Steel minister warns private steelmakers over price hikes

Mr Ram Vilas Paswan union steel minister has cautioned private steel makers that the government will take stringent steps if steel prices continue to rise. Mr Paswan said the government would be left with no option other than to constitute a steel regulatory body if steel companies continued to defy the government.

Mr Paswan said that “Even if the government does not want to have a regulator in place for controlling steel prices, circumstances are compelling the centre to do so. The PM is seriously concerned about increasing prices of steel. I had talks with the PM this morning over telephone. I will meet him soon after I return to Delhi in the evening. If steel makers do not bring prices under control, the government will be forced to set up an independent regulator.”

He warned that “I have done that in the past in telecom. I will again do it in steel if private players failed to take note of the circumstances.”

He said that the earlier increase was justified owing to rise in input costs, but recent hikes have brought about disparity between prices of finished steel and costs of inputs. He said “For, a 50% increase in iron ore prices should result in a 10% hike in steel prices, but it is happening the other way round.”

He said that though the centre has appointed a committee to monitor prices, private steel makers are keeping it in dark and increasing prices according to their own discretion. Mr Paswan said private players were raising prices without taking the committee into confidence.

The steel ministry could also recommend to the finance ministry that the import duty on steel, which currently stands at 5%, be removed.

Orissa to sign 3 more MoUs for steel plants

FE reported that the Orissa government's Single Window, headed by Mr Ajit Kumar Tripathy chief secretary of Orissa has cleared 6 projects with a total investment of INR 55,750 crores.

The MoU for the project will be signed once it gets the nod from the high powered committee headed by Mr Naveen Patnaik chief minister of Orissa.

The list includes 3 projects in the steel sector

1. Navyug Steel is going to sign a MoU with the Orissa government to set up a 12 million tonne port based steel plant at an investment of INR 34,000 crore near Astarang in Puri.

2. Bhushan Steel is proposing to expand capacity of its Meramundali plant in Dhenkanal to 9 million tonne from the present 3.1 million tonne, with an investment of INR 20,804 crore

3. Reliable Sponge will invest INR 227.13 crore to set up facilities for 0.25 million tonne per annum steel production and the generation of 24 MW power.

JSW inks coal transportation deal with K Line

PTI reported that JSW Steel and JSW Energy have signed a 10 year deal worth more than USD 200 billion with Japanese shipping firm Kawasaki Kisen Kaisha Limited for sea transportation of coking coal and steaming coal. Kawasaki Kisen Kaisha, popularly known as K Line would be transporting coal to India from Australian, Indonesian, South African and Chinese ports.

Officials of Kawasaki Kisen Kaisha said that "An en bloc deal of 10 consecutive voyage charter contracts, duration of which are for 10 year each, was concluded and signed with JSW Steel Limited and JSW Energy Limited. The total transport volume for the two companies under the en bloc deal could reach around 12 million tonnes per annum by 2015, when all the vessels enter the service."

They added that coal would be transported to the 2 companies by 10 vessels and the freight revenue from the 10 vessels is expected to be over USD 20 billion per year.

JSW Steel is set to expand the existing steel mill in Vijayanagar and to build 2 additional steel mills in Jharkhand and West Benga. JSW Energy also has aggressive plans to expand the generation capacity to 15,000 MW, including coal thermal plants and hydro power plants, by 2015.

Indian forging industry calls for controlling steel prices

Pointing out that steel prices have gone up by over 30% in the last 3 months, the Association of Indian Forging Industry said that it would become uncompetitive if the steel prices are not reined in and has called for policy measures that would discourage the export of steel and iron ore.

As per report, the AIFI has written to the finance ministry seeking a ban on export of steel or levy of export duty, ban on iron ore exports or increasing export duty on iron ore and has also threatened to approach the Monopolies & Restrictive Trade Practices Commission against the steel companies.

Mr Vidyashankar Krishnan president of AIFI and also MD of MM Forgings said that "Steel is the key input in forgings, accounting for about 60% of the input cost. If price hike continues, we will have to approach the MRTP commission against steelmakers who have been hiking prices frequently and in tandem."

Mr Baba N Kalyani CMD of Bharat Forge said that the forging companies are talking to their customers for reimbursing the steel price hikes. He added that "Such steep hikes in steel prices would hit the industrial production growth."

Mr Satish Garg MD of Sadhu Forging said that "Our customers are continuously evaluating their options. Many have pointed out that Chinese component imports are 15% to 25% cheaper."

L&T to supply coal gasifier to Hebi Coal

Larsen & Toubro Ltd has announced that its Heavy Engineering Division has bagged a contract valued at Euro 28 million (INR 170 crore) for supply of the Coal Gasifier and Syngas Cooler assembly to Hebi Coal and Electricity Co Ltd, which is a subsidiary of Zhongyuan Coal Chemical Industry Group of China.

The complete Gasifier assembly & the structure, which is expected to weigh 1740 tonnes, is the world's largest and heaviest Gasifier assembly, with a capacity to handle 3400 tonnes per day of coal. The assembly will be the heart of a Methanol Plant with a capacity of 600,000 tonnes per annum. The equipment will be manufactured from advanced technology steels at L&T's state of the art manufacturing facilities at Powai & Hazira.

Mr MV Kotwal member of the board of L&T said that the manufacture of this Gasifier will require transportation of the large fabricated sections, with on site assembly, testing and erection. He said that although such jobs pose enormous challenges, the teams at L&T are confident of meeting the requirements, given their track record of having successfully completed similar work on Gasifiers supplied to remote locations in China, where ambient temperatures were as low as minus 30 degrees Celsius.

L&T has supplied several large Coal Gasifiers to China for various Ammonia, Methanol, Olefin and Coal-to-Liquid Fuel projects.

CIL urges Indian Railways to increase wagons supply

Mr PS Bhattacharyya chairman of Coal India Limited while addressing at "Rail Coal Interface Meeting” requested Indian Railways to extend more cooperation and co ordination to step up coal movement by increased wagon supply. Rolling stock and infrastructure issues were also discussed at the meeting, which formulated a field wise wagon loading program in keeping with coal off take target.

Mr Bhattacharyya said that under CIL’s production plan, wagon requirement at the end of 11th Five year Plan would be around 32,500 wagons per day, indicating annualized growth rate of 10% in coming years. Of the incremental off take of 24 million tonnes, movement in 2007-08 by rail was about 8 million tonnes while overall coal transportation through rail was 55%. Coal imports would rise from 2008-09 and CIL would import coal too for domestic buyers. He added that "The 11th Plan is going to be different from the earlier plans in respect of quantum jump required in rate of coal production and evacuation."

Mr K Ranganath marketing director of CIL said that “Coal is shipped largely by Indian Railways and as volumes were large and distances longer, needs had changed. This could require new guidelines to work out the strategies in coal evacuation. While 21 thermal power stations as on date were at critical level carrying coal of less than 7 days, 11 were on the verge of becoming critical. Up gradation of existing tracks, including development of trunk corridors for coal traffic, and dedicated rolling stocks for coal traffic are vital necessities.”

He added that CIL’s total off take till February 2008 was 339 million tonnes, of which 170 million tonne was by rail up by 4.2% YoY compared to same period previous year. From a level of loading 22,150 four wheeled wagons per day between April 2007 and February 2008, CIL expected to improve loading to 24,016 four wheeled wagons a day in 2008-09.

Total coal off take for 2007-08 was expected to be 375 million tonnes, 24 million tonnes over the previous fiscal. Of this, 207 million tonnes would move by rail with major incremental loading from MCL, SECL, MCL and CCL fields. Wagon requirement was likely to increase to 25533 wagons per day for evacuating accumulated pithead stock. This meant more than 7% growth in wagon loading is projected for 2008-09, which could rise to 14% if stock liquidation program was implemented.

Mr RN Varma additional member of railway board said that coal continued to be the largest commodity for Indian Railway traffic and 65 million tonne increase in movement was expected in 2008-09. He added that infrastructure development and investment planning would be done to meet CIL’s demand. India Railways would bring in new technology and new wagons with higher axle load and reduce tare weight.

Ajmera Group to hive off steel arm for better funding

BS reported that Ajmera Group’s subsidiary Shree Precoated Steels Limited is hiving off its steel business as a separate company soon and that its board has already approved the change of company’s name to Ajmera Realty & Infrastructure.

Mr Dhaval Ajmera director of Ajmera Group of Companies said that "Private equity players, analysts and investment bankers have advised us to hive off our steel business into a separate sector specific company to get better funding. We were affected by the curbs on real estate lending. This has prompted us to hive off the steel business."

Shree Precoated Steels reported a top line of INR 458.43 crore for the October to December 2007 quarter, with contribution from steel being INR 373.58 crore and realty chipping in with INR 84.85 crore. The realty business contributed INR 55 crore and steel business INR 16 crore to the bottom line.

Mr Ajmera said that it is expecting a top line of nearly INR 2,000 crore from steel and INR 1,000 crore from real estate in the next financial year. While steel would contribute nearly INR 75 crore to the bottom line, realty’s share would be around INR 400 crore in the period. He added that "In the next 3 years, our top line will be equally derived from steel and real estate. We are exploring private equity participation in both the businesses."

Shree Precoated Steels is a steel sheet manufacturer with real estate interests in Mumbai and Bangalore.

BHEL bags Nabinagar thermal power plant contract

Projects Today reported that Bharat Heavy Electricals Limited has bagged an order worth INR 2,030 crore orders from Bhartiya Rail Bijlee Company Limited for supply and installation of the main plant package at the upcoming 1,000 MW Nabinagar thermal power project in Bihar.

BHEL’s scope of work in the present contract envisages design, engineering, manufacture, supply, erection and commissioning of steam generators with electrostatic precipitators and associated auxiliaries and turbine generators and associated auxiliaries with state of the art controls and instrumentation system.

Indian Railways freight revenue in 11 months up by 13.4% YoY

Indian Railways has generated INR 42696.22 crore of revenue earnings from freight traffic during April 2007 to February 2008 period up by 13.41% YoY as compared to INR 37648.87 crore during April 2006 to February 2007 period.

Indian Railways carried 714.25 million tonnes of freight traffic during April 2007 to February 2008 period up by 8.99% YoY as compared to 655.35 million tonnes carried during April 2006 to February 2007 period. The net tonne kilometers went up by 7.52% YoY to 461368 million from 429093 million.

Details of total earnings during January 2008 are

Volume in million tonnes
Earnings in INR crore

BHEL NTPC JV to incorporated in next week – Report

Bharat Heavy Electricals Limited has announced that its JV National Thermal Power Corporation Limited would be incorporated next week.

Mr K Ravi Kumar CMD of BHEL said that new JV called NTPC BHEL Power Projects Private Limited would be incorporated within a week and that the proposed venture would complement its business.

He added that "NTPC will not push for another BHEL. We have been saying that 60% of the market is with us and 40% is going to others. There is no difficulty in establishing another unit for catering to that 40%. It is any how going to the Chinese, Koreans and Japanese."

Mr Kumar stressed that recreating BHEL would be very difficult and as such, it is investing up to INR 10,000 crore for expansion and acquisition to raise its capacity to produce power equipment from 10,000 MW to 15,000 MW annually by the end of the 11th Plan period.

Meanwhile, Mr T Sankaralingam CMD of NTPC said that "The way India is growing, we would want many more BHEL."

MMTC and NMDC to boost e commerce – Report

ET reported that many public sector enterprises are upbeat on developing business using internet. As per report, Metals & Scrap Trading Corporation and National Mineral Development Corporation are betting big on the e auctions and online trading by not only carrying out sales over the Internet but also undertaking procurement activities through on line bidding.

Mr Malay Sengupta CMD of Metals & Scrap Trading Corporation recently said that "PSUs have actually led the way in e commerce adoption in India. The government departments and PSUs looking at procurement of raw materials need to be registered with union finance ministry and only online bids need be taken. This needs to be adopted in India, if so then in the next 5 years bulk of government procurement would be carried out through e commerce, as such an online process of online auction and reverse auction lends creditability for the buyer in the process."

Mr VK Sharma commercial director at NMDC said "The industry is not getting the correct price through the traditional auction system. It is also limiting the number of candidates in the auction and therefore giving chance for cartelization. NMDC adopted e actions for selling iron ore, diamonds and scraps and reverse e auction for procurement processes in 2007. Now we have got large number of bidders along with complete transparency to the whole process."

According to the Internet & Mobile Association of India report on e commerce, the market in India was nearly around INR 7,080 crore by 2006-07, expected to grow by about 30% YoY to INR 9,210 crore by the end of 2007-08.

L&T to set up forging unit at Hazira

Projects Today reported that Larsen & Toubro is planning to set up a forging unit at Hazira in Surat district of Gujarat. The project is estimated to entail an investment of INR 600 to INR 800 crore.

L&T will implement the project by roping in a foreign partner. The proposed project will feed its bourgeoning power, nuclear power and oil business.

NTPC synchronizes 500 MW Kahalgaon power unit

It is reported that National Thermal Power Corporation has successfully test synchronized its second unit of 500 MW of Kahalgaon coal based power project in Bhagalpur district of Bihar.

Commercial operation at the unit is likely to start by end of March 2008 or early April 2008. With the commissioning of this unit, the commissioned capacity of Kahalgaon project is 1,840 MW and the company's total installed capacity stands at 29,144 MW.

Construction of new berth at Paradip Port

Mr TR Baalu union minister of shipping, road transport & highways said that as part of the on going process of development, centre is planning to construct deep draught iron ore berth and deep draught coal berth at Paradip Port at a total estimated cost of INR 892.60 crore.

The projects are at tendering stage. Plan for development of southern dock complex at the Port is also at preliminary stage.

PSA Corporation and DP World racing for Ennore Port

It is reported that container port operators PSA Corporation and DP World are bracing for a fight for rights to develop and operate a new USD 321.42 million container handling facility at Ennore Port near Chennai.

Ennore Port had invited initial qualification bids in early March 2008 from companies keen on developing and operating the facility with an annual capacity of 1.5 million TEUs for 30 years and both PSA and DP World confirmed that they would bid for the project at Ennore Port.

Hoverer, according to the fresh guidelines by the union government on regulating tariffs at major ports, Ennore Port has fixed the tariff before inviting price bids from short listed operators. Mr A Rajagopalan operations director at Ennore Port said that "In the case of the container terminal, the successful private operator will not have the freedom to set tariffs. The operator will be entitled to charge a pre-determined user fee from its customers."

The foreign investors will be facing competition from local players such as Gammon Infrastructure Projects, a unit of Mumbai based construction firm Gammon India, for the Ennore project.

Maharashtra identifies new site for coal based power plant

Projects Today reported that Maharashtra government, along with the Central Electricity Authority, has identified a new location at Malvan taluka in Sindhudurg district for the 4,000 MW coal based power plant.

Besides, the state government has agreed to bear a certain amount of cost to carry out a pre feasibility study for using Achra port in Malvan for importing coal. The study is expected to be complete by June 2008.

Earlier, the centre and state government had chosen Girye in Sindhudurg district as the location. However, neither Power Finance Corporation nor the state government was able to make progress in the project, following opposition from all political parties and local residents.

Jharkhand witnesses 12.3% power shortage in 11 months

Mr Sushilkumar Shinde union minister for power said that Jharkhand has witnessed 12.3% shortage both in terms of energy and peak during the April 2007 to February 2008 period.

Mr Shinde said that as most of the states and UT have been facing power shortages, requests for additional allocation out of unallocated power are received from many of them from time to time. The unallocated power of central generating stations being limited, additional allocation is provided to the extent possible only after reducing the allocation of other states and UT keeping in view the nature of requirement and their relative power supply position.

He further added that, keeping in view the request received from Jharkhand, additional 40 MW power was allocated to the state from the unallocated power of NTPC stations in the eastern region with effect from December 29th 2007. Thus, the total power made available to Jharkhand by the Government of India stands as 307 MW in the installed capacity of central generating stations and hydro power stations of Bhutan.

6 projects under IIUS approved

Projects Today reported that central government has approved 6 projects entailing a cost of INR 373.35 crore, including a grant of INR 247.8 crore, under the Industrial Infrastructure Upgradation Scheme.

The projects include
1) Industrial cluster at Chhindwara
2) Engineering cluster in Maharashtra
3) Ready made garments and handloom cluster in Madhya Pradesh
4) Auto cluster at Jharkhand
5) Industrial cluster in Uttar Pradesh

These projects will be executed by special purpose vehicles by involving local industry associations. They are aimed at improving competitiveness of clusters by providing infrastructure, training centre, weavers' workstation, display and R&D centre and hazardous waste management facilities.

So far, 26 projects with total cost of INR 1,766.18 crore, involving central grant of INR 952.1 crore have been sanctioned under IIUS. However, 18 out of these are in Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu and West Bengal

Government officials said that "In order to correct this skewed pattern of sanction, the department of industrial policy & promotion obtained the approval of the Cabinet Committee on Economic Affairs for sanctioning 6 additional projects in industrially less developed states."

Under IIUS, launched in 2003, centre provides assistance up to 75% of the project cost subject to a ceiling of INR 50 crore for each project.

DP World Chennai inducts 4 RTGs at Chennai terminal

It is reported that DP World’s subsidiary DP World Chennai has inducted 4 new rubber tyre gantries at the Chennai container terminal. The new rubber tyre gantries costing INR 38 crore was procured from Gulf Port Cranes of Abu Dhabi.

Mr Ennarasu Karnuesan CEO of DP World Chennai said that the terminal is gearing up to handle around 1.30 million TEUs in this fiscal.

The new rubber tyre gantries will ensure that the trailers and vessels are turned around in the quickest possible time. It already has a fleet of 24 rubber tyre gantries, including some older ones. Vertically, the new equipment is capable of reaching a stacking high of 6 containers.

Cairn India to sell 5.37% stake to fund expansion plan

BS reported that Cairn India has decided to sell 5.37% stake to Malaysian state oil & gas firm Petroliam Nasional and Singapore based Orient Global Tamarind Fund for INR 2,534 crore to fund expansion plans.

Cairn India will sell a total 113 million shares, 63.3 million shares to Petronas and 49.7 million shares to Tamarind at INR 224.30 each. The share sale price is 1.8% lower than Cairn India’s closing price on March 14th 2008 and a 40% premium to its listing price of INR 160.

Cairn India plans to utilize the sale proceeds to fund its expansion plans and ongoing projects, which includes production of oil at Mangala in Rajasthan by 2009. ONGC is Cairn’s partner in the project.

Mr Rahul Dhir CEO of Cairn India said that “It is confident of producing commercial oil from Rajasthan in 2009. The private placement will help the company to meet its investment plans and provide greater financial and operational flexibility."

Nucor to acquire Metal Recycling Services

Nucor Corporation announced that it has signed a purchase agreement to acquire substantially all the assets of Metal Recycling Services Inc based at Monroe in North Carolina. The acquisition is expected to close within 30 days subject to the completion of due diligence and other closing conditions. Upon acquisition by Nucor, Metal Recycling Services will become part of Nucor's wholly owned subsidiary.

Metal Recycling Services founded in 1999, operates a full service processing facility including an automobile shredder and two North Carolina feeder yards. It employs 150 people and expects to process 220,000 tons annually.

Mr Daniel R DiMicco chairman, CEO & president of Nucor said that "The addition of MRS demonstrates our commitment to grow in the scrap sector by using DJJ as a platform for that growth. We look forward to welcoming the MRS management team and employees to the Nucor family."

BHPB bid for Rio –Japanese authorities to start probe

FT reported that the Japan Fair Trade Commission will start having hearings with BHP Billiton and Rio Tinto shortly to investigate the proposed alliance between the two companies after a request from Japan Iron and Steel Federation’s request last week to take appropriate actions in order to block BHP’s proposed takeover of Rio Tinto.

The JFTC official said the commission will shortly start holding hearings with BHP Billiton, Rio Tinto, their competitors and users.

The report cited a JFTC official in charge of corporate mergers as saying that “There is a possibility of blocking the deal. We must examine Japanese law to find out whether we can really do this because the two companies have no operational bases in Japan.”

However, the report quoted some Tokyo based anti trust lawyers as saying that it would be difficult for JFTC to block the deal. Mr Kenji Ito, an anti trust lawyer at Mori Hamada & Matsumoto, said that “I think it is legally possible to order BHP to stop the deal, but the problem is that BHP may not follow the order. If violated, JFTC will impose penalties. But the companies with no presence in Japan may force through the deal.”

A spokesperson at the JISF said the federation had asked JFTC to examine the proposed merger as a third party situation. The federation also urged JFTC to co ordinate with its overseas counterparts in the event JFTC does not have the authority to block the deal. The spokesperson said JISF had already made similar requests to the Australian authority and the European Commission.

South African coal mine operations hit by rains

It is reported that coal production and transportation by South African coal miners has been hit by heavy rains.

BHP Billiton South Africa's domestic and export coal supply has been cut slightly by heavy rains. Ms Bronwyn Wilkinson spokeswoman of BHPB told Reuters that "There has been some impact on coal handling which is affecting coal for Eskom and for export. We are at slightly reduced levels.” However, BHP does not expect coal export shipment loadings to be delayed or cancelled as a result of the rains.

Anglo American said that three of its open cast coal mines which supply coal to electricity utility Eskom had closed because of rain. Mr Pranill Ramchander spokesman of Angelo said "They are all closed. They're not in operation at the moment, It is uncertain when New Denmark and Kriel collieries in Mpumalanga province and New Vaal in Free State province would be back in operation.”

Mr Karl Gribnitz CEO of South African Coal Mine Holdings said that rain has closed the open cast section of Umlabu mine in Mpumalanga. He said "We have had 200mm of rain in the past 10 days. The underground section is still operative, but open cast is standing at the moment."

South Africa's water table has remained high for the past two years. A mining source said that "It only takes 3 days to 4 days heavy rain and the level rises to become a problem. It was not this way 10 years ago but the climate has changed. Opencast coal mines fill quickly with water when rain is heavy. , mining sources said.

In addition, transportation also becomes more difficult and has to slow down as the huge trucks used to move coal from the mines to the loading points for rail transportation have to slow to a crawl in order to avoid accidents and injuries to workers. Scheduled trains to Richards Bay are harder to fill because the coal movement from the mines slows and trains are cancelled.

Sherritt to reacquire Royal Utilities Income Fund

Sherritt said that it plans to offer CAD 12.25 for each unit through a combination of cash and stock, a premium of 22% over Royal Utilities' Monday closing price of CAD 10.03. The transaction is expected to close in late April.

Sherritt said that “Ontario Teachers' Pension Plan, which owns another approximately 41% of Royal Utilities, has entered into a lock-up agreement with Sherritt in which Teachers' has agreed to tender its units to the deal.”

Sherritt International and the Ontario Teachers' Pension Plan both own 41.2% stakes in the fund. The remaining 17.6% stake is widely held.

Sherritt said the fund is the largest thermal coal producer in Canada. Royal Utilities holds all the common shares of Prairie Mines & Royalty Ltd, a thermal coal producer and has mineral rights in Alberta and Saskatchewan that generate royalties from coal and potash mining.

Mr Jowdat Waheed CEO of Sherritt during a conference call said that "We see a tremendous opportunity of internalizing this cash flow and redirecting it consistent with our model into a growing asset base, driving the top line, driving the EBITDA, driving the earnings profile. In all areas that we look at, we are highly confident we can deliver the returns that our capital base demands from the internalization of this asset."

US DOC makes final determination on AD on OCTG from South Korea

The US Department of Commerce has announced the final results of AD duty administrative review on oil country tubular goods, other than drill pipe, from South Korea for the period August 1st 2005 through July 25th 2006. This review covers Husteel Co Ltd, SeAH Steel Corporation and Nexteel Co Ltd.

US DOC said that “Based on our analysis of the comments received, we have made changes to the preliminary results. As a result of our review, we determine that the following weighted average margins exist for the period August 1st 2005 through July 25th 2006.”

The products covered by this order are OCTG, hollow steel products of circular cross-section, including only oil well casing and tubing, of iron other than cast iron or steel both carbon and alloy, whether seamless or welded, whether or not conforming to American Petroleum Institute or non-API specifications, whether finished or unfinished including green tubes and limited service OCTG products. This scope does not cover casing or tubing pipe containing 10.5% or more of chromium, or drill pipe.

G Steel resumes plan for steel plant

It is reported that Malaysian HR major G Steel will resume its ambitious steel project this year after a two year delay due to the country's political uncertainties.

G Steel has signed an agreement for providing technology and technical assistance to Korean Dongbu Steel Co, which is an operator of a 2.5 million tonne compact mini mill in Korea.

As per reports, G Steel is negotiating with potential strategic partners, including firms from China, India, Japan, Korea and Russia, to jointly develop the Rayong based project.

Dr Somsak Leeswadtrakul CEO of G Steel said ''I hope our talks with our business partner will be done within the middle of this year.”

Dr Somsak said the project delay had caused investment costs to increase by 10% to about THB 33 billion from the previous budget of THB 30 billion. G Steel had obtained investment privileges from the Board of Investment several years ago for a THB 30 billion investment in an iron plant with annual capacity of 2.5 million tonnes. A source from the BoI said G Steel needed to resubmit the application with the new budget figures, although project details such as location and capacity would stay the same.

Sidor strike damages equipment and endangers supplies

BNamericas reported that the strike carried out by employees of Venezuelan steelmaker Ternium Sidor, which came to an end Sunday caused damage to plant equipment.

Sidor in a statement said that the strike severely affected the pellet plant, the Midrex I and II reactors and the HYL II mill since they were paralyzed with material such as pellets and direct reduced iron still inside the piping.

Mr Adrián De León manager of Ternium Sidor's pre reduction division said that "The damage to this equipment will undoubtedly affect Ternium Sidor's entire productive process and as such the regular supply of steel to the domestic market.” He added that there is no way of determining how soon the facility will begin operating again, since the damage is extensive.

Mr De León said that the unplanned repairs will generate greater losses for Ternium Sidor than would be expected from a strike, but did not provide a figure.

The 80 hour strike was the company's fifth stoppage in 2008. Each stoppage generates losses of roughly USD 7 million per day. Ternium Sidor has capacity of 4.2 million tonnes per year of liquid steel.

Zinifex gains controlling stake in Allegiance

Zinifex Australia Limited announced that it had taken a controlling interest of more than 50% in Allegiance Mining NL. As a result of this, the takeover bid by Zinifex for all of the ordinary shares in Allegiance is automatically extended and is now scheduled to close on March 31st 2008. Zinifex's offer of AUD 1.10 for each Allegiance share is final.

Mr Andrew Michelmore CEO of Zinifex said that the company is very pleased with reaching this milestone, which is an important step in Zinifex's strategy of diversifying its exposure into high margin metals and expandable mines. He added that the acquisition of Allegiance Mining was also a perfect fit with the recently announced merger between Zinifex and Oxiana. The merged company will be the world's second largest producer of zinc and a substantial producer of copper, nickel, lead, gold and silver.

Mr Michelmore said that "The addition of Avebury to the existing asset bases of the two companies is complementary, adding immediate nickel production and another set of growth options in an attractive metal market.”

Mr Michelmore said that "A majority of Allegiance directors have recommended acceptance of the offer and have either accepted, or intend to accept, in respect of all shares held by them or on their behalf. The revised price represents a premium of 55% over the closing price before our offer was announced in December and accepting shareholders will be paid within 5 business days of receipt of a valid acceptance.”

Rio Tinto sees high demand for base metals

Business Spectator newspaper in Sydney said that Rio Tinto sees growing demand in emerging economies for base metals and projects that demand for iron ore, aluminum and copper could triple over the next 25 years.

Mr Paul Skinner chairman of Rio Tinto said that “We are seeing a dramatic change in the world’s centers of economic power, with rapid growth, urbanization and industrialization in many parts of the developing world. We expect a large part of the world’s population billions of people to move through increasingly metal intensive phases of economic development. This will transform our industry and underpin future growth in markets.”

Mr Tom Albanese CEO of Rio Tinto told shareholders that he is confident that base metal prices could stay high for several decades on strong demand despite the major economic slowdown in the US as the US demand for metals has declined substantially relative to that of China since 2000.

Stellar Resources to acquire 60% of Zeehan tin project

Stellar Resources announced that it has signed an agreement to acquire a 60% interest in the Zeehan Tin Project from Western Metals Limited, Retention Licence RL 5, located near the mining town of Zeehan in northwest Tasmania. The remaining 40% interest is held by ASX and LSE AIM listed Gippsland Ltd.

The purchase consideration for the acquisition is AUD 1.178 million to be satisfied by cash and shares.

Currently these deposits represent the largest known undeveloped tin resources in Australia. Stellar Resources has been active on the northwest coast of Tasmania since its inception. Exploration has confirmed a number of tin prospects, including the St Dizier deposit, around the northern edge of the Heemskirk granite.

The Zeehan Tin Project includes the Queen Hill, Montana and Severn deposits, which were identified by Gippsland and Aberfoyle over 25 years ago.

Under the joint venture terms, Stellar has the right to increase its interest from 60% to 70% by completing a feasibility study to a banking stage.

Vale awards Northern Iron Ore System upgrade to Tenova

Companhia Vale do Rio Doce has selected once more Tenova for a new expansion step of its Brazilian Northern Iron Ore System.

Tenova has been awarded following contracts

1. A turn key supply of two identical Stackers of 16.000 tonnes per hour, 55 meter boom length each, at Carajas mine site.

2., Tenova obtained another Contract for n1 Stacker machine of 20,000 tonne per hour capacity, 55 meter boom length, and n.1 Reclaimer of 11,000 tonnes per hour capacity, 50 meter boom length at St Luis iron ore shipping terminal.

Further 5 machines having the same technical features are expected to be supplied later on.

The global development plan of Vale is bound to expand the Northern system shipping Terminal, expected to reach an iron ore export capacity of 130 millions tonnes per year, as well as to improve the up stream production capacity at its Carajas mine.

Sandvik acquires Aubema Beteiligungs GmbH

Thomson Financial reported that Sandvik AB has reached an agreement to acquire the German system technology provider Aubema Beteiligungs GmbH for an undisclosed sum, as a step in its objective to be a leading provider of crushers for softer materials.

Aubema's head office is located at Bergneustadt in Germany and the company has 70 employees in Germany and 10 in China. Sales amounted to SKR 160 million in 2007.

Aubema provides system technology in the specialized field of crushing and rock sizing. The main emphasis is on development and manufacturing of customized solutions for fragmentation of coal, coke, limestone, different types of ore, salt, fertilizer and other softer minerals and materials. The company focuses on design and production of custom-tailored equipment, including hammer mills, impact mills, roll crushers, cone crushers and vibrating mills.

Nucor to raise steel bar prices

American Nucor Corp, the largest steel producer in North America, announced to raise steel bar price by USD 25 per short ton, hereinto USD 21 per short ton increase for surcharge and USD 4 per short ton increase for benchmark price.

As a result, the new price will be between USD 868 and USD 1,037 per ton, depending on the size and specification.

Besides the raw material cost increase, two another main factors also push the price up. One is that the overseas steel bar markets keep strong, the other is that import resources become very tight due to the high import prices.

The market experts said that the prices of steel bar for May and June deliveries are likely to be increased again in view of above stated factors.

Production starting up again at LKAB Malmberget

LKAB announced that “Since Sunday evening, the sorting plant has been producing under normal supply conditions and ore stocks upstream from the concentrating plant are being filled. Production of MAF (fines) in section 2, MPC production in section 6 and additive grinding are under way, and the slurry tank in the palletizing plant has been refilled. We are now producing pellets in the BUV plant, the oldest palletizing plant.”

Mr Solveig Danskog manager of the palletizing plants said that both palletizing plants have been ready to operate, but we are starting BUV first. From the time the concentrating plant started up, it took about four hours to fill the slurry tank. Then, we could begin producing pellets. If all goes according to plan, the first trainload of product can roll out sometime today.

He added that at the same time, concerted efforts are being made to bring sections 4 and 5 of the concentrating plant online, so that pelletzing plant MK3 also can be supplied with pellet concentrate.

Mr Per Erik Hjerpe who is supervising the electrical start up said that “If final installation and preparations proceed as planned, we can expect sections 4 and 5 to be ready to operate by the end of the week. This means that MK3 should be able to resume production during the Easter weekend.”

World steel prices at 28 year high - Macquarie Bank

According to Macquarie Bank, international steel prices have been on the increase for three straight months this year and are posting at highest level since later 1970's and early 1980's.

Macquarie Bank said that the main reasons behind are raw materials cost rise, dollar's depreciation and steelmakers' manipulative purchase before further price hikes, though demand from the construction industries in US and Europe remains slack.

Macquarie Bank statistics show that surging steel prices happen in three major parts of the world:
1. US, as weak dollar and high freights protect its market from shock of imports, adding that its domestic production declines, sees 34% rise in HRC to USD 834 per ton
2. In Europe, HRC gains 29.4% to USD 888 per tonne.
3. China's gains 19.6% to USD 628 per tonne.

G Steel sees 2008 revenues up by 20% to 30%

It is reported that Thailand's hot rolled steel coil maker G Steel PCL expected its 2008 revenues to rise by 20% to 30%, above analyst forecasts due to higher steel prices.

Mr Somsak Leeswadtrakul director of G Steel told reporters that "Selling prices will be higher this year in line with higher raw material prices and the company aimed for a gross margin of 9.5%, the same as last year.”

Mr Somsak said that strong steel demand from India, Russia and the Middle East would continue to push steel prices higher over the next three years, with global steel consumption expected to rise 6 to 8% in 2008. He added that domestic steel consumption would increase 5 to 6 % in 2008, in line with domestic economic growth.

G Steel reported revenues of THB 22 billion in 2007 (USD 702 million) and a net profit THB 1.55 billion.

Taiwanese February 2008 GI import drop by 42% MoM

According to the import data from Taiwanese Custom, Taiwan imported galvanized steel about 20,000 tonnes in February 2008, down by 42% MoM. Additionally, the import of hot galvanized steel was at 10,936 tonnes and that of electro galvanized steel was at 9,367 tonnes.

Also, the import prices of HGI and EGI on average were TWD 23,570 per tonne and TWD 25,540 per tonne respectively.

The top three export countries and areas of HGI to Taiwan were Japan, China and South Korea, which accounted for 6,608, 3,327 and 976 tonnes respectively.

(Sourced from YIEH.com)

Brazilian pig iron export in January down by 15% YoY

According to the related information, Brazil exported about 515,000 tonnes of pig iron in January 2008 down by 14.9% YoY.

As per report America has become the main country to import pig iron from Brazil in January, followed by Thailand, Spain and Taiwan.

America had 41.9% of total volume about 216,000 tonnes, down by 28.3% YoY. Thailand was 79,000 tonnes, Spain was 53,000 tonnes and Taiwan was 34,000 tonnes.

(Sourced from YIEH.com)

United Tractors to invest USD 200 million on new equipment

ANTARA News reported that Indonesian heavy equipment company PT United Tractors will spend USD 200 million in 2008, mainly on new equipment.

Mr Gidion Hasan finance director of United Tractors said that replacement of old equipment used by its subsidiary PT Pamapersada will cost around USD 150 million.

PT Pamapersada operates in mining contracting service handling a number of projects awarded by a number of major coal mining companies such as PT Adaro Indonesia, PT Kaltim Prima Coal, PT Tambang Batubara Bukit Asam and Kideco Jaya Agung.

PT Bumi increase its bid for Herald

It is reported that Indonesia's PT Bumi Resources is set to win in its bid to acquire Australian mining company Herald Resources upping its bidding price from AUD 2.25 to AUD 2.6 per share.

The newspaper said the move followed potential bidder PT Aneka Tambang saying it would buy Herald at AUD 2.5 per share.

Bumi said it has received a loan pledge from Credit Suisse to finance the acquisition of Herald Resources which has a yet undeveloped lead and zinc mine in North Sumatra. Bumi also plans to issue bonds valued at USD 1 billion to finance its investment and business expansion this year.

Tokyo Steel to hike all steel items for April distribution

Tokyo Steel Manufacturing announced on it increases the selling price of all steel products by JPY 15,000 to JPY 23,000 per tonne for distributors for April order, which the firm accepts until Wednesday.

Tokyo Steel tries to pass higher cost for ferrous scrap by the widest hike. The firm stops acceptance of new order for export and domestic spot transaction due to less availability of ferrous scrap.

US Steel reaches clean air agreement

AP reported that United States Steel Corp has reached a deal with the Allegheny County Health Department to correct air pollution violations at two plants.

Under the deal, US Steel will reduce emissions at the Clairton Coke Works and the Edgar Thompson Works in Braddock.

Allegheny County Health Department said that US Steel has agreed to pay a penalty of USD 301,800 for past violations. It has also agreed to pay penalties of between USD 500 and USD 2,000 per day should it miss deadlines for taking corrective actions.

At the Clairton plant, nine of the 12 coke batteries will undergo comprehensive repairs and maintenance. In December 2007, US Steel proposed a USD 1 billion plan to upgrade the Clairton facility, the country's largest coke making facility. The new technology will reduce environmental emissions.

US weekly crude steel production up by 0.6% YoY

American Iron & Steel Industries reported that in the week ending March 15th 2008, US’s raw steel production was 2.086 million net tons while the capability utilization rate was 87.5%. Production was 2.073 million net tons in the week ending March 15th 2007, while the capability utilization then was 86.3%. The current week production represents 0.6% increase from the same period in 2007.

Production for the week ending March 15th 2008 is down 1.2% from the previous week ending March 8th 2008 when production was 2.113 million net tons and the rate of capability utilization was 88.6%.

Adjusted YTD production through March 15th 2008 was 23.168 million net tons at a capability utilization rate of 88.3%. That is a 5.1% increase from the 22.035 million net tons during the same period last year, when the capability utilization rate was 83%.

District wise production for the week ending March 15th 2008
1. Northeast Coast: 196
2. Pittsburgh/Youngstown: 219
3. Lake Erie: 82
4. Detroit: 110
5. Indiana/Chicago: 478
6. Midwest: 262
7. Southern: 648
8. Western: 91.
(In thousands of net tons)

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Demand to keep dry bulk rates firm – Star Bulk

Reuters reported that port congestion and strong demand from China and India should help dry bulk shipping rates stay strong throughout 2008.

Mr Akis Tsirigakis a top executive of dry bulk shipper Star Bulk Carriers Corp told Reuters in a telephone interview that “I feel we are going to see a relatively strong 2008 overall, but with high volatility at times during the year. The demand is still coming from China predominantly, but India is becoming a more important player.”

He added that a US economic slowdown would affect demand from China and India, but said internal demand for commodities from those two developing markets should remain robust.

Mr Tsirigakis said that 'We are talking about the industrialization of 2.5 billion people. I don't think there's any going back.”

The Baltic Exchange's chief sea freight index, which gauges the strength of major trade routes for bulk commodities including iron ore and grains, rose nearly three fold from the start of 2006 on the back of Chinese commodity imports. The index is currently down more than 20% since reaching a peak in October, but has regained ground recently.

Greece based Star Bulk has a fleet of nine vessels, with another due for delivery in April and Mr Tsirigakis said the company is looking actively at acquiring more ships. We have plenty of possibilities to lever up and buy a few more vessels.

Vinashin bags shipping contracts worth USD 2 billion

VNS reported that Viet Nam Shipbuilding Industry Group signed 22 contracts worth USD 2 billion on the occasion of Vietship, the country’s largest shipping exhibition being held in Ha Noi.

Vinashin in a statement said that the contracts, signed with both domestic and foreign partners, covered shipbuilding, maritime transportation, developing ancillary industries for Viet Nam’s shipping fleet and financing and insurance.

It added that noteworthy deals included a contract to build a 16,800 DWT cement carrying vessel for KGJS of Norway, a contract to build 16 cargo vessels for Jebsens of Norway and a contract to build a 11,000 DWT cargo ship for Kanematsu of Japan. Most of the nine shipbuilding contracts will not be delivered until after 2010.

Vinashin also signed contracts to build 8,100 containers for the American company Leasing Container Waterfront and the Taiwanese company Leasing Container Neo Tech. But Vinashin did not provide the specific value of these contracts.

Mr Nguyen Hong Anh general director of Vinashin TGC Container Company said that “Made in Viet Nam containers will travel around the world, asserting Vinashin’s reputation in the international shipping market.”

According to Vinashin, Viet Nam worked to make the sea related economy represent 53 to 55% of the country’s GDP and around 60% of the country’s total export turnover. According to Fairplay, an international shipping weekly magazine based in the UK, Vietnam is now the fifth largest shipbuilder in the world.

Eskom may declare force majeure on power supplies to mines

Reuters reported that South African power utility Eskom may have to inform mines in the world's biggest platinum producer of a force majeure if more of its generators trip.

The report quoted Mr Andrew Etzinger a spokesman of Eskom as saying that "At the moment we are in a very tight situation. If we lose an additional two generators in the course of this morning we could possibly once again be in a force majeure situation.” He added that "It's really critical at the moment."

Mr Etzinger said nine generators had tripped and another nine were down for planned maintenance. South Africa's power crisis follows years of underspending by Eskom on electricity generation capacity. Three generators were expected to be back in service on Tuesday, he said. "Until such time as those three come into service we're extremely vulnerable."

Mr Etzinger said the problem was compounded by persistent rain in Mpumalanga province where coal mines and the utility's coal fired power stations are concentrated. Wet coal is difficult to handle. He added that "This is a growing concern as well, both in terms of the coal mines as well as our power station operations. This is adding to the problem.”

He said mining companies are aware of the situation.

South Africa's electricity grid came close to collapse in January, forcing the government to declare a national emergency. Gold and platinum mines were forced to shut down for five days. Since then mines have been operating below full power, driving up precious metals prices and raising fears of possible job losses and slowing growth.

Gibraltar appoints Mr Smith as VP & CFO

Gibraltar Industries Inc announced that it has named Mr Kenneth Smith as the manufacturing company's senior vice president and chief financial officer effective March 18th 2008. He will replace Mr David Kay, formerly Gibraltar's CFO who has retired. The hiring was approved by Buffalo based Gibraltar's board of directors.

Prior to joining Mr Smith has served as CFO of Circor International, which makes flow control components sold to aerospace, chemical processing, pharmaceutical, maritime and oil and gas end markets. He earned his bachelor's degree in business administration from Adrian College in Adrian and an MBA in finance from the Rochester Institute of Technology.

Mr Brian J Lipke chairman & CEO of Gibraltar said that “Mr Ken Smith’s impressive background of improving the operations and financial performance of large, diverse, international manufacturing companies has equipped him with the exact tools and experience we need to accelerate Gibraltar’s strategic transformation, increase our profitability and enhance stakeholder value.”

Gibraltar Industries is a leading manufacturer, processor, and distributor of products for the building, industrial, and vehicular markets. The company serves customers in a variety of industries in all 50 states and throughout the world. It has approximately 3,800 employees and operates 76 facilities in 27 states, Canada, China, England, Germany and Poland.

Rio Yarwun refinery to meet increasing global alumina demand

Expansion work on the Yarwun alumina refinery near Gladstone in Queensland is progressing on budget and is on track for its first shipment of alumina in the second half of 2010. The USD 1.8 billion project, announced in July 2007, will more than double annual production of the refinery, taking output from 1.4 million tonnes to 3.4 million tonnes by 2011.

The release added that the expansion project includes a gas based 160 MW cogeneration plant which will reduce CO2 emissions per tonne of alumina by 35% relative to coal.

Mr Keith Nugent project director of Rio Tinto Alcan said that “In the eight months since the expansion project began, engineering is approaching 25% completion with over USD 900 million committed by the end of February 2008. There have been no lost time injuries on the project, with more than 400,000 hours worked with a current workforce of just over 300 on site. We expect to commence our first major concrete pour at the end of March 2008.”

On completion, the expanded refinery, at 3.4 million tonnes per year, will produce about 4% of the total global alumina demand. With increased production at Yarwun, and expansion of the Gove refinery, Rio Tinto Alcan will double its Australian alumina capacity by 2015.

Outotec inks service agreement with Boliden and Norilsk Nickel

Outotec has agreed to continue delivering engineering and project services for Boliden's Harjavalta and Kokkola plants and for Norilsk Nickel's Harjavalta plants in Finland for three years' time.

The delivery of services is part of the close cooperation between Outotec and the two companies. Outotec has plant service units in Harjavalta and Kokkola. These units employ some 45 people in total.

Mr Tapani Järvinen president & CEO of Outotec said that "Our target is to significantly grow our services and after sales business in the next few years. This agreement demonstrates our capability of delivering value adding services for our customers, who benefit from Outotec's broad experience in designing and operating various processes. Our customers can focus on their core business, metals production.”

Accuride to supply forged aluminum and steel wheels to Wabash National

Accuride, a manufacturer and supplier of commercial vehicle components, has announced that Wabash National a manufacturer of dry freight vans, refrigerated vans and flatbed trailers, has selected its wheel division as preferred supplier for forged aluminum and steel wheels, from January 1st 2008 to December 31st 2010.

Mr Rick Schomer senior vice president of sales and marketing for Accuride said that "We are extremely pleased to be named the preferred steel and aluminum supplier for Wabash National. This further solidifies the long term partnership we have shared with them since the company was founded."

Accuride Corporation is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America.

Novelis completes expansion of aluminum rolling mill in Korea

Novelis Korea Limited announced the completion of a USD 30 million expansion of its aluminum rolling mill at Yeongju in South Korea. The expansion, which required two years to complete, included the addition of a fourth stand on the plant's continuous hot rolling mill along with enhancements to the plant's cold rolling mill, coating line and associated finishing equipment.

Ms Martha Brooks president and COO of Novelis Inc said that "The Yeongju expansion increases our ability to serve our customers in Asia with superior aluminum sheet products. The investment is a key step in executing our business strategy to enhance our high value product portfolio in one of the fastest growing regions in the world."

Mr Jacquie Bartlett vice president sales and marketing for Novelis Korea said that "The Yeongju investment allows us to further expand our capability in sheet for high-value applications such as beverage cans, electronics and transportation markets. These products have the highest quality requirements in the business. Our market leadership is a tribute to the high performance of our people, our assets and our technology."

Novelis is the leading supplier of aluminum sheet in South Korea, China and Southeast Asia. The company's subsidiaries in the region shipped a combined total of 515 kilotonnes of aluminum products in 2007. Novelis expects the Yeongju expansion to further increase its aluminum rolling capacity by approximately 100 kilotonnes annually.

Xstrata selects Matrikon Suite a for PIMS in coal operations

Matrikon announced that it had signed an agreement with Xstrata Coal for the standardization of Matrikon Downtime Reporter and Matrikon Production Manager software for the implementation of Process Information Management Systems throughout Xstrata Coal's Coal Handling and Preparation Plants.

Matrikon's Process Information Management Systems solution integrates seamlessly with the plant control system to provide accurate and timely production information. This information is accessed and presented via a web based visualization layer for analysis and reporting of the coal production process. The solution includes Matrikon Downtime Reporter together with Matrikon Production Manager, which are designed specifically for downtime reporting, production accounting, plan management, materials management and train management requirements.

Seamless integration with Xstrata Coal's ERP and supply chain management systems will extend those systems' reach and enable the business to operate with improved agility by responding to market forces in a timely an d cohesive manner. The adoption of a consistent user interface throughout Xstrata Coal's network of mining operations will reduce user training requirements and improve workforce mobility between facilities.

Matrikon's Process Information Management Systems solution will provide site based and enterprise wide KPI dashboards such as production rates, yield analysis, equipment availability and utilization and Overall Equipment Effectiveness. These KPI dashboards will support Xstrata Coal's strategic goals for continual improvement of asset performance and operational excellence.

Mr Sam Crisafulli MD of Matrikon's Asia Pacific operations said that "Matrikon has had a long standing relationship with Xstrata Coal, so we are delighted that this has been extended and formalized by this agreement. Matrikon's software is already in use at four sites so the benefits of this information solution are clearly identifiable."

Milestones in the yen’s history

The dollar sank to a 12 year low at 99.77 against the Japanese yen last Thursday, breaking below 100 for the first time since 1995. Here are some milestones in the yen’s history against the dollar

1871: The yen became Japan’s currency as part of the Meiji Restoration, which marked the start of Japan’s modernization and opening to the rest of the world. Japan adopted the gold standard.

1949: After World War Two the dollar’s fixed rate is set at 360 yen via the Bretton Woods system, partly to help stabilize prices in the Japanese economy.

1959: The dollar/yen exchange rate is liberalized and the margin of fluctuation is set at 0.5% on either side of its dollar parity.

1963: The margin of fluctuation is widened to 0.75%

1971: United States abandons gold standard, bringing an end to the Bretton Woods system of fixed exchange rates and forcing a realignment of world currencies.

December 1971: Under the Smithsonian Agreement, the dollar/yen exchange rate is set at 308 yen and is allowed to fluctuate in a wider band between 301.07 yen and 314.93 yen.

1973: Japanese monetary authorities decide to let the yen float freely against the dollar, and the yen appreciates as far as 263 to the dollar.

1978: The yen pushes through 200 to the dollar for the first time, strengthening as far as 177.

1980 to 1985: The yen’s appreciation halts and partially reverses despite Japan’s big trade surpluses. Steeper interest rates in the United States prompt Japanese investors to put money in dollar assets.

1985: The Group of Five industrial nations, the predecessor to the G7, sign the Plaza Accord in which they agree the dollar is overvalued and to weaken it. The yen climbs from its pre accord level of around 240 to 211 in October and 200 in November, a 20% rise in just a few months.

1986: The US currency falls further to around 190 yen in January, 167 yen in April and 153 yen in August.

1987: In February, six of the G7 nations sign the Louvre Accord, which aims to stabilise currencies and halt the dollar’s broad decline. The dollar still falls from near 153 to 137 in April and 120.80 by the end of the year.

1988: On Jan 4, the dollar falls to a post-war low of 120.45 yen in Tokyo trade, a level that holds as the low for more than five years. The Bank of Japan intervenes to buy dollars and sell yen that day on behalf of the Ministry of Finance.

Aug 17th 1993: The dollar declines to a new post-war low of 100.40 yen in Tokyo.

June 21st 1994: The dollar falls through the key 100 yen level and touches a record postwar low of 99.85 yen in New York trade before finishing at 100.30 yen.

April 19th 1995: The dollar hits a record post-war low at 79.75 yen after US-Japanese trade frictions spark heavy selling. By the end of the year it is near 103.40.

June 17th 1998: As the dollar shoots above 144 yen, US authorities join the Bank of Japan to buy yen, spending USD 833 million. By August the dollar rises to near 148 yen, partly due to yen carry trades in which investors borrow yen funds at Japan’s near zero interest rates to buy higher-yielding currencies.

1998: After the global financial market strains from the near collapse of hedge fund Long-Term Capital Management, carry trades are unwound quickly. In one week alone in October, the dollar tumbles from near 136 yen to a low around 111.50 yen.

1999: The yen strengthens further despite repeated intervention, reaching 102 in November.

2001: Following the September 11 attacks, Bank of Japan intervenes to sell yen for dollars.

2003: The MOF begins massive intervention to halt the yen’s rise against the dollar, partly to shield Japanese exporters as the economy remains stuck in its post-bubble slump and deflation. The MOF spends 20.4 trillion yen over the year, nearly all of it to buy dollars and sell yen.

2004: The MOF spends 14.8 trillion yen intervening in the first quarter of the year, including 1.67 trillion yen buying dollars on January 9 alone. But the MOF ceases intervention in March and has never since resumed.

2005: The yen reaches a high of 101.67 yen in January but then starts to fall, hitting 121.40 in December. Yen carry trades and Japanese investors shifting funds into foreign assets drive the slide.

June 2007: The dollar hits a 4-1/2-year high of 124.14 yen.

July 2007: The yen’s broad depreciation takes it to a 22-year low on a real effective exchange rate basis. Since January 2005 the yen has lost 25 percent of its value on a REER basis.

August 2007: Strains in financial markets from the US subprime mortgage crisis spark an unwind of yen carry trades. The dollar falls from near 120 yen to 111.60 yen. The high yielding Australian and New Zealand dollars tumble nearly 10%.

(Sourced from Reuters)

Tentative labor agreement reached at Kemess mine

Northgate Minerals Corporation announced that it has reached a tentative three year collective agreement with the International Union of Operating Engineers Local 115, representing the 300 production and maintenance employees at its Kemess South mine

The terms of the tentative agreement were accepted by both the Union's bargaining committee and Northgate following a recommendation made by a government appointed mediator. The Union's bargaining committee has unanimously recommended ratification of the Agreement to its membership who will vote on the Agreement over the next three weeks. All operations at Kemess South continue to run normally, with no disruption to scheduled production.

Northgate Minerals Corporation is a mid tier gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia.

Qatar Steel to reach 2.3 million tonne steel capacity in 2008

Gulf Times reported that Qatar Steel will achieve full capacity this year following its multibillion riyals expansion and see a production boost in direct reduction iron, molten steel and rebars.

Sheikh Nasser bin Hamad al-Thani director and general manager of Qatar Steel in an interview with Gulf Times said that Qatar Steel’s direct reduction iron production would scale up to 2.3 million tonnes and molten steel and rebars to 1.5 million tonnes each by 2008 end. He said that “Two more projects are expected to operate at full capacity this year. They are the electric arc furnace with an output of 600,000 tonnes per year and a new rolling mill with 700,000 tonnes a year.”

He added that Qatar Steel’s Dubai plant at the Jebel Ali Free Trade Zone would also see a production boost with the installation of a new bar mill. He said “We have made substantial investments in Dubai to increase annual production of the existing wire rod mill to 240,000 tonnes from the existing 180,000 tonnes and rebars to 300,000 tonnes from the existing 50,000 tonnes.”

Omani government takes measures to control steel prices

Oman Daily quoted Me Ahmed bin Hassan al Dheeb under secretary at commerce & industry ministry as saying that the ministry took measures to control playing with prices of steel.

Mr Al Dheeb said that the ministry asked the main supplier of steel in Oman to give a periodic list of names and quotas of traders whom the supplier provides with steel.

He added that the ministry's inspectors will keep an alert eye on prices and check whether the traders have sold the quotas to consumers or kept them in their warehouses to sell them later to make use of price difference.

He said that "We have also asked the supplier to raise the quotas sold to individual consumers to cut down the margin of profit paid by the ordinary consumer while buying the commodity."

He added that the import of steel is open for all traders, without customs tariff.

Iran and Turkey to cooperate on wagon building

IRNA reported that Iranian and Turkish wagon manufacturing firms have reached agreement on joint project to produce passenger wagon parts.

Mr Ebrahim Ertiryaki MD of Turkey wagon building company said that Iran and Turkey have signed a EUR 17 million contact to manufacture wagon parts.

Referring to the importance of transportation, Mr Ertiryaki noted that the both sides voiced readiness for expanding cooperation in the field of railway.

Saudi Arab power demand may rise by more than 250% by 2032

According to the ministry of water & electricity, Saudi Arabian electricity consumption could rise to the equivalent of 140,000 MW in 2032 as compared with 35,000 MW in 2007.

Mr Ibrahim el Amin researcher at the King Fahd University of Petroleum & Minerals in Dhahran said that total Saudi Arabian power demand is projected to grow to more than 572,000 GWh in 2032 compared with 163,000 GWh in 2006.

Mr El Amin said that the long term demand study is based on the assumption that the population of Saudi Arabia will grow to 33 million to 39 million in 25 years as compared with 22 million now. He added that "The 2032 demand forecast is based on the assumption that the 5 economic cities being developed in the kingdom will need 10,662 MW in 2030. It estimates that at its lowest, demand would be about 108,000 MW in 2032."

He said that the forecast will be affected by the growing number of people arriving for the annual hajj and Ramadan, which takes place during the summer over much of the next decade. He added that "The hajj during the summer could add 1% to 3% to the forecast demand for the western region starting in 2016. There will also be a shift of demand from morning to the evening during Ramadan."

Mr El Amin further added that the long term electricity demand forecast was based on historic trends in the Saudi economy and in power consumption in the kingdom. No change was assumed in the kingdom's electricity tariff structure. Attention will now switch to the structure of supply side issues.

Pakistani industries hit by power, oil and steel price increases

Business Recorder reported that flight of capital has started from Pakistan, owing to continuous increase in the prices of oil, power, steel and other products. Industrialists in general have started pulling out their capital and are planning to invest in some other countries, which offer a better investment climate.

Mr Shaikh Fazl e Jalil chairman of Korangi Association of Trade & Industry said that prices of essential goods may further increase in the near future, owing to a second increase in prices of petroleum products. He added that flight of capital has already started from Pakistan owing to high cost of doing business, and continuous load shedding, with no hope of relief in future. With the increase in oil prices, power tariff might also go up and transporters have hinted at increase in transport charges. Mr Jalil said that the government has no policy, every second day steel prices are increased, Sui Southern Gas Company has already applied for increase in its tariff, labor may demand increase in wages. Under these circumstances, it is almost impossible to run units smoothly.

Mr Naeem Ilyas Khanani chairman of Port Qasim Association of Trade & Industry has criticized the second time increase in petroleum products prices in a month and said that it is better that a new government coming into power should decide these important issues. He said that prices of locally produced goods might go up by 15% to 18% due to multiplier effect of increased oil prices. Mr Khanani said that the cost of doing business is already high in Pakistan and this will further increase it. Industrialists are already facing difficulties in meeting production targets, due to continuous load shedding. Those, who are running their units on captive power generation, are also facing difficulties due to increase in diesel prices, which ultimately increase per unit cost. He urged the government to direct Karachi Electric Supply Company to acquire 200 MW power generating units on priority basis, to fill the gap between supply and demand.

Mr M Nisar Shaikhani chairman of Site Association of Industry said that federal government has no mandate to decide matters, which have a multiple impact on production. They should let the new parliament decide matters of national importance.

Saudi Arab may approve plans to overhaul power sector soon

Mr Abdullah Shehri deputy governor at Saudi Arabia Electricity Regulator said that a plan to overhaul and privatize Saudi Arabia's power sector could be approved within a few weeks as the power demand is rising rapidly due to economic expansions.

Mr Shehri said that the plan would split the power generation assets of Saudi Electricity Company into 4 separate units before eventual privatization. He added that Saudi Electricity Company would likely still own at least one of the companies and transmission assets after privatization.

He said that privatization would help bring the massive investment the power sector needs. Saudi Electricity Company has been struggling to find cash to meet the growing power demand. He added that "We want additional investment to curtail future financial challenges. This will also cut down on expenses and enhance competition."

Mr Shehri said that he restructuring would un bundle generation and transmission assets and a new company would be formed to run Saudi Arabia's power transmission grid. He added that unbundling would be followed by the introduction of competition in the wholesale sector and later with competition in the retail sector.

Meanwhile, Mr Ibrahim El Amin professor at King Fahd University of Petroleum & Minerals in Saudi Arabia said that power generation capacity in Saudi needs to grow threefold over the next 25 years to meet future demand. He added that capacity needs to rise to 115,000 MW in 2032, from current capacity or around 35,000 MW.

Dredging and reclamation work started at Khalifa Port

Khaleej Times reported that Abu Dhabi Ports Company has begun dredging and reclamation of 45 million cubic meters of material at the site of the planned Khalifa Port.

The AED 5.5 billion turnkey dredging contract was awarded in October 2007 to a consortium including, Archirodon Construction Overseas Company SA, Boskalis Westminster Middle East Limited and Hyundai Engineering and Construction Company Limited. The award was the result of 2 years of detailed engineering studies, environmental impact assessment and an 11 month thorough pre qualification and tendering process.

The new port will provide essential infrastructure for the growing industrial and commercial sectors of Abu Dhabi, as outlined in the government's Plan Abu Dhabi 2030. The first stage of development will consist of dredging 45 million cubic meters to create a deep draft 12 kilometer long approach channel to the proposed port, as well as reclamation of the offshore port island which will cover a 275 hectare area.

The port will be completed in phases. The first vessel is expected to call at Khalifa Port in late 2010. The stage 1A development will include over 3.2 kilometer of quay walls able to accommodate a throughput of over 2 million TEUs and over 6 million tonnes of general cargo. Four additional development phases have been planned for, increasing the overall throughput of the port to over 22 million TEUs and 35 tonnes of general, break, dry, and liquid bulk cargo by 2028.

The Khalifa Port is a multi purpose maritime facility located approximately 4.6 kilometers off the shores of Taweelah in Abu Dhabi. It is designed to accommodate the current marine traffic served by the existing port of Mina Zayed and will create a gateway for the import of all cargo into Abu Dhabi and export of goods manufactured in the adjacent industrial zone.

Pakistan can export cement to SA with its own tag – Report

Business Recorder reported that Pakistan's cement sector has received a green signal from the South African authorities to export cement with Pakistani tag. Industry sources said that Lucky Cement is the only Pakistani company, which has received export certificate from the South African Bureau of Standards.

An official of Lucky Cement said that "Yes, our company has received the export certificate from the authorities of South African Bureau of Standard and after this certificate we are able to export cement." He added that in mid of January 2008, a delegation of South African Bureau of Standard visited cement plant to examine the quality of the product.

He said the delegation also obtained some samples of cement, which were later tested at the laboratories of SA Bureau of Standards. In the light of these tests, the bureau has informed us that all tests were positive. He added that "After getting this certificate we will be able to export Pakistani cement with the tag of Lucky Cement."

Presently, South Africa is facing great shortage of cement ahead of upcoming football world cup in 2010. South Africa has some 10 to 12 million tonnes cement demand per year, however due to football tournament they have some 5 million tonnes additional demand. Therefore, as per requirement, Pakistan can export some 9 million tonnes cement to SA during the next 2 years.

Demand of Pakistani cement is increasing globally with the result it has already captured cement markets of India, Iraq, UAE and other countries. Pakistani cement exports have witnessed a healthy growth of 140% to all time high level of 4.2611 million tonnes during the first eight months of current fiscal year 2008 in the wake of rising international demand.

Iran and Switzerland likely to sign a USD 40 billion gas deal

IRNA reported that Iran and Switzerland are likely to ink a big gas deal worth USD 40 billion.

Mr Micheline Calmy Rey foreign minister of Switzerland will probably sign the gas deal with Iran with an aim of reducing Europe's dependence on Russian gas. According to the initial agreement, the deal with be valid and followed by both sides for 25 years.

Mr Calmy Rey said that the deal would not violate the sanctions against Iran imposed by the US and European Union.

Mr Mostafa Sharif al Nabi an energy expert said that such a gas deal with a reputable Swiss company is positive. Swiss EGL company will only buy gas from Iran as other buyers do and this would not violate the sanctions regime. He added that Europeans severely need Iran's gas to reduce their dependence on Russia which is now the only gas exporter to Europe.

Swiss EGL company will receive Iran's gas in Bazargan boarder point and ship it to Albania via Adriatic Sea and then to Italy.

Russian auto maker GAZ to supply 1,700 vehicles to Iran

RIA Novosti reported that a leading Russian automaker plans to supply over 1,700 vehicles to Iran in 2008.

Mr Oleg Markov director of GAZ Group Russian Vehicles Trading House said "In the second quarter we will start the shipment of 1,500 vehicles. Overall we plan to supply 1,750 vehicles."

The report added that GAZ which exports cars to 35 countries delivered 1,249 vehicles to Iran in 2007 under a distributor agreement with Iran Khodoro Diesel signed in the fall of 2006. After delivery of the last batch of vehicles, the parties will launch an assembly facility in Iran.

In 2008, GAZ plans to deliver a pilot batch of auto sets for the assembly of GAZel minivans in the Islamic Republic.

Kurdistan looking for UAE investors

It is reported that businessmen from UAE have been invited to invest in tourism, civil aviation, infrastructure and real estate in Iraq's Kurdistan Region.

Mr Massoud Barzani president of Kurdistan Region said that his government would provide support and facilities with a view to attracting investment from the UAE.

Mr Barzani made the offer during talks with FNC speaker Mr Abdul Aziz Abdullah Al Ghurair and the delegation accompanying him to meetings of the Arab Inter Parliamentary Union. He expressed admiration for the UAE's success in a number of fields, saying it had managed to turn the desert into a green paradise.

Mr Al Ghurair said the UAE wished to explore investment opportunities in Kurdistan Region and invited Mr Barzani to visit his country.

Mr Nechirvan Barzani Prime Minister of Kurdistan Region said that "The cement sector is open to investors as Iraq will need cement for at least 25 years and the door is open for investments in factories and agriculture. The investors can enter Kurdistan and cross from there to the rest of Iraq."

Kurdistan regional government controlled parts of Iraqi Kurdistan is estimated to have around 45 billion barrels of oil reserves, making it the sixth largest in the world, most of it recently discovered. Extraction of these reserves was due to begin in the first 3 months of 2007. As of July 2007, the Kurdish government invited foreign companies to invest in 40 new oil sites, with the hope of increasing regional oil production over the next half decade by a factor of 5, to about 1 million barrels per day.

Gas and associated gas reserves are in excess of 100 trillion cubic feet. Other underground resources that exist in significant quantities in the region include copper, iron, zinc and limestone, which are used to produce cement. The world's largest deposit of rock sulphur is just southwest of Erbil. Other important underground resources include coal, gold and marble.

Omanoil inks 5 year fuel supply agreement with ONTC

Oman Daily reported that Oman Oil Marketing Company has signed a 5 year fuel supply agreement with Oman National Transport Company for the operation of its extensive fleet of 255 buses and coaches.

Mr Omar Ahmed Qatan CEO of Oman Oil Marketing Company and Mr Abdullah Saalmeen Al Ajmi GM of Oman National Transport Company have signed the agreement, whereby Omanoil will be the sole supplier for ONTC in the coming 5 years.

Mr Qatan said that "This agreement is an attestation to our position as a premier provider of commercial fuels and a fabric of the Sultanate’s growth and development. Oman National Transport Company plays a central role in the nation’s public transportation and tourism industry and we are proud to embark on this new partnership to meet the demands of a fast growing economy."

Meanwhile, Mr Al Ajmi said that "Oman Oil Marketing Company is of vital importance to the provision of bulk fuel supplies for achieving ONTC’s objectives. Our aim is to enhance our operations by benefiting from the Omanoil’s reputed and unsurpassed quality of service, customer care and in depth expertise to provide a total package solution that caters to our requirements."

Oman National Transport Company has been serving travelers with its large network of high standard buses and coaches for over 28 years. In line with its ever growing expansion, it continues to provide both national and international transport services to all Oman’s governorates and to cities such as Dubai and Abu Dhabi in the UAE.

Seven firm pre qualified for Al Shaheen refinery project

Khaleej Times reported that at least 7 contractors have pre qualified for the main construction package on Qatar Petroleum's USD 5 billion Al Shaheen grassroots refinery.

The companies are
1) Snamprogetti – Italy
2) Technip – Paris
3) Bechtel – US
4) JGC Corporation – Japan
5) GS Engineering & Construction – South Korea
6) Hyundai Engineering & Construction Company – South Korea
7) SK Engineering & Construction – South Korea

Six subcontractors have pre qualified including Daelim Industrial Company, Daewoo Engineering & Construction and Samsung Engineering, Taiwan based CTCI and Foster Wheeler and CB&I of the US.

Qatar Petroleum said that it is planning to finalize prequalification and invite bids for the lump sum turnkey contract by the end of May 2008, with a view to awarding the deal by November 2008.

The 250,000 barrel a day refinery will produce distillates, bitumen and green coke.

EU levies anti dumping duties on Chinese coke

It is reported that the European Commission on March 17th 2008 decided to levy anti dumping duties on Chinese coke, which the diameter exceeding 80mm for exporting to Europe.

According to the decision, if the CIF price of massive coke, which the diameter exceeds 80mm is below EUR 197 per tonne, it will be levied anti dumping duties. If the CIF price is higher than 197 euros per ton, it will not be imposed anti dumping duty.

The period of levying anti dumping duties is five years.

BHPB bid for Rio – Chinalco considers raising stake in Rio

Bloomberg reported that Aluminum Corp of China, which jointly bought a 9% stake in Rio Tinto Group with Alcoa Inc, is in talks with its partner to consider raising their holdings.

Mr Xiao Yaqing chairman of Aluminum Corp at a conference in Shanghai told reporters that “We are in talks with Alcoa on that issue. If the price is attractive enough, we may raise the stake.”

Mr Yaqing said that this will not be our last acquisition overseas. He said that “We are targeting more acquisitions, particularly good mining assets in the international market.”

Rio's stock is 19% below the 6,000 pence (USD 120) a share price paid by Aluminum Corp of China and Alcoa when they bought their stake. Mr Peter Rudd an analyst at Carroll, Pike & Piercy Pty said that “They are certainly going to have to be listened to now. Buying more Rio averages down the price they paid for the initial stake.''

However, a stake increase may make it more difficult for BHP Billiton Ltd to succeed in its USD 133 billion takeover offer for Rio.

China issues first batch of coal export quotas for 2008

China's National Development & Reform Commission has recently issued the first batch of coal export quota totaling 31.8 million tonnes for 2008 to four state owned coal producers.

The four qualified companies are
1. China Shenhua Group
2. China National Coal Group
3. China Minmetals Import & Export Corp
4. Shanxi Coal Import & Export Group.

As per report Beijing has continuously slashed coal export quota over the years. The tonnage has once reached 100 million tonnes in 2003 and held steady at 80 million tonnes during 2004 to 2006 and dropped to 70 million tonnes in 2007. In 2008, the export quota is expected to be cut by 17 million tonnes to 53 million tonnes.

Mr Gao Yaokun, a Beijing based coal trader at CC Carbon Pte told Bloomberg that “Chinese coal producers, especially the listed companies, will want to export their spot supplies as overseas prices are higher. Domestic coal prices are at USD 90 a tonne while international prices are close to USD 130 a tonne.''

Mr Gao added that “The second batch of quotas would probably be issued later in June or as late as August. The government would look at the demand in the first half of the year before it decides on the second batch of quotas.''

China had ordered domestic shipping companies to halt coal exports during the Lunar New Year in early February and the National People's Congress meeting in March to ease shortages and the announcement of the quota is likely to remove the immediate pressure on coal prices and puts a cap on spot prices.

Taigang undertakes trial production of X 120 HRC

It is reported that trial production of API 5L X120 pipe line steel coil took place in Taigang, making the Shanxi based steelmaker the world's first in trial production of its kind. The recently produced X 120 pipeline steel coil comes up to latest standards issued by US oil industry institution API.

As per report earlier only NSC, Sumitomo and China's Baosteel had a test production of X 120 pipe line steel plate, while nobody tried to develop the coil in hot rolling mill.

Taigang tapped X 80 pipe line steel last year, making it one of the earliest and largest suppliers to the second phase of west to east gas transmission project.

(Sourced from MySteel.net)

China 6 listed steelmakers report average net growth of 76.86% in 2007

It is reported that by March 17th 2008 6 listed steelmakers issued their annual reports for 2007, with weighted retained profits growth rate disclosed at 76.86%.

All of the six steelmakers Daye Special Steel Co, Linyuan Steel, Anyang Steel, Xining Special Steel, Jinan Steel and Nanjing Steel, noted that rising steel price brought then a big growth in operating revenues while escalating raw material and fuel prices also increased the cost pressure.

Of the six, Xining Special Steel is forecast to make highest profit growth in 2008, of 100%, followed by Anyang Steel, of 50%, and then Daye Special Steel, of 30%. Product mix optimization and adjustment are regarded the key to their growths, aside from owing resources.

According to the reports, Nanjing Steel, Anyang Steel and Daye Special Steel respectively reported 163.96%, 77.74% and 1.86% YoY growth in performances. The six mills had total market value of CNY 77 billion.

The six mills' sales gross profitability fell MoM in 2007. Of the products, billet and slab and construction steel witnessed declined profitability while the flats and special steel products enjoyed rises.

(Sourced from MySteel.net)

China State Shipbuilding 2007 net profit up by140% YoY

China State Shipbuilding Co the nation's biggest shipyard announced that its 2007 net profit up by 140% YoY as it increased production to meet rising demand for vessels and diesel engines.

China State Shipbuilding Co said its net income reached CNY 2.92 billion rise from CNY 1.22 billion in 2006. It sales up by 52.3% YoY to CNY 17.9 billion last year after the state owned company turned out 85 ships with total carrying capacity of 6.55 million tonnes, the second largest output in the world.

The statement quoted data from the China Ship Marketing Research Center as saying that Chinese shipbuilders received orders for vessels totaling about100 million deadweight tonnages last year, 43% of the world total. It said China had occupied the mainstream shipbuilding market" as one of the three largest ship manufacturers along with South Korea and Japan.

China State Shipbuilding said 2008 sales were expected to rise by 36.3% to CNY 24.4 billion as it planned to take orders worth CNY 25.6 billion.

China State Shipbuilding aims to become the number one shipbuilder in the world in 2012, with production capacity lifted to 14 million tonnes from the current 4 million tonnes.

China to buy X80 pipes from Japan for East West pipeline

It is reported that Japanese three main steel producers, Nippon Steel, JFE Steel and Sumitomo Metal all received the request from China National Petroleum Corp for more X80 UO pipes supply which used in the second stage East West pipeline project.

Under the existing contract, Japan’s three steel manufacturers will supply 230,000 tonnes to 240,000 tonnes of X80 UO pipe, but the delivery is not sure at present.

The negotiation between both sides will be finished soon. It is reported that Baosteel do not want to supply X80 plate for domestic UO pipe usage.

Bayi Steel 2007 net profit up by159.67% YoY

It is reported that Bayi Steel annual report for 2007 shows the steelmaker realized sales revenue of CNY 12.791 billion up by 43.84% YoY and net profit of CNY 399 million up by 159.67% YoY respectively.

Bayi Steel produced steel 4.04 million tonnes up by 11.6% YoY and steel products 3.87 million tonnes up by 9.3% YoY respectively. HR sheet output reached 860,000 tonnes with the proportion of flat products rising to 22.22%. It aims to yield 5.3 and 5 million tonnes respectively of steel and steel products in 2008 with sales revenue of CNY 16.6 billion.

Bayi Steel will take detailed measures to lower costs and raise efficiency in a bid to cope with iron ore price hike. In the meanwhile it will also strengthen investment in iron ore mines and seek cooperators through share purchasing and share holding.

(Sourced from MySteel.net)

Shougang inks strategic cooperation deal with CFHI

It is reported that Beijing based Shougang has recently singed a strategic cooperation agreement with state owned China First Heavy Industries which would boost the latter to become a market leader in metallurgical equipment producer and full range supplier in the future.

Mr Zhu Jiming chairman of Shougang said that CFHI is an indispensable partner for its relocation to Caofeidian. He said that the two companies would extend the cooperation to more fields in years to come.

(Sourced from MySteel.net)

Taigang Q2 HC ferrochrome purchase price up by 16%

It is reported that Taigang's purchase price for high carbon ferrochrome in the second quarter is fixed at CNY 11000 per tonne, CNY 1520 per tonne up by 16% as compared to the first quarter.

Some suppliers said there is a part priced at CNY 11200 per tonne. In the current market, high carbon ferrochrome price prevails at CNY 11500 per tonne.

TISCO considering price hike for SS products in April 2008

It is reported that Taiyuan Iron & Steel Company Ltd plans to raise April 2008 prices for austenitic stainless steel to cope with high nickel price.

As per report Taiyuan Iron & Steel Company Ltd CR austenitic stainless steel price stood at CNY 32100 per tonne in March 2008 and the price is expected to rise by CNY 1600 per tonne to CNY 2000 per tonne in April 2008.

It pulled up price by CNY 300 per tonne for ferritic stainless steel in March in response to ferrochrome price advances.

(Sourced from MySteel.net)

CITIC appoint Mr Kwok Man Leung as ED

The board of directors of CITIC Pacific Limited announced that Mr Kwok Man Leung will be appointed as an executive director of the Company with effect from April 1st 2008.

Mr Kwok Man Leung, aged 39 is currently director of Business Development Department of the Company. Mr Kwok is a non executive director of CITIC 1616 Holdings Limited and Dah Chong Hong Holdings Limited, both being subsidiaries of the Company with their shares listed on the Stock Exchange of Hong Kong Limited. He is also a director of Adaltis Inc, CITIC Guoan Company Ltd, New Hong Kong Tunnel Company Limited and other group companies concerned with special steel and environmental projects.

He joined the Company in 1993 after experience in sales and business development with a major Hong Kong listed company. He obtained a Master degree in Business Administration from the Chinese University of Hong Kong. He is a Chartered Financial Analyst.

Hanjin Shipping orders for a fleet of terminal tractors from Kalmar

It is reported that Kalmar Industries has won an order to supply 96 terminal tractors to Hanjin Shipping South Korea’s largest shipping company for operation at its new container terminal as part of the Pusan New Port Project, earmarked as the country’s principal deepwater seaport. The first terminal tractors will be delivered starting in June 2008 with the last machines arriving in 2009.

As per report the 4x2 terminal tractors will be deployed by Hanjin Shipping across its four berths as a part of the second phase in the development of its Pusan New Port terminal operations opening in 2009. The customer has also signed a contract with Kalmar’s local representative in South Korea covering the maintenance of the new units.

Mr Mikael Rietz GM of Kalmar Asia Pacific said “Hanjin Shipping chose Kalmar as its partner because of our strong commitment to service and product support. Kalmar’s dealer, Samjin Yard has made an invaluable contribution with its commitment to Hanjin Shipping gfdsacomplemented by its industry knowledge and experience.”

Kalmar already provides service to Hanjin Shipping in many ports across the globe where the shipping company operates its own terminals, in addition to a fleet of some 200 containerships, bulk and LNG carriers. Consequently, this order represents a further strengthening of the important relationship between the two companies.

Hanjin Shipping is one of the world leaders in logistics related business with a global network of container terminals, off dock container yards and US domestic services.

BaoSteel and Chalco to join China jet project

Reuters reported that major state owned Chinese firms, including the parent group of Aluminum Corp of China Ltd will invest in a government led project to develop large passenger and cargo jets.

A source familiar with the situation said Aluminum Corp of China the world's fourth largest aluminum producer plans to invest CNY 1 billion in the project, getting a 5% stake. The source said the parent companies of China's top steel mill Baoshan Iron & Steel and state oil trader Sinochem International will also each take a 5% stake.

The source added that the total cost and further details of the shareholding structure of the project will be unveiled after a board meeting scheduled later this month.

The report added that China's two state owned aircraft makers, AVIC I and AVIC II as well as the government of Shanghai where the jets will be assembled and will also help to bankroll the program. AVIC I and AVIC II both supply components for Airbus's and Boeing's latest models, including the double-decker A380 jumbo jet and the 787 Dreamliner. AVIC II unit Hafei Aviation Industry Co also makes the ERJ-145 regional aircraft in partnership with Brazil's Embraer.

Assa Abloy to buy Chinese fire rated steel door company BJTM

Thomson Financial reported that Assa Abloy AB will acquire BJTM a Chinese high security fire rated steel door company for an undisclosed sum.

The report added that the acquisition is expected to be EPS positive in 2008 and to close during the second quarter 2008.

Assa Abloy said BJTM has shown very good growth over the last years and is projected to reach a turnover of approximately SEK100 million in 2008 and employs some 400 people.

Chalco's net profit in 2007 down by 13.65% YoY

Aluminum Corporation of China Limited the dual Shanghai and Hong Kong listed arm of China's top alumina and aluminum producer announced that its net profit in 2007 down by 13.65% YoY to CNY 10.23 billion.

Chalco said in a statement that the fall was attributable to increased sales costs coupled with a drop in alumina and aluminum sales prices during the year. The company's total sales costs increased by 30.24% YoY to CNY 57.22 billion in 2007 reflecting both increased sales costs and growth in the external sales volume of alumina.

Impacted by fluctuations in the aluminum market, Chalco's aluminum sale price fell 3.15% YoY in 2007 to an average of CNY 16,914 per tonne which served to push down the company's annual income by CNY 1.70 billion. At the same time, Chalco's average alumina sales price for the year plunged by 19.51% YoY to CNY 2,912 per tonne, resulting in an CNY 4.26 billion drop in income for the company.

Chalco generated sales revenue of CNY 76.18 billion in 2007, representing an increase of 17.51% from the previous year which the company attributed to increased external sales of primary aluminum. It sold 3.09 million tons primary aluminum in 2007 outside of the company's subsidiaries up by 44.79% on an annual basis, though its external sales of alumina down by 3.90% annually to 6.03 million tonnes.

Over the course of the year, Chalco produced 9.57 million tonnes of alumina up by 8.38%YoY, 2.80 million tonnes primary aluminum up by 45.08% and 1.02 million tonnes of chemical alumina, down by 7.27%.

NLMK makes mandatory offer to minority shareholders of SGOK

Novolipetsk Steel a leading Russian steel producer announced that it has commenced a mandatory offer to purchase the outstanding share capital of Stoilensky GOK. The offer is made in accordance with Russian legislation and will enable NLMK to more efficiently manage this subsidiary.

The terms and conditions of the mandatory offer to the minority shareholders of Stoilensky GOK are as follows:

1. The price per purchased share is RUB 24,471.12. The price has been set based on the opinion of the American Appraisal and confirmed by the All Russian public organization the “Russian Society of Appraisers” by means of a valuation report exercise. The offered price is higher than the six month average market price of SGOK’s traded ordinary shares as of the date the mandatory offer was made.

2. The list of SGOK’s minority shareholders will be prepared as at April 28, 2008. The shareholder claim is considered to be valid if it is submitted to NLMK’s agent, CJSC Investment Company “Libra Capital”, not later than April 28th 2008.

3. The payments to minority shareholders will be effected within 25 days of the April 28th 2008 in accordance with the submitted banking requisites and postal addresses.

Stoilensky Mining and Beneficiation Plant quarries iron ore concentrate and sintering ore from the Stoilensk deposit, located in the central part of the Northeastern strip of the Kursk Magnetic Anomaly. Confirmed reserves within the pit line are 26.6 million tonnes of high grade iron ore and 1.4 billion tonnes of ferruginous quartzite. In terms of production volume of ore for sale, Stoilensky GOK accounts for 16% of total production of commodity iron ore in Russia.

NLMK currently owns around 97% of SGOK.

Ukrainian coke output in 2months of 208 up by 10.8% YoY

Millennium Capital reported that according to UGMK, Ukrainian coke producers increased coke output by 10.8% YoY to 3.5 million tonnes in January to February 2008 but down by 2.2% MoM.

For January to February 2008

In ‘000 tonnes
Change is YoY
Source from Millennium Capital

February 2008

In ‘000 tonnes
Change is MoM
Source from Millennium Capital

Millhouse denies interest in Hwange coal mine in Zimbabwe

Interfax reported that Mr Roman Abramovich is rumored to be negotiating the purchase of a coal mine in Zimbabwe. A source close to the Russian billionaire told Interfax that Mr Abramovich visited Zimbabw