Essar in talks with ArcelorMittal to buy Sparrows Point

ET reported that Essar Group is in negotiations with Arcelor Mittal to buy US steelmaker Sparrows Point. Arcelor Mittal has been looking for a suitor for Sparrows Point ever since it cancelled a deal to sell it to a group led by Esmark Inc for USD 1.35 billion in December 2007 after the buyers failed to arrange financing for the purchase.

Sources close to the development said a high level team from Essar Global has visited the Sparrows Point unit in Baltimore and had rounds of discussions with Arcelor Mittal for the acquisition. Arcelor Mittal is negotiating with potential suitors to sell Sparrows Point, formerly Bethlehem Steel. It is not auctioning the company which means that it may not necessarily go to the highest bidder.

These sources said that Essar is competing with a handful of potential suitors including Russian steel majors Severstal and Novolipetsk. The acquisition has to be cleared by the US Justice Department, which ordered the sale of Sparrows Point to satisfy anti trust concerns. The sale was ordered after Mittal Steel bought Arcelor SA for USD 38 billion and created the world’s largest steel entity Arcelor Mittal.

An Essar spokesperson said that "We keep looking for opportunities across the globe. However, it is not our policy to comment on specific transaction."

The Essar group, which has nearly 5 million tonne of steel production capacity in India, purchased 2 steel companies in north America, namely Minnesota Steel and Algoma in 2007. For Essar, the cost of acquisition of Sparrows Point might be close to the amount it paid for Algoma. Essar acquired Algoma for USD 1.6 billion in April 2007.

Sparrows Point is a fully integrated steel making facility with annual capacity of 3.5 million tonnes of raw steel. Products made at Sparrows Point include hot rolled sheets, cold rolled sheet, galvanized sheet, tin mill products and semi finished steel. It caters to construction, steel service centers, automotive, container and appliance industries.

SAIL takes up de bottlenecking exercise to ramp production

PTI reported that, to ensure total iron ore security, Steel Authority of India Limited has chalked out a corporate plan to produce 26 million tonnes of iron ore by 2010-11 and has embarked a massive de bottlenecking exercise in its mines to ramp up production.

Mr M Roy executive director of SAIL Raw Material Division said that "SAIL will need about 42 million tonnes of iron ore by 2010-11 and to meet the total requirement, a de bottlenecking exercise has been undertaken in all the mines of raw materials division to jack up production." He added that the de bottlenecking exercise would be done mainly through technological up gradation.

Mr Roy said that SAIL is working on both short term which included de bottlenecking and long term projects which involved development of new mines, in tandem. He added that "SAIL Raw Material Division mines would produce over 30 million tonnes iron ore by 2010-11, while the Rajhara and Dalli mines of Bhilai Steel plant, which were not under Raw Material Division, would produce the remaining quantity."

He further added that it is a big challenge for SAIL Raw Material Division to push up production from the current level of 18 million tonnes to 30 million tonne in just about 4 years time.

Invest in new steel plants to check prices – Mr Bishnoi

Mr PK Bishnoi CMD of Rashtriya Ispat Nigam Limited said that the rise in steel prices can be checked only if steel plants generate enough surpluses to invest in new steel making capacities and meet the growing demand for steel in India.

Mr Bishnoi, while addressing at members of Merchants’ Chamber of Commerce, said that with growth in the economy and the investment being made in infrastructure development, the demand for steel was growing at rate that was faster than the growth of the domestic steel industry.

According to him, unless new steel making capacities were created, the gap between the demand and supply of steel would go up further and so would steel prices. He said that "It is in the best interest of all of us that customers pay a fair price to steel producers so that the latter are able to generate enough surplus to be able to set up new capacities."

On RINL’s expansion plans, Mr Bishnoi said that in the first phase, the capacity of the plant would be hiked to 6.3 million tonnes per annum and would be completed as scheduled in 2010. The expanded capacity of RINL would concentrate on the production of special steels only.

Mr Bishnoi presented a strong case against exports of iron ore. He said that "If there is scope for value addition of the iron ore and consumption of the resultant product within the country, then I am not in favor of iron ore exports."

Outokumpu to set up a Greenfield service centre in India

ET reported that Finnish stainless steel major Outokumpu is planning to set up a Greenfield service centre in India and has zeroed in on a couple of locations on the west coast of the country.

Mr Juha Rantanen CEO of Outokumpu "The service center is scheduled to be in operation in the first half of 2009 at an investment cost of EUR 30 million. The new service center, with an annual capacity to stock and process some 50 000 tonnes of stainless steel coil, will significantly complement the services that Outokumpu's Indian sales office has been providing to Indian customers. We already have 2 sales offices in India and now plan to set up a service centre here to cater to our customers. We are looking at sites close to ports such as JNPT near Mumbai and Taloja."

Mr Rantanen said that "The service center will have cut to length, slitting, polishing and brushing lines to serve among others the metals goods, equipment fabrication, process industries, as well as welded pipe and tube manufacturers. The cold rolled stainless steel coil supply will come mainly from Outokumpu's integrated stainless steel mill at Tornio in Finland."

He said that "We consider India as a high potential market and have committed an investment of EUR 30 million in India over a 2 year period. Mumbai, Pune and the western region comprise nearly 50% of the stainless steel market in India We still need to conduct technical and financial feasibility studies."

Outokumpu already has 2 sales offices in India one at Delhi and the other at Mumbai. Its products are in high demand in segments such as architecture, process equipment manufacturing and fabrication firms.

Vested interests delaying project in Orissa – TATA Steel

Officials of TATA Steel alleged that people with vested interests are fomenting violence to delay the proposed steel unit at Kalinganagar in Orissa's Jajpur district.

TATA Steel, in a press release, said that "We apprehend that some vested interests are instigating and perpetrating violence to de rail the discussion with villagers and delay our project. We have an open appeal to all villagers for a discussion in order to settle all issues with regard to rehabilitation and resettlement for its upcoming steel project.''

Officials felt that while fruitful discussions were going on with various groups of villagers at different levels, the fresh violence is aimed to dilute TATA Steel's purpose.

TATA Steel has proposed to set up a 6 million tonnes per annum Greenfield steel mill at Orissa's Kalinga Nagar area. It was delayed due to the police firing incident on January 2nd 2006 which killed 14 local tribals.

Punjab steelmakers urged centre to reduce steel prices

PTI reported that industrialists and exporters in Punjab, who are hit by rising steel prices, met Mr Charanjit Singh Atwal deputy speaker of Lok Sabha and submitted a memorandum seeking reduction in rates of the metal, besides lowering excise duty.

A deputation of the industrialists, who are on a dharna since March 14th 2008 in front of local SDM's office, led by Federation of Phagwara Small Industries President Mr Sudesh Sharma and former president of Laghu Udyog Bharti Mr Balwant Rai Gupta, submitted the memorandum to Mr Atwal.

The aggrieved exporters rued that steel prices has jumped by INR 15,000 per tonne, leaving them in extreme disadvantage in competitive global market.

The industrialists and exporters said that steel prices have increased from INR 27,000 per tonne to INR 50,000 per tonne in recent months. They warned that they will intensify agitation if corrective measures were not taken.

New ultra mega projects likely in Orissa and Gujarat – Report

Centre has announced that 3 new ultra mega power projects, each having an installed capacity of 4,000 MW and entailing investments of over INR 16,000 crore, could be set up in Orissa. This is in addition to 9 UMPPs already proposed across India, of which 3 have already been awarded to private players.

Mr Anil Razdan union power secretary said that "Orissa has agreed for 3 UMPPs, for which special purpose vehicle would be set up by Power Finance Corporation." He added that it is likely that a fourth such project in Orissa and a new one in Gujarat could also be considered, which would take the total number of UMPPs to 14 in India.

Mr Razdan said that "The process to locate sites and potential purchasers of power will begin soon. There is a strong possibility that there could be a fourth UMPP in Orissa and another one in Gujarat."

The government has awarded 3 of these projects, 2 to Reliance Power Limited in south and central India and 1 to TATA Power Co Limited in western India. Other projects are still in the planning process. India plans to add more than 78,577 MW of power generation capacity by 2012, but analysts said that this is insufficient to meet demand that is growing at 8% to 9% a year.

Jharkhand HC adjourns hearing on Chiria lease dispute

Ranchi Express reported that Jharkhand High Court has adjourned hearing on Chiria Gua iron ore mining lease dispute for another two months.

The court adjourned the hearing after it was informed that the Supreme Court had stayed the HC’s order of September 25th 2007 by which a request of the Steel Authority of India Limited for constitution of a committee to resolve the issue outside the court had been quashed.

The apex court on January 9th 2007 had stayed the HC’s order and issued notices to the respondents, including the State of Jharkhand.

Industrial sector to grow by 10.4% in 2009 – CMIE

The latest government data on industrial growth has painted a gloomy picture but economic think tank Centre for Monitoring Indian Economy said that all is not lost and has pegged the expansion at 10.4% for fiscal 2009.

CMIE said in its monthly report that "We expect the industrial production to grow by 10.4% in 2009 fiscal. The current investment boom is expected to correct the slowdown problem." It added that the reason for the current slowdown in industrial production is the supply problem faced by sectors like cement, aluminum, electricity and steel.

India's industrial growth slipped to 5.3% in January 2008 as compared to 11.6% in January 2007 as growth in all major sectors comprising manufacturing, electricity and mining declined.

The report also said that "We expect interest rates to start easing in the first quarter, thus, reviving demand for consumer durables. It expected that India’s gross capital formation to increase by 15.5% in 2009 and continue to drive growth in its GDP."

CMIE said that India's GDP is expected to grow by 8.9% in 2008 and 9.1% in 2009. The real GDP grew by 7.5% in 2005, 9% in 2006 and 9.6% in 2007. CMIE’s prediction of a 9.1% growth in real GDP in 2009 is based on the assumption of an adequate precipitation during the monsoon.

Update on new mineral deposits found by GSI

Dr T Subbarami Reddy union minister of state for mines said that Geological Survey of India has discovered new deposits of bauxite, manganese and iron ore in Orissa.

Mr Reddy said that iron ore has also been discovered in Karnataka and Tamil Nadu and graphite was discovered in Tamil Nadu. The other major mineral discoveries by GSI are gold deposits in Rajasthan, Jharkhand and Karnataka, base metal in Rajasthan, Maharashtra and Madhya Pradesh, platinum group of metals in Karnataka, limestone deposits in Meghalaya and Tamil Nadu and Clay in Kerala.

State wise details of resources provided by GSI are as under

Capacity in million tonnes

SAIL cooperative body to set up hospital

ET reported that Steel Authority of India Limited Employees' Cooperative Credit Society has embarked upon an initiative to set up a hospital for the poor in Kolkata.

Mr Jyotirmoy Chakrabarty secretary of cooperative society SAIL at said that the hospital would have 50 beds besides basic facilities like X ray machines, pathological unit and an operation theatre. It would cater only to poor people from whom moderate fees would be charged. He added that the land for the project had already been identified and the work would start soon. It had set aside a fund of INR 5 crore for the purpose, the interest of which would be used to meet project expenses.

Besides the hospital, SAIL the cooperative body also plans to enter food processing by setting up a 100% subsidiary called Mahabharat Agro Industries Limited. With a capital of INR 100 crore, it hopes to make a profit of INR 2 crore during the current financial year.

Titagarh Wagons to acquire 51% stake in Cimmco Birla

BL reported that railway wagon manufacturer Titagarh Wagons Limited will be jointly presenting a scheme for revival and rehabilitation of the sick Cimmco Birla Limited to Board for Industrial & Financial Reconstruction in June or July 2008.

This is expected to pave the way for Titagarh’s proposed acquisition of Cimmco for INR 35 crore, which is expected to significantly add to Titagarh’s wagon manufacturing capacities.

Titagarh Wagons and JP Morgan, which had acquired a portion of the total outstanding secured debt of Cimmco Birla, have stepped up their efforts to prepare the revival scheme, which will involve restructuring of the borrowings and other liabilities of the sick company.

Mr Umesh Chowdhary MD of Titagarh Wagons said that "We intend to acquire 51% stake in Cimmco Birla. Additional funding requirements beyond the amounts agreed may be funded through various methods, including debt funds or a fresh infusion of funds by Titagarh Wagons."

Board for Industrial & Financial Reconstruction, at its proceedings held on August 21st 2002, had declared Cimmco Birla a sick industrial company. Cimmco Birla subsequently declared a lockout at its plant at Bharatpur in Rajasthan and Delhi following labor unrest, while its banking operations were frozen following cancellation of orders to the tune of INR 143.88 crore and bank guarantee invoked by Concor amounting to INR 38.68 crore.

Titagarh Wagons has also entered into a compromise deed on March 5th 2008 with various labor unions of Cimmco Birla for settlement of the labor disputes. It is in the process of expanding its capacities, including setting up an INR 18.7 crore EMU manufacturing unit with a capacity to produce 2 rakes of EMUs per month. It also plans to invest another INR 18.84 crore to modernize and expand its 2 existing plants at Titagarh and Uttarpara in West Bengal, apart from setting up an axle machining and wheel set assembly facility at a cost of INR 12.93 crore.

Gammon Infra to set up 3 IPPs in Karnataka

It is reported that Gammon Infrastructure Projects Limited is emerging as an independent power producer with plans to set up 3 thermal power plants of 1,000 MW each in Karnataka. It has submitted expression of interest to the state government and is awaiting final consent.

Mr Parag Parikh head finance of Gammon Infrastructure said that "Currently, Gammon Infrastructure Projects Limited is working on 14 projects in various segments at an overall cost of INR 5,500 crore. Of this, 4 projects have been commissioned and the balance is in different stages of implementation."

Gammon's other future projects are a 2,000 MW power project in Himachal Pradesh, a port in Gujarat estimated to cost INR 1,000 crore, mass rapid transit system worth INR 12,000 crore and an iron ore & coal project in Paradip. While the mass rapid transit system project will be implemented in association with Alstom and Infrastructure Development Finance Company as financing partner, the iron ore and coal project will be in consortium with Noble Group and Minerals & Metals Trading Corporation Limited.

India and Burma to sign official agreement on port development

It is reported that an official agreement between India and Burma to develop the Burmese port of Sittwe in Rakhine state is due to be signed soon. According to a senior Indian official, India will host a high ranking general from Burma's military government in April 2008.

Reports quoted the official saying that Mr Maung Aye vice senior general of Burma is due to arrive in India on 4th April 2008 to discuss economic, security and energy issues and that the highlight of the visit would be the agreement to develop Sittwe.

The USD 120 million cost of the build transfer & use project will be funded by a grant from the Indian government. Berth users will be charged for services offered by the port once it has been upgraded and handed over to the Burmese.

Meanwhile, Mr Jairam Ramesh union minister of state for commerce said that the project had been under discussion for almost 6 years. He added that "But a paradigm shift in our thinking, thanks to the Prime Minister and external affairs minister, resulted in changing it from a build operate transfer project into a build transfer & use venture. The Myanmar authorities had serious reservations on a build operate transfer approach and so we switched over to this new concept."

Mr Ramesh said that the project involved 3 components namely rebuilding the port, making the Kaladan River navigable up to Mizoram and developing highway connectivity from the border in Mizoram.

Indian analysts said that Sittwe could an important gateway for India's landlocked north eastern states. The states include Assam, Manipur, Meghalaya, Mizoram, Tripura, Sikkim, Nagaland and Arunachal Pradesh, all of which will gain access to international sea trade routes through the Bay of Bengal.

Hindustan Zinc raises zinc and lead prices

Hindustan Zinc Limited recently announced that it had raised zinc prices by 0.92% to INR 120,100 per tonne with immediate effect.

Lead prices were increased by 1.2% to INR 139,700 a tonne.

Anil Special Steel to raise INR 56.9 million on preferential basis

It is reported that Anil Special Steel Industries is planning to raise INR 56.9 million through the allotment of 1,945,300 equity shares of INR 10 each to the promoters and non promoters at a premium of INR 19.25 a share aggregating to INR 29.25 a share on preferential basis in one or more tranches.

Anil Special Steel belongs to the Shalimar group and was incorporated as a public limited company in 1968 to manufacture hardened and tempered steel strips. It has technical expertise that is provided by Hoesch Werke Hohenlimburg Schwerle AG of Germany. At present it is capable of manufacturing 11,000 tonnes per annum of hardened and tempered strips and 50,000 tonnes per annum of cold rolled steel strips and capacity to manufacture circular saws and blanks upto 360,000 pieces per annum.

Centre to encourage private sector help in renewable energy

Mr Vilas Muttemwar union minister of state for new & renewable energy said that centre has been encouraging private investment in renewable energy sector through a mix of fiscal and financial incentives that include capital and interest subsidy, accelerated depreciation, nil excise and customs duties.

Further benefit under Section 80-1A of Income Tax Act 1961 is available to undertakings setup for the generation or generation and distribution of Renewable power in India. This apart, preferential tariff for grid interactive renewable power is being given in most potential States.

Mr Muttemwar said that a potential of 84,776 MW has been estimated from renewable energy sources such as wind, biomass, solar and small hydro in India. The grid interactive power installed capacity from the renewable sources like wind, biomass, solar and small hydro in the country at the end of the 10th Plan was 10,250 MW which has reached 11,447 MW as on January 31st 2008. A capacity addition of 14,000 MW is proposed during the 11th Plan.

Details of estimated potential of grid interactive renewable energy sources are as follows

Target in MW

Apollo Tyres eyeing INR 500 crore CAPEX plan

It is reported that Apollo Tyres' Greenfield plant for car radials coming up at Oragadam near Chennai is expected to become operational by June 2009. The project would involve an investment of INR 500 crore and employ 1,000 people. It would initially have a production capacity of 30,000 tyres a day which will be scaled to 45,000 tyres. A CAPEX of INR 150 crore is also planned for expanding Apollo's Baroda plant from 10,000 car tyres a day to 20,000 by the end of 2008.

Mr Satish Sharma chief of operations at Apollo said that another brown field project is proposed at Baroda for off the track tyres for dumpers and other vehicles for Coal India Limited and Bharat Earth Movers Limited. This would involve an investment of INR 100 crore and be operational by mid 2009. The funding for all the expansion projects would be primarily through internal accruals. At present, the commercial vehicle segment contributes about 70% of Apollo’s turnover with car radials accounting for the balance.

Apollo plans to change the equation to 50:50 for each segment over the next 5 years. In pursuance of this strategy, it is scaling up its multi brand stores based on the soft franchisee model to 30 from the existing 2 during 2008-09.

Mr Sharma said that "Our focus will be on a diverse, modern and contemporary product range. Besides we intend to expand our original equipment segment. Active talks are on with Ford, Volkswagen, BMW while preliminary talks are on with Toyota for a tie up for car tyres. Apollo is also planning a Greenfield project in Hungary for car radials. This will have a production capacity of 7 million tyres per annum and along with our Africa plant will enable Apollo to become a global player.

SCI making pitch for change in procedures to purchase vessels

BL reported that Shipping Corporation of India Limited is lobbying for changes in the government’s ship acquisition procedures to make the process more flexible and expedite its own purchase of ships. It is also looking to promote shipbuilding facilities that have come up in India such as the ones run by Pipavav Shipyard Limited and Larsen & Toubro Limited.

Mr Umesh C Grover director technical & offshore at SCI said that "We are approaching the union shipping ministry with a proposal to relax the ship acquisition procedures by allowing us to consider new shipyards also. This will ensure more flexibility and better participation of shipyards in buying new ships."

SCI is also planning to invest more than USD 3 billion in 3 to 5 years to buy ships as it replaces its ageing fleet. It has placed orders with Korean yards such as Hyundai Heavy Industries Co Limited, Daewoo Shipbuilding and Marine Engineering Co Limited, STX Shipbuilding Co Limited and China’s Jinling Shipyard for building 28 ships, at an estimated cost of USD 1.3 billion.

SCI currently owns and operates about 20 dry bulk carriers. These are mostly of the handymax variety, which can typically carry as much as 60,000 tonnes of dry bulk commodities. Apart from the smaller size, SCI’s dry bulk carriers get lower rates as most of them are older ships and fetch fewer rates compared with younger vessels.

Glitnir Bank inks 60:40 JV with Bhilwara for geothermal plants

BL reported that European bank Glitnir has teamed up with Bhilwara Group to develop geothermal energy projects in India and Nepal. With its expertise in renewable energy, Glitnir entered into a 60:40 partnership to develop geothermal plants.

Glitnir Bank and Bhilwara will recruit a management team with expertise to develop the company with key focus on identifying, developing and building power plants in India and Nepal, utilizing sustainable energy like geothermal energy. Glitnir Bank will also bring in strategic investors to raise capital during different phases of the geothermal plants. The Glitnir team of geothermal specialists will visit various locations in India to identify the best possible geographical area to develop the plants.

Mr Lárus Welding CEO of Glitnir Bank said that "We are very happy that this important JV has been formed with Bhilwara Group. This will encourage prospects for growth in India in the geothermal arena. India is a vast country and we believe there are a number of unexplored geothermal energy resources. These resources and the technology employed contribute to clean, rural based and cheap energy sources. In addition, Glitnir's strategy is to have a local presence in all the major emerging markets with potential in the Glitnir industry focus. Following the establishment of our presence in China, India is the next logical destination."

Mr Ravi Jhunjhunwala chairman of Bhilwara Group said that "Bhilwara Group developed India's first independent power project hydroelectric Malana power project of 86 MW in a record time of 30 months, in Kullu in July 2001. In addition, we have over 2,837 MW hydro, coal and wind power generation projects under development. What's unique about geothermal energy is that unlike wind and solar installations, geothermal energy runs 24 hours a day, making the actual power yielded from geothermal sources still substantially greater than wind or solar energy. Bhilwara Group will continue to grow and diversify in the area of sustainable energy."

Bhilwara Energy Ltd, a flagship company of the power business of Bhilwara Group, is emerging as one of the biggest players in power in India.

Cement prices stable and no plan for regulator – Report

Mr Ashwani Kumar union state minister of industry said that cement prices in India have stabilized since March 2007 and there was no plan to set up a separate regulator for the sector.

Mr Kumar said that centre has abolished import duties and allowed state run trading firms MMTC, TANCEM of Tamil Nadu and Puducherry Agro Services Industries Corp to import cement last year to bridge the demand-supply gap and stem price rise. He added that "With these measures, the average price of cement has stabilized to a large extent showing an increase of only 2.67% between March 2007 and January 2008."

According to latest figures compiled by Cement Manufacturers' Association of India, cement production during April 2007 to January 2008 period has rose by 7% YoY from a year earlier to 136.56 million tonnes. India's annual cement demand is rising by 10% as it scales up infrastructure to sustain a high growth rate.

FDI policy for mining of titanium bearing minerals & ores

India has large reserves of beach sand minerals in the coastal stretches. Titanium bearing minerals like ilmenite, rutile and leucoxene and zirconium bearing minerals including zircon are some of the beach sand minerals which have been classified as prescribed substances under the Atomic Energy Act 1962.

Under the Industrial Policy Statement 1991, mining and production of minerals classified as prescribed substances and specified in the Schedule to the Atomic Energy Order, 1953 were included in the list of industries reserved for the public sector. Vide Government of India Resolution No. 8/1(1)/97-PSU/1422 dated October 6th 1998 issued by the department of atomic energy laying down the policy for exploitation of beach sand minerals, private participation including foreign direct investment, was permitted in mining and production of titanium ores and zirconium minerals. FDI up to 74% was permitted with prior approval of the government in pure value addition projects without mining and mineral separation as well as integrated projects comprising both mining & mineral separation and value addition.

Vide government of India notification No. S.O.61 (E) dated January 18th 2006, department of atomic energy re notified the list of prescribed substances under the Atomic Energy Act 1962. Titanium bearing ores and concentrates and zirconium, its alloys and compounds and minerals concentrates including zircon, were removed from the list of prescribed substances.

On a review of the extant policy on FDI, government of India has now decided as under:

1) FDI up to 100% will be allowed with prior government approval in mining and mineral separation of titanium bearing minerals & ores, its value addition and integrated activities subject to sectoral regulations and the Mines & Minerals Development and Regulation Act 1957.

2) FDI for separation of titanium bearing minerals & ores will be subject to the following additional conditions

3) FDI will not be allowed in mining of prescribed substances listed in the Government of India Notification No. S.O. 61 (E) dated January 18th 2006 issued by the department of atomic energy.

4) FDI Policy announced vide annex to press note 4(2006) dated February 10th 2006 stands modified to the above extent.

Centre approves harbor wall berth construction in Mumbai port

Mr TR Baalu union minister of shipping, road transport & highways said that centre has approved the project of Mumbai Port Trust for development of harbor wall berths at Indira dock in January 2008 at an estimated cost of INR 353 crore which is to be met by Mumbai Port from its internal resources. The project is scheduled to be completed by February 2010.

The project includes provision for cargo handling equipment & dredging in project area and approach channel to facilitate handling of deep drafted ships. The ingredients of the project include, construction of berth platform, dredging of berth pocket, strengthening of existing Harbour Wall and providing cargo handling infrastructure facilities like cranes, portable conveyer belts, mobile hoppers etc.

After completion of the Project the handling capacity of Mumbai Port would increase by 8 million tonnage, which would enable the Port to handle Projected Traffic in bulk, general cargo including iron and steel.

Foreign firms eye business from track flaws of Indian Railways

BL reported that a slew of foreign companies such as Australian firm Rail Training International, US based Sperry Rail and Chinese firm Xintao Electronics are eyeing the Indian market with the latest equipment in the specialised space of ultrasonic rail flaw detection.

Both RTI and Sperry Rail plan to provide free trials of their mobile ultrasonic rail inspection vehicles to Indian Railways, which will help test upwards of 150 kilometer of tracks per day and generate detailed reports on the rail track conditions.

Sperry Rail has already made inroads into the Indian market and currently provides a service based on ultrasonic rail inspection walking stick, which tests 7 to 10 kilometer of tracks per day. Instead of selling the equipment, Sperry sold the service of providing detailed flaw detection reports to Indian Railways. Sperry Rail, after providing services to the Railways through an Indian firm, has recently set up its own subsidiary called Sperry Rail India.

Mr Sanjay Manchandani MD of Khyati Nilum Associates, Indian firm that distributes Sperry Rail products, said that "We have conducted tests for over 32,000 kilometer of Indian Railways tracks during 2005-2007. It will be doing business for another 40,000 kilometers of tracks."

Mr Ramakant Tripathi director of ABC Railroad Products said that "We are awaiting commissioner of railway safety approval for the free trial of mobile rail inspection vehicle."

RTI's inspection vehicle, which is being used by several Australian railroads like BHP Billiton, Queensland Rail, Transrail and other railway systems in Brazil, Taiwan and Malaysia, costs about INR 3 crore.

ABC Railroad has also tied up with Chinese firm Xintao Electronics to sell SRT equipment. Hoping to bag the first orders for Xintao SRT equipment from Indian Railways soon, Mr Tripathi said that "We have emerged as the lowest bidder. But there is a financial requirement of the winning firm having provided 150% of the present contract value to Indian Railways, which no new player including us can meet. We are talking to Railway officials on this issue."

Meanwhile, Paras Electronics, an Indian firm that has traditionally provided single rail testers and dual rail testers with analog display to Indian Railways, is also upgrading its equipment to take on competition.

With Paras' equipment, 2 to 4 kilometer of rail tracks can be tested each day. Indian Railways plans to replace the analog single rail testers and dual rail testers by installing 300 digital single rail testers and 200 digital dual rail tester machines over the next 5 years.

CSN to export 25 million tonnes of iron ore in 2008

Bloomberg reported that Cia Siderurgica Nacional Brazil third biggest steelmaker will export 25 million tonnes of iron ore from its Itaguai port terminal in 2008.

The report quoted Mr Juarez Saliba the mining director for Rio de Janeiro based CSN on a conference call with reporters as saying that new equipment at the port will boost handling capacity to 30 million tonnes a year by May 2008 up from 10 million tonnes.

Mr Saliba said that CSN produces more iron ore than its steel plants can use. Total sales of iron ore this year to third parties will reach 29 million tonnes, including 17 million tonnes from the company's Casa de Pedra mine. He added that the rest will come from CSN's Namisa subsidiary and from third parties.

Mr Saliba said that about 5.5 million tonnes of CSN's iron ore production will be sold to other steelmakers in Brazil.

Newcastle Port rail services resume after derailment

Bloomberg reported that rail services were restored to Australia's Newcastle, after a derailment on March 14. Australian Rail Network Ltd said that a loaded car was derailed at about 6:20 AM Friday at Branxton station, damaging a short stretch of track.

Australian Rail Network Ltd increased services to mines located below Branxton to deliver coal to Port Waratah and some 30 coal trains were canceled between Friday and today.

According to the Newcastle Port Corp, thirty nine vessels were waiting off Newcastle to load coal on March 10, two more than a week earlier. It said that an average of 13.29 days was needed to load coal in the week ended March 10 compared with 0.58 day for general cargo. The waiting time for coal was about two days shorter than in the previous week.

Thermal coal prices at Newcastle, a benchmark for Asia, have fallen this month after surging to a record in February, when floods cut deliveries in Queensland, adding to supply disruptions in China and South Africa.

Power station coal prices at the New South Wales port dropped for a fourth week in the seven days to March 14, to AUD 128.80 a tonne because of slower winter demand from Northern hemisphere buyers. Australia is the world's biggest shipper of the fuel.

GlobalCOAL's monthly index for Newcastle thermal coal prices rose AUD 38.65 or 43% to AUD 129.52 a tonne in February, the fifth straight monthly record.

Malaysian government gives stamp of approval for SALCO smelter

Rio Tinto Alcan and Cahya Mata Sarawak Berhad proposed USD 2 billion world class aluminium smelter project in Similajau in the state of Sarawak has made significant progress with the granting of a manufacturing license by the Malaysian Industrial Development Authority.

The proposed smelter will have a production capacity of 550,000 tonnes per year in its initial phase, with the capability to be expanded to 1.5 million tonnes. It is expected to contribute up to CNY 2.4 billion annually to Malaysia's GDP and could generate up to 4,700 direct and indirect jobs.

Mr Sandeep Biswas senior vice president business development of Rio Tinto Alcan said that "This is a clear demonstration of the Malaysian federal government's confidence in the Sarawak Aluminium Company smelter project. The Federal Government's support, through the granting of the licence from the Malaysian Industrial Development Authority, is a recognition of the significant benefits the Sarawak Aluminium Company smelter can deliver for Malaysia and Sarawak."

Mr Dato Richard Curtis managing director of Cahya Mata Sarawak said that “Sarawak Aluminium Company looks forward to working with both the federal and Sarawak state governments to develop a truly outstanding project. The Sarawak state government and its agencies have also played a significant role in the progress of the Sarawak Aluminium Company smelter project.”

Rio Tinto Alcan and Cahya Mata Sarawak signed a Heads of Agreement in August 2007 to commence feasibility studies for the development of the Sarawak Aluminium Company smelter. A detailed environmental impact assessment has commenced and international engineering consultant Bechtel has been appointed to undertake an engineering study. As well, in February 2008, Rio Tinto Alcan and Cahya Mata Sarawak signed a MoU with Sarawak Energy Behard to allow negotiations to commence on power for the smelter. The MoU was signed during the launch of the Sarawak Corridor of Renewal Energy in Bintulu.

The Malaysian Industrial Development Authority is an agency of the Malaysian government established to promote and coordinate industrial development. All companies engaged in manufacturing in Malaysia must obtain a manufacturing license.

Sarawak Aluminium Company is a joint venture owned by Rio Tinto Alcan by 60% and Cahya Mata Sarawak by 40% is undertaking studies to develop an aluminium smelter in the state of Sarawak Malaysia.

Global steel consumption in 2017 to hit 2 billion tonnes

According to the report from Euro Strategy, global steel consumption will increase by 71% in the next 10 years and consumption of finished steel products will reach 2 billion tonnes per year by 2017.

Among them, Asia’s consumption will be witnessed the fastest growth, as Asian steel demand will increase by 7.4% each year by 2017 and the China’s steel consumption is projected to reach 800 million tonnes per year by 2017.

(Sourced from YIEH.com)

Maruichi Steel to launch Vietnamese CR mill in April

JMB reported that Maruichi Steel Tube's Vietnamese joint venture, Sun Steel Corporation will start new cold rolling mill in April after test running in March and completion of the setting in December 2007.

As per report the firm launches the pickling line in August. The firm launched steel pipe plating line in January and restarted idling concrete reinforcing steel bar rolling line in February refreshing the companywide operations.

Finnish miner Talvivaara rebuffs potential suitors

Reuters reported that several companies have shown interest in buying Finnish mining company Talvivaara, but approaches have been rebuffed.

Mr Pekka Pera CEO of Talvivaara told the Reuters Global Mining Summit in London that "We have had many kinds of approaches, some serious and some not so serious, but nothing we would consider.” He added that the main interest had come from bankers acting on behalf of other parties.

But Mr Peka said that "We are not moving, we are here for a long time, though if it was ridiculous money we would consider it.”

Finnish steel producer Outokumpu has a 20% stake in Talvivaara Mining's operating arm and around 5% in the parent company.

Korea Resources and partners to invest USD 6 billion in metals and mines

Bloomberg reported that Korea Resources Corp the state owned minerals explorer and partners is planning to invest USD 6 billion in mining and energy projects within eight years to attain raw materials for Asia's fourth largest economy.

Mr Lee Han Ho CEO of Korea Resources in an interview broadcast on Bloomberg Television said that the company, which plans to commit USD 1.8 billion, is targeting Africa and South America for uranium and copper. He added that the rest may come from local companies and the National Pension Service of Korea.

South Korea, which imports 97% of its energy and minerals, is competing with China and Japan to gain access to commodities as prices surge. Crude oil reached a record USD 110.20 in New York and copper set a record USD 8,820 a tonne in London on March 6.

Mr Lee said that “What we plan to do is not to simply ship metal concentrates out of the countries, but explore, develop and produce and then process the concentrates there. Plus we build roads or power plants for the countries.''

Mr Lee said that the investments are planned to boost output of six commodities from Korean owned overseas ventures to 38% of import needs by 2016 from about half that figure now. He added that the six are bituminous coal, uranium, iron ore, copper ore, zinc and nickel.

Mr Lee Sang Jae an economist at Hyundai Securities Co in Seoul said that “Raw materials are a decisive factor for an economy's competitiveness. Even if it's late, South Korea should keep on going in the direction of resources assets.''

According to Korea Resources' data, South Korea's reliance on overseas commodities has been rising. It imported 92% of its mineral needs in 2006, up from 84% in 2000 and 75% in 1995.

Thompson Creek announces approval for Endako expansion

Thompson Creek Metals Company Inc announced that its board of directors has approved plans to expand capacity at the Endako Mine from 28,000 to 50,000 tonnes of ore per day beginning in 2010.

The Company expects its capital expenditures related to the expansion project during the period 2008 to 2010 will be CAD 280 million 75% of the feasibility study estimate of CAD 373.6 million plus ongoing sustaining capital spending.

Thompson Creek expects it will have sufficient cash flow from existing operations to fund its share of the expansion as well as to meet the capital requirements anticipated at other properties.

Annual molybdenum production as a result of the expansion at the Endako Mine is expected initially to be about 17 million pounds and will decline within two years of the start up to approximately 16 million pounds.

Mr Kevin Loughrey chairman & CEO of Thompson Creek said that "Our estimates show that the Endako expansion will add to Thompson Creek's profitability and provide an attractive rate of return in the coming years even using price assumptions that are well below the current price of molybdenum.” He added that "The expansion project also involves a needed modernization of the mill, which has been in operation since 1965 and ensures we will have an efficient processing operation at Endako that will be beneficial for the long term."

The Endako Mine is operated as a joint venture with Thompson Creek holding a 75% interest and Sojitz Corporation, a Japanese company, holding the remaining 25% interest.

High nickel prices turn industry on to chrome

Business reporters reported that the stainless steel industry was trying to cut nickel use in its production process due to the volatility and high price of the metal.

Mr Ian Christmas secretary general of the International Iron and Steel Institute during a mining summit in London said that "The steel industry has a very clear strategy of reducing its dependence on nickel.” He said that "Stainless steel producers are pushing very hard to replace austenitic steel with ferrotic steel, which has a very small amount of nickel and was chromium based.”

Nickel accounts for more than 60% of the cost of making austenitic steel, also known as 300 series stainless steel, the most widely used high grade steel.

Nickel rose to a record high of USD 51 800 a ton last year, but lost about 50% of its value in the following three months. Nickel futures are now about USD 33 000 a ton after the high and volatile price triggered production cutbacks.

Mr Christmas said that "The price of nickel has pushed a lot of innovation.”

Asian 400 series SS prices experiencing upward trend

Asian major stainless steel makers have raised prices of 400 series stainless steel to cover the higher costs of chrome. Ferro chrome prices have been rising since the middle of 2007 due to a combination of strong demands for low nickel stainless steel and supply tightness.

Global major stainless steel producers have produced more ferritic stainless than austenitic stainless due to higher prices of nickel since the middle of last year. For 430 stainless steel ferrochrome price is a feature than nickel in the surcharge calculations. Low carbon ferrochrome prices are currently quoted at all time highs of USD 4.10 per short tonne, while high carbon ferrochrome increased to USD 2.55 per short tonne. Moreover, price of low carbon could reach above USD 5 per short tonne.

Moreover, downstream home appliance producers are using more 400 series stainless to reduce production costs. Ferritic stainless (400 series) contains a chrome content ranging from 18% to 25%.

South African has around 40% of the world’s ferrochrome production, but those ferrochrome producers were forced to cut production due to the electricity shortage. China’s miners also reduced their production output due to snowstorms.

Market analysts forecast that the strength of the sentiment will continue in next few months, as stainless steel market will see a real improvement from the second quarter.

(Sourced from YIEH.com)

Power supply being restored after fire in Malmberget

Clean up operations after the fire in the transformer station at Malmberget’s concentrating plant were completed earlier in the week. Subsequently, the transformer station has been powered up and work is now under way to start production equipment in the concentrating plant.

Mr Anders Henriksson manager of processing in Malmberget said that “We hope to start production of pellets and fines. Starting the concentrating plant is a very big task that is comparable to commissioning a whole new plant, but within a much shorter time. What’s more, there is no room for error, since this would delay the start-up of pellet and fines production. Personnel have been working around-the-clock to get this fixed. I am very pleased with the cooperation we have seen during the rebuilding operation. The degree of commitment has been admirable.”

The fire occurred more than three weeks ago, in the early hours of February 21st 2008. During the stoppage, no finished products have been produced. However, during this period, about 200,000 tonnes of crude ore has been hoisted up from the mine and stockpiled ready for processing.

Ohio company steel plant not coming to Arkansas

The Morning News reported that Ohio based company will not be building a USD 500 million steel mill in Arkansas. The report quoted Mr Paul Theisler CFO of Warren Fabricating and Machining Corp as saying that the company explored sites in Tennessee and Arkansas along the Mississippi River, but decided a couple of months ago not to proceed.

Mr Theisler said that he spoke with Ohio Lt Gov Lee Fisher and Mr Fisher had expressed concern that the state had been shut out of any chance to bid on the project.

The Union City Daily Messenger reported last week that Arkansas and Tennessee were competing for the Warren plant with tax incentive packages. The newspaper quoted Tennessee economic administrator Mr Kingsley Brock, who said Warren told the state last month that it had picked Blytheville in Arkansas.

State officials in Arkansas, including Gov Mike Beebe, declined to comment on negotiations it may have held with Warren. Economic development officials said Tennessee's incentive package, valued at about USD 219 million, included tax abatement, job tax credits, job training as well as funds for infrastructure.

The project would have included a mill to roll steel slabs and possibly other operations later, including a fabrication shop. Warren performs jobs on surface mining equipment, steel mills, power generating equipment and large presses.

Mr Theisler said that he didn't know why a Tennessee official would have said the project was going to Arkansas. He said the whole project has been scrapped. He added that "It's not economically feasible.”

Mr LN Mittal said interested in Bulgaria's Kremikovtzi

Reuters reported that steel magnate Mr LN Mittal, has expressed interest into buying Bulgaria's ailing steelmaker Kremikovtzi KMKV.BB. The report quoted Mr Petar Dimitrov economy and energy minister of Bulgaria as saying that Mr Mittal CEO of world's largest steelmaker ArcelorMittal has sent a letter to the Bulgarian prime minister to express his interest in the mill, which is majority owned by his brother, Mr Pramod Mittal.

He added that “Mr Mittal says in his letter the mill represents a strategic interest to him and that he is ready to carry out all necessary environmental upgrades.”

Mr Dimitrov repeated that a similar letter had also been sent by Ukrainian billionaire Kostyantin Zhevago who controls 73% in London listed Ukrainian iron ore producer, Ferrexpo which has the world's forth biggest ore resource. He added that another Ukrainian, Mr Rinat Akhmetov owner of metallurgic firm Metinvest, along with US Steel Corp are vying for the mill.

Last week, Mr Dimitrov said there were five suitors for the plant, but he did not name them.

Mr Pramod Mittal, who bought 71% in the mill in 2005, has said the company is looking for a strategic investor, after the mill's debt ballooned to USD 1.14 billion at the end of 2007.

ArcelorMittal has appointed Merrill Lynch to advise him on how to proceed after he failed to provide about EUR 140 million, required for environmental upgrades and working capital.

Sokolovska uhelna in 2007 posts record sales of CZK 9 billion

CTK reported that Sokolovska uhelna, the smallest of the three Czech brown coal mining companies in 2007 posted gross sales of more than CZK 9 billion, the highest level in the country's history.

Mr Miroslav Soural sales director of Sokolovska uhelna said that demand for brown coal increased last year and was higher than the mining capacity. There was a situation that was predicted by analysts some time ago.

Mr Soural said that Sokolovska uhelna's decision to focus on its own coal processing, not only on mining and sales, proved to be of key significance. Sokolovska uhelna has been taking advantage of the fact that it is the only brown coal mining company in the country to run its own power plants.

The share of power production in Sokolovska uhelna's sales is expected to rise from 50% in 2007 to 54% in 2008. Chemical product sales will also be reflected in the sales figure. On the other hand, mining output is expected to fall.

Kompania Weglowa coal producer to invest PLN 850 million

Puls Biznesu reported that Kompania Weglowa, the biggest Polish coal producer comprising of 16 mines planning to invest PLN 850 million to modernize exploration and improve security.

As per report a new line transporting coal will be launched in Marcel mine near Rybnik.

Mr Zbigniew Madej a spokesman of Kompania Weglowa said that “The investment was worth PLN 90 million (EUR 25.5 million). We estimate the costs will be covered within 4 to 5 years.”

Mr Zbigniew Madej explained that “We expect that the company will have a bigger income than in 2007. We don’t give details because you must always provide one time events in the mining industry.”

After the tragedy at Halemba coal mine, the latter had PLN 300 million of losses. The whole KW group had PLN 1.7 million of net income against PLN 96 million of net loss a year earlier.

Kompania Weglowa spent PLN 650 million for investment in 2007. This year, the spending is to grow to PLN 850 million. Mr Edward Nowak supervisory board chairman of Kompania Weglowa believes that investment program will amount to PLN 6.5 billion till the year 2015 and hopes for PLN 416 million of capital increase from the state. The funds would be spent to pay old debts, including those for social insurance company ZUS.

SSAB says no capital gain or loss from sale of IPSCO Tubulars unit

Svenskt Stal AB said it will not make any capital gain or loss from the sale of its IPSCO Tubulars unit to Evraz Group SA for USD 4.025 billion in cash.

SSAB said the proceeds are to be used for debt reduction and that as a result of the sale, its net debt/equity ratio pro forma to December 31 2007 decreases to 62% from 148%.

SSAB said the transaction allows it to better focus on and more rapidly develop its high strength steel niche and that it will retain the majority of IPSCO's steel production capacity. It said that the full synergy potential declared at the time of the acquisition of IPSCO remains the same.

Mitsui Mining to open first coal mine in 13 Years

The Asahi newspaper reported that Mitsui Mining Co will open a coal site on Japan's northern island of Hokkaido, its first new mine in the country in 13 years.

The news paper without saying where it obtained the information said that a unit of Mitsui Mining will double its annual production, now at 50,000 tonnes. The move comes as prices surge for imported crude oil and coal.

The paper also said that Mitsui Mining based in Tokyo plans to sell coal to companies operating thermal power stations.

Monax gets encouraging iron results at Waddikee

Monax Mining surged by as much as 29% after the company said it has received high grade iron and manganese samples from its Waddikkee tenement in South Australia.

In late January, 2008 over 55 reconnaissance rock chip samples were taken over sporadically outcropping iron formation extending for over 80 km within the Waddikee tenement.

The samples have returned highly encouraging iron, manganese and vanadium results with maximum values of 60.1% of iron, 43.8% of manganese and 1.13% of vanadium oxide.

Monax said that "Monax is well placed to take advantage of the manganese and iron ore potential of the tenement with 100% ownership of the tenement.”

Monax also plans to fast track exploration to define a number of high grade potentially direct shipping goethitehematite ore bodies.

TransCanada to build new pipeline to US

The TransCanada Company announced that it has been granted permission to build a USD 5.2 billion pipeline to export crude oil to the United States.

The TransCanada Company in a statement said that "The US Department of State issued a presidential permit to Keystone authorizing the construction, maintenance and operation of facilities at the United States and Canada border to transport crude oil between the two countries.”

Mr Hal Kvisle president & CEO of TransCanada said that the construction of the Keystone pipeline will begin in the second quarter of 2008 and will be completed at the end of 2009. He added that the 3,456 kilometer pipeline would increase oil imports from Canada by as much as 4.5% of total US daily imports and it will be capable of transferring 590,000 barrels of oil per day from Alberta to refineries in Illinois and Oklahoma.

According to the State Department, Canada has been the largest crude supplier to the US since 2004. It supplied 2.3 million barrels of oil per day in 2006, equivalent to 17% of total US imports.

Incitec Pivot to acquire Dyno Nobel for AUD 3.3 billion

Incitec Pivot Limited announced that it has entered into a Scheme Implementation Agreement with Dyno Nobel Limited under which Incitec Pivot Limited proposes to acquire all of the shares in Dyno Nobel which it does not already own.

The acquisition will be implemented by a Scheme of Arrangement which will require approval by Dyno Nobel shareholders. The Board of Dyno Nobel has unanimously recommended that shareholders vote in favour of the Incitec Pivot Limited Scheme in the absence of a superior proposal and pending confirmation from an independent expert that the IPL Scheme is in the best interests of Dyno Nobel shareholders.

The proposed transaction values Dyno Nobel at AUD 3.3 billion based on the implied offer price of AUD 2.80 per share. Under the terms of the Agreement, Dyno Nobel shareholders will receive 0.01406 Incitec Pivot Limited shares and AUD 0.70 in cash per share representing a mix of 75% scrip and 25% cash.

Mr Julian Segal CEO & MD of Incitec Pivot Limited said that “The combination of IPL and Dyno Nobel will create a leading global chemicals company favorably positioned to benefit from the hard and soft commodity super cycle. The combined group will have revenues in excess of AUD 3.5 billion, a market capitalization of more than AUD 9 billion and be among the Top 30 of companies on the Australian Securities Exchange.”

Incitec Pivot is a chemical manufacturer supplying agricultural fertilisers and industrial chemicals for Australian and international markets. Incitec Pivot is Australia’s largest manufacturer and distributor of fertiliser products supplying Australian farmers with over three million tonnes of fertiliser per year.

Dyno Nobel is a leading supplier of industrial explosives and blasting services to the mining, quarrying, seismic and construction industries. Dyno Nobel is the market leader in North America the largest explosives market in the world and the second largest supplier in Australia the third largest explosives market in the world. It employs more than 3,500 people and has 36 manufacturing facilities in Australia, Canada, the US, Indonesia, Mexico and Papua New Guinea. Dyno Nobel is renowned for its excellent safety performance and as a provider of innovative explosive products and services, which together deliver groundbreaking performance for its customers.

Inmet Mining announces end of Ok Tedi strike

Canadian based global mining company Inmet Mining Corporation announced that the unlawful strike action at the Ok Tedi mine has ended. Ok Tedi's management has advised that employees have agreed to an amicable return to work as of Saturday, March 15, 2008.

Inmet Mining in a statement said that the strike action will result in lost production of approximately 2,500 tonnes of copper contained in concentrates and 6,400 ounces of contained gold.

Global Oceanic Carriers 7 month EBITDA reaches USD 15.8 million

Global Oceanic Carriers Limited a global provider of marine transportation services for dry bulk cargoes announced its financial and operational results for the seven months ended December 2007.

Seven months ended December 2007 result Highlights:
1. Time Charter Revenues of USD 26.3 million for the 7 months ended December 31, 2007 as compared to unaudited 7 months ended December 2006 of USD 11.5 million.

2. EBITDA of USD 15.8 million for the 7 months ended December 2007 as compared to unaudited 7 months ended December of USD 5.5 million.

3. Net Profit of USD 6.9 million for the 7 months ended December 31, 2007 as compared to unaudited 7 months ended December 2006 of USD 0.9 million.

Commenting on the interim results, Mr Michael Tartsinis CEO of Global Oceanic Carriers said that ''We are pleased to report strong financial and operational results for the seven months ended December 2007. Since current management took over in June 2006, our strategy has been to create a solid foundation which will enable the company to continue growing prudently. In this context, our fleet expansion strategy combined with the strength in the dry bulk markets has resulted in increased revenues and profits. Our revenues for the seven months ended December 2007 increased by approximately 128% YoY over those in the relevant period of 2006, while EBITDA increased by 186% YoY.

Mr Tartsinis said that “As we enter 2008, we believe that our company is strategically positioned to benefit from the solid fundamentals of dry bulk shipping. In particular our time charter forward coverage provides us with cash flow stability and upside potential. We employ our vessels under medium to long term charters with reputable charterers and have fixed 83.5% of our available days in 2008 and 48% for 2009. Focusing on long term share holder value, we are pleased to announce the initiation of an attractive and sustainable dividend. This is a significant milestone for our company as we continue to seek new ways for rewarding our shareholders. I want to conclude by stating that we are committed to efforts for expanding our business and shareholders' value and we look forward to new opportunities underlined by the sectora’s strong fundamentals and our Company's strategic positioning in it.''

Global Oceanic Carriers Limited is a global provider of marine transportation services for dry bulk cargoes through the ownership, management and chartering of dry bulk carriers. The company is incorporated in Jersey and has its principal executive offices in Athens, Greece. Its current fleet includes seven dry bulk carriers, comprised of one Capesize, two Panamax, three Handymax and one Handysize vessel with an aggregate carrying capacity of 456,273 DWT.

Sims appoints non executive directors

It is reported that Sims Group Ltd has appointed new non executive directors following the company's merger with US giant Metal Management Inc.

The tie up took effect on Friday, after Metal Management shareholders approved the merger.

Mr Paul Mazoudier chairman of Sims said that Mr Norman Bobins, Mr John DiLacqua, Mr Robert Lewon and Mr Gerald Morris would join the board immediately as non executive directors.

As previously announced, Mr Jeremy Sutcliffe CEO of Sims group will vacate his present role, staying with the company as an executive director until at least October 2009. He will chair the company's European and Australian metals recycling businesses and Sims Recycling Solutions business around the world.

Mr Daniel Dienst will replace him as group chief executive and will chair the combined North American metals recycling business, also taking overall responsibility for global marketing.

Gdynia Port posts record results in 2007

PortNews reported that The Gdynia port handled 17 million tonnes of cargo in 2007, the best result ever.

Mr Przemyslaw Marchlewicz CEO of Gdynia port said that the port handled 700,000 TEU in container shipments which gave it the third place among Baltic sea ports after St Petersburg and Goeteborg.

He added that over half of all cargo handled last year by the Gdynia harbour was general cargo. Coal and coke accounted for a mere 10%. The port grossed PLN 153 million in 2007 and posted a gross profit of PLN 37 million.

ThyssenKrupp completes share buyback

On the basis of the authorization granted by the Annual General Meeting on January 18th 2008, the executive board of ThyssenKrupp AG resolved on January 31st 2008 to purchase up to around 3% of the Company’s capital stock before the authorization expires.

The release said that On March 7th 2008, Commerzbank AG, Frankfurt am Main, completed the buyback. The stock was purchased exclusively in the XETRA trading system of the Frankfurt Stock Exchange.

A total of 14,791,100 shares, representing around 2.9% of the capital stock, were purchased at a cost of around EUR 522.7 million.

UAE economy in 2007 up by 7.4% YoY

Arabian Business reported that UAE economy had grown up by 7.4% YoY in 2007 on the expansion of the manufacturing and construction sectors as well as oil & gas.

According to a ministry of economy report last week, non oil sectors accounted for 65% of the GDP of UAE in 2007, while real GDP growth was just below the 7.8% forecast.

An official in the ministry said that "Activity in the real estate sector is considered as one of the prominent trends contributing to UAE's economic development." He added that it is expected to expand by another 7.8% in 2008.

UAE has been striving to diversify its economy away from a dependence on energy exports by pouring oil revenues into real estate, financial services and infrastructure. The share of the manufacturing sector output rose to 13% in 2007 from 12.2% in 2006, while the building and construction sector's share climbed to 8% from 7.5%.

Dodsal signs AED 577 million financing deal with DIB

Dubai Islamic Bank recently announced that it has signed an AED 577 million facility agreement with Dodsal Engineering & Construction to finance the replacement of the NGL pipeline network project awarded by Abu Dhabi Gas Industries Limited's to Dodsal.

Mr Ayman Kamal executive VP of Dubai Islamic Bank said that "This agreement comes in line with DIB's vision to support a wide range of economic sectors with reputable contractors. The gas processing sector is considered a vital field for the national economy and we are proud to be part of this significant project."

Mr Kamal said that "The bank has successfully developed and structured innovative financing deals that meet the requirements of major corporations and government bodies in the UAE and worldwide. Dodsal has been a valued customer of DIB and our relationship with Dodsal extends over various local as well as regional project financing."

Mr Rajen Arvind Kilachand chairman of Dodsal said that "We are extremely pleased to announce the signing of this major financing agreement with Dubai Islamic Bank, which will enable Dodsal to continue to support the economic development of the UAE and, in particular, the energy sector. Our longstanding partnership with DIB is greatly valued by all of us at Dodsal and we look forward to continuing to work with them."

Gwadar Port started cargo handling from March 15

Following decades of perseverance, Gwadar Port is finally making history by beginning its cargo handling from March 15th 2008.

Gwadar Port would be deeper than all other ports in the Gulf, Arabian Sea, Bay of Bengal and others located in this sea belt and huge cargo ships up to 0.25 million tonnes could anchor at Gwadar. One phase of the port has already been completed, which include 3 berths and one ramp 600 meter long capable of accommodating several ships at a time.

In the other phase, 10 more berths would be constructed. Besides, the construction on road links with Central Asia was underway. 892 kilometer long motorway would be connecting Gwadar with Turbat, Awaran, Khuzdar and Naudero, which would also help pave the way for road communication with China.

Besides, a network of roads is being laid to connect Gwadar with Iran and Afghanistan.

Mr Fazal e Maqbool Afridi CEO of Gwadar Business Associates Private Limited said that the present government deserved praise for constructing the port on priority, but it must be blamed for not operating it, which had taken more than three years to build.

Mr Afridi urged the new government to take it as a challenge and pursue it vigorously. He suggested that Gwadar should be made a state within state; having its own rules, regulations and bylaws, etc, to cater for the business community and investors.

Experts said that Gwadar city in future would turn into an international hub of industrial and commercial activity, which would not only play a key role in the economic development of Balochistan, but also the entire country.

Bangladesh eyes minimum wage in UAE

Daily Star reported that the embassy of Bangladesh in the UAE is considering the introduction of a minimum wage for its workers working in the UAE.

The move follow news reports last week that Bangladesh had fixed a new minimum wage for unskilled workers in Saudi Arabia, which is expected to come into effect on July 1st 2008.

Mr Moniruzzaman Bangladeshi labor attache said that "When Bangladesh introduces a minimum wage, it is introduced across the board for everyone. At the moment, we are discussing what the minimum wage could be and when we might introduce it. Once everything is finalized we will discuss its introduction everywhere."

Mr Moniruzzaman said that he could not confirm whether Bangladesh had definitely introduced a minimum wage requirement for its citizens in Saudi Arabia, but said he was certain that the country was looking to introduce one across the region.

According to news reports, Bangladeshi workers in Saudi Arabia who receive food and lodgings as part of their contract will receive USD 147 per month, while those who receive only lodgings will get USD 200 and those who do not get either food or lodgings will receive USD 253.

Global Yatirim won gas distribution bids in Turkey

Bloomberg reported that Turkish gas firm Global Yatirim Holding has won the auction for a gas distribution network in Ankara with a USD 1.61 billion bid.

Global and its partner Energaz beat 7 companies including Spain's Gas Natural SDG and Turkey's Çalık Holding to buy Başkent Doğalgaz Dağıtım, a network that sold 3.16 billion cubic meters of natural gas in 2007.

Most of the foreigners interested in the tender reportedly changed their minds due to uncertainty in Ankara's finances. The figure, however, fell short of the USD 2 billion estimate by Ankara Mayor Mr Melih Gökçek.

If approved, Global Energaz will be allowed to import natural gas for the network from 2009. Global will be required to sell the gas to consumers in Ankara at a maximum 5.5 cents per cubic meter for 10 years.

Gulf eyes use for gas flares

Financial Times reported that Kuwait, Qatar and Oman are expected to sign up to a World Bank program, which aims to reduce greenhouse gas emissions by finding commercial uses for natural gas that is still burned, or flared, as a by-product of oil production.

The Gulf states are seeking ways to reduce their large environmental footprints amid growing awareness of climate change. The region flares about 30 billion cubic meters of gas a year, the equivalent of 900,000 barrels per day of crude oil or about USD 10 billion a year.

According to the conservation agency WWF, flared natural gas can be applied for commercial use as a raw material in producing petrochemicals and power or for re injection into oil fields to boost crude production. Concerns over electricity and water capacity are becoming an issue across the Gulf states, but particularly in the UAE, which is the highest per capita drain on the world's resources.

Annual global gas flaring of 150 billion cubic meters produces the equivalent of 400 million tonnes of carbon dioxide. If eliminated, this would achieve the same emissions reduction currently achieved by the 3,000 projects of the Kyoto protocol's clean development mechanism.

Kuwait, Qatar and Oman are set to join the World Bank's partnership together contribute 7 billion cubic meters a year, but Iran and Iraq each flare 7 billion cubic meters of gas. Outside the Gulf, west Africa and Russia are large sources of gas flaring.

Qatar is the fastest growing economy in GCC – Report

No GCC country has a faster expanding economy than Qatar, with real GDP growth expected to achieve 14.3% in 2008 and 13.5% in 2009. Indeed, the rate has been close to 10% for 7 years now, during which time the population of Qatar has risen to 900,000 or around 25% of whom are Qatari citizens, with the rest a mix of expatriates from various countries.

Qatar’s economy is expected to remain buoyant, as Qatar’s liquefied natural gas industry takes hold and additional oil capacity leads to increased export volumes. Output of associated condensates natural gas condensates will also increase, along with other gas-based industrial ventures, particularly in petrochemicals. Further economic growth is being fueled by an ongoing rise in domestic demand, mainly due to expansion in the construction and financial services industries.

Government expenditure will continue to grow strongly in 2008, as capital programs in education, health and transport give the economy a boost. This additional spending also triggers more private consumption, since 96% of Qatari workers are employed by the state. As far ahead as 2012, the economic outlook is very strong, with our forecast for real GDP growth projected to average over 11 percent per annum. Fiscally, Qatar will register another surplus in 2008, even on an oil-price assumption of just USD 45 per barrel.

But success comes at a price. Due to sustained expansion, as well as demand outpacing supply, serious constraints on capacity have created inflationary pressures. The rise in inflation in 2007 was again due largely to escalating rents as a result of housing shortages, as well as high aggregate demand, and rising wages for both nationals and expatriates.

Although supply side pressures could subside in 2008, inflation is still expected to reach 11.5 percent. In 2009, we expect the supply of housing to achieve a degree of equilibrium and more new infrastructure to come on stream. As a result, inflation is expected to fall into the high single digits.

The introduction of a 10% cap on annual rent increases for a 2 year period was not especially successful in mitigating rental inflation and it was phased out in February 2008. Similarly, both Abu Dhabi and Dubai have been unable to control rent rises through capping schemes. But the underlying problem of real estate inflation in Qatar will be addressed when additional housing units come on to the market. The September 2007 price freeze on wheat flour and wheat products may even add to inflation, as price freezing could increase demand from consumers, yet discourage suppliers.

Djibouti and DP world win prestigious finance awards

It is reported that Djibouti’s new marine terminal development at Doraleh has won 2 prestigious finance awards, recognizing its importance to both Djibouti and to its business partner and the terminal’s operator DP World.

The existing Port of Djibouti is managed by DP World who, in a JV partnership with the Djibouti government, are also developing the new Doraleh terminal, where operations are due to begin in 2009.

The development is being financed through an innovative Shariah compliant Islamic financing arrangement and in January 2008, the World Bank Group’s MIGA provided its first ever guarantee for Shariah compliant project financing for the development. The USD 427 million guarantee supports investments into the new container terminal, which is expected to significantly improve port facilities and help the country become a major business hub in East Africa.

Malaysia’s Islamic Finance News magazine also recently presented Djibouti with best country deal award for the Doraleh container terminal financing, stating it was the first major Islamic financing in Djibouti. The awardees are chosen through a comprehensive survey of finance peers.

Mr Mohammed Al Muallem senior VP & MD of DP World’s UAE Region said that "We are delighted Djibouti has been recognized with these awards. They reflect the success of our partnership with DP World and its ultimate parent Dubai World, which continues to bring substantial benefits to the people and economy of Djibouti."

Mr Mohammed Sharaf CEO of DP World said that "We see long term public private partnerships as a model that is win win for all as the economy grows so does the business. We look forward to further investing in Djibouti and our partnership into the future."

Gujarat Alkalies may set up a caustic soda unit in UAE

BS reported that Gujarat Alkalies & Chemicals Limited is in talks with a UAE based business group for setting up a caustic soda manufacturing facility in the UAE.

Sources close to the development said that "The UAE based entity had approached Gujarat Alkalies seeking its co operation to establish a caustic soda manufacturing plant in the UAE. Currently, a market survey is being carried out on the type of ancillary industries present there and the requirement of caustic and chlorine in the UAE." They added that the nature of collaboration would be finalized only after the results of the survey were out. The market survey is likely to take around four months.

Mr Guruprasad Mohapatra MD of Gujarat Alkalies said that there is a good potential for caustic soda and chloro alkali business in the West Asia. He added that "If things work out, the production capacity of the plant may be in the range of 750 tonnes per day to 1,000 tonnes per day."

Of late, Gujarat Alkalies has been making huge investments for its expansion. In January 2008, its board of directors accorded in principle approval to the expansion projects entailing investments of approximately INR 1,100 crore.

The expansion projects include increasing the caustic soda production capacity of its Dahej plant by around 500 tonnes per day from 735 tonnes per day, enhancing hydrogen peroxide capacity by 75 tonnes per day at its two plants in Vadodara and Dahej, which collectively produce 75 tonnes per day and setting up a captive power plant of 90 MW. The projects are expected to be completed in the next 2 years.

Building department to hire more engineers

Khaleej Times reported that Dubai Municipality's building department is planning to hire more than 150 engineers this year in a bid to ensure that construction of all new buildings is better regulated.

Mr Hamad Saeed Almarri head of building services at building department of Dubai Municipality said that the move would enable the department to deploy more inspectors on site and monitor the quality of building materials being used. He added that "At the moment, there is a limited number of engineers within the department. But we will hire more than 150 this year, so I think the quality will be better."

Mr Martin Mileham director of operations at Middle East Business Unit NORR said that "We are consistently applying the rules of Dubai Municipality, which we find that some building owners are reluctant to follow because of cost. There is a huge range of quality in Dubai. Our concern is maintaining a level of quality that's sustainable in the long-term. "Dubai Municipality is doing a good job, it's just that Dubai's a huge place to do it. We need an effective sharing of municipal tasks. There needs to be a coordinating body for all the authorities at the federal level."

Dubai's real estate market has often come under the hammer for compromising quality in place of getting a building finished quickly and at reduced cost.

But Mr Almarri added that any company which fails to comply with building regulations would face serious problems. He said that "Before any concrete casting or any thermal installation is done, the building inspector should be on the site if everything is okay, he will give the building the go ahead, but if there is a problem he will stop work immediately. If contractors and consultants ignore this process they will face a big problem. Their trade license would be stopped and they would receive fines."

Mr Almarri added that all materials to be used in proposed buildings have to be certified by Dubai Municipality’s central laboratory before approval is given.

Sharaf Group plans AED 1 billion cement plant

According to a press statement, Sharaf Group will build an AED 1 billion cement factory in Habbab following an agreement with the government of Fujairah.

Mr Sharafuddin Sharaf VC of Sharaf Group said that the 350,000 square meter factory would produce 2 million tonnes of cement per annum and double its capacity after expanding its production area by another 513,000 square meter.

Mr Yousuf Sharaf MD of Sharaf Group said that "This project would be a real boost to the local market, especially because the demand is high and the supply from some Asian and Gulf countries are insufficient." He added that the group is now talking with strategic investors and international companies to finalize the project, whose construction will take more than 2 years.

Mr Yousuf stressed the importance of increasing cement production in Fujairah, saying that in the coming years the domestic market will need 32 million tonnes of cement per annum. He said "The project site in Habbab contains the raw material need and its reserves are sufficient for the plant's life."

Mr Rashid Hamdan Abdullah director of the Municipality of Fujairah and Mr Sharafuddin has signed the project agreement. The group has been in the business of cement production for 20 years.

ADMA OPCO to raise output by 50%

Khaleej Times reported that Abu Dhabi Marine Operating Company is planning to increase its production capacity in the coming few years by 50% to push the company's potential to 1 million barrel oil per day by year 2019.

Mr Ali Al Jarwan GM of Abu Dhabi Marine Operating Company "It is now in a position to double its gas production to supply the government gas network as part of ADNOC group integrated gas development project." He added that it currently is able to produce 600,000 barrel of oil per day with compliance to both reservoir management best practices and the HSE standard of excellence.

Mr Jarwan said that this is a shift to cleaner energy production, affirming that environment impact assessment was done for all new projects to ensure no negative impact on the surroundings, while design improvement for emission reduction was being considered. He added that "Technology deployment and innovations were integrated elements of Abu Dhabi Marine Operating Company's performance in achieving various milestones related to advances in drilling, installation of facilities and developing crude oil and non associated gas production beside the associated gas."

Chinese increase domestic steel export prices

It is reported that Chinese domestic steel prices are still in adjustment but export offers continue to edge up. Steel producers have shoot up export prices further so as to get better profit in face of such strong overseas demand. A large part of the export allocation for April production has been booked and good transactions are believed to be bolstering the strength of export price.

As per report Chinese construction steel prices have witnessed downward adjustment since last week. Price for HRB335 20mm rebar has dropped to CNY 4760 per tonne from CNY 4900 per tonne. While that for wire rod decreased by CNY 50 per tonne. Prices in Beijing and Guangzhou market have also softened.

While export offers for rebar and wire rod are still staying high levels. BS grade Rebar is being quoted at USD 830 per tonne to USD 840 per tonne FOB and contract price is at about USD 810 per tonne FOB. That for Wire rod is at USD 880 per tonne to USD 890 per tonne FOB and transactions are made at about USD 870 per tonne FOB.

Export tonnages do not see increase despite improvement in overseas market prices. The real demand is described to be flat in face of updated price levels. Whether there is further increase in export offer for Chinese depends on how domestic price change.

China's efforts to slash mineral exports pay off in 2007

Xinhua reported that China's efforts to curb heavy outflow of non renewable mineral resources from the country have paid off.

According to the General Administration of Customs, last year China exported 120 million tonnes of 142 sorts of mineral resources in five categories, including non metallic ores, metallic ores, mineral fuels, silicon and rare earth, representing a decline of 16.6% from the previous year.

The report added that the exports were valued at USD 12.6 billion up by 2.8%. Prices of the mineral exports were up by 23.2% on average. Of the total foreign sales, mineral fuels accounted for 72.28 million tonnes down by 14% and non metallic ores made up 51.15 million tons down by 20.4%.

Since the second half of 2006, China has intensified control over export of mineral resources. It discontinued export rebates for almost all kinds of mineral resources and began to levy export duties of five percent to 15% on metallic ores that were in dearth at home and on coal, coke and some other mineral products.

CITT finds dumping and subsidies on steel oil and gas well casing threaten to cause injury

It is reported that Canadian International Trade Tribunal has found that dumping and subsidizing of seamless carbon or alloy steel oil and gas well casing originating in or exported from China had not caused injury but were threatening to cause injury to the domestic industry.

The Tribunal will issue the reasons for its finding on March 25th 2008.

The Canada Border Services Agency on August 13th 2007 initiated a probe into imports of Chinese steel seamless casing pipes and concluded last month that Chinese producers were subsidized by the government and deemed the Chinese industry as non market oriented. Weighted average margin of dumping was concluded at 37% to 91% and weighted average margin of subsidy was 2% to 38%.

Statistics from Canada Customs show China exported 68,700 tonnes of products involved to Canada in 2006 with total value of approximate USD 100 million.

(Sourced from MySteel.net)

China Shenhua 2007 net profit up by16.6% YoY

It is reported that Hong Kong listed China Shenhua Energy Co Ltd, the biggest coal producer in the mainland 2007 net profit rose 16.6% to CNY 20.581 billion as faster economic growth boosted demand for its coal and other products.

Shenhua Energy Co Ltd said in a statement that total revenue increased 26% to CNY 82.107 billion. It said "Against the background of rapid economic development in China as well as rapid growth of key coal consuming industries, the financial performance of the company in 2007 was strong."

The company gained CNY 9.566 billion from exports up by 4.9% YoY. Export price recorded CNY 398.1 per tonne up by 4.3%. Export volume in this year is estimated at some 20 million tonnes.

China's economy expanded 11.4% in 2007, the fastest pace in 13 years, and the government predicts growth will slow to 8% this year as its central bank raised interest rates and imposed other tightening measures to bring down inflation that soared to its highest in nearly 12 years in February.

(Sourced from MySteel.net)

Sinosteel wants partnerships for Brazilian mining

It is reported that Chinese steel maker Sinosteel, which supplies raw materials and services for Chinese plants plan to establish partnership with Brazilian companies for iron ore mining in Brazil.

Mr Weixian Zhang chairman of Sinosteel Brasil Metalúrgica Trading, said that the targets of negotiation were companies that are less known on the market and which are located in North eastern Brazilian states such as Bahia and in the North, such as Amapá. He said that Sinosteel could conclude some surveys and research on mining projects by the end of 2008 and noted that the group was interested in iron ore, manganese and nickel ore.

Mr Weixian declined to give figures for what the group planned to invest in Brazil, but said that it would not be a small amount.

Shougang vows again to ensure 'Green Olympics'

It is reported that Beijing's government is hastily preparing for the Olympics as August is approaching. Of many issues relevant to the Games, the improvement of air quality, in particular is drawing the attention of Beijing residents and the world community.

Shougang Group is a giant steel manufacturer once based in Beijing, and it has long been accused of polluting the city's environment. To improve Beijing's deteriorating environment and to open up a larger space of development, Shougang decided to move its plants to the nearby province of Hebei three years ago. Also, last year, to ensure a bluer sky during the Games, the group promised to shrink its production by 4 million tonnes in the year 2008.

As per report to ensure the reduction of production, Shougang mapped out a plan covering several stages. In the first stage, the steel giant will curb its production by 25%. In the second stage, 40,000 tones of producing capacity will be discontinued. During and after the Olympics, further reduction will be achieved.

Mr Zhu Jimin president of Shougang Group said while speaking on the sideline of the First Session of the 11th National People's Congress that "Shrinking production by 400 tonnes is Shougang's solemn commitment to the world. This will not change and we will make all our efforts to keep our word. He said the 4 million tonnes of reduction is indeed a difficult task, but in this way it will be achieved smoothly as scheduled. On January 5th 2008 Shougang held a grand ceremony to initiate its reduction program.”

Mr Zhu Jimin said "First of all, the business of the listed company is not included into the reduction program. Thus, although the group will suffer a great deal in this process, the listed company will maintain its normal operation. Second, in case the listed company may be influenced inadvertently, measures have been made to make sure everything will proceed smoothly. Third, as a business entity responsible for its own profit and loss Shougang will surely try all it can to maintain its development momentum and to protect the interests of its shareholders.”

He said "The whole program will be released to the public before long. Please be patient to wait."

China extends freeze on new coal prospecting licenses

XFN-Asia reported that China's freeze on approvals of new coal prospecting licenses has been extended for another year in an effort to make coal miners develop more reserves in blocks already awarded.

Mr Jia Qihai director of the resources department of the ministry of land and resources said that extending the freeze introduced in 2007 will have the effect of bringing more projects quickly to the exploration and production phase. He said the decision also takes into account the balance of supply and demand.

According to the National Bureau of Statistics China produced 2.29 billion tonnes of coal in 2007 up by 9.4% YoY.

China's province wise crude iron ore production in 2 months

China’s crude iron ore output in February 2008 is reported at 1.272 million tonnes up by 11.8% YoY. And during, January to February 2008 it is reported at 2.479 million tonnes up by 10.6% YoY.

Province wise crude iron ore production is as under

In million tonnes

(Sourced from MySteel.net)

HuLuDao Nonferrous Metal Group joined MCC officially

It is reported that HuLuDao Nonferrous Metals Group Corp joined MCC officially on March 12th 2008 with the name of MCC HuLuDao Nonferrous Metals Group Corp.

As per report MCC and State owned Assets Supervision and Administration Commission of Liaoning provincial government hold the signing ceremony of reorganization of HuLuDao Nonferrous Metals Group at the end of last year.

MCC invested CNY 2 billion in HuLuDao Nonferrous Metals Group to improve its assets structure and competitive power.

Tanggang Group successfully exploited HP295 steel for welded gas cylinders

It is reported that recently, Tanggang Group succeeded in exploiting HP295 steel for welded gas cylinders in the production line of 1700 medium and heavy plate & billet. After examination, the first 976 tonnes of HR sheet made of the type of steel meet the related standards.

As per report in 2008 Tanggang widely investigated the market demand, with the technic characteristics of 1700 medium and heavy plate & billet production line, completed the exploitation of HP295 steel for welded gas cylinders.

Welded gas steel plate mainly be used in the manufacture of LPG cylinder, acetylene cylinders, oxygen bottles, bottles of liquid chlorine cylinder etc, has extremely strict requirements on stamping performance, mechanical properties, welding performance etc. As the rapid development of China’s gas industry, this steel product has wide market prospects.

Baosteel oil tempered wire for suspension shares over half of the domestic market

It is reported that Baosteel Group No 2 Steel has become the largest supplier in China for oil tempered wire for suspension, sharing over half of the domestic market since it succeeded in R&D of the product 5 years ago, a result of independent technical innovation based on high starting point.

Oil tempered wire is a fine variety of steel products, widely applied in such fields as automotive suspension and engine system, precision machinery manufacture, etc. Featured by big load bearing, high motion frequency and long safe service life, it involves most strict requirements on the surface quality and internal properties of the coil rod.

The demand for such product in the domestic market basically relied on import over a long period of time. At the same time the oil tempering process for spring wire production involves higher requirement on process flow control, more difficult in technology compared with the conventional cold drawing production process. In recent years, the market demand for high quality oil tempered wire soared with the high speed development of automotive and machinery manufacturing industries in China.

The foreign suppliers, to keep cornering Chinese oil tempered wire market, not only drive up the price of the raw materials but also restrict the supply volume.

China tin production in January to February 2008 down by 15.7% YoY

It is reported that China refined tin production down by 15.7% YoY to 19,237 tonnes in the first two months of 2008. According to the provisional data issued by the National Bureau of Statistics, January production was down by 18.0% to 9,890 tonnes and February output down by 13.4% to 9,347 tonnes.

As per report the drop mainly reflects the adverse effects of extremely bad weather in the period, especially in Hunan and Jiangxi provinces. The two provinces account for over 20% of national production.

National Bureau of Statistics previously reported China’s 2007 production at 149,102 tonnes, averaging some 12,400 tonnes per month. December production was 12,682 tonnes.

Qingdao HSW Steel may launch operation in near future

It is reported that Qingdao HSW Steel Company which is funded by Hankuk Steel Wire Co Ltd has a registered capital of USD 33.00 million.

The project will be completed in three steps. Phase one began construction on August 7th 2007 and the workshop and the equipments installation have been completed and now are under testing. The Phase One is planned to launch operation soon, and will have an output of 60,000 tonnes per year and realize sale income USD 50.00 million after reaching full capacities.

China's auto production and sales slow in 2007

Xinhua reported that auto production and sales remained stable in China last year, yet with growth a bit slower on lukewarm demand for vehicles of low engine displacement.

In 2007, China produced 8.88 million motor vehicles and sold 8.79 million up by 22.02% YoY and 21.84% YoY respectively over the previous year. But the growth rate for production was 5.3% points lower than the year earlier level and that for sales, 3.29% points lower.

In 2007 passenger vehicle sales went up 21.86% to 6.3 million units nationwide. The total included 4.73 million cars up by 23.46% YoY and accounting for 53.76% of the nation's total auto sales.

China sold 314,000 whole vehicles abroad up by 37.8%. The trade surplus in whole vehicles stood at 298,500 units up 184,100 units.

Huaneng Group takes over Singaporean Energy Company

China Huaneng Group, the nation's largest power producer announced that it has reached agreement with the Singapore's state owned investment company, Temasek on buying a Singaporean energy company for SGD 4.235 billion.

The Beijing based power group will achieve the takeover through its wholly owned subsidiary in Singapore. It will inject USD 985 million into the subsidiary.

Mr Huang Long vice general manager of Huaneng Group said the deal meant the group has taken a new step forward in its overseas development strategy.

Analysts said the move is part of Chinese power companies' efforts to have a presence overseas. Last year State Grid Corp of China, the nation's largest electricity transmission network, took part in a bid to operate the Philippine power grid.

As China's largest power producer, Huaneng Group boasted more than CNY 325 billion in gross assets at the end of 2007 and a total installed capacity of 71,570 million watts. It owns a 50% stake in Australian power generation joint venture firm OzGen.

ABB powers up China biz with USD 100 million

Mr Michel Demar CEO & CFO of ABB said ABB will add more than USD 100 million in investments in China this year. The money will be used to support the expansion of research and development, manufacturing, sales and engineering services across the complete power and automation product portfolio in China.

Mr Demar said that "ABB's business in China hit a milestone last year and is now the largest within the group by most measures. China has been the most important market for ABB in all aspects."

ABB said China accounted for 12% of its total orders of USD 34 billion in 2007 ahead of Germany and the US.

Mr Brice Koch chairman and president of ABB China said "The orders increased 32% to USD 4.1 billion from USD 3.1 billion in 2006 while revenues rose 20% to USD 3.4 billion from USD 2.8 billion as ABB continued to introduce its latest technologies to the country. He said in 2007