India not to have steel price regulator

Dr Akhilesh Das minister of state for steel in a written reply in the upper house of Indian parliament informed that Indian government does not propose to bring any law for creation of a regulatory authority for controlling price of steel.

He said that “In a liberalized scenario the price of steel is determined by the interplay of the market forces. The price of steel items in the domestic market has shown an upward trend mainly due growing demand and rise in cost of raw materials required for steel manufacturing. The price of select steel items in the retail market of Mumbai for the period for February 2008, February 2007, February 2006 and February 2005, along with percentage variation, is given in the below.”

Retail price at Mumbai on quarterly basis
In INR per tonne
(Source: ERU/JPC)
1. Prices are inclusive of excise duty and sales tax.
2. All prices are indicative.

YoY change

However Dr Das added that “Nonetheless, the Government has taken the following measures for stabilizing the steel prices in the domestic market”

1. The Government has over the years reduced the import duty on steel to the current level of 5%.

2. The import duties on steel making inputs have also been reduced over the years and also exempted in case of coking coal. In case of iron ore it has been reduced to 2%.

3. In the Union Budget Proposal 2008-09, the import duty on melting scrap has been reduced from 5% to NIL.

4. In order to ease the supply of iron ore to domestic steel producers Government has imposed an export duty at the rate of INR 300 per tonne on export of all varieties iron ore lumps. Export duty has also been imposed at the rate of INR 300 per tonne on export of iron ore fines with more than 62% Fe content and at the rate INR 50 per tonne on export of iron ore fines with less than 62% Fe content.

5. General Rate of Excise Duty has also been reduced from 16% to 14% in the Union Budget Proposal 2008-09.

Man Industries announces HSAW pipe mill at Little Rock Port in US

Man Industries India Ltd has announced plans to locate a new manufacturing facility on a 162 acre site at the Little Rock Port in USA. Man Industries will invest USD 100 million in the facility, which will employ 250 people and the production will begin by mid 2009.

Man Industries' Little Rock location will have the capability of producing 300,000 tons of Helical Submerged Arc Welded pipes annually along with a coating facility on site.

Mr Ramesh Mansukhani chairman of Man Industries (India) Ltd said that "The execution of this first facility is significant for Man, as we strengthen our presence in the US market and take an important step towards investing in this region. Based on the US's growing demand, Man is very confident about its future growth opportunities in the US. Man is committed long term to strengthening infrastructure in this region so as to serve the fast growing American market, as well as partnering with the local community to be a good citizen and a good neighbor. It's of utmost importance that a strong manufacturing base, supported by the projects and O & M team, seamlessly intertwines to help Man deliver quality products on time and on budget to all its esteemed customers."

Man Industries currently has two manufacturing facilities in Gujarat and Madya Pradesh in India.

Mr Paswan calls for curbing iron ore exports

India’s steel ministry has called for restricting the export of iron ore once again. Mr Ram Vilas Paswan union minister of steel told the upper house of Indian parliament that “The country aims to more than double steel capacity to 124 million tonnes by 2012 and must curb ore exports to meet the target.”

He said that “It is my view that the export of high grade ore should be allowed only after meeting domestic requirements.”

He informed that the issue is pending with the cabinet

Indian steel makers are lobbying the government for a ban on the export of ore while miners are opposing this move.

JSW may commission Vijayanagar plant ahead of schedule

Mr Y Sivasagara Rao joint MD & CEO of JSW said that the expansion project of Vijayanagar plant near Bellary is going on briskly and is hopeful of commissioning it ahead of schedule.

Mr Rao said that "At present, Vijayanagar plant produces 3.5 million tonnes of hot metal and it will go up to 6.8 million tonnes or 7 million tonnes after expansion, scheduled to be completed by March 2009. But we are striving hard to complete it ahead of schedule by at least 5 to 6 months. I am very bullish on the project."

He added that it had applied for captive iron ore mines for the expanded capacity. He said "Now, we have captive ore mines to the extent of 15% to 20% of our production. But we are optimistic that Karnataka government will grant mines in future. A cold rolling mill with a capacity of 1 million tonnes had been set up in the Vijayanagar plant at a cost of INR 1,100 crore and it will be formally inaugurated on March 17th 2008.”

He said that simultaneously work had started on expanding the capacity of the steel plant to 10 million tonnes and orders had been placed. He added that "The total cost of the expansion project will be INR 15,000 crore and it is scheduled to be completed by September 2010. But I am sure expansion to 10 million tonne too will be completed ahead of schedule."

Videocon increases WB steel plant capacity

BS reported that Videocon group has doubled the capacity for its steel plant in West Bengal to 6 million tonnes. Mr Venugopal Dhoot chairman of Videocon group said that it had sent a revised proposal to the West Bengal government and the state government has assured infrastructure support.

Mr Dhoot said that "With the increased capacity, the investment in the project would stand increased from INR 15,000 crore to INR 21,000 crore and the capacity of the captive power plant would increase from 1,200 MW to 1,600 MW. The project would be completed in 2 phases of 3 million tonne each, the first phase would be ready in 4 years from the allocation of natural resources and the second phase in another 3 years’ time."

Videocon has also entered into an off take agreement with an Indonesian iron ore company to double the capacity in tandem with the growing demand for steel in India.

TATA Steel may form JV Vale – Report

Bloomberg reported that TATA Steel Limited is negotiating possible JVs with companies including Vale do Rio Doce.

Mr Amit Chatterjee adviser to MD of TATA Steel said that a venture with Vale that could supply iron ore for TATA's steel production is logical.

However, he declined to provide details on the possible ventures.

BMM Ispat may set up plant in Kadapa district of AP

Mr YS Rajasekhara Reddy chief minister of Andhra Pradesh has hinted that one more steel factory might come up in Kadapa district.

Mr Reddy said that an entrepreneur had approached the state government to set up a 2000 million tonne capacity steel plant in Kadapa.

He added that "BMM Ispat is keen to set up the second steel plant after Mr Janardhan Reddy came forward to start the Brahmani Steels Limited near Jammalamadugu in the district."

He further added that waste and barren lands that did not have any market value was sought by BMM to set up new ventures. The area the industrialists are scouting for lies on the Guntakal Chennai railway line, from where iron ore can be transported to Chennai or Krishnapatnam port.

Locals oppose sponge iron factory in Kerala

IANS reported that fearing pollution, local people have started an agitation against Kerala Sponge Iron Limited at Malampuzha, near Palakkad town close to the Kerala Tamil Nadu border and the Malampuzha Dam Samrakshana Samithi would hold a public convention on the issue at Palakkad March 20th 2008. The activists fear that the factory will cause widespread air pollution as strong winds coming through Palakkad Pass, which connects Tamil Nadu and Kerala, will spread pollutants over a large area in Kerala.

Kerala Sponge has the capacity to produce 100 tonnes of sponge iron per day. It is now on a trial run under the supervision of an advocate commission following a Kerala high court direction. The factory promoters approached the high court as the village council of Pudussery, declined to grant license citing pollution threat.

Mr PS Panikkar secretary of Malampuzha Dam Samrakshana Samithi said that "The factory is located in the catchment area of Malampuzha dam. It uses iron ore and coal as raw materials. This will pollute the water, air and soil. The dam supplies water to around 2 million people in Palakkad municipal town and 8 panchayats."

Mr Panikkar said that those opposing the factory are skeptical about the trial run under way at the factory. He added that "The trial run began on February 24th 2008. We suspect that factory is not working in a full fledged manner."

He said that Kerala Pollution Control Board had initially denied permission to set up the factory at the site. But, later the government constituted an expert committee to look into the issue. The report of the committee was favorable to the company, though it put forward some tough conditions. This report helped the company to approach the court for a license.

However, Kerala Sponge officials said that it is for the advocate commission to verify the charges of pollution. They said that "The commission is now overseeing the working of the unit. It has got pollution and health experts in the team. They are directly witnessing the operations. Based on the commission’s findings, the court will decide on the license to the factory." They added that the sponge iron unit is not located in the catchments area.

Chhattisgarh may cancel mine licenses over delays

BS quoted Dr Raman Singh chief minister of Chhattisgarh as saying that the state government would not hesitate to recommend cancellation of mining leases of the companies showing reluctance in setting up plants to process the mineral within the state.

Mr Singh said that “If the investors fail to come up with the project within 2 years or the period mentioned in the agreement, the state government will waste no time in recommending the cancellation of the mining lease of the company.”

Mr Singh said that the state government is reviewing the investments regularly to know the companies that had violated the norms and are showing no interest in investing despite getting mines in the state.

He added that "Eight companies had been allotted 12 coal blocks in the state. However, the companies were yet to start production following some objections, which would be removed."

Panel formed to settle dispute over Chiria mines

BL reported that, in a bid to break the impasse over Steel Authority of India Limited’s claims over the Chiria mines, the centre and the Jharkhand government have set up a high level joint panel to estimate the quantum of reserves in the Chiria mines and correspondingly assess SAIL’s projected iron ore needs in view of its expansion plans.

SAIL, with backing from the Prime Minister’s Office, has claimed that the mines are vital for its expansion plans and has been strongly pushing for an out of court settlement on the deadlock with the Jharkhand government.

A government official involved in the exercise said that "Vigorous efforts are being made with the Jharkhand government at appropriate levels in the centre to resolve the matter amicably out of court. The high powered committee would look at both points of view and is expected to submit its report within3 months."

SAIL and the Jharkhand government are currently locked in a battle over the Chiria mines in the Jharkhand High Court. SAIL has 6 mining leases in Chiria and 4 at Gua in Jharkhand, with an estimate iron ore reserve of around 2 billion tonnes. All of these mining leases were originally granted to Indian Iron & Steel Company Limited and have been in operation for the last 5 decades. Of the 10 leases, the renewal of 4 is under dispute with the Jharkhand government and the matter at present pending before the Court.

SAIL is executing a major expansion and modernization programs, entailing an investment of INR 54,000 crore. It would need an estimated 5,736 million tonne of ore over the next 50 years, of which 2,710 million tonnes are required for SAIL’s Brownfield and Greenfield plants in Jharkhand itself.

Blackstone and Primus eyeing stakes in Hinduja Foundries

ET reported that leading private equity firms Blackstone and Primus Capital Partners are in race to pick up a minority stake in Hinduja Foundries Limited, earlier known as Ennore Foundries Limited.

The Hinduja Group had decided to sell close to 10% of its equity holding in its foundry business arm to raise around USD 80 to USD 100 million to part finance its proposed capacity expansion plan and acquisition in the overseas market. It now holds 80% of the equity in Ennore Foundry Limited.

Hinduja Foundries’ proposed expansion program includes a capital expenditure of INR 350 crore over the next 3 years at its units in Ennore and Sriperumbudur. It is also on course to emerge as Asia’s largest foundry after the planned revamp. It is in the process of setting up new foundries, taking its current capacity from 96,000 tonne to around 230,000 tonne per annum in the next 2 to 3 years.

Hinduja Foundries is close to acquiring three mid sized foundries, 1 in France and 2 in Germany. It has commenced trial production at its greenmailed foundry in Sriperumbudur and this facility would further augment production capabilities of cylinder blocks and head with 40% of capacity available for export markets.

Ennore Foundry has invested close to INR 200 crore for equipment, including a high tech imported core package, at its Sriperumbudur plant. The plant will add 50,000 tonne to its existing capacity. It is also planning to set up a 10,000 tonne aluminum foundry, for which it is scouting for a suitable location in India.

The domestic foundry capacity is expected to top the 10 million tonne mark by 2010 as compared to the current market size of 6.2 million tonne. Indian market offers huge potential as industry segments such as automobiles, engineering, power and telecom are all ramping up their manufacturing capacities.

Indian Railways launches projects to boost iron ore carrying capacity

BL reported that Indian Railways is geared to handle the increased volumes of iron ore to be required by the integrated steel plants by 2011-12 as several railway projects, mostly doubling of lines, are at various stages of construction in the iron ore belt of Orissa and Jharkhand.

Besides, introduction of 25 tonne axle load wagons, closed circuit rakes, high capacity locos, CC+8 scheme, high speed Box N wagons, among others, will boost the carrying capacity of the Railways substantially. The integrated steel plants on their part too are revamping their own facilities to cope with the projected increase in traffic.

Mr GK Mohanty executive director of Railway Board said that for Indian Railways to provide assured services, the secondary steel producers must be prepared to load ore at less congested sidings while the promoters of large Greenfield steel projects must make firm commitments about their requirements.

Mr Mohanty said that the commitment has to cover the details of original destination flow of traffic and efficient management of loading and unloading terminals. Any delay on the part of the consumers would only lead to late planning and therefore, tardy implementation of rail infrastructure. He estimated the iron ore requirements of the steel sector at 200 million tonnes in 2011-12 up from 62 million tonnes in 2006-07.

Indian iron ore export exceeds domestic consumption in 2006-07

Dr Akhilesh Das minister of state for steel in a written reply in the Rajya Sabha informed that “During the year 2006-07, domestic steel industry consumed about 68.504 million tonne of iron ore (Estimated), whereas 93.79 million tonne of iron ore was exported (Provisional).”

Emco plans hybrid model for selling power

It is reported that Emco Limited’s upcoming 540 MW merchant power plant in Maharashtra is planning to implement a hybrid model for selling power. Of the total power produced, 50% would be sold on a short term basis to big industrial consumers and the rest to state electricity utilities on long term basis.

Mr Rajesh Jain CMD of Emco said that financial closure for the first phase of 270 MW of the project has already been achieved. A consortium led by Axis Bank is funding INR 1,000 crore and the company from its internal accruals is investing INR 240 crore. He added that "From long term agreement of 25 years, Emco could get a price of INR 2.60 to INR 2.80 per unit and up to INR 4 for short term arrangement of 5 years."

Mr Jain said that the plant will come up at Warora in Chandrapur district. Land acquisition, environmental clearances and fuel supply agreement is already in place and the coal would be sourced from coalmines in Chhattisgarh and water from the Warora River.

He said that unlike the conventional thermal plant, the Warora plant would not have a pond to hold fly ash. It would be directly supplied to a number of cement plants, which are located in the area. The plant would be operational from 2010 and critical equipment such as boilers, turbines and generators are sourced from Chinese manufacturers.

Chennai Port surpasses 2006-07 volumes

It is reported that Chennai port has surpassed the previous year’s total throughput of 53.41 million tonnes ahead of the closing of the current financial year as it handled 53.45 million tonnes of cargo on March 11th 2008.

Chennai port is also likely to exceed union shipping ministry’s target of 55.86 million tonnes for the current fiscal.

By deepening the JD berths to 12 meter draft, the port has eliminated congestion and at present no vessel is waiting for want of berth.

Essar Shipping to buy 5 more ships for USD 550 million

BS reported that Essar Shipping Limited is planning to acquire 4 dry bulk carriers in the next financial year to capitalize on the rising trade of commodities such as iron ore and coal. It also plans to acquire 1 more very large crude carrier in the next financial year, primarily to take care of the expected rise in its captive demand from Essar Energy Holding. The five vessels would cost up to USD 550 million.

Essar Shipping & Logistics Limited, a 36% stake holder in Essar Shipping, has already placed orders for 6 Supermax bulk carriers and 6 mini cape bulk carriers for USD 210 million and USD 390 million in the current financial year. Essar Shipping has now planning to acquire a total of 16 bulk carriers with the new planned order for 4 in the next financial year.

Mr Sanjay Mehta MD of Essar Shipping said that “We are planning to acquire 5 vessels in the next financial. It could be newly built or in water or combination of both. We expect 75% to 80% of financing for these 5 vessels through debt and 20% to 25% through equity.”

Essar Shipping also plans to acquire 2 capsize bulkers for which it has kept a target of USD 260 million, similarly for 2 Supermax, it has the target cost of USD 140 million and for one VLCC it has the target cost of USD 150 million.

Essar Shipping currently has total capacity of 1.32 million DWT of owned capacity, of which 0.58 million DWT is of 23 vessels used for coastal transportation. It is the rest of 0.7 million DWT consisting of 3 tankers that is used on longer routes. The 12 bulk carriers for which the order has been placed would add around 0.95 million DWT taking the total owned capacity to 2.27 million DWT. These 12 vessels are expected to be delivered from December 2009 onward to January 2012.

India’s largest private shipping company Great Eastern Shipping has a fleet of 47 vessels with an aggregate capacity of 3.14 million DWT. GE Shipping has placed orders for 12 new vessels which includes 4 oil product carriers and 8 dry bulk carriers with delivery starting from 2008-09 to 2011-12.

Centre to introduce a new system of royalty for minerals

ET reported that centre is preparing to introduce a new system of royalty for minerals that would result in an over 10 fold increase in the payout to states on iron ore. It is also considering dumping low specific rates of royalty for major minerals and adopts royalty that would change with the ore's market value.

An official source said that with iron ore prices doubling in the last few months, the new royalty could further depress the margins of steel companies and push up steel prices again. He added that ''The proposal on new royalty structure for major minerals including iron ore would come up for cabinet approval. The move is aimed at increasing the royalty earnings of states that had to make do with lower specific rates for the last several years.''

As per the proposal, the royalty on iron ore would be fixed at ad valorem rate of 10% on all grades like lump, fines and concentrates. Along with iron ore, the new system would change the royalty regime for limestone, zinc, bauxite, manganese, diamond and uranium. The minerals are used extensively by metal based industry. The cost pressure on the industry from royalty would come even as prices of other raw materials like coking coal, refractory and ferroalloys has also increased manifold.

Under the new royalty structure, the states would have to earmark 10% of the royalty earnings for infrastructure development and community benefit programs. Moreover, the benefits would only accrue to states that do not impose or repeal additional tax or cess imposed on mineral bearing areas.

While the new royalty rates would impact steel making and iron ore mining companies alike, it would enrich the states' royalty earnings by almost 100% from a level of INR 2,014 crore at 2006-07 production levels to INR 3,943 crore. The royalty collection from iron ore itself is likely to increase from INR 247 crore to INR 1,650 crore.

Vale Xstrata tie up – End nearing….

Folha de Sao Paulo said in a report that quoted no specific sources said that “A probable deal would entail Glencore retaining marketing rights for the combined company's nonferrous metals and coal for five years.”

The newspaper, which said only it found out about a possible deal but provided no attribution, said the sides are very close to sealing the takeover and might make the announcement as soon as Friday.

O Estado de S Paulo newspaper reported that Mr Ivan Glasenberg head of Swiss commodities trader Glencore and Mr Mick Davis CEO of Xstrata are traveling to Brazil to try to find a solution in a last ditch effort.

Sources said earlier Glencore had demanded a 10 year agreement to sell the combined firm's output, except iron ore. But Vale was only prepared to allow a 5 year deal that excluded both iron ore and nickel.

Usiminas to export 1 million tonne of iron ore in 2008

AP reported tat Brazilian steel maker Usiminas Siderugicas de Minas Gerais will export about 1 million tonnes of iron ore this year from its newly acquired mines.

Mr Rinaldo Campos Soares CEO of Usiminas during the 14th annual CRU world steel conference said that “Usiminas expects to produce about 6 million tons of iron ore this year, with some 1 million tonnes destined for export.”

He added that it plans to start exporting iron ore this year in small quantities from J. Mendes, reaching 2 million tonnes in 2009 and 7 million tonnes in 2013.

Mr Soares said Usiminas will invest USD 750 million to boost annual iron ore production to between 29 million tonnes and 30 million tonnes by 2013.

Mr Soares added that “Usiminas is also considering investing in a pellet plant as part of an expansion plan after 2013Pellets could be destined either for the domestic or international market.”

Last month, Usiminas completed its purchase of mining companies J. Mendes, Somisa Siderurgica Oeste de Minas and Global Mineracao for an initial payment of USD 925 million. It agreed to make additional payments after drilling to confirm the size and quality of iron ore reserves. Usiminas will pay up to USD 1.9 billion if the drilling confirms reserves of at least 1.4 billion tonnes. But the steelmaker believes the mines hold about 1.8 billion tons, which would make Usiminas self-sufficient in iron ore for about 25 years.

Brazilian pig iron export prices for SEA cross USD 600 mark

Brazilian export price of pig iron has soared to USD 520 per tonne. The price seems to be increased further and it is estimated to reach USD 530 to USD 540 per tonne in near future.

Additionally, it is expected that the supply of pig iron in global market will be very tight in July and August.

Current freight from Brazil to South East Asia is about USD 100 to USD 105 per tonne therefore, the final price to this area will be USD 620 per tonne.

(Sourced from YIEH.com)

SUTISS president shot in Sidor strike clash

Reuters reported that a union leader was shot and wounded in the leg on Friday during clashes between workers and police over a strike at Venezuela's largest steelmaker Ternium Sidor. Several workers were also injured and dozens of others were detained by police during the clashes, which erupted after strikers blocked a road leading to the steelmaker. Police dispersed the protesters by firing teargas and rubber coated bullets.

Mr Nerio Fuentes union secretary general said that “Mr Jose "Acarigua" Rodriguez, the president of SUTISS, the union that has called several strikes in recent weeks over contract negotiations, was taken to a hospital due to his wound.”

Mr Rodriguez was shot with a normal bullet in the leg by a policeman and was also hit by rubber coated bullets and received a blow on the head, union officials said.

The clashes were the worst incident during weeks of faltering negotiations, in which the company and union remain far apart despite mediation by the leftist government of President Hugo Chavez.

Sidors annual production is 4.5 million tonnes of liquid steel and Argentina's Ternium has a 60% stake in Sidor with workers, pensioners and the state holding the remaining portion. According to the union Sidor has lost an estimated USD 50 million due to several brief strikes this year.

Ruukki to switch to 100 % pellets by 2012

The Finnish steelmaker Rautaruukki Oyj will close its sinter plant at Raahe in Finland, in late-2011, which means the company will use only iron ore pellets as the raw material in its steelmaking process.

LKAB and Ruukki have a long term contract, which will mean an increase in pellet deliveries when the sinter plant is shut down.

Mr Johan Heyden, VP of market division of LKAB said that “We are pleased and proud that Ruukki has entrusted us to deliver pellets, says. LKAB already supplies all of Ruukki’s iron ore demand. This year, deliveries of fines will amount to about 2.2 million tonnes and since 2007 we also deliver about 1 million tonnes of olivine pellets annually.

Mr Johan added that “The decision to close the sinter plant in Raahe and make the transition to using only pellets in their blast furnaces may be considered a result of a systematic, joint development effort on the part of Ruukki and LKAB. This is a project that began as early as 2002 and has included trials in LKAB’s experimental blast furnace. LKAB and Ruukki have enjoyed longstanding good relations, and Ruukki’s decision to close the sintering plant is yet another step in our long-term collaboration. At the same time, this move is fully in line with LKAB’s long-term strategy to become a 100% supplier of pellets to the steel industry.”

In a press release, Rautaruukki announced that the switch to 100% pellets in the Raahe works will result in a decrease of carbon dioxide emissions by 10% or about 500,000 tonnes per year, that dust emissions will be cut by 37% and sulfur emissions by 64% and that energy use will be cut but by 8% or 1.16 million MWh per year.

Rio Tinto’s update on accident in Perú

Rio Tinto said that “It has been confirmed that the helicopter crashed in a very remote, mountainous area and it appears that none of the passengers and crew survived. From the outset the company has assisted and informed the families of the passengers and crew on board and fully cooperated and supported the efforts of the Peruvian authorities with their search efforts. “

The release added that “On Wednesday, wreckage believed to be from the chartered helicopter was observed from the air by the Peruvian Air Force, but the wreckage could not be positively identified. Search teams including personnel from the Peruvian authorities and Rio Tinto were immediately dispatched to the area, but have not been able to reach the site due to very rugged terrain. On Friday it was confirmed by aerial photographs taken from a Peruvian Air Force helicopter that the wreckage was the chartered helicopter. It also appears unlikely that there are any survivors.”

Rio Tinto is deeply saddened about this tragedy and has mobilized additional specialist resources to assist the ongoing search effort. We will continue to provide support and counseling to the families and provide assistance to the Peruvian authorities.

The Helinka-Evergreen Bell 412 EP helicopter was under charter to the Rio Tinto La Granja Copper Project and carried two pilots and eight passengers.

Top 10 green things about steel – AISI

St Patrick’s Day is known as the green holiday, when parades fill the streets, people fill the pubs, rivers are dyed green and shamrocks abound. Perhaps because of its proximity to the beginning of spring or images of the green hills of Ireland where Saint Patrick helped convert the island nation to Christianity, March 17th has been an important celebration of the oft overlooked color.

Fortunately, green has made a push forward in the new age of environmental awareness. The quest for sustainability has created a new implication for the word and the North American steel industry is no exception. The new steel industry of today has embraced the notion of sustainability in a number of ways. It has moved from the stereotypical resource consuming production and heavy waste of the industrial revolution into an era of self consciousness and positive reform. The industry is committed to doing its part to improve land, air, and water quality. Through innovative approaches, the North American steel industry has been working hard to ensure a better, safer environment and a more complete understanding of the word “green” well into the future.

The top ten green things about steel are:

1. Steel is 100% recyclable and today’s steel, on average, contains 75% of old scrap. From the car to the grill to the kitchen sink, steel can be melted down again and again without losing its quality. Steel scrap is our largest raw material by tonnage.

2. Almost all of the water used in the steel making process is recycled and filtered up to 100 times before discharge, at which point it exits cleaner than when it entered the mill.

3. Scrap, both in the steel mill and at manufacturing plants where steel is shaped and cut, are always sent back and recycled to make a new batch of steel. And gases produced in the steelmaking process are recycled into the system to heat up the furnace, reducing the need for additional energy.

4. Steel companies support communities with their involvement in environmental issue groups and local programs and through public education initiatives.

5. New technologies are being researched at MIT and the University of Utah that may allow us to produce iron, a major element in steel, without the emission of carbon dioxide.

6. American steelmakers lead the way in energy efficiency and emissions reductions. The industry is 240% ahead of the Kyoto Protocol greenhouse gas emissions goal and is developing innovative technologies to continue setting new benchmarks. According to the US EPA, the steel industry is the only major industry that has reduced its CO2 at the same time as increasing its production since the Kyoto base year of 1990.

7. Continuously reinforced concrete roadways are structurally supported by steel rebars and help to improve fuel efficiency in large vehicles.

8. Steel cans protect food in the same way as your grandmother protected food from her garden, locking the nutritional benefits in, without the use of refrigeration. This lack of refrigeration requirement significantly reduces CO2 production.

9. Steel utility poles are light, strong, and have a long service life. They do not require chemical preservatives like their counterparts, and pose no hazardous waste disposal concerns, as they are fully recyclable.

10. The North American steel industry is hard at work restoring former steel plants, called Brownfield sites. In some cases small commercial and retail stores are put in place, in others the land is kept as a wildlife habitat and opened to school tours

Esmark completes sale of minority interest in Wheeling-Nisshin

Esmark Incorporated announced that it has completed the sale of its minority equity interest in Wheeling-Nisshin Inc for USD 71.4 million to Nisshin Holding Inc.

It added that the net proceeds were used to reduce long term debt.

Austrians show interest to setup steel factory in Nigeria

It is reported that Austrian investors have indicated interest to establish a factory for the manufacturing of steel in Nigeria. The Austrians led by Dr Albvecht Zimburg commercial counselor Austrian Embassy in Nigeria, gave the indication during a meeting with the officials of the Nigerian Investment Promotion Commission in Abuja last week.

Dr Zimburg said the investors would establish a factory in Nigeria which will be utilized for the assembly and construction of steel making as well as bridge building machines. He said that "The factory worth billions of dollars would facilitate the transfer of technology to Nigerians which will eventually reduce cost of importing these machineries from advanced countries.”

Engineer Mustapha Bello executive secretary of Nigerian Investment Promotion Commission said that the government has already liberalized the mining sector and welcomes all genuine investors in the sector. He said their desire to establish factories in Nigeria would revive the mining sector which has remained dormant for quite sometime.

RBCT to reach 91 million tonnes in H1 of 2009

Mining weekly reported that the planned expansion of the world’s single largest coal terminal, Richards Bay Coal Terminal will increase its throughput capacity from 72 million tonnes a year to 91 million tonnes a year. The project was reduced from a planned 92 million tonnes a year in order to start the expansion to meet the short to medium term export capacity requirements.

The expansion, at a cost of ZAR 1.2 billion, is deemed necessary in order to meet the short to medium term capacity requirements of export coal producers. The main project contracts have been awarded to Bateman for main contract, Siemens for electrical supply and design, Metso for tippler and stacker, SKP for civil design and earthworks, Spoornet for upgrade of the railway and Portnet for dredging and extension of quay. It is about halfway through its phase five expansion and is on schedule to reach capacity within the first half of 2009.

Eight coal companies, including diversified miners African Rainbow Minerals Coal and Exxaro have been selected for the nine million tons of coal export capacity made available through the RBCT’s Phase 5 expansion. The eight successful applicants are Arm Coal, with the biggest allocation of 3.2 million tonnes a year, Exxaro Coal with 2.5 million tonnes, Tumelo Coal Mines with 600,000 tonnes, Yomhlaba Resources with 500,000 tonnes, Mbokodo Mining with 500,000 tonnes, Umcebo Mining, Mmakau Mining and Worldwide Coal Carolina.

Metal Management completes merger with Sims Group

Metal Management Inc announced that the merger with Sims Group Limited has become effective after Metal Management stockholders approved the adoption of the merger agreement with Sims at a special meeting held.

The combined company is domiciled in Australia with executive offices in New York and Chicago. It is anticipated that shareholders of the combined company will vote to approve the change of the combined company’s name to Sims Metal Management Limited in November 2008. In the meantime, the combined company will operate under the name Sims Metal Management in the United States.

As previously announced on September 24th 2007, Metal Management’s board of directors unanimously approved the merger agreement. Under the terms of the agreement, Metal Management stockholders will receive 2.05 Sims American Depositary Shares for each share of Metal Management common stock. Each ADS will represent one ordinary share of Sims Metal Management. Sims will retain listing of its ordinary shares on the Australian Securities Exchange and its ADSs will be listed on the New York Stock Exchange.

Metal Management common stock ceased trading on the NYSE after the closing of the market today and will be delisted. The ADSs will begin trading on the NYSE on March 17, 2008 under the name Sims Group Limited and under the stock symbol “SMS”.

Metal Management is one of the largest full service metal recyclers in the United States, with 53 recycling facilities in 17 states.

Sims Group’s core business is metal recycling, with an emerging business in recycling solutions. Sims earns around 70% of its revenue from international operations in the United Kingdom, Continental Europe, North America, New Zealand and Asia.

Bekaert 2007 operating profit up by 14.5% YoY

Belgian steel cord and wire manufacturer Bekaert announced a 14.5% YoY rise in operating profit above analysts' expectations and said it expected further growth driven by new investment.

Bekaert reported record full year consolidated sales of EUR 2.2 billion in February with high oil prices contributing to a strengthening of its position in the booming offshore sector. Bekaert, whose products are also used to reinforce tires and concrete, saw recurring earnings before interest and tax rise to EUR 186.3 million from EUR 162.7 million in 2006. Net profit rose to EUR 152.9 million against the average forecast of EUR 141 million. Analysts had expected higher tax rates in 2007 to dent results.

Bekaert in a statement said that "The main drivers of this improvement in the results were the strong sales growth, particularly in China and rising sales of products with high added value.”

Bekaert which typically does not give precise financial outlooks said it was confident it would continue to achieve profitable growth. It said that "Bekaert expects continuous growth in its activities in 2008, supported by strong capital investment programs of 200 million euros, mainly in China, India, Indonesia and Russia.”

Bolivian tin output to recover in 2008

ITRI reported that provisional official figures show that Bolivian mine production of tin in concentrate fell by 9.6% to 15,966 tonnes in 2007, while refined tin output by the country’s two smelters also dropped to 12,251 tonnes.

The difference between the mine and refined tin production figures is accounted for by concentrate exports partly legal, partly smuggled and some build up in concentrate stocks.

Both mine and refined tin production is expected to recover in 2008, with the improvement linked to increased investment by Comibol in its Huanuni mine.

Huanuni is targeting production of 9,600 tonnes in 2008 up from 7,669 tonnes in 2007. Improvements in the volume and quality of concentrate supplied from Huanuni should give a boost to the Vinto smelter, which will be embarking on a major modernization program over the next two years.

Japanese rebar export price to hit USD 800 per tonne FOB

JMB reported that Japanese concrete reinforcing steel bar export price is reaching FOB USD 800 per tonne.

The price increased by more than 30% to USD 780 to USD 790 for South Korea for April shipment under tight supply when Chinese suppliers reduce the export with higher export tariff.

Japanese makers increased the billet export price to USD 750 to USD 760. The makers try to make money through export of billet and rebar to Asian market when the domestic building demand is very slow due to new building standard law.

ArcelorMittal Válcovny plechu 2007 gross profit up by 28% YoY

CTK reported that ArcelorMittal Ostrava’s Czech rolling mill Valcovny plechu has made pre tax profit worth CZK 530.5 million in 2007 up by 28% YoY.

Valcovny plechu in a statement said that its profit grew due to higher production of transformer steel sheets, among other things, which grew by 6,500 tonnes year on year. Valcovny produced and sold around 143,000 tonnes of steel sheets in 2007, up from 138,000 tonnes in 2006. It expects that the profit in 2008 should reach CZK 744 million.

According to Valcovny plechu plan in 2008, steel sheets output in Valcovny's plant in Frydek Mistek in northern Moravia should exceed 160,000 tonnes. It said that Valcovny should also produce 36,000 tonnes of steel sheets in former company Nova hut Valcovna za studena with which it merged last year.

Mr Marcela Blachova Miksova CFO of Valcovny plechu said that the acquisition of Nova hut Valcovna za studena also a unit of ArcelorMittal Ostrava was Valcovny's largest investment last year.

Indonesian tin exports dip in February

Indonesia’s trade ministry reported that 7,431 tonnes of tin was cleared for export in February 2008 down from 9,914 tonnes in January 2008. The data is based on surveys carried out as part of its export licensing scheme, which has now been in operation just over a year.

Reuters reported that the latest trade ministry data showed Indonesia's second largest tin producer, PT Koba Tin did not export in February 2008.

In a separate story it also reported that the country’s largest producer, PT Timah is preparing to ship some 1,300 tonnes of refined tin today, having agreed with local police that it could move a barge containing tin ore which has been blocking the exit from its private port. Unloading of the ore has been prevented since February 23rd pending resolution of an investigation of documentation.

Meanwhile exports from Indonesia’s independent smelters may be picking up with the end of the monsoon season. Metal Bulletin reported that private smelters are planning a shipment of 140 containers of tin, equivalent to 3,500 tonnes.

RESALE to be held in Germany in April

RESALE one of the world’s leading trade fair for used machinery and equipment commencing from April 23rd 2008 at the Karlsruhe Exhibition Centre Messe Karlsruhe, which is one of the most modern trade fair centers in Germany.

RESALE 2008 is a leading trade fair for used machinery and equipment. It will start two days after the opening of the Hannover Fair. Visitors to the trade fair can first check up on the latest technologies in Hannover and then travel to investigate used machinery.

Every sector of the industry is represented at RESALE; even unusual machines are available at the fair. Used machinery for different sectors like, metal, wood working machinery, packaging, plastic, food processing, textile, power plant equipments, construction, agriculture will be exhibited.

In RESALE 2007, 528 exhibitors from 29 countries participated in the exhibition.

US steel buyers seeking export taxes on scrap metal

Purchasing.com reported that small volume steel buyers want lawmakers to tax steel scrap and steel exports to help stanch surging prices that have more than doubled in the last quarter.

Over the last three months, the price of hot rolled sheet steel has almost doubled, with some firms seeking as USD 600 per tonnes, partly because of high raw scrap prices. Now, a new report by the US Geological Survey is fueling fresh controversy over restricting ferrous scrap exports.

The national average price for heavy melt No 1 scrap in 2007 was USD 108 per ton, up almost 23% from USD 88 in 2002. Early this year, with exports and market prices continuing to rise, the Steel Manufacturers Association and some steel users formed the Emergency Steel Scrap Coalition. This group commissioned a two month economic study to determine causes underlying the run up in scrap prices.

Mr Thomas Danjczek president of the Steel Manufacturers Association said that the coalition may petition the Commerce Department for export restrictions. Meanwhile, at last week’s House Small Business Committee hearing, numerous businesses asked for similar restrictions.

Ms Barbara Hemme controller of Youngberg Industries said that "With the types of steel price increases being imposed by the mills and blamed on scrap supply shortages, it will be a matter of weeks before some steel using companies go out of business. An immediate tax on scrap and steel exports would help keep some of the steel here in the U.S. We cannot afford to have all our raw materials shipped to China."

Mr Wayne Atwell an analyst for Morgan Stanley said that steel prices have increased worldwide, but are among the highest in the US. That's in part, Atwell says, because of scrap prices that have gone from USD 110 to USD 300 per ton and metallurgical coal prices have risen from USD 40 to as high as USD 200 per ton. Mr Atwell suggests that “scrap prices will peak in one to two months, and drive steel prices down, beginning in mid 2004.”

The US Geological Survey’s Minerals Information Team’s report shows that US steel mills and foundries bought 63 million tons of steel scrap in 2003, an increase of less than 2% from 62 million tons in 2002. However, steel scrap exports increased 20% to 11 million tonnes in 2003 from 9 million tons in 2002.

Buyers dismiss this view as wishful thinking. The Consuming Industries Trade Action Coalition has called on the Bush administration to suspend existing antidumping and anti subsidies tariffs on steel. Mr Michael Fanning chairman of Consuming Industries Trade Action Coalition said that there are about 131 such orders on iron and steel products. He said that “The steel shortage is causing havoc for US manufacturers. US manufacturers are facing major steel supply disruptions and shortages that could contribute to plant closures and job losses in a matter of weeks or months."

Zinc premiums hold steady

Platts reported that domestic zinc premiums remain stable amid slow physical business, but sources said that the tide could turn in the spring on higher demand from the construction sector.

As per report the premium for special high grade zinc is still lingering at 3.75 cents per short tonne plus LME cash, but the range is wide. One trader reported selling material as high as 5 cents per short tonne while another said he has sold significant volumes as low as 3 cents per short tonne.

A source said that "With commodities overall, producers are taking advantage of some of the pricing and they are increasing premiums. Our demand is very good so I can't speak to a weakening market."

One trader agreed that material was out there, but he described the market as relatively weak. He said that "There hasn't been any change in physical business. Across the board zinc is still fairly weak in North America and we're seeing premiums anywhere between 3 and 4 cents."

A second trader said the special high grade market remained below 4 cents per short tonne, but added that it was possible to get higher numbers for special delivery terms. He said that "If you're getting 100 tonnes or more, you can get a bit of a lower premium, but if you're in the market for one, two or three truckloads then you're looking at 4.5 to 5 cents per short tonne."

He added that "The market is stable for the time being, so unless we see a shortfall in production or a natural disaster, things should continue as is."

Sources agreed that fund interest in the metal would continue to fuel higher prices on the LME, but that North American premiums would resist any movement in the near term.

Taiwan imports 16 million tonnes of iron ore in 2007

According to the statistics, Taiwan imported 16.035 million tonnes of iron ore in 2007, an increase of 577,000 tonnes or 3.7% YoY.

As per the statistics, Australia ranked the first biggest iron ore provider with 10.335 million tonnes accounting for 64.4% of the total volume. Brazil ranked the second with 4.492 million tonnes accounting for 28% of the total volume; Canada was the third with 1.209 million tonnes accounting for 7.5% of the total volume.

(Sourced from YIEH.com)

Sea freight jumps due to surge in oil prices

On March 11th 2008, oil prices reached a historical highest of USD 109.72 per barrel, closing at USD 108.75. Increasing oil prices have brought attention to shipping companies, as the extra oil costs will drive freight up. Some shipping companies have already made plans to increase freight for South East Asia voyage on April.

Shipment freights continue to go higher, which has led to space being very tight in the near future. There is still a greater chance to increase shipment freight, considering the trend of increasing oil prices. The surge in freight is also pushing up costs for steel mills.

(Sourced from YIEH.com)

Murchison Metals posts AUD 57.4 million profit in H1

Murchison Metals announced that it has reported an after tax profit of AUD 57.4 million for the Half year ended December 2007 as compared to a loss of AUD 13.4 million in the previous corresponding period. The strong result was primarily attributable to the profit on the sale of a 50% interest in its subsidiary Crosslands Resources to Japan's Mitsubishi Development Pty Ltd.

Highlights
1. Half year profit of AUD 57.4 million
2. AUD 113 million capital raising completed in July 2007
3. Mitsubishi transaction completed
4. Unconditional offer made for Midwest offer closed subsequent to half year end with Murchison Metals Ltd owning 4.78%
5. Cash and liquid investments of AUD 184 million at 31 December.
6. One million tonne shipment milestone attained at Jack Hills Stage One iron ore project (MMX 50%)
7. Feasibility studies for Jack Hills Stage Two expansion well advanced
8. Jack Hills Mineral Resource increased 58% to 153 Million tonnes.
9. Oakajee Port & Rail (MMX 50%) invited by WA Government to tender for Oakajee port development

Murchison Metals said the period was one of significant progress on the operational, development and corporate fronts, leaving the company well positioned to achieve its objective of becoming the premier iron ore developer in the mid west region of Western Australia.

The Mitsubishi transaction, combined with a successful AUD 113 million capital raising in July 2007, has left the iron ore producer in a strong financial position with cash and liquid investments of AUD 184 million as at the end of the half year.

BlueScope Steel update

BlueScope Steel has provided the market with an update of its performance.

BlueScope said that it’s had a reasonable start to the year with first half underlying profit seen in line with market expectations. The second half is expected to be stronger however.

BlueScope said that global steel prices have increased from the fourth quarter but it's uncertain about its North American outlook and demand from China is expected to remain strong, but the company says costs associated with developing plant in the Asian nation are uneconomical.

BlueScope also sees global consolidation continuing throughout the year.

Petro Wire and Steel moves to a warehouse in Houston

Petro Wire & Steel announced that it completed its move into a state of the art, 15,000 square foot warehouse where they will be able to keep a larger stock of products to meet customer demand.

Petro Wire in a statement said that “The move took place on February 22nd 2008 and the company is now settled in and ready to resume business as normal, with the exception of having a much larger stock of stainless products. Customers should know that despite the move, Petro Wire & Steel's phone and fax numbers remain the same.”

Petro Wire & Steel is a stainless steel, wire cloth, and other custom fabrication products provider. The move to a larger warehouse will help the company to maintain a larger stock and a wider variety of materials so that whatever its customers are looking for, they can provide it.

As a stainless steel supplier, Petro Wire & Steel has recognized an increased need in the recent past, which was one of the main reasons for their move to a larger, newer warehouse. In response to their growing customer demand, they have already increased their stock of expanded metals, bar grating, fiberglass grating and many other fabrication materials.

Petro Wire & Steel is a stainless steel and fabrication material supplier with a focus on complete customer satisfaction and a strong work ethic. It provides custom fabrication on all of our products, as well as a large selection and low prices.

Hyundai Motor to pay suppliers 20% more for parts

Bloomberg reported that South Korea Hyundai Motor Co has agreed to pay as much as 20% more to its suppliers for parts as higher steel prices increase manufacturing costs.

Ms Song Mee Young a spokeswoman said that Mr Kim Dong Jin vice chairman of Hyundai Motor and the suppliers' group has agreed on the price increase retroactive from February 1st 2008.

The higher prices paid to suppliers may undermine Hyundai Motor's plan to cut costs by 20% by 2009. China's economic growth has pushed up prices for raw materials, forcing POSCO, Asia's biggest steelmaker by market value, to raise prices by as much as 12% in February.

Mr Kim Jae Woo an analyst at Mirae Asset Securities Co in Seoul said that “The higher prices come at a difficult time. Hyundai won't be able to pass on the higher costs to customers as the slowing global economy is already damping auto demand.'' He estimated that more expensive parts will cut Hyundai's annual operating margin by about 1% point this year.

South Korea's cast iron producers last week threatened to stop supplying goods to companies such as Hyundai if they were unable to raise prices to recoup rising costs.

Thompson Creek announces 2007 financial results

Thompson Creek Metals Company Inc one of the world's largest publicly traded, pure molybdenum producers announced financial results for the year ended December 31st 2007 prepared in accordance with Canadian generally accepted accounting principles.

2007 financial result Highlights:
1. Revenues were USD 197.8 million in the Q4 and USD 914.4 million in 2007.
2. Net income was USD 28.9 million.
3. Average realized price on molybdenum sales was USD 31.08 per pound in the Q4 and USD 28.77 per pound during the full year.
4. Long term debt borrowed for the acquisition of Thompson Creek USA in October 2006 was reduced by USD 165.8 million during 2007. 5. Since the acquisition of Thompson Creek USA, the Company has used USD 327 million of cash to reduce acquisition debt and make payments to the previous owner, including a contingent purchase price payment of USD 100 million in January 2008.
6. Molybdenum production from the Company's two mines was 3.4 million pounds in the Q4 and 16.3 million pounds in 2007.
7. Outlook for molybdenum prices remains positive and the Company continues to expect its molybdenum production to increase to between 23 and 24.5 million pounds in 2008 and in excess of 34 million pounds in 2009.
8. The weighted average cash operating expense was USD 11.51 per pound in the Q4 and USD 8.39 per pound for 2007. In 2008, costs are expected to be in the range of USD 6 to USD 6.50 per pound at the Thompson Creek Mine and USD 9.50 to USD 10.25 per pound at the Endako Mine.

Mr Kevin Loughrey chairman & CEO of Thompson Creek said that "Thompson Creek achieved significant financial success in 2007 despite experiencing lower molybdenum production at both of our operating mines in the second half of the year.”

He added that “The production difficulties stemming from a rock slide at the Endako Mine and the processing of a low grade stockpile at the Thompson Creek Mine are now behind us. At the Thompson Creek Mine, where we began mining Phase 6 ore in the fourth quarter of 2007, the ore grade has risen as expected and molybdenum production currently is on track to achieve the guidance that we previously announced for 2008.”

Mr Loughrey stated that "Mining operations are also going well and on track to achieve forecasted production levels at the Endako Mine, where we have experienced good grades and recoveries from the ore that we have been mining from the Denak West Pit since the beginning of the year.” He added that "With molybdenum prices showing continued strength, we believe that the best is still to come for Thompson Creek shareholders. The Company is well-positioned to deliver substantial gains in earnings and shareholder value this year and beyond, especially due to our internal growth plans.”

Thompson Creek Metals Company Inc is one of the largest publicly traded, pure molybdenum producers in the world. The Company owns the Thompson Creek open-pit molybdenum mine and mill in Idaho, a 75% share of the Endako open pit mine, mill and roasting facility in northern British Columbia and a metallurgical roasting facility at Langeloth in Pennsylvania.

Hanjin to form body on shipyard safety

South Korean owned Hanjin Heavy Industries and Construction Co announced that it would form a special committee that would monitor compliance of its subcontractors with international safety standards in shipbuilding works.

Mr Pyeong Jong Yu general manager of Hanjin Heavy Industries and Construction Co Philippines said that ''We will try to level up safety awareness of all those concerned, including subcontractors, to the extent of international standard. In addition, we will form a special committee to especially monitor and implement safety wise matters.”

Mr Pyeong said that Hanjin Heavy Industries and Construction Co Philippines would enforce 'stricter training and supervision on hazardous work to minimize recurrence of similar incident, if not preventing completely.”

The death of two workers on Monday night at Hanjin’s shipyard off the Redondo Bay in Subic brought to five the number of work related deaths at the South Korean owned facility since December last year.

Coal miners are being recruited for the first time in 25 years

It is reported that experienced coal miners are being recruited for the first time in almost 25 years. As per report UK Coal is putting together a team of 24 skilled workers to help open a new seam at Britain's largest colliery.

The workers will dig access tunnels into reserves at Daw Mill mine near Nuneaton in Works.

UK Coal said that "The fortunes of British coal have improved because the price of imported coal has doubled."

Their recruitment is a sign the mining industry may be recovering from the post strike years in which hundreds of thousands of jobs were lost. It is the first time since the bitter miners' strike of 1984 that staffs other than apprentices to replace retiring miners are being taken on.

Timken enhances reliability solutions offering

The Timken Company has expanded its reliability solutions offering to provide maintenance consulting and training to its industrial customers.

Through an agreement with Ivara Corporation, Timken reliability engineers will be certified to deliver specialized services and software to customers of Timken, as well as gain access to a global network of experts. Prime targets for this service are manufacturing facilities for the primary metals, cement, oil and gas, chemical, mining, pulp and paper and food processing industries and multiple types of equipment used in these facilities.

Timken will be using a methodology known as RCM2™ to determine the maintenance requirements of many pieces of operating machinery within a plant. Additionally, Timken will offer a series of hands on training courses filled with practical, ready to use maintenance practices aimed at all different levels of maintenance and reliability sophistication.

Timken also will provide implementation consulting on asset performance management software that provides a cohesive and integrated platform to develop, implement and manage an equipment reliability program. The software uses predictive- and condition-based maintenance capabilities to monitor machine performance, and maintenance personnel are then prompted to perform the right work at the right time.

Mr Daniel E Muller president distribution and services at Timken said that “Unplanned downtime and random equipment failure can erode a customer’s profitability. Timken’s new consulting service greatly enhances our reliability offering and allows us to bring a broader spectrum of services to a global audience looking for our expertise.”

Mr Gerry Bleau CEO of Ivara Corporation said that “We are pleased to have a global leader such as Timken join us as an implementation partner and become part of our network of reliability experts. Together we will support customers’ asset-performance goals and help drive bottom line results.”

Ivara is the leader in asset performance management software, Ivara EXP Enterprise, and services including Ivara RCM2™, the leading reliability strategy development methodology. RCM2 is delivered exclusively by The Aladon Network, Ivara’s global network of reliability experts. Ivara EXP prevents industrial equipment failure, increases production and lowers costs for better business performance.

Hyundai Merchant to boost Mideast route

Yonhap reported that Hyundai Merchant Marine Co, South Korea's leading shipping line by gross tonnage plans to expand its shipping volumes on a route linking Busan, Hong Kong and Dubai next month.

Hyundai Merchant Marine in a statement said that starting April 11, Hyundai Merchant Marine will operate five 4,600 TEU container ships on the route instead of its 2,200 TEU vessels because of soaring flow of products.

A Hyundai Merchant Marine official said that "Container cargo flows have apparently been increasing between Asia and the Middle East, as higher oil prices have increased the purchasing power of the Middle Eastern countries. We will expand our business in the Middle Eastern shipping markets."

Hyundai Merchant Marine will also launch a route connecting China and the United Arab Emirates in mid April and increase shipping volumes on the routes linking the Chinese port city of Ningbo and Dubai.

Borusan announces record CAPEX for 2008

Turkish daily News reported that Borusan Holding, operating in steel, distributorship, logistics and telecommunications, is preparing to make the largest investment of USD 381 million in its history. Besides collaborating with the world's leading steel company ArcelorMittal on hot rolling investment, Borusan will also invest in energy and logistics.

The distribution of investments in 2008
1. Hot rolling – USD 136 million
2. Energy – USD 82 million
3. Logistics, port storage and transportation – USD 61 million
4. Distributorship and other investments – USD 102 million

Mr Agah Uğur CEO of Borusan Holding at a press conference held to reveal the financial outcome for 2007 and projections for 2008 said “We are in the highest investment process of our history. We are planning to invest USD 381 million this year. Our investment between 2001 and 2005 totaled USD 407 million. This year we plan to invest almost as much as we did during the last five years. The company's investment target from now until 2010 is USD 1.7 billion.”

As per report, Borusan, which aims to grow by 20% and earn USD 3.6 billion in turnover, is planning to increase its profit from USD 241 million to USD 308 million this year.

Libyan Company for Steel Meets in Misurata

It is reported that a meeting was held in Misurata on March 13th 2008 to pursue the special arrangements for assessment and stocktaking of the Libyan Steel Company.

The meeting brought together the secretary of the peoples committee of the general board for the appropriation of companies & public institutions, the company's chief of administration and a representative of General Peoples Committee for Industry & Minerals.

The meeting was devoted to finding a mechanism to implement the board's decision number 10 of 2008 that called for the formation of 5 sub committees to undertake the job of assessing and stocktaking of the company as an advance step towards the eventual transfer to the private sector, as part of expanding the scope of collective appropriation. The participants agreed to speed up the work of the sub committees.

Pakistani ship breakers avoid new vessels imports

Business Recorder reported that Pakistani ship breaking industry is passing through a very critical situation as a fresh increase of USD 150 or 27.27% in prices of per late displacement tonnage scrap ship has compelled Pakistani importers to avoid new buying.

Mr Azam Malik chairman of Pakistan Ship Breakers Association said that "Due to growing demand for steel in international market the prices of breakable ships have skyrocketed during the last 15 days to over USD 700 per late displacement tonnage from the previous USD 550." He added that fresh price hike in the prices of demolish able ships had compelled the importers to refrain from new buying.

Mr Malik said that "At present, due to a substantial price hike in international market only 4 ships have arrived at Gadani ship breaking yards."

He expressed fear that the ship breaking industry, which provides quality raw materiel to the country's steel sector, is likely to collapse if the government failed to heed problems of the importers.

He said "The prices of scrap ship imports are also becoming difficult due to our currency, which is losing its value against the US dollar. India and Bangladesh are offering huge prices to the scrap ship sellers at USD 700 and USD 725 per late displacement tonnage, respectively."

FCA hails UAE’s resolution on cement and steel imports

UAE Federal Customs Authority has hailed the decision of Sheikh Mohammed bin Rashid Al Maktoum prime minister of UAE and also ruler of Dubai to exempt customs fees for cement and steel imports.

Mr Saeed bin Khalifa Al Murri deputy director of FCA said that ''The move will help developers fulfill their commitments to clients without passing consecutive price increases of international building materials to the end consumers. It will also sharpen the competitive edge in local cement and steel markets for the interest of end consumers and domestic economy.''

Mr Murri explained that Mr Sheikh Mohammed's move fit well into resolutions by the GCC's committee for financial and economic cooperation on exemption of duties of cement and steel imports up to end of 2009. He hoped that other sister emirates would follow Dubai's suit.

Mammut Systems wins construction contracts for Dubai Metro

It is reported that Emaar Industries & Investments’ subsidiary Mammut Building Systems FZC has been awarded two contracts by Dubai Rapid Link Limited, under which Mammut will construct 2 auxiliary depots for the Dubai Metro project in Al Rashidiya and Jebel Ali.

Mammut will build multi span and clear span buildings using high strength steel over a total built-up area of 109,000 square meters. Over 1,900 tonnes of steel will be used in the construction of the buildings in Jebel Ali and over 4,000 tonnes will be used in Al Rashidiya.

Dr Ahmad Khayyat CEO of Emaar Industries said that "The contract by Mammut for building auxiliary depots for the Dubai Metro project illustrates the strong inroads made by the company following its partnership with Emaar."

Dubai Rapid Link Limited is one of the main subcontractors for the Dubai Roads & Transport Authority’s Dubai Metro project.

Mammut is a market leader in pre engineered steel buildings. It is the first company in the world to create 3 dimensional drawing for all its buildings thus achieving 0% detailing errors.

DPE Dubai probes potential of capturing CO2

It is reported tat government owned oil production company Dubai Petroleum Establishment has launched a study into carbon dioxide capture with an international oil company.

DPE, which produces less than 100,000 barrels a day of oil, is believed to have hired an international oil company to study the feasibility of capturing CO2 from existing and future industrial facilities, and transporting the emissions to its offshore oil fields for re injection. This would allow associated gas currently used for that purpose to be used for other requirements, such as power generation.

The capture and storage of CO2, if feasible, would have the double benefit of increasing the lifespan of the fields as well as reducing pollution in the emirate.

DPE was established in 2006 to take over from Dubai Petroleum, which had been operated by the US' ConocoPhillips, when its concession expired in April 2007.UAE-based Petrofac International has taken over the operation of the concessions, which encompasses the offshore Fateh, Southwest Fateh, Falah and Rashid fields, on behalf of DPE.

Iran and DR Congo enter into a cooperation protocol

Tehran Times reported that Iran’s industries and mines minister and the energy minister of the Democratic Republic of the Congo signed a cooperation protocol here on Friday.

The two countries agreed to cooperate in the fields of technology, industry, infrastructure, energy, housing and urban development, economy, trade, mining, and geology. The officials also voiced interest in signing agreements on mining nickel, chrome, and iron ore at quarries in the Congo. Iran is obliged to transfer its technology and experience to Congo in the field of mining in lieu of receiving mineral materials in two months.

Establishment of ten cement factories in Congo with the total production capacity of 10 million tonnes, export of minerals to Iran, establishment and renovation of steam and hydro power plants of Congo, and exploration of oil fields in Congo are the other stipulations of the protocol.

Mr Ali Akbar Mehrabian the Iranian minister noted that Iran is prepared to contribute to implementation of different projects in Congo in mining, power, energy and housing sectors with participation of the private sector.

Aramco unit to sell stake in Philippine Petron

Philippine oil company Petron Corporation announced that major shareholder Aramco Overseas Co plans to sell its 40% stake to SEA Refinery Holdings, a company owned by Ashmore Group Plc.

Petron said that Ashmore unit has offered USD 550 million for the 3.75 billion Petron shares held by Aramco Overseas, a subsidiary of Saudi Aramco, the national oil company of the Kingdom of Saudi Arabia.

State owned Philippine National Oil Co, Petron’s other major shareholder with a 40% stake, said separately that it will evaluate the terms of Ashmore’s proposal and decide whether to exercise its right of first offer to purchase the shares. Mr Antonio Cailao president & CEO of PNOC said “We have received a notice from Aramco Overseas regarding the proposed sale of its shares in Petron and will carefully evaluate this filing with the diligence and rigor necessary and appropriate to determine the best course of action.”

Petron operates 180,000 barrel a day refinery and supplies nearly 40% of the country's oil requirements. It also has more than 1,250 service stations, the largest network in the Philippines. In 1994, the government privatized Petron, with PNOC selling a 40% stake to Aramco Overseas for USD 535 million. PNOC held onto another 40% and sold 20% to the public.

Ashmore is a global asset management company listed on the London Stock Exchange that manages USD 36.5 billion in assets.

Qatar remains committed to peg US dollar – Report

Qatar has denied reports that it was planning to revalue its dollar pegged currency or drop the link altogether in April 2008.

Central Bank of Qatar denied media reports attributed to one of its officials that it was planning to announce soon the revaluation of the Qatari riyal or dropping its peg to the dollar.

Mr Sheikh Fahad ibn Faisal Al Thani deputy Central Bank Governor denies the report in its entirety and affirmed that Qatar remains committed to a 2001 decision to peg its currency to the dollar at QAR 3.64.

On March 11th 2008, Dubai based news agency Zawya Dow Jones, cited an unidentified central bank official had reported that Qatar could drop its peg in April 2008 in a bid to control soaring inflation.

The Qatari riyal hit its highest level in more than three months on March 12th 2008 as investors bet some Gulf oil producers could revalue their currencies to fight inflation.

Oil supplies are very comfortable – Qatar

Mr Abdullah bin Hamad al Attiyah energy minister of Qatar said that crude oil supplies are very comfortable despite record prices and there is enough oil on the market for stocks to build.

Mr al Attiyah said that “There is no shortage in supplies. Actually supplies are very comfortable. Oil is going to stock building."

Mr Al Attiyah warned that crude oil prices could reach USD 300 per barrel or more if the US were to attack Iran. He added that he personally excluded this scenario, because US President Mr George W Bush had little time left in the White House. He said “In case Mr Bush decides to carry out his threats to attack Iran, then oil prices may jump to unprecedented levels, perhaps to USD 200 or USD 300 or more or less.”

Mr Al Attiyah also attributed the recent record rises in oil prices over the past few months to political tensions and speculation rather than supply shortages.

US crude hit a fresh record of USD 110.34 recently and ministers from OPEC have blamed rising prices on factors beyond their control, such as a weak dollar and investment fund flows into commodities.

Chinese domestic CRC prices soften but export remains at high level

It is reported that CR steel export offers remain firm in China despite decrease in domestic market price. Traders say that there have been more transactions recently though export prices are quite high.

As per report domestic CRC prices are in adjustment this week and there is an average decrease of CNY 100 per tonne from peal level. On Shanghai market, 1.0mm CR sheet by Anshan Steel goes at CNY 6500 per tonne down from CNY 6600 per tonne. Quotation for 1.0mm CR coil by Maanshan Steel is at CNY 6370 per tonne which compares with CNY 6430 per tonne to CNY 6450 per tonne in last week.

Mysteel said that if price for 1.0 CR sheet by Anshan Steel could stay above CNY 6400 per tonne, the upward outlook would be affected and the next target would be CNY 6800 per tonne to CNY 7000 per tonne. Otherwise, the downward correction would take price to CNY 6200 per tonne or even lower.

Prevailing export quotations for 1.0mm CRC are at USD 910 per tonne to USD 925 per tonne FOB and some are quoting at USD 930 per tonne FOB up. However, most cargoes are believed to be concluded at about USD 885 per tonne to USD 890 per tonne FOB.

(Sourced from MySteel.net)

Chinese SS exports in 2007 surges by 44.78% YoY

Platts reported that China's stainless steel exports rose 44.78%YoY to 1.303 million tonnes in 2007.

Beijing Antaike the state owned metals information provider said the YoY rise was mainly attributed to higher domestic stainless steel production. However, an increase in export tax on HR stainless steel sheets of 4.75 mm to 10% in January 2008 from 5% in 2007 could stem the growth of Chinese stainless steel exports in 2008.

According to Antaike estimates and could touch 80% or more in 2008 on increased output. China's stainless steel self sufficiency ratio jumped 15.6% to 75.6% in 2007 YoY.

According to the China Special Steel Association, China produced 7.206 million tonnes stainless steel in 2007 up by 36% from 2006.

Antaike forecasts Chinese stainless steel output to grow 15% in 2008 year on year.

US ITC continues AD review on welded SS pipes form China

The United States International Trade Commission determined that there is a reasonable indication that a US industry is materially injured or threatened with material injury by reason of imports of welded stainless steel pressure pipe from China that are allegedly subsidized and sold in the United States at less than fair value.

As a result of the Commission's affirmative determinations, the US Department of Commerce will continue to conduct its investigations of imports of welded stainless steel pressure pipe from China, with its preliminary countervailing duty determination due on or about April 24th 2008, and its preliminary antidumping determination due on or about July 8th 2008.

The imported product subject to these investigations is welded stainless steel pressure pipe with an outside diameter not greater than 14 inches. The product includes, but is not limited to, the ASTM A-312 or ASTM A-778 specifications or comparable domestic or foreign specifications. ASTM A-358 products are only included when they are produced to meet ASTM A-312 or ASTM A-778 specifications or comparable domestic or foreign specifications. The product is typically used for conveying gases and liquids in corrosive environments or under high temperature and pressure conditions.

The petitioners to the case are Bristol Metals, Felker Brothers Corp, Marcegaglia USA Inc, Outokumpu Stainless Pipe Inc and the United Steel Workers. Preliminary investigations instituted by the USITC on January 30th 2008.

The details of imports of products under review in 2007 are as under
1. China - 30,574 short tons (USD 156 million)
2. From other countries - 29,314 short tons (USD 160 million). Other leading sources are Taiwan, South Korea and Malaysia.

Shinsho acquires stake of service center in Kunshan

It is reported that Shinsho, a trading subsidiary of Japanese Kobe Steel, would acquire 10% stakes of a coiled sheet service center at Kunshan in China.

The service center is specialized in processing steel sheet for electronic industry and electric appliance production. It may help Kobe Steel raise its output of non chrome electric galvanized sheet.

The service center was founded in April, 2006 by China Advanced Material Processing Steel Service Center. CAMP possesses many coiled sheet service centers in China and the owner of CAMP is a trader of steel and raw materials named Van Shung Chong Holdings Limited and its headquarters locates in Hong Kong. The service center processes 6,000 tonnes of CRC and galvanized sheet from Kobe Steel, POSCO and other steel companies each month.

Meanwhile, Shinsho also has stocks in another coiled sheet service center of VSC which is called Guangzhou Shenchang Metallic Products Co. The service center was built in March, 2006 and monthly processing capacity is about 6,000 tonnes.

Chinese trade surplus in February 2008 drops sharply

According to the General Administration of Customs, China's trade surplus shrank to USD 8.555 billion in February 2008, roughly one third of the level in the same month last year.

In February, imports surged by 35.1% to USD 78.81 billion while exports rose merely 6.5% to USD 87.37.

According to the administration China trade volume in February reached USD 166.181 billion up by 18.4% YoY as compared with a year earlier.

Analysts said the unprecedented snow disaster that hit much of southern China in February was partly blamed for the shrinking trade surplus.

South Korean wire rod line at Qingdao put into production

It is reported that South Korean Wire Rod Co’s Qingdao based line mainly which produce new alloyed wire rod, like galvanized iron wire and steel wire is put into production.

The project is in three stages and the first was completed in August 2007. Now the constructions of main work shop and equipment installation have been finished. They are now under trial operation and they are going to put into production soon.

When completed, there will be annual output of 60 thousand ton and a sales income of USD 50 million.

China's province wise crude steel production in 2 months

China’s crude steel output in February 2008 is reported at 38.883 million tonnes up by 7% YoY. And during, January to February 2008 it is reported at 79.448 million tonnes up by 6.4% YoY.

Province wise crude steel production is as under

In million tonnes

(Sourced from MySteel.net)

Baosteel to complete Baotou Steel Merger in 2008

According to a latest report by 21 Century Economic Herald, that Baosteel are willing to strengthen the merger and recombination in 2008. As for the merger plan of Baosteel and Baotou Steel, however, Baosteel should get the support from local government for interregional mergers at present. Personnel arrangement and tax income are just small problems

Mr Cui Chen chairman of Baosteel Steel said the company had cooperated with Baosteel in management and technology and would move to capital level as the next step. And the means of cooperation, additional stock issuing or share assignment, are still being discussed. Mr Cui also disclosed the regrouping mainly involved steel, but not rare earth.

As explained by Mysteel, apart from these, evaluation of Baiyunebo iron mine counts another point.

First Baosteel wants assets of Baotou Steel's listed company, which almost includes all the steel businesses, but it will never stop at this; when the raw materials are all surging, Baosteel certainly covets the iron mine as well. Baotou Steel's crude steel output reached 11.8777 million tonnes in 2005 and the minerals have yet to be injected in listed assets.

Second, the two sides may not have made consensus in personnel arrangements. Baosteel needs time to have support from the local governments.

As per the Baotou Steel source both Baosteel and Inner Mongolia municipal governments are trying toward the direction of combination.

From second half of last year, Baosteel have been quiet in the secondary market in taking shares of Baotou steel and the Shanghai Baosteel Engineering & Technology Company Ltd was far from the top ten holders of Baotou Steel by December 12th 2008.

(Sourced from MySteel.net)

Jinchuan to speed up the overseas mineral investments

It is reported that Jinchuan Group, the largest nickel producer of China profited CNY 6.016 billion in 2007, at the same time it plans to take part in the overseas mineral resources project.

As per report Jinchuan Group’s directorate has unanimously agreed to participate in the overseas mineral resources project and make clear arrangements for some projects.

Mr Li Yongjun the board chairman of Jinchuan Group said that from a global view, Jinchuan Group is still not strong enough. The company is facing Canada, Russia, Australia etc large nickel production countries, they have high technology, strong financial resources, so Jinchuan Group must further enhance its competitiveness.

As China’s largest nickel and cobalt producer, Jinchuan Group has formed an annual output of 100,000 tonnes nickel, 400,000 tonnes copper, 10,000 tonnes cobalt, 3,500 kilograms platinum metals, 8 tonnes gold, 150 tonnes sliver, 50 tonnes selenium, 1.5 million tonnes inorganic chemical products. The nickel production increased by 12% in 2007, accounting for 90% of Chinese total nickel production.

Tangshan Steel produces WD2 silicon steel

It is reported that Tangshan Steel has rolled out WD2 silicon steel with sulfur content of less than 10%, an advanced level in the country.

Price for WD2 silicon steel is over CNY 1000 per tonne higher than that for common products.

The steelmaker now can launch batch production of the product. The success has paved the way to new products development.

(Sourced from MySteel.net)

Shenhua to supply 1.105 million tonnes coal to Philippines

Reuters reported that National Power Corp, the Philippine's largest power producer had awarded a 3 year contract to a Chinese producer to supply 1.105 million tonnes of coal annually to two coal plants.

Shenhua Coal Trading Co Ltd will supply 17 Panamax coal cargoes which will cost Napocor USD 166.5 million for the first year based on a reference price of USD 137 per tonne on a cost and freight basis. The contract to supply coal for Sual and or Masinloc plants is for a gross calorific value of 6,100 kilo calorie per kilogram. Delivery will start at the latest in July 2008.

Napocor said the contract price for the second and third year will be subject to negotiation.

Mr Juan Carlos Guadarrama a senior official at Napocor said the award is still subject to approval by the government.

In February, Napocor issued an open invitation to coal producers after little success in securing bids at an auction due to tight global supply. For this year, Napocor needs 3.47 million tonnes of coal to keep its Pagbilao, Sual and Naga-Cebu plants running. It sources most of its requirements from foreign producers and traders, mainly from China, Indonesia and Australia.

6 trapped in flooded molybdenum mine in North East China

Xinhua reported that 6 miners have been trapped in a molybdenum mine in northeast China since it flooded on Thursday afternoon.

The flooding occurred at around 2:00 PM at the underground pit operated by the Magou Mining Company Ltd under the Lianshan Molybdenum Corp in Huludao City.

Neither officials nor the mining company would give further details on the accident, but the Huludao municipal safety supervision administration immediately ordered all ore mines, but not coal mines, to stop production and undergo thorough safety inspections.

According to the provincial safety supervision administration rescuers are working in shifts to search for the miners.

Minmetals to build ferrous metals industry chain

According to Mr Zhou Zhongshu president of China Minmetals Group said the group will build a ferrous resources consolidated platform integrating upstream and downstream sectors in the future. The group achieved sales revenue of CNY 156.6 billion in 2007, including around CNY 80 billion from Minmetals Development.

In early this year, the group succeeded in acquiring copper mine in northern Peru and built recycling mine in India. He said environment and resource are two factors to restrict our economic development. So “walking out” strategy is necessary not only for the country, but for our management.

Sinopec acquires Australian oilfields

It is reported that China Petroleum & Chemical Corporation will buy 60% of Australian oil producer AED Oil’s Puffin and Talbot fields for AUD 600 million in the latest cross-border M&A deal by Chinese companies seeking to secure natural resources.

A joint venture company, which has a valuation of USD 1 billion is being created to acquire the Puffin and Talbot oilfields. It will be operated by Sinopec and is expected to start business on March 31st 2008. The deal is subject to approval by Australia’s Foreign Investment Review Board and other regulatory approvals in both China and Australia.

AED said that the partners intend to work together in a broader association to seek other project opportunities in the region.

Analysts were generally positive on the move for both companies. The deal is a bailout for AED stakeholders but leaves them with the opportunity to benefit from the upside in the development of the oilfields as AED continues to own a 40% stake in the JV.

Liuzhou Steel issues CNY 1 billion in 365 day debt

It is reported that Guangxi Liuzhou Iron & Steel Co, the parent of Liuzhou Iron & Steel Co Ltd issued CNY 1 billion worth of 365 day debt on the interbank bond market on March 7th 2008.

In a statement published on the official Chinabond.com website, the company said the yield was set at 6.10%. It said proceeds will be used to supplement working capital.

WISCO to cooperate with Ping Ding Shan to establish coal reserves center

It is reported that WISCO plans to cooperate with Ping Ding Shan Coal Group, which is the largest coal producer in Henan province, to set up a coal reserves center with 10 million tonnes capability. The investment condition of two sides is under consultation.

In fact, the two sides had cooperation many years ago. In 2004, WISCO invested CNY 600 million to become a shareholder of Ping Ding Shan, as is the third-largest shareholder.

As per report, the coal consumption volume in Wuhan city is about 30 million tons every year, WISCO accounts for one thirds of the whole city’s consumption volume. When spring and winter, the rail transport is tense, if the weather is abnormal, the coal supply for WISCO is tenser. WISCO hopes to establish coal reserves center to solve the bottleneck of raw materials.

Steel export in Guangdong drops in February

It is reported that major steel products export in Guangdong in February this year dropped as its price rising.

Guangdong Customs said that steel products export in February was 142,000 tonnes down by 25.9% YoY, average export price in February reached to USD 1043.5 per tonne up by 23% resulting from steel price rising. Steel product price in domestic market rose up CNY 400 to 500 per tonne generally.

Evraz to acquire IPSCO's Canadian plate and pipe business from SSAB

Evraz Group SA has announced the acquisition of IPSCO’s Canadian plate and pipe business for a net cost of USD 2.3 billion. The final value will be subject to certain closing adjustments.

Under the structure of the agreed transaction, Evraz will acquire the IPSCO Tubulars business from SSAB for USD 4.025 billion. Evraz has also entered into definitive back to back agreements with OAO TMK and its affiliates, Russia’s leading tubular player, to sell certain of the acquired US businesses for USD 1.2 billion. In addition, Evraz expects to sell the remaining acquired US businesses of IPSCO Tubulars to TMK for approximately USD 0.5 billion in 2009. All of these transactions are subject to certain closing adjustments and conditions. As a result of these transactions, the net cost of the acquisition for Evraz is expected to be approximately USD 2.3 billion.

The transaction will be financed by a combination of a bridge loan raised at the Evraz level, as well as a non recourse term loan arranged at the acquired company level.

The released added that “With plants in Regina, Calgary and Red Deer, IPSCO Canada is a leading North American producer of steel plate, as well as pipe for the oil and gas industry. This purchase is yet another step in the implementation of Evraz’s strategy to build a strong platform in the North American downstream markets of steel plate and tubular products.”

Mr Alexander Frolov chairman & CEO of Evraz’s said “Following the successful acquisition of Oregon Steel Mills, this transaction will further enhance Evraz’s existing North American presence in high value-added steel segments. This deal will increase our exposure to the attractive energy and infrastructure sectors throughout the region. We expect substantial synergies from the combination of IPSCO Canada and Evraz’s existing North American operations. We are delighted to acquire a company with the long history and outstanding track record of IPSCO Canada and look forward to welcoming IPSCO Canada’s employees to the Evraz family of companies.”

Credit Suisse Securities Limited and Goldman Sachs International are acting as joint financial advisors to Evraz. Cleary Gottlieb Steen & Hamilton LLP and Blake, Cassels & Graydon LLP are acting as legal counsel to Evraz.

Dniprospetsstal to invest USD 200 million in 2 years

Interfax reported that Dniprospetsstal a major Ukrainian manufacturer of special steels that is controlled by the Interpipe group plans to invest USD 200 million in development in the next two years.

Mr Daniel Valk CEO of Interpipe's Dniprospetsstal said that "We plan to spend USD 200 million on equipment in order to cut costs and enhance product quality. He said other top priorities include tapping new export markets. He did not elaborate on the investment plans.”

Mr Valk said that DSS would channel most of its investment in the shirt term into producing billets for stainless steel tubes and enhancing their quality.

DSS is Ukraine's only producer of sections and bars and forged products made from special steels stainless, ball bearing, corrosion resistant, high-speed and instrument-making steels as well as nickel based heat-resistant alloys.

NLMK finalize Voronezh steel plant blueprint by mid 2008

FIS reported that NLMK has confirmed that it will continue implementing the project on the development of a metallurgical plant near Voronezh and at present is finalizing its parameters.

As per report, NLMK specialists are studying the investment program of Maxi group to make necessary corrections on each of the objects. And the reviewed program is expected to be adopted in the middle of 2008.

Maxi Group planned to build a plant with the capacity of 2 million tonnes and costing USD 500 million near Voronezh and to expand the capacities of existing plants in the Kaluga, Novosibirsk, Samara, Rostov and Voronezh regions.

Gazprom sees USD 400 gas price for EU in 2008

Gazprom said that the average price per thousand cubic meters of natural gas for European Union clients could reach USD 400 this year,
.
Mr Alexei Miller CEO of Gazprom at a meeting with President Mr Vladimir Putin said “The price in Europe today is more than USD 370. We expect the average price in 2008 may be USD 378, and it may even hit USD 400 per 1,000 cubic meters.”

Mr Miller also said that shipments to EU countries will reach 157 billion cubic meters this year, up from 151 billion cubic meters in 2007.

Norilsk Nickel to purchase bonds of Stillwater Mining.

FIS reported that GMK Norilsk Nickel OJSC will purchase USD 80 million worth of the bonds of the US palladium producer, Stillwater Mining.

The company issued a total of USD165 million worth of bonds to be in circulation until 2028. Eligible purchasers are qualified investors. The bonds can be converted into shares at USD23.51 per share.

As a result Norilsk Nickel could obtain 3.4 million shares.

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