evraz Group S.A has announced the financial calendar for 2008 as follows

January 15th 2008
Publication of 4Q 2007 operational results

April2nd 2008
2007 Preliminary results

April 15th 2008
Publication of 1Q 2008 operational results

May 15th 2008
Annual General Meeting of shareholders and publication of 2007 Annual Report

May 16th 2008
Publication of 1st Interim Management Statement

July 15th 2008
Publication of 2Q 2008 operational results

August 29th 2008
Publication of 2008 interim results

October 15th 2008
Publication of 3Q 2008 operational results

November 14th 2008
Publication of 2nd Interim Management Statement

Dates are provisional and subject to change

Ukrzaliznytsia plans to buy new freight wagons

Mr V Chiornyi deputy general director of Ukrzaliznytsia said that the state railways administration's plan to purchase 4,053 freight cars in 2008. He stated that higher rates on cargo traffic will be the main source for increasing the purchases of freight cars. He noted that Ukrzaliznytsia bought 2,007 freight cars in 2007.

Over the few last years Ukrzaliznytsia has built a bad reputation for setting high railcar purchase targets at the beginning of the year, then substantially decreasing them. And even the last number turned to be too large for Ukrzaliznytsia, as Mr. Chiornyi himself admitted that Ukrzaliznytsia purchased 2,007 freight cars in 2007.

In view of a 35% to 40% increase in freight transportation tariffs starting February 2008, Ukrzaliznytsia’s plans to buy 4,053 freight cars in 2008 seem more realistic. However, they are not adequate to the current demand for transportation.

In January 1st 2007, the deficit of freight cars increased by 15%YoY to almost 21,000 cars. The lack of freight cars is a growing restraint in the nation's industry ability to develop and benefit from good conditions on global markets. And tariffs measures alone could not improve the situation. Private funds should be invited to the freight cars purchases by the correspondent preferences.

Russian and Chinese association to monitor pipes imports from China

FIS reported that the Fund of Development of Pipe Industry and Chinese Cast Iron Association have agreed on the next round of negotiations aiming the conclusion of an agreement that would regulate the volumes of pipe supplies to the custom territories of both countries.

Mr Deineko director of Fund of Development of Pipe Industry said that export restriction measures of the Chinese authorities proved to be ineffective.

In H2 of 2007, pipe exports growth totaled 477.8%. Exports of large size pipes grew by 992%. Russian pipe producers lost USD360 million worth of revenues because of the growing Chinese pipe imports.

Turkmenistan denies Ukrainian claim on White Stream pipeline

AP recently reported that Turkmenistan's Foreign Ministry scoffed at Ukraine's proposal to build a new pipeline that would carry Turkmen natural gas to European markets, saying other nations should consult it before making such statements.

The Turkmen Foreign Ministry said it knew nothing about the project and expected other nations to consult it on future pipelines before making statements about possible routes. The ministry said "Official notices about projects to build international pipelines are supposed to come from energy producing nations after holding relevant talks and consultations with other interested parties."

Ms Yulia Tymoshenko PM of Ukraine on a recent trip to Brussels had said that her country could serve as a transit point for a pipeline that would deliver Turkmen and other Central Asian gas to European countries. She said the pipeline, known as White Stream, could cross the Caspian and the Black seas.

Turkmenistan is the second biggest gas producer in the former Soviet Union after Russia, and its gas resources are playing an increasingly important role in the geopolitics of the region. Russia controls the only export routes for Turkmenistan's gas and the main pipeline for Kazakh oil exports.

Global Steel investments stake in Kiev’s Metallurgic Center

Ukrainian Journal reported that the Antimonopoly Committee has permitted Global Steel Investments Ltd to buy a share of Kiev’s Metallurgic Center Ltd which is affiliated with the Zaporizhstal steel mill, giving it over 50% of the votes on the company's board.

Kyrgyz foreign trade in 2007 up by 45% YoY

RIA Novosti reported that Kyrgyzstan's foreign trade grew 45%YoY in 2007 to reach USD 3.4 billion.

The spokesman said Russia remained Kyrgyzstan's main trade partner last year. The countries' bilateral trade reached a record USD 1 billion.

According to the Kyrgyz government, the country's main imports are oil products, coal, cars, equipment, chemical products, and basic metals. The leading exporters to Kyrgyzstan are Russia, Kazakhstan, China, and the United States.

The major export destinations for Kyrgyz goods, in particular agricultural and mining products, are Switzerland, Russia, Uzbekistan, and Afghanistan.

4 global majors eying steel plant in Thailand

Thailand Board of Investment said that following four leading steel companies have applied to invest in a high quality upstream steel project in Thailand.
1. ArcelorMittal
2. Baosteel
3. Nippon Steel
4. JFE Steel

Mr Satit Chanjavanakul the board's secretary general indicated that each plan may be no less than THB100 billion in sizes as the plants are expected to have an annual production capacity of at least 4 million tonnes each. Mr Satit said that the BoI had not yet drafted the details of investment privileges for interested steelmakers.

Mr Satit said "If these companies meet our requirements, we could have more than one upstream steel project amid growing demand and a lack of local supply."

He said Sahaviriya Steel had also expressed interest to the BoI in an upstream steel blast furnace. However, its project was not approved because it did not meet the BoI's conditions. He said "Sahaviriya can continue with its project, but it will not receive any incentives from us.”

The process now involves the four collaborating with the National Economic and Social Development Board and the BoI to find appropriate locations for their steel plants. Each plant will require an area of 5,000 rai to 10,000 rai for a minimum production capacity of 2 million tonnes of steel per year.

Thailand imports its entire high grade steel, including 4.5 million tonnes a year from Japan and South Korea. The country's total annual demand for steel products is about 12.5 million tonnes. Board of Investment said that the investment will help support the growth of related industries including the automotive, electronics, petrochemical, machinery and packaging sectors.

German steelmakers do not see future in steel futures

Reuter reported that Steelmakers in Germany, Europe's biggest producer, are opposing forthcoming steel futures on the London Metal Exchange and will not use them. Many global producers fear that the involvement of financial players in will increase volatility in already fluctuating steel prices and German steelmakers seem to agree with them.


Mr Dieter Ameling president of German Steel Federation said "We do not see a future for steel futures.

He said "Steel is not a commodity. It is a very complicated, highly innovative product, designed for different needs. Only a commodity could fit into LME's risk management tool. I feel we do not need futures. The volatility in LME metals, especially in nickel has caused damaged to the stainless steel market. It could be the same for steel."

LME's long anticipated steel futures contracts are due to start trading on the electronic platform select on February 25th 2008. The ring trading will kick off in end April 2008. But big names in the USD 500 billion steel industry like ArcelorMittal, the world's biggest steelmaker, repeatedly have expressed opposition to the idea.

UBS raises thermal coal price forecasts

UBS AG has increased its price forecasts for coal used in power plants in 2008 and 2009 as China's demand rises and rain disrupted supplies from Australia.

UBS analysts led by Mr Stephen Oldfield and Mr Ghee Peh said in a report on weekend that “Thermal coal will average USD 100 a tonne this year and USD 125 a tonne in 2009, up from previous estimates of USD 90 and USD 110 respectively.”

UBS analysts said that ''We believe that due to the China coal crisis and supply disruptions in Australia, the North Asian coal markets are heading into unprecedented tightness. China's 'coal crisis may continue for some time.''

UBS said that “China had supply shortages before the snowstorms, which worsened the problem. China's coal inventories were at 22.7 million tonnes in December down by almost 7% YoY and 20% MoM. They have further declined to 16.6 million tonnes as of January 30th 2008 enough for 8.5 days of consumption.”

According to the globalCOAL NEWC index supply constraints and rising Chinese demand caused by the heaviest snowfalls since 1954 pushed prices of coal burnt in power stations to a record USD 105.17 a ton at Australia's Newcastle port.

Japanese steel exports in December up by 8.7% YoY

The Japan Iron and Steel Federation said Japan's steel exports totaled 3.465 million tonnes in December 8.7% higher than the same month a year ago.

In tonnes

US steel to invest USD 300 million at Keetac plant in Minnesota

United States Steel Corporation announced that it is developing a capital investment program in excess of USD 300 million for its Minnesota Ore Operations' Keetac facility at Keewatin in Minnesota. The expansion would increase Keetac's iron pellet production output by 3.6 million tonnes to a total annual output of 9.6 million tonnes.

The program would increase production, enhance overall environmental performance, support the long term viability of its Minnesota Ore Operations and create 75 full time and 500 temporary construction jobs. The program would take an estimated 36 months after the permitting process to complete and would modernize and improve a pellet production line that has been idle since 1980.

The release said the restart would involve energy efficient technologies in addition to new emission controls to exceed current environmental standards. Upgrades to the mining, concentrating and agglomerating processes would support the increased production requirements. The program includes the purchase of additional mining equipment and the installation of additional processing equipment.

Mr John Surma chairman & CEO of US Steel said "US Steel's Minnesota Ore Operations have been providing iron bearing pellets to our operations in the United States and Europe for many years. In 2007, we expanded our steelmaking operations into Canada, creating an opportunity to increase our production at Keetac in order to provide the same high quality product to our Canadian operations. We look forward to working cooperatively with Governor Mr Tim Pawlenty, the federal, state and local elected officials representing the Iron Range, the United Steelworkers, the Building Trades in Minnesota, and other stakeholders involved in this important project."

Massey considering coking coal production increase

Massey Energy Company said that it is considering additional production increases to meet strong demand for US coal overseas.

Mr Don Blankenship CEO of Massey Energy Company, during a conference call with Wall Street analysts, said that “Massey already announced plans in October to add 8 million tonnes of production by 2010. Now the company is considering ways to up coal output even more and to do so by 2009.”

Mr Blankenship said his focus has been on producing more metallurgical grade coal. He said "I've been looking briefly at 1.5 million to 2 million tons of more met production that could be brought online during 2009. We believe that is probably going to be wise beyond what we've done, but, again, there's a lot involved that has not yet been studied from an engineering viewpoint."

Mr Blankenship said strong demand for imports to China, India and Eastern Europe will combine with high ocean freight rates and the weak dollar to support strong prices for Central Appalachian coal even if the US economy goes into a recession. The bottom line is that while we may go through a recession that slows economic growth in the US, we don't expect the demand for coal to suffer in 2008.

Canadian Coalcorp receives takeover proposal

It is reported that shares of Coalcorp Mining Inc jumped by as much as 23% after it said it had received an unsolicited proposal to buy the company from a company it did not name.

Toronto based Coalcorp said it has established a special committee of independent directors to consider the offer to buy all of its issued and outstanding shares. The committee will make its recommendation to the board of directors.

Coalcorp said there was no assurance that any definitive agreement" would come about as a result.

Coalcorp owns the La Francia and La Caypa coal mines in Colombia. It also has interests in other coal exploration properties, two ports to be developed and a rail line operator all in Colombia.

Winter hurts Canadian railroad coal movements

Canadian Pacific Railway and Canadian National said that tough winter weather in western Canada is impacting railroads' ability to move coal and other commodities out of the region, with significant delays on shipments expected to last well into this week.

Mr Mark Seland spokesman for Canadian Pacific Railway said that western Canada experienced historically extreme low temperatures with wind chill and snow that are slowing down train operations in the Elk Valley region, but he added that we have not, and do not, reduce service due to winter weather.

Mr Seland said "We are expecting relief within the next 48 hours, which will bring service back to normal levels. Canadian Pacific Railway has an extensive winter plan to manage with the realities of winter railroading and for coal, specifically, strategies include items such as adding extra power to coal sets to ensure operational fluidity during the winter months."

ArcelorMittal announces the results of Acindar's tender offer

ArcelorMittal announced that its cash tender offer to acquire the 35.5% of outstanding shares in Acindar Industria Argentina de Aceros SA has achieved 98.6% participation.

It said that “As of the expiration date, the Offering has been accepted for an aggregate amount of 336 class A shares and 303.327.703 class B shares of Acindar, all issued and outstanding, representing 35.0% of the capital stock of such company. On the February 14th 2008 the closing date, ArcelorMittal will pay to the shareholders the amount of USD 552 million for the tendered shares.”

The release added that “As a consequence, adding the abovementioned percentage to the 64.5% interest in Acindar held by ArcelorMittal through ArcelorMittal Brasil S.A as of January 31st 2008, ArcelorMittal shall become the holder of 99.5% of Acindar's capital stock.”

Mr LN Mittal President & CEO of ArcelorMittal said "I am very pleased that we have received such a positive response from shareholders to our offer. Acindar, as part of the ArcelorMittal Group will have additional opportunities to benefit from being part of the world's leading steel company. We are very committed to our business in Argentina and Latin America and will continue to look for opportunities to further enhance the profile and performance of our assets in this region."

JP Morgan acted as lead arranger and dealer manager, BBVA acted as co arranger and guarantor and Bruchou, Fernández Madero & Lombardi acted as legal advisor to ArcelorMittal in connection with the Offer.

Timken Q4 profit rises

Timken Company said that its fourth quarter net income rose as volume and pricing gains offset increased costs, but the figure missed Wall Street estimates.

Timken said its net income rose to USD 48.3 million compared with USD 35.3 million during the same period a year earlier. Excluding impairment, restructuring and other charges, it earned 51 cents per share compared with 30 cents a share a year ago.

Timken said quarterly revenue increased to USD 1.34 billion from USD 1.23 billion a year earlier. Sales increased in each of the company's three business segments industrial, automotive and steel. It said it earned USD 220.1 million compared with USD 229.9 million in 2006. It earned USD 2.40 per share in 2007. Revenue in 2007 rose to USD 5.24 billion from USD 4.97 billion previously.

Mr James W Griffith President & CEO Timken Company said "Our financial results for 2007 reflect the strength of industrial markets and the progress we made on initiatives to shift our portfolio to markets where we can create greater shareholder value."

AK Steel bags Max Edward Safety award

AK Steel announced that its Ashland, Kentucky coke plant has earned the Max Eward Safety Award for the third consecutive year.

The award is presented by the American Coke and Coal Chemicals Institute and recognizes the ACCCI member coke plant having the best safety record during 2007. Ashland coke plant employees worked all of 2007 with no OSHA recordable injuries. Hourly employees of the Ashland coke plant are represented by United Steelworkers Local 523.

Mr James L Wainscott chairman, president & CEO of AK Steel said "Congratulations to our employees at the Ashland coke plant whose incredible dedication to safety has earned them this coveted recognition for the third year in a row. It is especially significant that they worked all of 2007 without a single recordable injury."

This award also marks the tenth time in the past 11 years that an AK Steel coke plant has been selected for ACCCI's highest safety honor. The company's Middletown, Ohio coke plant is a seven time recipient of the Max Eward Award. It also had an outstanding safety performance last year, experiencing only one OSHA recordable injury and finishing second in the industry wide competition for the Max Eward award.

Metals USA announced its 2007 result

Metals USA Inc has announced its operating results for the quarter and year ended December 31st 2007. It sales revenues for the fourth quarter ended December 31st 2007 of USD 432.2 million brought total 2007 sales revenues to USD 1,845.3 million, a number USD 42.4 million higher than 2006 sales revenues.

Its Fourth quarter sales revenues were USD 5.3 million lower than prior year's fourth quarter. Adjusted EBITDA a non GAAP financial measure used by Metals USA and its creditors to monitor the performance of the business was USD 29.8 million for the fourth quarter of 2007, a number USD 4.6 million lower than fourth quarter 2006, while total 2007 Adjusted EBITDA was USD 146.2 million, USD 10.0 million lower than fiscal 2006. The Company recognized depreciation and amortization expenses during the quarter of USD 6.6 million and USD 22.1 million for the full year.

Interest expense for the fourth quarter was USD 13.7 million and USD 57.6 million for the year. Operating income, the GAAP measure that we believe is most comparable to Adjusted EBITDA was USD 19.3 million for the fourth quarter, a number USD 4.7 million lower than fourth quarter last year. Operating income for the year was USD 113.5 million which was USD 5.5 million less than the previous year.

Mr Lourenco Goncalves chairman, president & CEO of Metals USA said that "During the fourth quarter the market lacked a consensus view about market direction. Several of our competitors actively sold steel below replacement cost, while the vast majority of end-users remained on the sidelines. Metals USA used the seasonally weak fourth quarter to rebuild inventories, ensuring our ability to supply and properly service our customers in the months ahead, while continuing to be consistently profitable."

Mr Goncalves added that "At this point, it is very clear that our forecast of significant higher steel prices in early 2008 was correct. With the new reality of meaningful domestic mill exports, virtually no foreign imports, and historically low inventories throughout the entire supply chain, we are already seeing the beginning of real availability problems. Fortunately for our customers, Metals USA is prepared for these market conditions and will continue to execute with the discipline for which we are known."

Sumitomo Metal issues treasury shares

It is reported that Sumitomo Metal Industries Ltd will issue JPY 49.6 billion worth of its treasury shares to Sumitomo Corp to strengthen their capital and business alliance.

According to the two companies with the third party share allotment, leading trading house Sumitomo's stake in the steelmaker will increase to 9.5% from 7.5%. They said Sumitomo Metal will also buy JPY 15 billion worth of Sumitomo shares and hold a 1.6% stake in the trading house.

The two companies are cooperating in a wide range of areas, including procurement of raw materials and sales of products.

National Power fails to attract coal sellers

Reuters reported that the Philippines's largest power producer, state run National Power Corp has failed for a second time to secure a fresh coal supply for three power plants due to high prices and that bids for another three lots are still under discussion.

Mr Victor Garcia a senior Napocor official said that “Napocor re issued tenders for 33 lots of 65,000 coal cargoes for the Sual, Pagbilao and Masinloc plants after a tender last year also failed but only had successful bids for three. Bidding for the 27 lots failed because no bidders showed up. A supplier wrote us a letter of regret saying the price was low.”

Mr Garcia said the approved budget for the contracts was based on a reference price of USD 115 per tonne to USD 136 per tonne on a cost and freight basis. He said the budget for the tenders was set five days before the auction, but a jump in coal prices mainly due to tight supplies in Asia made the price set by government look cheap.

Mr Garcia said the bids and awards committee will meet to discuss whether to enter into negotiations with suppliers or re issue the tender for the 27 lots.

Daido Steel to hike special steel items

It is reported that Daido Steel will increase the selling price of all special steel products by more than JPY 15,000 per tonne for contract users and distributors for February order or April shipment.

Daido Steel plans to improve the profitability by covering higher cost for ferrous scrap and energy through the hike.

USW ratify new deal with Tube City IMS Canada

Mr Wayne Fraser Ontario/Atlantic Director of United Steelworkers' announced recently that members of USW Local 8794 have ratified a new, 3 year collective agreement with Tube City IMS Canada Limited.

The agreement carries with it hourly wage increases of 35 cents in the first year, 30 cents in the second and 25 cents in year three. The increases are over and above cost of living adjustments.

All insured benefits have been improved and the workers' defined benefit pension plan has been improved, along with providing an early retirement option with no pension reduction at age 63. As well, the company, a division of Tube City LLC based in Pennsylvania, will fully pay for an employee assistance program that guarantees confidentiality for workers who access it.

Rijeka Port terminates Japanese company contract

It is reported that the Rijeka Port Authority Steering Board has terminated a contract with Kajima Corporation from Japan on the construction of a 300 meter container terminal to be built as part of the Rijeka Gateway Project in Croatia. The Steering Board said the reason for the termination of the contract with Kajima Corporation was the company's failure to start construction works on the terminal.

Problems with this project started after it was established that the seabed in that part of the Rijeka Port was porous, which was not envisaged by the original project drawn up by the Japanese company Nippon Koei. This led to the need to move the deadline for the completion of the project to mid 2010. The Croatian government granted an additional USD 58.5 million for the improvement of the seabed, but no agreement could be reached with the contractor considering the new conditions.

Mr Branko Bacic state secretary for the sea and head of the Rijeka Port Authority Steering Board said that the funds intended for the construction of this terminal in the Rijeka Port will be redirected into the construction of a 300 meter extension of another terminal in the port.

The project which was to have been carried out by the Japanese company will be continued in cooperation with the World Bank. Instead of the planned first stage of construction of the 300 meter waterfront, the new project will focus on the improvement of the seabed and the construction of a 600 meter dock, partly in line with the model of public-private partnership. The project is expected to be completed by 2013.

Mr Bacic added that bids for the construction of the extension would be invited by the end of the year.

The World Bank has approved a loan amounting to some USD 156 million for the modernization of the port and roads leading to it. The total value of the Rijeka Gateway Project is estimated at USD 266 million.